Material Overspend Breach - Definition

In Simple Terms

A team commits a Material Overspend Breach when their total spending exceeds the annual cost cap by 2% or more. This is a serious violation that goes beyond minor accounting differences and triggers formal penalties.

• The breach occurs when Relevant Costs exceed the Cost Cap by 2% or more
• It applies to Full Year Reporting Documentation submitted by teams
• Both initial submission and subsequent reviews can identify a Material Overspend Breach
• This is distinguished from minor overspends and represents a significant financial violation