SB 2630

MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Accountability, Efficiency, Transparency
By: Senator(s) Sparks
Senate Bill 2630
(As Passed the Senate)
AN ACT TO CREATE THE MISSISSIPPI GRANT AND SUBGRANT
ADMINISTRATION TRANSPARENCY AND ACCOUNTABILITY OF NON-GOVERNMENTAL
ORGANIZATIONS ACT OF 2026; TO ESTABLISH THAT THIS ACT SHALL BE CREATED TO
ESTABLISH REQUIREMENTS THAT ENHANCE OVERSIGHT, ACCOUNTABILITY AND TRANSPARENCY
IN GRANT ADMINISTRATION OF STATE AND FEDERAL FUNDS; TO DEFINE RELEVANT TERMS;
TO ESTABLISH GRANT PROGRAM PERFORMANCE METRICS AND REQUIREMENTS; TO ESTABLISH
GRANT ADMINISTRATION, FINANCIAL REPORTING AND LEADERSHIP DISCLOSURE
REQUIREMENTS; TO CLARIFY WHAT CONSTITUTES PROHIBITED ACTIVITIES FOR THE USAGE
OF GRANT FUNDS; TO PROVIDE INFORMATION THAT SHALL BE SUBJECT TO AUDITS OF NON-GOVERNMENTAL
ORGANIZATIONS AND QUASI-PUBLIC ENTITIES; TO REQUIRE THAT REPORTS REQUIRED BY
THIS ACT SHALL BE FILED WITHIN 180 DAYS AFTER FISCAL YEAR END OF YEAR OSA
PREFORMS OR DIRECTS A COMPLIANCE AUDIT; TO AUTHORIZE DFA TO ENFORCE THE
POLICIES AND PROCEDURES OF THIS ACT; AND FOR RELATED PURPOSES.
���� BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:
���� SECTION 1.�
(1)� This act shall be known and may be cited as the "Mississippi Grant and Subgrant Administration Transparency
and Accountability of Non-Governmental Organizations Act of 2026."
���� (2)� It is the intent of the
Mississippi State Legislature to establish requirements that enhance oversight,
accountability and transparency in grant administration of state and federal
funds appropriated by the Mississippi State Legislature to Non-Governmental
Organization grantee and subgrantees receiving taxpayer dollars.
���� SECTION 2.�
For the purpose of this act:
��������� (a)� "Grant"
means an award of financial assistance following a grant application process or
other method of obtaining general or special funds from a state agency, board
commission or other unit of government to an eligible nongovernmental recipient
for specified project-based purposes.
��������� (b)� "State
agency" means any executive
department, military department,
government corporation, government controlled, quasi government entity,
corporation or other establishment in state government.
��������� (c)� "Primary
recipient" means any entity
receiving grant funds directly
from a state agency, except for an individual or household.
��������� (d)�
"Subrecipient" means an entity that receives a subaward from a pass-through
entity to carry out part of an award.� The term subrecipient does not include a
beneficiary or participant.� A subrecipient may also be a recipient of other
federal or state awards directly from a federal or state agency.� Individual
person or household are not considered to be subrecipients under this section.
��������� (e)�
"Subaward" means an award provided by a pass-through entity to a
subrecipient for the subrecipient to contribute to the goals and objectives of
the project by carrying out part of a state award received by the pass-through
entity.� It does not include payments to a beneficiary or participant.
��������� (f)� "Pass-through
entity" means a recipient or subrecipient that provides a subaward to a
subrecipient (including lower tier subrecipients) to carry out part of a
federal or state program.
���� SECTION 3.�
(1)� All state agencies that administer grants shall establish specific,
measurable annual objectives and outcomes relating to the purpose of the grant.
���� (2)� Where appropriate,
grant programs shall include long-term performance objectives for at least five
(5) years into the future.
���� (3)� Primary recipients
shall annually submit summary progress reports demonstrating advancement toward
stated objectives.
���� (4)� Failure to meet
reporting requirements or established metrics shall result in:
��������� (a)� Immediate
suspension of grant payments pending corrective action;
��������� (b)� Agency review for
potential grant termination; and
��������� (c)� Termination of
grant award if metrics remain unmet in one hundred twenty (120) days following
the due date of annual report.
���� (5)� The Office of the State
Auditor (OSA) shall
establish a schedule for periodic
review of all state grant programs.
���� (6)� Each state agency shall
conduct comprehensive reviews of their existing grant programs every five (5)
years, except for any program not expected to last for more than two (2) years.
���� (7)� Agencies shall submit
recommendations to the Legislative Budget Office (LBO) regarding continuation,
modification, or termination of reviewed programs at the conclusion of their
comprehensive reviews as set forth in Section 3(4)(b).
���� SECTION 4.�
(1)� State agencies shall establish objective criteria for grant eligibility.
���� (2)� No preference shall be
given based on:
��������� (a)� Political
affiliation;
��������� (b)� Ideological orientation;
��������� (c)� Prior receipt of
federal and state grants, except with respect to documented violations of the
prohibited activities outlined in subsection (4) of this section; or
��������� (d)� Organization type
or tax status, unless specifically required by federal law.
���� (3)� Grant eligibility shall
not be restricted based on organization type or tax status unless:
��������� (A)� Explicitly
required by federal or state law; or
��������� (B)� Determined
necessary based on documented programmatic requirements.
