HF4104

Purpose

The bill adds requirements for how grant-making agencies oversee and monitor grants. It aims to improve accountability by ensuring grants are properly administered and that the granting agencies regularly check on grant progress and use of funds.

Main Provisions

• Grant oversight obligation: A granting agency must diligently administer and monitor every grant it enters into and report the grant’s status to the state commissioner if the commissioner asks for it.
• Unannounced site visits for grants over $10,000: For each grant greater than $10,000, the granting agency must conduct at least one unannounced on-site and in-person monitoring visit.
• Ongoing monitoring for long-running disbursements: For grants over $10,000 where money is disbursed over more than 12 months, the agency must conduct at least one unannounced on-site and in-person monitoring visit per 12-month period.
• Exceptions: The commissioner may approve exceptions to the unannounced visit requirement for an entire grant program if the agency can explain why unannounced visits aren’t suitable for that program. The commissioner may not approve exceptions for individual grants.

How it changes current law

• The bill amends Minnesota Statutes 2024 section 16B.98, subdivision 6, by adding a new Subdivision 6 (Grant administration site visit requirement) that mandates these unannounced monitoring visits and related reporting.

Implementation details

• Visit type and timing: All required visits must be unannounced, on-site, and in-person.
• Financial threshold: Applies to grants exceeding $10,000.
• Monitoring frequency: For grants disbursed over more than 12 months, at least one such visit must occur in each 12-month period.
• Oversight and reporting: Granting agencies must diligently monitor grants and provide status updates to the commissioner upon request.
• Exceptions process: The commissioner may approve program-wide exceptions, but not exceptions for individual grants.

Relevant Terms unannounced on-site monitoring visit; on-site; in-person monitoring visit; grant; granting agency; status report; commissioner; Minnesota Statutes 2024 section 16B.98 subdivision 6; grant program; disbursement; 12-month period; diligent administration; oversight; accountability; grants over $10,000.