The bill proposes new requirements for state agency grant administration accounting and reporting in Minnesota. It introduces a new section, [16B.982], which mandates that any amount retained from a grant appropriation for administrative costs must be separately accounted for in the state's accounting system. Additionally, it requires state agencies that administer grant programs or act as fiscal agents to submit annual reports by February 1 to relevant legislative committees. These reports must detail the amount retained for administration, the total appropriated amount, the total spent on administration, and a breakdown of how the funds were utilized.

The bill emphasizes transparency and accountability in the management of state grants by outlining specific reporting requirements. The effective date for these provisions is set for July 1, 2024. This legislative measure aims to ensure that state agencies provide clear and comprehensive information regarding the financial aspects of grant administration, thereby enhancing oversight and public trust in state financial practices.