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Office of Sponsored Projects

Hinman Box 6210
11 Rope Ferry Road #6210
Hanover, NH 03755
Phone: 603-646-3007
Fax: 603-646-3670
Email: sponsored.projects@dartmouth.edu

Reallocation of Charges and Cost Transfer Policy

Policy Title: Sponsored Reallocation of Charges & Cost Transfer Policy

Policy Statement: It is the policy of Dartmouth College that costs should be charged to the appropriate sponsored award when first incurred. However, there are circumstances where it may be necessary to transfer expenditures to a sponsored award after the initial recording of the charge. It is the policy of Dartmouth College that charges to sponsored awards be reviewed on a regular and timely basis to assure appropriateness of charges and to prepare corrections on a timely basis.

Reason for Policy: To comply with allowability and allocability requirements of the Uniform Guidance and to promulgate best practices for all sponsored awards (federal and non-federal), it is necessary to explain and justify the transfer of transactions to or from federal and non-federal PTA accounts. Timeliness and completeness of transfer explanations are important factors in supporting allowability and allocability in accordance with the principles set forth in the Uniform Guidance. The transfer of transactions from federal and non-federal PTA accounts is closely examined by auditors. Frequent, tardy or unexplained (or inadequately explained) transfers can raise serious questions about the propriety of the transfers, our accounting system and internal controls.

Affected by this Policy: Any Dartmouth College Department who manages Federal and Non-Federal Sponsored Awards.

Who Should Be Aware of this Policy: Office of Sponsored Projects Staff, Dartmouth College Departments who manage Sponsored Awards, Principal Investigators and Other Faculty involved with Sponsored Awards, Divisional Financial Administrators and Central Financial Administrators.

Contacts: Please direct general questions about this policy to your unit's administration. If you have questions about policy issues, please contact the Director of the Office of Sponsored Projects. If you have questions about process issues, please contact your OSP Sponsored Research Manager.   

ONBASE:

OSP electronically reviews and approves Wage Transfers, Cost Transfers and Simple Re-Class SPUD Journals using OnBase.

See OnBase instructions on attached powerpoint slides 

Definitions:

Simple Reclassification: Simple reclassifications are timely reallocations of transactions involving PTA accountsPlease refer to the below Word document for a list of Simple Reclassification scenario's:

Preparing Simple Reclassifications: For Non-Payroll transactions that meet the simple reclass criteria and need to be reallocated, Department Grant Managers or Finance Centers complete an OnBase Corrections, Journals and Cost Transfer Request Form and attach the following documents to the form:

  • CJE001 SPUD Journal – Used only for simple reclass journals

For Payroll transactions that meet the simple reclass criteria and need to be reallocated, Department Grant Managers or Finance Centers complete an OnBase Wage Transfer Request Form and attach the following documents to the form:

  • Supporting documentation of the transaction(s) being moved, this can be a labor report or an IRA OGA Transactions Detail – Expenditures Report.

Once the appropriate form has been completed, the Department Grant Manager or Finance Center submits the OnBase Request Form for approvals.

Simple Reclassification Approvals:

  • PI's do not need to approve Simple Reclass OnBase Corrections, Journals and Cost Transfer Request Forms.
  • PI's do not need to approve Simple Reclass OnBase Wage Transfer Request Forms.
  • OSP approves Simple Reclass OnBase Corrections, Journals and Cost Transfer Request Forms.
  • OSP approves Simple Reclass OnBase Wage Transfer Request Forms.

Processing Simple Reclassifications:

  • After OSP approves the Simple Reclass OnBase Corrections, Journals and Cost Transfer Request Form, OSP uploads the Macro Enabled Excel version of the CJE001 SPUD Journal into OGA (Oracle Grants Accounting).
  • After OSP approves the Simple Reclass OnBase Wage Transfer Request Form, OSP submits the OnBase Wage Transfer Request Form to the appropriate Finance Center for processing.

