Policies / 08-04 · Policy 4 of 13

Use of Grant Contract Agreements and Grant Award Notifications

OGM Policy 08-04, Version 1.6, effective July 1, 20255:07Based on public OGM policies and Minnesota statutes
Key points

What the policy requires

Every grant, in writing

A grant contract agreement or a grant award notification

OGM Policy 08-04, Policy Statement; Applicability; Definitions

Not 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. 3

The 60-day exception

Specifically named, legislatively appropriated, noncompetitive grants only

Minn. Stat. § 16B.98, subd. 11

Before 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 9

Risk 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. 5

Starting 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))

Keep it. Amend it properly.

At least six years · changes only by executed amendment · electronic signatures count

OGM Policy 08-04; Minn. Stat. § 16B.98, subds. 5(c), 8; § 325L.07
Team checklist

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?
Sources

Policy and statutes

Statute links open the Office of the Revisor of Statutes.