# 1630.6 Prior approval.
(a) *Advance understandings.* Under any given grant award, the reasonableness and allocability of certain cost items may be difficult to determine. To avoid subsequent disallowance or dispute based on unreasonableness or nonallocability, a recipient may seek a written understanding from LSC in advance of incurring special or unusual costs. If a recipient elects not to seek an advance understanding from LSC, the absence of an advance understanding on any element of a cost will not affect the reasonableness or allocability of the cost.
(b) *Costs requiring prior approval.* (1) Without LSC's prior written approval, a recipient may not expend $25,000 or more of LSC funds on any of the following:
(i) A single purchase or single lease of personal property;
(ii) A single contract for services;
(iii) A single combined purchase or lease of personal property and contract for services; and
(iv) Capital improvements.
(2) Without LSC's prior written approval, a recipient may not expend LSC funds on a purchase of real estate.
(3) For costs apportioned between LSC funds and one or more other funding sources, this requirement applies when the cost allocable to LSC funds is $25,000 or greater.
(4) The process and substantive requirements for requests for prior approval are in 45 CFR part 1631—Purchasing and Property Management.
(c) *Duration.* LSC's advance understanding or approval shall be valid for one year, or for a greater period of time which LSC may specify in its approval or advance understanding.
[82 FR 37337, Aug. 10, 2017; 82 FR 55053, Nov. 20, 2017]