45 CFR 1630.5 - Costs requiring Corporation prior approval.
(a)Advance understandings. Under any given grant award, the reasonableness and allocability of certain cost items may be difficult to determine. In order to avoid subsequent disallowance or dispute based on unreasonableness or nonallocability, recipients may seek a written understanding from the Corporation in advance of incurring special or unusual costs. If a recipient elects not to seek an advance understanding from the Corporation, the absence of an advance understanding on any element of a cost does not affect the reasonableness or allocability of the cost.
(b)Prior approvals. Without prior written approval of the Corporation, no cost attributable to any of the following may be charged to Corporation funds:
(1) Pre-award costs and costs incurred after the cessation of funding;
(2) Purchases and leases of equipment, furniture, or other personal, non-expendable property, if the current purchase price of any individual item of property exceeds $10,000;
(3) Purchases of real property; and
(4) Capital expenditures exceeding $10,000 to improve real property.
(c)Duration. The Corporation's approval or advance understanding shall be valid for one year, or for a greater period of time which the Corporation may specify in its approval or understanding.