Grants
MHS

APPENDIX B: Financial Requirements, Reports and Records

(9/30/09)

1. Expenditures
2. Documentation
3. Records Retention
4. Nongovernmental Organizations: Fiscal Review Requirements<
5. Payments and Reporting

1. Expenditures

  • Expenditures for the project must be made in accordance with the approved project budget specified in the grant agreement.
  • Any project expense not specifically approved in the budget will not be allowed without advance approval in writing by the Grants Office.
  • Work on the project must be completed within the dates set forth in the grant agreement. Work done outside the project period is not eligible for grant assistance. If a time extension becomes necessary, the grantee should make the request at least thirty (30) days before the end of the grant period. 
  • Services and materials that cost $20,000 or more must be contracted for using a formal bidding process. All services to be performed by such professionals as architects, consultants, engineers, historical researchers, etc., must be offered to a minimum of three bidders. Evidence of the offering along with copies of the bids received must be included in the project financial records.
  • Services and materials that cost less than $20,000 may be bid or purchased on the open market. For purchases between $500 and $5,000, the grantee must maintain financial records that verify the cost was based on at least three verbal quotes. For purchases greater than $5,000 and less than $20,000, the grantee must maintain financial records that verify the cost was based on competitive quotes based on written specifications.

2. Documentation

Within thirty (30) days after the project is completed, a final report form including supporting documents must be submitted to the Grants Office. Supporting documents include photographs (as applicable), receipts/invoices for mid and large grants, in-kind labor forms (optional), and a copy of the project’s final product. Final work products should be either uploaded to the grants portal or sent to the Grants Office via US Mail. The final report form and related documents can be found in the grants portal and on the Legacy grants website. See the Grant Project Manager's Guide for more information on final reporting.  
 
It is important to submit these reports promptly because grantees with overdue reports are not eligible to apply for grants until past due reports have been approved by the Grants Office.

3. Records Retention

  • Grantee must keep project financial records on file for a minimum of six years. An audit may be made at any time by the Minnesota Historical Society, its designated representative, or any applicable agency of the State of Minnesota.

4. Nongovernmental Organizations: Fiscal Review Requirements

The State of Minnesota Grants Policy (#08-06) requires a review of the financial stability of nongovernmental organizations applying for grants of more than $25,000. To comply with this requirement, these organizations must submit an acceptable financial record as part of their application materials. Any items of significant concern must then be discussed and resolved to the satisfaction of Minnesota Historical Society staff before a grant is awarded. 
 
Failure to supply an acceptable financial record with your application may result in disqualification. The record you submit must be the most recent available and no more than three (3) years old. If your organization is too new to have any of these records, you may need to delay application until your organization has sufficient organizational history has transpired.

Acceptable Records:

  • Form 990
  • Form 990-EZ
  • Audit
  • Year End Financial Report

Records that CANNOT be accepted:

  • Form 990-N (no financials are part of this document)
  • Budget (this is a future projection, rather than showing past performance)
  • Bank Statement (current moment snapshot of financial picture)
  • Balance Sheet (current moment snapshot of financial picture) 

5. Payments and Reporting

See the Grant Project Manager's Guide for more information on interim and final reporting requirements. 
Small Grants and Structured Grants (up to $10,000) 
  • Once the grantee has completed and returned the grant agreement and has received authorization to begin work from the Society’s Grants Office, a check for the full grant award will be released.
  • he final report form, including the completed budget table showing approved and actual expenditures, must be submitted to the Grants Office within 30 days following the assigned end date for the project to close out the grant.
  • Grantees with overdue final reports are not eligible to apply for another grant until paperwork is closed out.
Mid-Size Grants (greater than $10,000 but less than $50,000) 
  • A check for 90% of the grant award will be released to grantees once grant agreement documents have been fully executed and grantees have received authorization to begin work from the Society’s Grants Office.
  • The final report form, including the completed budget table showing approved and actual expenditures, must be submitted to the Grants Office within 30 days following the assigned end date for the project to close out the grant. The remaining 10% of the grant funding will be released upon receipt and approval of the final report.
  • Grantees with overdue final reports are not eligible to apply for another grant until paperwork is closed out.
Large Grants ($50,000 and up) 
  • For large grants, a payment schedule appropriate to the needs and scale of the project will be negotiated with the grantee and included in the grant agreement. Agreements may include an advance payment at the start of the project with interim payments tied to the project schedule or reimbursable expenditures.
  • Grantees must submit progress reports in order to receive interim payments. Requested materials are project-specific and will be listed in the grant agreement with the payment schedule. 
  • The final report form, including the completed budget table showing approved and actual expenditures, must be submitted to the Grants Office within 30 days following the assigned end date for the project to close out the grant. The remaining 20% of the grant funding will be released upon receipt and approval of the final report.
  • In addition, for large grants for grants over $100,000 grantees are required to submit a copy of an audited financial statement for the period the grant was active.

The Minnesota Historical and Cultural Grants Program has been made possible by the Arts and Cultural Heritage Fund through the vote of Minnesotans on November 4, 2008. Administered by the Minnesota Historical Society.