Cost (Expense) Transfers on Sponsored Accounts – LR 603.7

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University of Arkansas at Little Rock
Policy Name: Cost (Expense) Transfers on Sponsored Accounts
Policy Number: LR 603.7
Effective Date: June 10, 2016
Revised Dates: –
Most Recent Review Date: –

Policy Statement

A cost (expense) transfer is any transfer of an expenditure from one account to another. To ensure compliance with all federal, sponsor, and university policies and regulations, the Office of Research and Sponsored Programs (ORSP) must monitor and document expense transfers involving sponsored funds. Expense transfers must be requested in a timely and consistent manner, as outlined in this policy.

Under no circumstances may an expense transfer be initiated for the sole purpose of avoiding award agreement restrictions, utilizing unexpended funds, or covering losses or overages from other projects. Federal regulations specifically prohibit transfers of this nature. Additionally, any expense transfers affecting a previously submitted financial report or final invoice, regardless of how old the original transaction, are generally unallowable. Exceptions are rare and require ORSP approval.

Reason for Policy

Sponsored account expense transfers must be timely, conform to university and sponsor guidelines, and have appropriate documentation to be considered allowable. Frequent, late, or inadequately documented transfers raise questions about the propriety of the transfers and may result in expenditure disallowances and/or subsequent reduction in funding. Principal Investigators (PIs) should avoid purchasing items at the end of a project (e.g., within its last 90 days), because purchases made during this period are subject to greater scrutiny during an audit.

To Whom Does This Policy Apply

All UA Little Rock personnel requesting expense transfers to and/or from sponsored accounts must follow it.


To request a non-salary expense transfer, PIs must complete the Request for Expense/Internal Income Transfer Form (FIN006). An expense transfer should be made no later than 60 days after the original transaction. For projects that have ended, requests should be made no later than 30 days after the project end date. The completed form should be sent to ORSP for review and approval. Expense transfers made after the 60 or 30-day limitation will be considered only under extenuating circumstances, which will be determined on an individual basis by ORSP.

The form and detailed instructions for completing the form can be found under the forms link on the Financial Services website.

Roles and Responsibilities

Principal Investigators have the primary responsibility for ensuring compliance with federal regulations as well as monitoring expenditures, timely correction of errors, and proper allocation of expenses. They are also responsible for the timely, accurate preparation and submission of expense transfer requests.

ORSP receives and reviews expense transfers and ensures that they are allocable, allowable, and reasonable. ORSP also retains copies of all related supporting documentation in accordance with its record retention regulations.

Source: Office of Research and Sponsored Programs
Status: Active
Approved By: Chancellor Joel E. Anderson, June 10, 2016
Custodian: Office of Research and Sponsored Programs