Policies / 08-08 · Policy 8 of 13

Grant Payments

OGM Policy 08-08, revised June 30, 2020 (technical revision April 12, 2021)4:48Based on public OGM policies and Minnesota statutes
Key points

What the policy requires

Coverage

Competitive, legislatively named, formula, single and sole source grants · not bonding or capital grants

OGM Policy 08-08, Scope of Coverage

Before any payment

Payment method and schedule in the agreement · funds encumbered · agreement fully executed or award notice completed

OGM Policy 08-08; Minn. Stat. § 16B.98, subd. 7

Personal liability

A payment without a prior obligation is illegal. Those who authorize or take part in it are jointly and severally liable.

Minn. Stat. § 16A.15, subd. 3(a)

A narrow exception

Named, legislatively appropriated, noncompetitive recipients may incur eligible expenses up to 60 days before encumbrance

Minn. Stat. § 16B.98, subd. 11 (Laws 2026, ch. 122)

Reviewing a reimbursement

Matches approved budget line items · checked against expenditures to date and the latest progress report

OGM Policy 08-08

Past-due progress report

No payment unless the agency has given a written extension

OGM Policies 08-08 and 08-09

Before an advance

Confidence from past performance and recent financials · written justification approved before encumbrance · signed copy in the grant file

OGM Policy 08-08

Reconcile advances

Grants over $50,000: within 12 months of issuance or within 60 days of the end of the grant period

OGM Policy 08-08

When fraud is alleged

Agency head may withhold payments while a verified credible allegation of fraud is under investigation · notice within 5 days

Minn. Stat. § 15.013, subd. 8 (Laws 2026, ch. 122, sec. 1)
Team checklist

Questions to ask

  • 1Every agreement states the payment method and schedule?
  • 2Payments blocked before encumbrance and full execution, and when a report is past due?
  • 3Every advance justified, approved before encumbrance, and reconciled on time?
Sources

Policy and statutes

  • OGM Policy 08-08, Grant Payments (revised June 30, 2020; technical revision April 12, 2021): mn.gov/grants
  • Minn. Stat. §§ 15.013 (Laws 2026, ch. 122, sec. 1; ch. 121, art. 3, sec. 1); 16A.15, subd. 3; 16B.97, subd. 4; 16B.98, subds. 5, 7, 11 (Laws 2026, ch. 122, sec. 4)
  • OGM Policies 08-06, 08-09 and 08-13

Statute links open the Office of the Revisor of Statutes.