Chris
04-26-2013, 11:37 AM
It's not their money.
The federal government spends nearly $1 million a year on fees for bank accounts with a balance of zero. The Washington Post calls this “one of the oddest spending habits in Washington” and explains how it works.
When federal agencies hand out grants they don’t just send out checks. Rather, they create “an account within a large, government-run depository,” and the federal agency is charged a monthly fee “which goes to the government depository and is used to cover the costs of operating it.” The money eventually runs out but the fees continue because the federal agencies fail to close out the accounts, which “takes work.” Audits and so forth are supposed to happen within 180 days, but they don’t. So the accounts stay open, with a balance of zero and the government paying fees.
...
@ Feds Spend Money for Nothing (http://www.mygovcost.org/2013/04/25/feds-spend-money-for-nothing/)
The federal government spends nearly $1 million a year on fees for bank accounts with a balance of zero. The Washington Post calls this “one of the oddest spending habits in Washington” and explains how it works.
When federal agencies hand out grants they don’t just send out checks. Rather, they create “an account within a large, government-run depository,” and the federal agency is charged a monthly fee “which goes to the government depository and is used to cover the costs of operating it.” The money eventually runs out but the fees continue because the federal agencies fail to close out the accounts, which “takes work.” Audits and so forth are supposed to happen within 180 days, but they don’t. So the accounts stay open, with a balance of zero and the government paying fees.
...
@ Feds Spend Money for Nothing (http://www.mygovcost.org/2013/04/25/feds-spend-money-for-nothing/)