Cost Transfer Policy Terms & Definitions

Page Updated: December 1st, 2016

These definitions apply to these terms as they are used in this policy.
Fund 128, 136 The spending fund identifier that denotes FEE-FOR-SERVICE activity.
Fund 133 The spending fund identifier that denotes a NON-FEDERAL sponsor.
Fund 135 The spending fund identifier that denotes WARF-sponsored activity.
Fund 144 The spending fund identifier that denotes a FEDERAL sponsor.
Fund 233 The spending fund identifier that denotes GIFT support.
Advance Award A project that is established in the financial system prior to receipt of an award; a provisional Project ID.
Accounting Date For the purposes of this policy, the accounting date is the month-end date of the journal date as shown in WISDM.
Allocable A cost is allocable to a project if goods or services involved are chargeable or assignable in accordance with the relative benefits received by the projects. In order to be allocable a cost must be treated consistently in like circumstances. For further information see 2 CFR 200, Subpart E or OMB Circular A-21.
Allowable A cost is allowable to a project if:
  1. The costs are reasonable;
  2. The costs are allocable to the specific project;
  3. The costs are treated consistently in like circumstances; and
  4. The costs conform to any limitations of the cost principles or the sponsored agreement.
For further information see 2 CFR 200, Subpart E or OMB Circular A-21.
Appropriate If a cost meets the criteria of being allowable, allocable, and reasonable it is appropriate.
Authorized Signer An individual who authorizes a cost transfer transaction, usually the PI or his/her designee.
Award A funding mechanism between the Board of Regents of the University of Wisconsin System and a sponsor whereby the sponsor commits funding to the University for a specific scope of work and for a specific period of time.
Award Expiration Date The end of an award period on a project.
Cost Transfer An after-the-fact reallocation of the cost, either salary or non-salary, to a sponsored project within a 90-calendar day period from the accounting date of a transaction.
Cost Transfer Review A process whereby transactions are analyzed to see if they meet the standards of reasonableness, allowability, and allocability, and are in accordance with Agency and UW guidelines.
Direct Costs Costs that can be specifically and readily identified with a particular project or activity.
Documentation This tab in the Cost Transfer Tool is where the 90-day justification is recorded.
Effort A percentage of time devoted to a project by a principal investigator or other key personnel.
Facilities and Administrative Cost Costs that are incurred by the Institution for common or joint objectives and cannot be identified specifically with a particular project or program. These costs also are known as “indirect costs” or “overhead”.
Fiduciary Responsibility Responsibility to manage funds in a manner consistent with the furtherance of the University’s mission and the conditions specified by external sponsors, when applicable.
Journal Date Indicates when a transaction is posted into the general ledger. This date is available in WISDM for each transaction.
Late Cost Transfer A transfer requested more than 90 calendar days after the end of the accounting month in which the transaction journal date has posted.
Non-Salary Costs For purposes of this policy, non-salary costs are supplies, consultants, travel, equipment, and other non-payroll or non-stipend expenditures.
PI (Principal Investigator) The individual responsible for determining that the expenditures are necessary, allowable, allocable, reasonable, properly approved, and adequately documented. A PI may delegate this authority to a designee.
Project A set of activities including budget, scope of work, period of performance and PI. An award (the legal obligation of funds) may contain one or more projects.
Project ID The numeric/alpha identifier for the financial activity of a project. The Project ID number is a unique seven-digit number/letter combination and is used to record financial activity in the general ledger. It is sometimes referred to as an “account number.”
Reasonable Would a prudent person pay this amount for this item or "If it were published on the front page of the Wisconsin State Journal, would that be okay with you"? For further information see 2 CFR 200, Subpart E or OMB Circular A-21.
Salary Costs For purposes of this policy, salary costs are payroll expenses (salary and benefits) as well as stipends that are reported as costs to the general ledger.
Sponsored Project A project funded by an award from a grant, contract, or cooperative agreement under which the Institution agrees to perform a certain scope of work, according to specified terms and conditions, for a specific budget.
Stewardship The careful and responsible management of the Institution's financial resources.
Stipend A payment made to an individual for participation in training or learning experience. The payment helps defray the individual's living expenses during the period of training. Even though a stipend is not considered compensation for the services of an employee, a transfer of stipend costs uses a salary cost transfer mechanism.
Transaction Any event that involves an exchange of funds between two parties. Examples are paying a bill to a vendor, collecting a fee, and processing an interdepartmental charge. UDDS or Dept ID The seven-digit code that identifies UW spending units by University/Division/Department/Subdepartment.
WISDM Wisconsin Data Mart for PeopleSoft Financials. The reporting tool used to provide information from the general ledger of the University’s accounting system.
WISPER The Wisconsin Proposal Electronic Routing System is a web-based system for electronic routing of applications and agreements related to extramural funding.