Cost Transfers: Cost Transfers are reallocations of transactions that do not qualify as a simple reclassification, they are transactions that are typically moved over 30 days from the original transaction posting date.

There are two types of transfer forms:

  • OnBase Corrections, Journals and Cost Transfer Request Form - The CTX001 SPUD Journal (Non-Payroll) Excel form needs to be attached to this OnBase form.  
  • OnBase Wage Transfer Request Form (Payroll) that are used to move these types of transactions.

Both transfer forms require adequate justifications which include answering the following questions on the forms:

  • Why was this transaction(s) originally posted to the account from which it is now being transferred?
  • Why should the transaction be transferred to the proposed account to be charged? How does this transaction benefit the project?

If the original transaction was incurred more than 90 days preceding the transfer request, the justification must also address:

  • Why is the transaction(s) being transferred more than 90 days after the original date the transaction was recorded?
  • What corrective action has been taken to eliminate future need for cost transfers of this type?

Timely Submissions of Cost Transfers: Each Cost Transfer should be completed within 90 days from when the transaction(s) originally posted (GL Transferred Date) to the account(s) that will be credited in the transfer. Cost Transfers over 90 days will only be approved under extenuating circumstances. Examples of Acceptable Extenuating Circumstances for Cost Transfers over 90 calendar days (note that these exceptions still require submission of the Cost Transfer Form and Wage Transfer Form):

  • Late issuance of an account for reasons beyond the control of the requestor.
  • Failure of another department to take action, e.g. on a properly submitted payroll distribution change request.
  • Journals to align the allocation of prepaid tuition remission with effort.

Please Note: Acceptable extenuating circumstances do not include Absences of the PI or Administrator, Lack of Staff, Inexperienced Staff, or Lateness of Reconciliations.

Preparing Cost Transfers: For Non-Payroll transactions that need to be reallocated, Department Grant Managers or Finance Centers complete an OnBase Corrections, Journals and Cost Transfer Request Form and attach the following documents to the form:

  • CTX001 SPUD Journal – Used only for Cost Transfer SPUD Journals
  • Supporting documentation of the transaction(s) being moved, this can be invoice copies or an IRA OGA Transactions Detail – Expenditures Report.

For Payroll transactions that need to be reallocated, Department Grant Managers or Finance Centers complete an OnBase Wage Transfer Request Form and attach the following documents to the form:

  • Supporting documentation of the transaction(s) being moved, this can be a labor report or an IRA OGA Transactions Detail – Expenditures Report.

Once the appropriate form has been completed, the Department Grant Manager or Finance Center submits the OnBase Request Form for approvals.

Cost Transfer Approvals:

  • PI's approve Cost Transfers
  • If there are multiple grants which involve multiple PI's, each PI will need to approve the Cost Transfer.
  • If the PI is unavailable to approve, the Department Chair or Department Administrator can approve in their absence.
  • OSP approve Cost Transfers

Wage Transfer Approvals:

  • PI's approve Wage Transfers
  • If there are multiple grants which involve multiple PI's, each PI will need to approve the Wage Transfer.
  • If the PI is unavailable to approve, the Department Chair or Department Administrator can approve in their absence.
  • OSP approve Wage Transfers

Processing Cost Transfers:

  • After OSP approves the OnBase Corrections, Journals and Cost Transfer Request Form, OSP uploads the Macro Enabled Excel version of the CTX001 SPUD Journal into OGA (Oracle Grants Accounting).
  • After OSP approves the OnBase Wage Transfer Request Form, OSP submits the OnBase Wage Transfer Request Form to the appropriate Finance Center for processing.

Correcting Capital Equipment Allocations:

To request a correction or reallocation of Capital Equipment (dollar value of $5,000 or more) expenses (see Natural Class list below) use the Correction and Journal e-Form  and add Susan Mockus as the approver. There is no need to complete the WebADI or SPUD Journal. As before, if the e-Form involves a sponsored project account (PTA account), the form should be routed through OSP for their review.

