![]() As a result, it is essential that expenditures, and any subsequent cost transfers, be timely and accurate.įederal guidelines for cost transfers state that: ARRA requires quarterly status and final reports, which are closely scrutinized by the Federal government to ensure that ARRA funds are not subject to fraud, waste, and abuse. The American Recovery & Reinvestment Act (ARRA) of 2009 is prompting additional scrutiny of award expenditures. More recently, a 2012 NSF/OIG audit determined that the University of California at Santa Barbara (UCSB) had to repay approximately $500,000 of inappropriate cost transfers. ![]() One 2006 audit found that Yale University illegally transferred money between accounts to avoid returning unspent funds and led to Yale’s payment of $7.6 million in restitution. Frequent cost transfers and cost transfers made long after the original cost is incurred (even if valid) raise questions about the reliability of the university’s policies and its internal controls.Īudits of cost transfers grew primarily out of NIH not-for-cause compliance visits at major research universities. The government expects that costs are charged appropriately at the time incurred and that significant adjustments should not be required if adequate financial management practices and policies exist. What are cost transfers and why do we monitor them so closely? A Cost Transfer is the transfer of an expenditure, or cost, that initially posted to one project or account and is then transferred to another project or another account.
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