A cost transfer is the reallocation of costs associated with a transaction from one project to another. This process is often necessary to correct errors, allocate costs more accurately, or adjust billing errors. Cost transfers must meet specific criteria to ensure they are allowable, allocable, reasonable, and consistent with both UMB and sponsors’ policies. 

Sponsored projects cost transfers are subject to increased scrutiny to ensure compliance with federal regulations. They should be prepared and submitted as soon as the need for a transfer is identified, but no later than 90 days after the posting is made and/or within 30 days of the project end date.

Cost transfers done by UMB.

• Non-payroll Cost Transfers: These involve the reallocation of non-payroll expenses to correct errors or align costs with the appropriate project or funding source.
• Payroll Cost Transfers: These involve the reallocation of payroll expenses to correct errors or align payroll distribution with effort certifications.
• Budget Retro: An automated process to redistribute payroll expenses by the employee’s home department, triggered by the entry of an Employee Funding Profile (EFP) with an effective date prior to the current payroll period.
• Direct Retro: A process used to redistribute payroll expenses in situations when the Budget Retro process cannot be used.