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Cost Transfer

Responsible Department
Grants & Contracts Administration
Effective Date
11/08/2019
  1. .

    Policy Purpose

    The purpose of this policy is to establish the requirements for Principal Investigators (the “PI”) and the Grants and Contracts Administration to perform cost transfers on sponsored agreements at the University of North Georgia (the “University”).

  2. .

    Definitions

    1. Allowable: An allowable cost is one that meets the criteria for authorized expenditures specified in the cost principles. A cost is allowable to a project if the cost is:

      1. Reasonable;
      2. Allocable to the specific project;
      3. Treated consistently in like circumstances;
      4. Net of all applicable credits;
      5. Not included as cost or used to meet the cost sharing requirements of another sponsored award;
      6. Sufficiently documented;
      7. Authorized under federal, state, and local laws and regulations; and
      8. Conforms to any limitations of the cost principles or the sponsored agreement.

    2. Reasonable:  Costs are considered reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. Factors to consider when determining reasonableness are as follows:

      1. Is the cost necessary?
      2. What are the restrictions and requirements?
      3. How does the cost compare with fair market value?
      4. Did the individuals act with caution?
      5. Did the cost involve deviations from reputable practices?

    3. Allocable: A cost that is assignable to support the work of a specific sponsored award. Allocability is met if the costs meet the following criteria:

      1. The cost is incurred for a specific award;
      2. The cost benefits both the award and other work of the nonfederal entity and can be distributed in shares that may be approximated using reasonable methods; and
      3. The cost is necessary to the overall operation of the nonfederal entity and is assignable in part to the award in accordance with the principles of 2 CFR 200, Subpart E.
  3. .

    Policy Statement

    When a cost is determined not to be Allowable, Reasonable, or Allocable on a sponsored agreement, the PI must comply with University Procedures for Grants and Contracts Cost Transfers.

  4. .

    Support Information

    1. The Cost Transfer Policy implements the Federal requirements set forth by the Office of Management and Budget (“OMB”) Uniform Administrative Guidance 2 CFR 200, Subpart E.

    2. Improper or inadequate cost transfers can result in the following restrictions imposed on the University by the Federal Government: Payback of award funds to sponsor; withholding of future funding; special monitoring by sponsor; audit findings; requirement for corrective action plan; designation as a “high risk” institution; loss of expanded authorities; and/or payment of punitive damages.
  5. .

    Procedures

    Any related operating procedures must comply with and should reference this policy.

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