Policies / 08-05 · Policy 5 of 13

Managing Fraud Risk and Reporting Responsibilities

OGM Policy 08-05, Version 2.1, effective July 1, 20266:58Based on public OGM policies and Minnesota statutes
Key points

What the policy requires

Training

Before grant duties begin, then every year

Minn. Stat. § 16B.98, subd. 6a

Reporting grant violations

Employee reports promptly. A supervisor who receives it must notify the Legislative Auditor.

Minn. Stat. § 16B.98, subd. 4

Leaders' own duty

Leaders: information indicating possible unlawful use, notify the Legislative Auditor promptly. Anyone with evidence: report it in writing, in detail.

Minn. Stat. § 3.971, subd. 9; § 609.456, subd. 2

Outside referrals

Legislative Auditor · BCA Financial Crimes and Fraud Section (program fraud, financial crimes, anything reported to OLA) · Department of Revenue (tax)

OGM Policy 08-05; Executive Order 25-10

Declining after a risk assessment

15 calendar days to respond · reasons in writing · 30 days to contest · legislatively named grants held for the Legislature

Minn. Stat. § 16B.981, subd. 4(a)-(e)

Audit rights

Grantee and other relevant parties' records, at least six years. Implied even without an audit clause.

Minn. Stat. § 16B.98, subd. 8

Withholding payments (rewritten 2026)

Agency head verifies · allegation under investigation · notice within 5 days · reconsideration within 60 days · no fixed cap

Minn. Stat. § 15.013, subds. 7-8 (Laws 2026, ch. 122, sec. 1, eff. Aug. 1, 2026)

Other remedies

Repayment · Attorney General referral · data sharing · conviction ends the agreement

Minn. Stat. § 16B.98, subd. 9; § 13.357, subd. 2; § 16B.991, subd. 1 (Laws 2026, ch. 122, sec. 5)

Reporters are protected

Good-faith reports by state employees are protected from retaliation. OGM may not share a reporter's identity with the agency involved.

Minn. Stat. § 181.932, subd. 1; § 16B.97, subd. 5 (Laws 2026, ch. 122, sec. 3)
Team checklist

Questions to ask

  • 1Grants staff trained and documented, before duties and every year?
  • 2Every supervisor knows: reports go to the Legislative Auditor, in writing?
  • 3Agency head ready to verify an allegation and send notice within five days?
Sources

Policy and statutes

  • OGM Policy 08-05, v2.1 (July 1, 2026): mn.gov/grants
  • Minn. Stat. §§ 3.971, subd. 9; 13.357, subd. 2; 15.013, subds. 7-9 (Laws 2026, ch. 122, sec. 1); 16B.97, subd. 5 (Laws 2026, ch. 122, sec. 3); 16B.98, subds. 4, 6, 6a, 8, 9; 16B.981, subd. 4; 16B.991, subd. 1 (Laws 2026, ch. 122, sec. 5); 181.932, subd. 1; 609.456, subd. 2
  • Laws 2026, ch. 92 (Office of the Inspector General, new Minn. Stat. ch. 15E, effective Jan. 1, 2027)
  • Minn. R. 1230.1150 · Executive Order 25-10

Statute links open the Office of the Revisor of Statutes.