If an e-form reaches the Finance Center or OSP without Susan's approval, Susan will be added as the approver and the form will then be routed to Susan for her review, action, and approval.

Any transactions on these natural classes or equivalent expenditure types should follow this process.

Assets over 25k (Capitalized)

1700-Oracle Fixed Assets Clearing

7561-CAP   EQUIP OVR 25K Athletic

7562-CAP   EQUIP OVR 25K Audio Visual

7563-CAP   EQUIP OVR 25K Communication

7564-CAP   EQUIP OVR 25K Comp or Netwrk

7565-CAP   EQUIP OVR 25K Fabricated

7567-CAP   EQUIP OVR 25K Mechanical

7568-CAP   EQUIP OVR 25K Office

7569-CAP   EQUIP OVR 25K Spec or Technical

7571-CAP   EQUIP OVR 25K Scientific

7581-CAP   OTHR OVR 25K Furniture Fixtures

7582-CAP   OTHR OVR 25K Vehicles

7583-CAP   OTHR OVR 25K Computer Software

7584-CAP   OTHR OVR 25K Bldng ImprovRenvtn

7585-CAP   OTHR OVR 25K New Construction

7586-CAP   OTHR OVR 25K Misc Item

7587-CAP   OTHR OVR 25K To Endowment

7599-CAP   ITEMS OVR 25000 OFFSET NonGrant

7598-CAP   ITEMS OVR 25000 OFFSET Grant

Assets Under 25k (Expensed)

7111-EQUIP   5000 to 24999 Athletic

7112-EQUIP   5000 to 24999 Audio Visual

7113-EQUIP   5000 to 24999 Communication

7114-EQUIP   5000 to 24999 Comp Hardware

7115-EQUIP   5000 to 24999 Fabricated

7116-EQUIP   5000 to 24999 Laboratory

7117-EQUIP   5000 to 24999 Mechanical

7118-EQUIP   5000 to 24999 Medical

7119-EQUIP   5000 to 24999 Office

7121-EQUIP   5000 to 24999 Specialized

7122-EQUIP   5000 to 24999 Teaching

7123-EQUIP   5000 to 24999 Technical

7124-EQUIP   5000 to 24999 Machines and Tools

7131-FURN    FIX 5000 to 24999 Furn Fixture

7151-FURNISHINGS   5000 to 24999 Carpet

7152-FURNISHINGS   5000 to 24999 Drapes

7153-FURNISHINGS   5000 to 24999 Matresses

7171-VEHICLES         5000 to 24999 Vehicles

OnBase Request Forms:

  • You can find OnBase Corrections, Journals and Cost Transfer Request Forms and Wage Transfer Request Forms at the following link:

http://www.dartmouth.edu/~fincenter/forms.html

Related Documents & Tools:

The NIH Grants Policy Statement (REV. 10/1/13) link: http://grants.nih.gov/grants/policy/nihgps_2013/ 

Uniform Guidance link: https://www.federalregister.gov/articles/2013/12/26/2013-30465/uniform-administrative-requirements-cost-principles-and-audit-requirements-for-federal-awards

NIH Grants Policy Statement:

"Cost Transfers to NIH grants by grantees...should be accomplished within 90 days...The transfers must be supported by documentation that fully explains how the error occurred and a certification of the correctness of the new charge by a responsible organizational official of the grantee...An explanation merely stating that the transfer was made "to correct error" to "transfer to correct project" is not sufficient. Transfers of costs from one project to another or from one competitive segment to the next solely to cover cost overruns are not allowable. Grantees must maintain documentation of cost transfers, pursuant to 45 CFR 74.53 or 92.42 (record retention requirements) and must make it available for audit or other review...Frequent errors in recording costs may indicate the need for accounting system improvements and/or enhanced internal controls.

revised March 8, 2017

Last Updated: 3/9/17