���� (4)� Primary recipients
shall submit detailed annual financial reports including:
��������� (a)� Summary of
expenditures;
��������� (b)� Administrative
costs;
��������� (c)� Complete
accounting of all funds redistributed to subrecipients; and
��������� (d)� The purpose for
all funds redistributed to subrecipients.
���� (5)� Subrecipients shall
submit detailed annual financial reports, including:
��������� (a)� Summary of
expenditures;
��������� (b)� Administrative
costs;
��������� (c)� Direct service
expenses;
��������� (d)� Supporting
documentation for all expenses exceeding Twenty-five Thousand Dollars
($25,000.00);
��������� (e)� Complete
accounting of all funds redistributed to any additional subrecipients; and
��������� (f)� The purpose for
all funds redistributed to any additional subrecipients.
���� (6)� Any nongovernmental
organization applying for grant funding or receiving grant funding shall
require all executive officers and members of its governing board to submit a
signed disclosure statement that includes:
��������� (a)� Whether such
individual currently serves in any professional capacity with decision-making
authority regarding grant appropriations;
��������� (b)� Whether such
individual has, within the preceding five (5) years, served as an executive
officer or member of a governing board for an organization at a time when that
organization violated the reporting requirements of subsections (4) and (5) of
this section;
��������� (c)� Any criminal
convictions for offenses related to bribery, corruption, fraud or other
financial crimes; and
��������� (d)� The nature,
jurisdiction and disposition date of any such conviction.
���� (7)� Such disclosure
statements shall:
��������� (a)� Be submitted with
the initial grant application;
��������� (b)� Be updated within
thirty (30) days of any change in leadership or relevant circumstances; and
��������� (c)� Be certified as
true and complete under penalty of perjury.
���� (8)� Failure to provide and
timely update the disclosures in subsection (6) of this section, will subject
the primary recipient or subrecipient of immediate termination of grant funds
and a three-year debarment from receiving grant funds, including grant subawards.
���� (9)� Grant funds shall not
be used by a primary recipient or subrecipient for any partisan political
activities, initiative or referendum support or opposition, voter registration
or get-out the-vote campaigns.
���� (10)� Grant funds shall not
be distributed to a primary recipient or subrecipient with a common board
member with a grantee or subgrantee that provided the funds to the primary
recipient or subrecipient without written notice and disclosure of the
potential conflict to the grantee who provided the funds to the primary
recipient or subrecipient.
���� (11)� Violation of
subsections (9) and (10) of this section will subject the primary recipient or
subrecipient of immediate termination of grant funds and a three-year debarment
from receiving grant funds, including grant subawards.
���� (12)� Any primary recipient
or subrecipient must show no grant funds were used indirectly or directly in an
alleged violation of subsections (9) and (10) of this section to avoid
sanctions.
���� SECTION 5.�
(1)� Any NGO or quasi-public entity that (1) receives state-tax-derived funds
or (2) is a subrecipient of state funds shall be subject to a compliance audit
by or under the direction of the Office of the State Auditor (OSA) pursuant to
GAGAS.� OSA may apply risk-based scoping and materiality and may integrate this
work with any required federal or state single audit.
���� (2)� The audit shall
include, at minimum:
��������� (a)� Schedule of
Expenditures of State Funds (SESF) for each:
������������� (i)� Payment-date;
������������� (ii)� Amount;
������������� (iii) �Description/object
code;
������������� (iv)� Vendor/payee
legal name and persistent Vendor ID;
������������� (v)� Voucher ID;
������������� (vi)�
Contract/Award ID;
������������� (vii)� PO/Release,
if applicable;
������������� (viii)� Fund; and
������������� (ix)�
Program/appropriation code;
��������� (b)� Schedule of Revenues
by Source:
������������� (i)� State-tax-derived
funds;
������������� (ii)� Other state
funds; and
������������� (iii)� Federal,
local and private funds;
��������� (c)� Subrecipient
schedule:
������������� (i)� Entity;
������������� (ii�� EIN/SOS ID;
������������� (iii)� Amount;
������������� (iv)� Purpose;
������������� (v)� Award/subaward
ID; and
������������� (vi)� Dates;
��������� (d)� Related-party
transactions and conflict-of-interest disclosures; and
��������� (e)� Findings with
severity, questioned costs, criteria/condition/cause/effect and a Corrective
Action Plan (CAP) with responsible official and timeline.
���� (3) �Auditees shall provide
full access to books and records, including bank statements, contracts and
amendments, payroll registers, invoices and subawards.� All required schedules
shall be delivered in machine-readable formats (CSV/JSON; Parquet as appropriate)
using the join-key fields.
���� (4)� OSA shall publish the
report, management letter, and CAP on Transparency Mississippi and transmit
them to the Legislative Budge Office (LBO).� The report shall identify any
payments that appear to diverge from the auditee's stated purposes or the
statutory/contractual basis for receiving public funds.
���� (5)� Reports are due within
one hundred eighty (180) days after fiscal year end of year OSA preforms or
directs a compliance audit, and OSA shall retain these report records for no
less than seven (7) years.
���� (6)� Failure to submit,
material noncooperation, or obstruction authorizes DFA to suspend payments,
withhold new awards or recoup funds, and authorizes OSA to refer the matter to
the Attorney General.
���� (7)� The auditee's schedules
and CAP shall be certified under penalty of perjury by an authorized officer
and certified public accountant.
���� SECTION 6.� This act
shall take effect and be in force from and after July 1, 2026.