Competitive Grant: A competitive grant is awarded through an application process in which a state agency solicits and reviews proposals. Grants are awarded to applicants that best meet the agency’s established selection criteria, subject to the availability of funds.

Legislatively Mandated Grant: A legislatively mandated grant is an appropriation in which the grant amount and purpose are specified in law. In some cases, the statute also designates the grantee organization.

Single Source Grant: A single source grant is awarded noncompetitively when, after confirming through a reasonable search, only one entity is determined to be capable and available to fulfill the grant’s purpose and objectives.

Formula Grant: A formula grant is a noncompetitive award distributed to states or other eligible entities according to a formula established in statute or administrative regulation. These grants support ongoing activities rather than specific projects. Allocations are typically based on entitlements or reimbursement of defined costs as outlined in the program’s authorizing legislation or regulations.

The grant lifecycle includes all of the activities related to developing, awarding, executing, managing, and closing a grant. The lifecycle is often divided into three stages: pre-award, active award, and post-award.

There are thirteen grants management policies applicable to all State of Minnesota Executive Branch grantmaking agencies. These policies do not apply to capital or bonding grants. OGM policy sets the minimum standard for the enterprise based on authorities in Minn. Stat. §16B.97, 16B.98, 16B.981, and 16B.991. Agencies may develop additional requirements and business processes to support grants management for their programs. 

Learn more about OGM grants policies

A grant contract agreement is a class of contract which provides the transfer of cash or something of value to a recipient to support a public purpose authorized by law.  This is different than a professional technical (P/T) contract, which is a legally binding agreement to acquire a specific product or service for the State of Minnesota's direct benefit.

1. The grant application materials include the standard grant contract language and assurances including, as applicable, notice of pre-award risk assessment of potential grantees as described in OGM Policy 08-06 (Preaward Risk Assessment.)
2. The applicants accept the terms and conditions of the grant funds based on their signature and submission of application materials. 
3. The state agency completes its review of the grant application. 
4. As applicable, state agency completes pre-award risk assessment of the potential grantee as described in OGM Policy 08-06:Preaward Risk Assessment and decides to award the grant. 
5. The grant award notification incorporates the approved application materials, including the assurances accepted by the grant applicant, and officially notifies grantees that they may begin work on the grant. Signature steps are conducted in an order that results in an expedited process with a legally binding agreement. 

A request for proposals (RFP) is a document that outlines a funding opportunity for qualified applicants to support a specific purpose or to achieve specific outcomes. 

The RFP contains all the information a potential applicant needs to decide if the grant opportunity is the right fit for their proposal or project. Responding to an RFP may involve submitting an application, financial documents, and attesting to various conditions. While OGM provides an RFP template for agency use, program requirements, agency policy, and anticipated award amounts will impact the information included in a State of Minnesota grant RFP or public notice of funding opportunity. All RFPs should contain contact information for potential applicants to submit questions about the funding opportunity and application process. 

Grant contract agreements or grant award notifications must be amended when there is a change in the amount of the grant or the time period of the grant. 

Grant contract agreements or grant award notifications may be amended only when the purpose of the amendment is similar to the purpose of the grant contract agreement or grant award notification and when the grantee duties are within the scope of the original request for proposal, notice of grant opportunity or grant application. Any amendments to the terms of the grant contract agreement or grant award notification must be made according to a fully executed amendment. A memo to the grantee indicating changes is not legally binding and is not sufficient to make the changes. Please see Grants Management Policy 08-12 for additional information on grant amendments. It is important that the amendment is in place before the grant contract agreement or grant award notification expires. This will avoid any liability that may occur for not having an agreement in place  when the grantee is working. 

Grant contract agreement exhibits, attachments, approved grant application materials with corresponding grant award notices may also be revised as part of a grant amendment. Agencies should use the grant amendment template available in the resources section of this site. Granting agencies can also choose to streamline work plan and budget changes through a revision process without needing to pursue an amendment. 

Note: Effective April 1, 2024, for a grant contract agreement and amendments to be valid and binding approval is required by the commissioner of the Department of Administration (ADM). A signed Grants Annual Plan enables an agency to issue grants and amendments that are covered by the annual plan with its existing safeguards and internal controls. 

A conflict of interest occurs when a person has actual or apparent duty or loyalty to more than one organization and the competing duties or loyalties may result in actions which are adverse to one or both parties. A conflict of interest exists even if no unethical, improper, or illegal act results from it.

Cost Reimbursement Payment: A cost reimbursement payment is a type of grant payment in which the grantee incurs the expenses before requesting repayment from the grantor.

Advance Payment: An advance payment is a type of grant payment in which the grantor pays the grantee for costs associated with a grant before the grantee has incurred the expense.

It is the responsibility of the granting authority to monitor its grantees’ performance. Grants Management Policy 08-10 states that agencies must conduct at least one monitoring visit per grant period on all state grants over $50,000 and at least annual monitoring visits on grants over $250,000. In addition, agencies must conduct a financial reconciliation of grantees’ expenditures on grants over $50,000. 

Agencies typically utilize a combination of monitoring techniques to effectively monitor their grantees. The following are various examples of how an agency may monitor performance:

• Obtain and review third party certifications indicating that the work is satisfactorily completed (by an inspector).
  
• Perform site visits using a fiscal/program management checklist as a tool to ensure the grantee’s contract compliance.
  
• Attend grantee board meetings.
  
• Conduct telephone interviews with grantee program staff and document desk monitoring findings on a checklist or write a report.
  
• Interview or conduct focus groups with grantee service recipients or community members.
  
• Review any independent auditor/public accountant reports of the grantee’s activities.
  
• Obtain and thoroughly examine all payment documentation submitted for reimbursement and the documentation that evidences that the grantee obtained any required match funds.
  
• Documentation from monitoring visits must be kept in the grant file.