§ 4-5.02 INTERGOVERNMENTAL TRANSACTIONS
STATE GRANTS TO LOCALITIES: Every state agency which provides from its appropriations grants of general or nongeneral funds to an agency of local government shall first determine the duration of the level of funding of the grant. If, in the opinion of the granting agency, the grant will terminate within three years or, if the grant is for a longer period, and the level of funding will fluctuate significantly, the granting agency shall provide the governing body(ies) of the local government with a written statement of the grant duration, amount, purpose, conditions and limitations upon funding continuation. No expenditure to effect any grant from a state agency shall be made without the written approval of the governing body(ies). "Grant" for this purpose is defined as an allocation of funds by the granting agency on a discretionary basis, not mandated by the laws of Virginia.