This bill aims to enhance the management and oversight of state grants in Minnesota by introducing new requirements for fraud reporting and improving transparency within state agencies. It mandates that state employees who suspect fraud must report their findings to their supervisors or the legislative auditor, who will then notify the Legislative Audit Commission if multiple reports arise about the same agency. Additionally, each state agency is required to post a current organizational chart on its website, detailing the names and contact information of key personnel. The bill also strengthens grants governance by requiring the commissioner to implement policies that prevent fraud, waste, and abuse, and to ensure greater accountability and transparency in grant management.

Key amendments to existing statutes include stricter requirements for grant agreements, such as the necessity for in-person monitoring visits for larger grants and the withholding of funds from grantees who fail to submit required progress reports. The bill also specifies that grant agreements must include provisions for the grantee to publicly disclose leadership contact information. Furthermore, it establishes a pre-award risk assessment process for grants of $50,000 or more, ensuring that agencies evaluate the potential grantee's ability to fulfill grant obligations. Overall, the bill seeks to create a more robust framework for grants management, emphasizing accountability and the prevention of misconduct.

Statutes affected:
1st Engrossment: 16B.97, 16B.98, 16B.981, 16B.991