Purpose

This bill would create a new position called the Director of Grants Management and Oversight within the Department of Administration. The goal is to standardize how state grants are given and managed, improve accountability and transparency, and ensure public access to grant information across state agencies.

Key Provisions

• Establishment and role of the Director of Grants Management and Oversight:

  • Requires the director to have professional experience in auditing and legal compliance related to grantmaking in a large organization.
  • The director leads grants governance and oversight, promoting consistent interactions among state agencies, funders, and grantees, and ensuring compliance with grantmaking laws.
  • Acts as a central resource for training, evaluation, collaboration, best practices, and public accountability for grants.

• Powers and duties of the Director:

  • Review grants management practices, set policy and procedures, and pursue improvements.
  • Sponsor innovative grants management projects and alternative strategies.
  • Collect and share information, issue reports, and participate in related activities.
  • Establish offices for grants governance and require agencies to submit grant solicitation documents for review before they are issued.
  • Determine whether shared grants management technology systems are cost-effective; if not, propose an enterprise-wide reporting system for grants management.
  • Coordinate with the legislature and other entities to ensure compliance and information sharing.

• Grant governance, compliance, and oversight:

  • Agencies must cooperate with the director in the creation, management, and oversight of state grants.
  • The director may adopt rules to carry out grants governance and oversight.
  • The director may review and approve waivers, extensions, or variances from grant terms.

• Data privacy and reporting:

  • Data identifying a person who provides comments is private data but may be shared with the agency involved.
  • Employees who report suspected violations are protected from retaliation.
  • The director (and the legislative auditor) may review compliance and report findings as part of oversight.

• Grant agreements and administration:

  • Grant agreements and amendments must be executed by the agency head (or a delegate), approved by the director, and encumbered in the accounting system.
  • Grant agreements should not exceed five years without written approval, unless the director determines a longer period is in the state's best interest.
  • Fully executed grant agreements and records must be kept by the granting agency.
  • Agencies must comply with minimum grant standards and policies; the attorney general may periodically review a sample of grants.

• Grant management requirements for agencies:

  • Agencies must diligently administer grants and report to the director as requested.
  • Agencies must use a grants management technology system.
  • Grantees must disclose all grants received or applied for from executive agencies; the agency will record and review prior relationships and outcomes.
  • Each grant must have a program manager identified and documented.
  • Agencies must collect documentation to verify grant appropriateness (e.g., financial statements, audits) and may conduct in-person visits to verify grant use.
  • Requests for waivers or extensions require director approval.
  • Agencies must ensure staff duties related to grants are included in job descriptions and performance reviews; establish internal controls for ongoing oversight.
  • Agencies must provide an annual grant activity report to the governor and relevant legislative committees.

• Grant payments and financial controls:

  • Payments to grantees may not be issued until the grant is fully executed.
  • Encumbrances may be extended for a limited period; final payments require comprehensive reconciliations showing proper use of funds.
  • Payments can be withheld if required reports are missing or if the grantee no longer qualifies.

• Transition and implementation:

  • A Director of Grants Management and Oversight must be appointed by October 1, 2025.
  • The agency must recruit qualified applicants through an open, competitive process.
  • The director’s duties will include the work of the existing grants office in addition to new oversight duties.

Impacts and Changes to Law

• Creates a centralized, formal oversight structure for all state grants, aiming to standardize practices across agencies.
• Expands authority to review, approve, and enforce grants policies; introduces potential suspension or debarment of grantees.
• Pushes toward a shared or enterprise-wide grants management technology system to improve transparency and public access to grant data; if a shared system isn’t cost-effective, an alternative system would be developed.
• Increases accountability through mandatory reporting, annual agency grant reports, and periodic compliance reviews.
• strengthens whistleblower protections in grant-related reporting and expands data privacy controls around comments and performance information.

Implementation Timeline

• The Director of Grants Management and Oversight must be appointed by October 1, 2025, with recruitment conducted in a competitive process. The director will oversee both the existing grants management functions and the new duties mandated by the act.

Potential Practical Effects

• State agencies may need to adjust grant processes to align with new policies and reporting requirements.
• Grantees could see more centralized scrutiny of grant usage, stronger monitoring, and more formal reporting and documentation requirements.
• Public access to grant information could improve, due to centralized reporting and transparency measures.

Relevant Terms

• director of grants management and oversight
• grants governance
• grants management
• grantmaking
• grant agreement
• grant solicitation documents
• suspensions and debarments
• grants management technology system
• shared grants management technology system
• encumbrance
• program manager
• grants oversight
• compliance
• auditing and legal compliance
• legislative auditor
• Office of Grants Management
• data privacy (private/nonpublic data)
• whistleblower protections
• annual grant activity report
• waivers, extensions, or variances
• reconciliation
• administration of grants
• grant recipients (grantees)