Tardiness by the Minnesota Department of Military Affairs in seeking federal reimbursement for tens of millions of dollars has put added strain on state finances, auditors said Thursday.
In its response, the department said it was taking steps to correct the situation and expected to be caught up shortly.
Delays in seeking reimbursement for Minnesota National Guard expenses tied up state cash longer than needed and deprived the state of potential earnings, said Deputy Legislative Auditor Cecile Ferkul.
"I was really surprised by this," Ferkul said. "We don't generally see agencies running accounts negative like this."
"It just seems to me that at a point in time when the state is in a difficult budget situation and cash flow situation that ... the department of military affairs would have been watching this and making sure they were getting the resources back," she said. "The [state] general fund is really footing the bill on this."
Another option, she said, was for the state department of Management and Budget to better monitor the military spending and reimbursements.
The Department of Military Affairs paid about $65.3 million for the federal share of its National Guard costs through last August, but as of January had received reimbursement of only about $37.3 million, the audit said.
States can seek reimbursement monthly. "They're five months behind right now," Ferkul said.
