3. Specific Cost Guidance by Category

3.11. Contingency provisions

Ref: 2CFR Part 200, § 200.433. 

Contributions to a contingency reserve or any similar provision made for events the occurrence of which cannot be foretold with certainty as to time, intensity, or with an assurance of their happening, are unallowable, except as noted in the cost principles in this circular regarding self-insurance, pensions, severance and post-retirement health costs.