Policies / 08-06 · Policy 6 of 13

Preaward Risk Assessment of Potential Grantees

OGM Policy 08-06, Version 2.1, effective July 1, 20254:51Based on public OGM policies and Minnesota statutes
Key points

What the policy requires

Who is covered

Competitive, legislatively named, single source, and sole source grants of $50,000 or more to local governments, nonprofits, and businesses

Minn. Stat. § 16B.981, subds. 1-2

What to review

Track record · capacity at scale · finances and internal controls · good standing · felony certification · debarment check

OGM Policies 08-06 and 08-04; Minn. Stat. § 16B.981, subd. 2

Two practical limits

Financials from finalists only (competitive) · financial, standing, certification and debarment checks can be shared across similar grants to one entity within six months

OGM Policy 08-06

Risk mitigation

Request information (15 calendar days) · enhanced oversight · technical assistance · conditions written into the agreement

OGM Policy 08-06; Minn. Stat. § 16B.981, subds. 3-5

Not awarding

Written notice with reasons · include the commissioner of Administration · 30 calendar days to start a contested case

Minn. Stat. § 16B.981, subd. 4(b)-(d)

Legislatively named grants

Delay until the next session adjourns · notify House Ways and Means and Senate Finance chairs and ranking minority members · funds revert without direction

Minn. Stat. § 16B.981, subd. 4(e)

Beyond the policy

Conviction of the grantee or its key personnel ends the agreement · OGM policy must include a grantee fraud risk rating system starting February 1, 2028

Minn. Stat. § 16B.991, subd. 1 (Laws 2026, ch. 122, sec. 5); Laws 2026, ch. 119, art. 2, sec. 8
Team checklist

Questions to ask

  • 1Every award of $50,000 or more has a documented risk assessment?
  • 2Mitigation conditions written into the grant agreement?
  • 3Decline notices give reasons, include Administration, and explain the 30-day contest right?
Sources

Policy and statutes

  • OGM Policy 08-06, v2.1 (July 1, 2025): mn.gov/grants
  • Minn. Stat. §§ 16B.97, subd. 4; 16B.981, subds. 1-6; 16B.991, subd. 1 (Laws 2026, ch. 122, sec. 5); 309.53, subd. 3
  • Laws 2026, ch. 119, art. 2, sec. 8 (grantee fraud risk rating system, eff. Feb. 1, 2028)

Statute links open the Office of the Revisor of Statutes.