Bill > HF2537

This bill establishes comprehensive fiscal safeguards and reporting requirements for nonprofit organizations receiving state grants in Minnesota. The legislation defines key terms such as "certified financial audit" and "grant" and sets strict eligibility criteria for nonprofit organizations seeking state funding. To be eligible, organizations must submit their IRS Form 990 for the previous two years, limit executive compensation to no more than the governor's annual salary, and ensure that their governing board does not include state employees or elected officials. For organizations receiving more than 50% of their revenue from state funds, additional requirements include submitting certified financial audits and undergoing background checks on officers and board members. The bill mandates detailed grant applications that outline program goals, service areas, and measurable outcomes, and requires grant recipients to provide comprehensive reports on fund usage, including detailed accounting, program outcomes, and operating expenses. Fiscal agents must submit annual reports to legislative committees summarizing grant usage and recipient performance. The bill also empowers state administrators to report any potential fraud or ineligibility directly to legislative committee chairs, enhancing transparency and accountability in state grant allocation. These provisions will apply to grants appropriated and agreements executed after the bill's effective date.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2537&ssn=0&y=2025