20.14 - General (Non-Grant) Cost Transfers

Contents:

A. General
B. Procedures
C. Contact Information

A. General. It is the responsibility of management to ensure that expenses are posted to the correct FOAPAL (Fund, Organization, Account, Program, Activity, Location) when the cost originally occurs. Cost transfers are necessary to correct an error, but fiscal units should implement internal controls (e.g., interoffice communications, training, supervisor review) to prevent errors and the frequent use of cost transfers. When an expense is incorrectly posted, a cost transfer is required to move the expense to the correct FOAPAL. If multiple cost transfers per year are occurring, action must be taken to correct the underlying issue. If assistance is needed please contact General Accounting at gnrlacctg@uidaho.edu. If the transfer involves a grant or contract fund, additional steps may be required. See APM 45.07.

B. Procedures. The following procedures must be followed to ensure cost transfers are appropriate and authorized.

B-1. Proper Use of Cost Transfers. The only valid reason to use a cost transfer is to correct the FOAPAL an expense is posted to. Invalid uses of cost transfers include but are not limited to:

• Clearing budget deficits by moving expenses
• Effecting a transfer of funds
• Spending down remaining balances
• Incurring charges against a fund with the intent of later cost transfers to move to the correct fund

B-2. Cost Transfer Entry. All non-payroll cost transfers are entered in the Banner Journal Voucher form. Specific field requirements are:

• Journal Type – CT
• Document Reference – Document code of the document posted in error
• Document Text
  • Cost Transfer document - A full explanation of the conditions that require the cost transfer. Insufficient document text will result in a disapproved document with a request for additional text. Additional text requirements are:
    • Date of original transaction
    • Name
  • Original document - A full explanation of the conditions that require the cost transfer. It is acceptable to use the same explanation as the cost transfer document. Additional text requirements are:
    • Date of cost transfer
    • Name
    • Cost transfer document number

B-3. Timely Corrections. In no case will a cost transfer be authorized after the close of the fiscal year. Generally cost transfers should be completed within 90 days of the original transaction, or fewer if necessary to complete before the close of the fiscal year. Cost transfers more than 90 days after the original transaction date may require additional documentation.

B-4. Payroll Cost Transfers. For payroll cost transfers (non-grant funds), refer to APM 55.02. For grants and contracts-related payroll cost transfers, refer to APM 45.07.

C. Contact Information. Questions about cost transfers should be referred to General Accounting, gnrlacctg@uidaho.edu. For grants- and contracts-related cost transfers, questions should be referred to the Office of Sponsored Programs, (208) 885-6689.p

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