This bill aims to enhance the governance and management 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 must 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 management policies by requiring the commissioner to prevent fraud, waste, and abuse, and to ensure greater accountability and transparency in grant processes.

Key amendments to existing statutes include the introduction of specific monitoring requirements for grants over $50,000, such as unannounced visits before final payments are made. The bill also stipulates that grant agreements must include provisions for the grantee to post leadership information on their website. Furthermore, it emphasizes the need for thorough pre-award risk assessments for potential grantees, ensuring that they have appropriate internal controls in place. The bill also clarifies that grant agreements must be suspended if the recipient is charged with a crime, thereby reinforcing the integrity of the grant management process. Overall, the legislation seeks to create a more robust framework for managing state grants and addressing potential fraud.

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