Budget Transfer – VTC – F&A Adjustment

Note: F&A (Facilities and Administration Costs) are also referred to as Indirect Costs, or Overhead

VTC documents transfer budget from one sub account to another within the same budget group.  Certain restrictions apply when processing a VTC budget transfer on a Sponsored Project account.

Budget Transfer on 26 Accounts
  • Many Sponsors or projects specifically disallow budget revisions or impose strict limits.
  • Uniform Guidance (2 CFR 200) – Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, in section 2 CFR 200.308, addresses budget revisions in detail.
  • Budget transfers that affect the project’s scope of work always require prior sponsor approval.
  • Specific subaccount restrictions may apply. Examples are:
    • Transfer of budget on a subaccount designated for a sub-contract generally requires an amendment to the sub-contract.
    • Uniform Guidance specifically requires sponsor pre-approval for “the transfer of funds budgeted for participant support costs as defined in §200.75  Participant support costs to other categories of expense.”
  • Overheard adjustment may be needed as part of a budget transfer.
    • When budget is transferred from an F&A earning subaccount to a non-F&A earning subaccount, budget needs to be reduced in the Overhead (90) subaccount.
    • When budget is transferred from a non F&A earning subaccount to an F&A earning subaccount, budget needs to be increased in the Overhead (90) subaccount.
    • The F&A rate associated with a subaccount can be located by entering ‘X’ next to the subaccount on *DEFINE Command CA3, Screen 3.
  • The VTC Budget Transfer Worksheet (Excel) can assist with calculating the adjustments on overhead. Feel free to download the worksheet.

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Procedure
  1. Investigator identifies which categories are to be affected by the transfer.
  2. All requests for transfers of funds are processed in the FRMS Transfer System, available at https://utdirect.utexas.edu/apps/frms/transfers/.
  3. Upon departmental approval, the VTC routes to SPAA for final review and approval.
  4. An email message is generated to the PI once the VTC has been final approved.

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