Cost Transfers

A cost transfer is any adjustment or transfer of expenditure to/from an externally funded contract or grant. Cost transfers include reclassification of salary, wages, and other direct costs (goods and services and travel). Diligent review of financial records should prevent the necessity for cost transfers; however, transfers may be appropriate under certain circumstances.

Costs directly charged to sponsored awards must comply with the cost principles outlined in the Office of Management and Budget (OMB) Uniform Guidance (2 CFR Part 200). The circular explicitly states that expenses “may not be shifted to other sponsored agreements in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience.” Expenditures should be directly charged to the project account. If overspending occurs, a cost transfer should immediately be processed to move the error to a different account.

Program Income

Program Income is defined in OMB Uniform Guidance (2 CFR Part 200) as “Gross income earned by the University that is directly generated by a sponsored activity or earned as a result of an award.” Examples include:

Fees for services, such as laboratory tests.
Receipts from the sale, use or rental of equipment purchased with project funds.
Royalties from patents and copyrights.

UNT may be required to credit program income to the award, and, therefore, GCA should always be consulted for advice if any income is generated by work under a grant.

Project Reporting

Certain sponsor-prescribed actions are required to ensure timely reporting of an award. While requirements vary by sponsor, the following reporting is needed for most projects:

Financial Reporting—GCA has primary responsibility for preparing and submitting all interim and final financial reports; however, timely reporting usually requires assistance from the PI through their input prior to the reporting deadline. The PI is responsible for ensuring that all expenses charged are accurate and allowable under the terms of the award. For final reports, the PI plays a vital role in assuring that the report (and final invoice) is accurate and submitted by the deadline. Any trailing charges not included in the final invoice will become the responsibility of the PI.
Progress Reporting (interim and final)—Most awards require submission of interim and final progress reports covering the technical aspects of the award. Such reports can vary from a brief summary and list of publications to a complete compilation of project results. The specific reporting requirements are stipulated in the award agreement. The PI is responsible for preparing and submitting progress reports in the correct form (manual or electronic) and by the prescribed deadline. GCA requests that a copy of the report be forwarded to our office for placement in the award file.