Expense transfers are corrections to posted transactions on current, active awards. According to OMB Circular A-21, expense transfers on sponsored projects are allowable, if they meet all of the following conditions:

Allowable in accordance with the terms and conditions of the award document.
Supported by documentation justifying the transfer.
Certified as to the correctness of the charge.

Federal cost principles do not permit the transfer of expenses to another sponsored agreement if the justification for the transfer is for one or more of the following:

To meet deficiencies caused by overruns or other financial considerations
To avoid restrictions imposed by law or by the terms of the sponsored agreement
For other reasons of convenience

Examples of allowable expense transfers are the following:

Clerical error or data input error (transposition or other inadvertent error of account number, amount or object code)
Use of wrong object code
New award costs charged temporarily to another account pending establishment of the new account
Redistribute costs between related awards

Requests for an expense transfer must be supported by documentation justifying the transfer. This justification should include an explanation of the transfer and how the expense related to the award.

Transfers should be requested by the Principal Investigator, within sixty days of receiving a monthly Expense Listing from Grants Accounting.