UPDATED: Jeff Beatty, the Harwich Republican who challenged U.S. Sen. John Kerry this year, finished his campaign owing his campaign manager $112,000, according his latest filing with the Federal Election Commission.

The FEC reports show the campaign is in debt to Joe Manzoli, Beatty's campaign manager, for $37,000 and $75,000. The campaign said that debt is deferred compensation for Manzoli because he didn't take a salary leading up to the election.

In an interview with PolitickerMA.com Monday morning, Manzoli acknowledged the debt.

"It was all campaign related expenses," he said. "I put up money for the website and I had some expenses and stuff I had to do. I don't have a problem with it. In a campaign it's not unusual...You got to do what you got to do the things you have to do for your candidate. Do you like it? No. Would I prefer something different? Absolutely."

Beatty spent approximately $332,500 during the final reporting period and finished the campaign with just more than $20,000 in his bank account. He finished the race with more than $125,600 in debt.

Beatty declined to comment immediately on the report. He did say that he will be more fully reviewing the campaign's finances over the holidays.

Asked if he believes the campaign will pay him back, Manzoli said he hopes they will be able to raise the money but noted that often campaigns finish in debt. In Beatty's campaign, Manzoli said he always sought to pay everyone else before himself.

"I think we need to see if we can raise some money and see if we can pay me back," Manzoli said. "If you look at say, Hillary Clinton or Mitt Romney, it's not unusual for people to loan money to provide services...My goal, very simply put, was I needed to make sure I was paying people that needed to get paid in terms of what we were doing. In the last month, I was putting ads on TV and radio. The last guy to get paid is Joe Manzoli."

Beatty did pay Manzoli $5,000 in the final period for "field consulting," according to the FEC report.

Manzoli noted that near the end of the race the campaign was running low on funds and the fundraising base dried up. At that point, he began footing most of the expenses.

"I was doing whatever I could do to make things happen," he said. "You do what you have to do to make the campaign viable."

Beatty also loaned his own campaign almost $60,000 over the course of the race. The campaign has repaid most of those loans but still owes Beatty approximately $350.

This story was updated to clarify the type of debt the Beatty campaign had.