Finding Text
The Academy did not correctly calulate the allowable amount of overhead charged to each of its major Federal grants. In the case of the ARPA funding,the Academy emmbedded a 7.5% allowable overhead rate in its contract. The default 10% rate was superseded by this provision. Additionally, in both contracts major vendors and subcontractors were included at their full amount rather than limiting the includable amount to $25,000 as required by 2 CFR Section 200. This resulted in overcharges totaling $24,384.