OP 62.27:  Interdepartmental Transfers of Costs

DATE: April 4, 1995

PURPOSE:  The purpose of this Operating Policy/Procedure (OP) is to establish a uniform procedure for the processing of interdepartmental cost transfers.

REVIEW:  This OP will be reviewed on August 1 of each even-numbered year by the Director of Accounting Services (DAS) with recommendations for change forwarded through administrative channels to the Vice President for Fiscal Affairs by August 15.

POLICY/PROCEDURE

1. Definition

An interdepartmental cost transfer is initiated when the expense of an account is to be removed and transferred (charged) to another account.

2. Procedure

1. Cost transfers may be initiated by either the department charged or the department credited using the Request for Interdepartmental Cost Transfer (Attachment A). The form must be completed including a complete description of the reason for the transfer and the signature of both account managers. If multiple accounts are involved, continuation sheets may be used. When possible, a copy of the original document creating the cost, i.e. voucher, invoice, etc., should be attached. If a copy of the original document cannot be furnished, the original document number should be inserted in the space provided. If no number is given, the explanation should state why. Explanations should be full and complete.

2. All interdepartmental cost transfers must be submitted for processing within two months from the date the original document was processed. Any cost transfers received after the two month period will not be processed unless approval is granted by the Manager of Accounting Services, the Director of Accounting Services, or the Manager of Grants and Contracts Accounting.

3. After completion, one copy should be kept by each account manager and the original forwarded, with attachments, to Accounting Services for entry.

3. Special Requirements for Grants, Contracts, and Other Sponsored Projects

Cost transfers to or from grant, contract, or other sponsored projects are subject to the policies and procedures in OP 65.04 on Cost Transfers on Federal Grant and Contract or Other Sponsored Research and Projects.

4. Special Requirements for Encumbered Funds

If a transfer applies to encumbered funds which have not been paid, the Purchasing Department should be requested to divide the encumbrance between the accounts involved.

5. Accounting Services

The DAS will be responsible for proprietary review and entry of all cost transfers. If the charge is to be transferred to an E & G (state appropriated) account from a locally funded account, then the proprietary review shall include an examination of the original documentation for assurance that bidding and all other requirements satisfies those that would have been required if the charge had been originally processed against E & G funds. If the DAS finds the reason proper and in the case of transfers to E & G funds, the documentation appropriate, a journal voucher will be prepared to enter the transfer. Should the DAS find that the requested cost transfer is not appropriate, it shall be returned with explanation of rejection. The Request for Interdepartmental Cost Transfer will be attached to the journal voucher as documentation.

ATTACHMENT