Use of Grant Contract Agreements and Grant Award Notifications
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What the policy requires
Every grant, in writing
A grant contract agreement or a grant award notification
OGM Policy 08-04, Policy Statement; Applicability; DefinitionsNot valid until
Executed by agency head or delegate · approved by Administration · encumbered · effective date
Minn. Stat. § 16B.98, subd. 5(a)No payment without an obligation
Payments wait for full execution. A payment without prior obligation is illegal; employees can be jointly and severally liable.
Minn. Stat. § 16B.98, subd. 7; § 16A.15, subd. 3The 60-day exception
Specifically named, legislatively appropriated, noncompetitive grants only
Minn. Stat. § 16B.98, subd. 11Before you sign
No suspended or debarred grantees. Five-year limit without written approval.
OGM Policy 08-04, items 1 and 5; Minn. Stat. § 16B.98, subd. 5(b)Required contents
Authority · scope and timeline · duties · payments · work plan and budget · standard clauses
OGM Policy 08-04, items 6 to 9Risk terms and transparency
Extra protections when the risk assessment calls for them. Grantee posts leadership and grant manager contacts.
OGM Policy 08-04, items 10 and 11; Minn. Stat. §§ 16B.981, subd. 5; 16B.98, subd. 5(d)Termination clauses
Conviction ends the agreement, key personnel included (August 2026). The commissioner may terminate early.
Minn. Stat. § 16B.991, subds. 1 and 2; Laws 2026, ch. 122, sec. 5Starting January 1, 2027
Nonprofit agreements: post the Inspector General and Legislative Auditor fraud reporting tools. Agency confirms and documents.
Laws 2026, ch. 92, art. 1, sec. 10 (Minn. Stat. § 15E.35(b))Questions to ask
- 1Nothing paid before an agreement is executed and encumbered?
- 2Templates carry the standard, termination and website clauses?
- 3Agreements and amendments kept at least six years?
Policy and statutes
- OGM Policy 08-04, v1.6 (July 1, 2025): mn.gov/grants
- Minn. Stat. §§ 16A.15, subd. 3; 16B.97, subd. 1; 16B.98, subds. 5, 7, 8, 11; 16B.981, subd. 5; 16B.991 (Laws 2026, ch. 122); 16C.05, subd. 2; 325L.07
- Laws 2026, ch. 92 (Office of the Inspector General, Minn. Stat. § 15E.35)
- OSP Encumbrance and Contract Execution Policy 21-01
Statute links open the Office of the Revisor of Statutes.