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GIM 15 Attachment B

Cost Transfer Minimum Threshold

University of Washington

Office of Research
Office of Sponsored Programs

Grants Information Memorandum 15 Attachment B

April, 2008

Introduction:

Departments and PIs are responsible to ensure costs charged to sponsored project budgets are reasonable, allocable, consistent with University costing practices, and allowable by the sponsor’s regulations. In carrying out these responsibilities, departments and PIs should regularly reconcile their budgets. In addition, as errors are discovered cost transfers may be required to reflect an accurate accounting of costs incurred for a particular project or program.

Traditional accounting practices hold that when costing errors do occur, those errors should be corrected as soon as possible by transferring those charges to the correct budget, regardless of the dollar amount of the error.

Recent audits have found that the University processes a significant number of ‘low dollar’ cost transfers that place a strain on an already over burdened administrative system. The following change is being made to improve the efficiency and effectiveness of our cost transfer process for non-material dollar amounts.

Procedure:

  1. Non-Grant & Contract Budgets:

    It is not necessary to process cost transfers involving individual transaction amounts equal to or less than $10.00.

  2. Grant & Contract Budgets, including program income and restricted gifts:

    It is not necessary to process cost transfers involving individual transaction amounts equal to or less than $10.00. However, departments must monitor the volume of these transactions on an individual budget to ensure they do not become material in relation to the award amount.

This policy does not relieve the department from the responsibility of clearing all over-expenditures in a timely manner on any budget regardless of the dollar amount.

For questions on Grant and Contract budgets contact Ted Mordhorst, tedm2@u.washington.edu or (206)-616-8678

For questions on non-grant budgets contact: accountg@u.washington.edu or (206)-221-7845