Which statement is not true? 'District overhead costs are...'

• A. paid for by HQUSACE
• B. paid for by the district office
• C. paid by project sponsors
• D. allocated to projects

Answer: (D)

District overhead costs are the shared administrative expenses that keep the district operating and can’t be tied directly to any single project. Because these costs support many activities, they aren’t charged as a direct cost allocated to a specific project. Instead, they’re funded from the district’s overall budget—typically through funding from HQ USACE and the district’s own budget. In some cases, project sponsors may reimburse some overhead through negotiated terms as part of reimbursable work, but the overhead itself isn’t allocated to each project as a direct charge. So the idea that district overhead costs are allocated to projects isn’t true. The funding comes from HQUSACE, the district office, or sponsor arrangements, rather than being distributed as direct charges to individual projects.