MN HF2537

Nonprofit organizations seeking state grants must submit IRS Form 990 for the two preceding years, cap employee compensation at the governor's salary level, and exclude state employees or elected officials from their governing boards

Organizations receiving more than 50% of revenue from state funds face additional requirements including certified financial audits for two years and background checks on officers and board members for theft, fraud, or embezzlement convictions

Grant recipients must report detailed accounting of fund usage, program outcomes with measurable indicators, and operating expenses within one year of receiving funds and annually thereafter

Fiscal agents must submit reports to legislative committees summarizing grant recipients' success in meeting goals, with annual updates due January 15 until funds are fully spent

Grant agreements for amounts over $500,000 must include audit clauses allowing examination of books and records for two years prior to and during the grant term, with records retained for minimum six years after agreement ends