Project directors need to review all fiscal grant activity on a monthly basis to ensure that expenses are appropriately charged to your budget and that no costs have been erroneously posted to your grant account. Costs should be charged to the appropriate account when first incurred; however, there may be circumstances that require transferring expenditures to a grant/contract subsequent to the initial recording of the expense.
Federal agencies require grantees to have systems in place to detect and correct clerical, bookkeeping, or other posting entries within a reasonable timeframe. Timely review of expenditures, on at least a monthly basis, will help to correct errors and limit the number of cost transfers. Transfer of costs either into or out of a grant account requires monitoring for compliance with MCCCD guidelines, federal regulations, grant specific guidelines, and the cost principles that underlie fiscal activities on grants.
Cost transfers increasing a grant’s expenditures should be requested within 90 days after the month in which the cost was originally posted to MCCCD’s financial accounting system. Cost transfers must be completed no later than 60 days after the grant terminates. This is necessary to promptly charge the grant and not delay the submission of final financial records.
Federal and other sponsor regulations require written justification, certified by the Project Director or authorized designee on all cost transfers. Your request will need to explain (1) why the error occurred resulting in the need for a transfer, (2) why the cost transferred is allowable, allocable and a reasonable charge on the new account and (3) how the charge supports performance of the scope of work. Transfers to reduce overruns, to spend unused balances, or for other reasons of convenience are prohibited. Detailed information about the Cost Transfer Process and the form to be used can be found at: http://www.maricopa.edu/business/grantsacctg/Cost%20Transfer.htm.