What is the difference between a designated and an undesignated contingency?
A designated contingency is a set aside for a specific purpose, and cannot be used for another purpose. LBCC usually creates a designated contingency for personnel services to cover the additional costs of open contracts that are not settled during the budget process. An undesignated contingency is a set aside of potential budget authority without a specified purpose, and is for any unexpected operating situation. There is a limit on the amount of contingency that can be transferred to expenditure lines equal to 15% of the total appropriation.
