Definition: An after-the-fact transfer of payroll costs to or from a sponsored award after the expense was initially charged to another sponsored award or non-sponsored account.
Allowable Reasons for Payroll Cost Transfers
- Correction of Errors
- Removing Unallowable Costs
- Moving salary encumbrance off expired award
- Allocating pay to a new award
Documentation is needed for audit purposes and is a key element in providing support and justification. Thorough explanation and documentation is essential to avoid audit findings and possible disallowances.