Cost Transfers

It is the policy of Texas Tech University that costs be charged to the appropriate sponsored project when first incurred. However, there are circumstances in which it may be necessary and appropriate to transfer expenditures to, from, or among sponsored projects subsequent to the initial recording of the charge.


Cost transfer policy and definitions include after-the-fact reallocations of both salary and non-salary charges. Expenses must meet allowability requirements and are normally appropriate in the following circumstances:

  • To correct clerical and data entry errors or other errors identified during monthly review of grant ledgers;
  • A reallocation of salary costs to reflect actual expended effort;
  • Removal of unallowable expenses;
  • Transfer of expenses from non-sponsored accounts used prior to the execution and setup of the award (the use of advanced accounts is preferred, refer to OP 65.10, Budgeting Sponsored Projects Prior to Receipt of Award); or
  • To clear charges on overspent sponsored projects to non-sponsored accounts.

Inappropriate reasons for cost transfers include, but are not limited to, the following:

  • To utilize unexpended funds on a sponsored project;
  • Transfers between sponsored projects to avoid or eliminate cost overruns;
  • For other cost management strategies;
  • To circumvent award terms and conditions; or
  • For matters of convenience.

Requirements for Cost Transfers

Non-salary cost transfers are completed in the Financial Transaction System (FITS). Salary cost transfers (or labor redistributions) are completed on Labor Redistribution forms. All cost transfers require a justification form to document the purpose of the cost transfer.

Cost transfers must be processed within 90 days of the original charge (or within 90 days of project setup if the negotiated award is received after the project start date). After 90 days, cost transfers are only allowed in certain extenuating circumstances as outlined in TTU OP 65.04 Cost transfers on Sponsored Projects and Cost Share Funds.

For additional questions, Grant Specialist contacts can be found by college and department in the Accounting Services Find My Grant Specialist contact listing.