---
kind: "section"
citation: "45 C.F.R. § 1630.6"
title: "45"
number: "1630.6"
heading: "Prior approval."
url: "https://uscodex.org/cfr/45/1630.6"
---

# §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.

## Notes

### Amendments

[82 FR 37337, Aug. 10, 2017; 82 FR 55053, Nov. 20, 2017]

### Authority

Authority: 42 U.S.C. 2996g(e).

### Source

Source: 82 FR 37337, Aug. 10, 2017, unless otherwise noted.

### Amendments

[82 FR 37337, Aug. 10, 2017; 82 FR 55053, Nov. 20, 2017]