The University of Alabama at Birmingham Overstated Chilled Water Costs in Its Facilities and Administrative Cost Proposal

In its fiscal year (FY) 2010 Facilities and Administrative (F&A) cost proposal, the University of Alabama at Birmingham (UAB) included $8.6 million in chilled water costs that were not in accordance with Federal requirements that costs must be reduced by applicable credits. As a result, UAB’s negotiated F&A rate was inflated by 1 percent per year for FYs 2012 through 2015, and it potentially received as much as $5.9 million in overpayments from the Federal Government.