Fraud risk scoring and fraud risk score benchmarks requirement for grants to political subdivisions

This bill requires the state auditor to assign fraud risk scores to Minnesota political subdivisions, such as cities and counties, at least every two years. These scores will be based on internal controls, financial practices, and audit findings, with results displayed on a public dashboard for transparency. To receive state grants, political subdivisions must generally meet a minimum fraud risk benchmark established by the state auditor, though those who fall short can submit a plan to improve their controls for temporary eligibility. The legislation includes a pilot program to test the scoring system before full implementation and mandates that the state auditor provide guidance and update the scoring methodology as needed.