Ohio Administrative Code|Rule 3349-20-12 | Cost transfer.

                                                
(A) Purpose
To assure the integrity of the university's
		  charges for salaries, wages, goods and services on sponsored programs and other
		  restricted funding transferred to and/or from a sponsored program or other
		  restricted funding after an initial charge elsewhere in the university's
		  accounting system.
In accordance with 2 C.F.R. 200 it is necessary
		  to explain and justify transfers of charges onto federally-funded sponsored
		  programs, where the original charge was previously recorded elsewhere on the
		  university's operating ledger. Timeliness and completeness of the
		  explanation of the transfer are important factors in supporting allow ability
		  and allow capability.
(B) Scope
This rule applies to cost transfers, including
		  the transfer of payroll and other direct costs associated with sponsored
		  programs and restricted funding.
(C) Definitions
Consult rule 3349-1-01 of the Administrative
		  Code.
(1) "Cost
			 Transfer" refers to the reassignment of an expense to or from a sponsored
			 program or restricted fund after the expense was initially charged to another
			 sponsored program or non-sponsored program. Cost transfers include
			 reassignments of salary, wages, and other direct costs.
(2) "Sponsored
			 Program" refers to an award funded via a grant, contract, cooperative
			 agreement or subcontract from a federal, state or local government entity, the
			 private sector, or an institution of higher education, whereby the university
			 agrees to perform a certain scope of work, in accordance with terms and
			 conditions set by the sponsor, for specific, budgeted monetary
			 compensation.
(3) "Principal
			 Investigator" refers to the faculty or staff member designated by the
			 sponsor to have the appropriate level of authority and responsibility to direct
			 the project or program supported by the grant.
(4) "Sponsor"
			 for the purposes of this rule, refers to an entity that awards funding for a
			 specific purpose.
(5) "Restricted
			 Funds" refers to those funds provided by a sponsor for a specific purpose
			 and subject to specified terms and conditions.
(D) Body of the rule
(1) The university is
			 committed to ensuring that all cost transfers (either in the form of a labor
			 redistribution or non-salary journal entry) are legitimate and are conducted in
			 accordance with the terms and conditions of the sponsored program, regulations
			 and university rule.
(2) All principal
			 investigators ("PI") and their business managers are responsible for
			 ensuring that transfers of costs to or from sponsored program and restricted
			 funds which represent corrections of errors are made promptly.
(3) Cost transfers must
			 be supported by documentation which contains a full explanation of how the
			 error occurred and a correlation of the charge to the sponsored program to
			 which the transfer is being made. Explanations such as "to correct an
			 error" or "to transfer to correct project" are
			 unacceptable.
(4) Cost transfers to any
			 sponsored program account are allowable only where there is direct benefit to
			 the sponsored program account being charged. An overdraft or any direct cost
			 incurred in the conduct of one sponsored program may not be transferred to
			 another sponsored program account merely for the sake of resolving a deficit or
			 an allow ability issue. Cost transfers should not be used as a means of
			 managing awards.
(5) Cost transfers that
			 are initiated as a means to move expenses onto a sponsored program merely to
			 spend the available balance are unallowable.
(6) Expenses that have
			 been disallowed on one sponsored program or restricted fund are not to be
			 transferred to a different sponsored program. Additional details can be found
			 in the direct charging sponsored programs and unallowable costs
			 rule.
(7) Cost transfers must
			 be prepared and submitted within ninety days from the end of the calendar month
			 in which the transaction appears on the award except in cases where the
			 sponsor's (federal or non-federal) terms and conditions are stricter than
			 those of the university. Any cost transfers that are initiated after ninety
			 days will require the approval of the department or college head and will be
			 reviewed by the controller; approval may be given on a case-by-case
			 basis.
(E) Responsibility
The principal investigator is responsible for
		  prompting the cost transfer form. Grants accounting is responsible for
		  reviewing the form and completing the cost transfer process.