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New Audit Shows State Lost Millions in Federal Money

A new report from the state auditor shows the state lost about $3.5 million dollars in federal grants because the state didn't apply for the money. KSMU's Missy Shelton reports. Listen to audio

State Auditor Claire McCaskill says the state needs to do a better job identifying federal grants and applying for them.

She says it's costing the state millions.

The audit shows that most agencies were unaware that the state has contracted with a private company to help them identify federal grants that are available.

But Jackie White, the director of the Office of Administration says her staff has taken steps to make sure agencies know what resources are available to help them get federal dollars.

White says the state is doing the best it can given that there have been staff reductions.

McCaskill says the audit also underscores the importance of setting aside money that will draw down matching money from the federal government.

She says some proposed budget cuts have done more harm than good because they've resulted in fewer federal dollars coming into the state.

McCaskill says even though she wants the state to be more agressive in finding federal grants, she says she doesn't think it requires hiring additional personnel or creating any new bureacracies.