Thread: Where to put your money?
02-27-2004, 08:19 PM #1
Where to put your money?
I just when to a FEMA workshop on Thursday. The person doing the workshop said not to put the grant money in an account that draws interest, and if you put the grant money in an account thats draws interest, you would need to claim the interest. I asked about our checking account that draws 1 1/2%, she said I would have to claim the interest from the time it was deposited until the funds were drawn out. We are receiving the money and writing the check the same week. Has anybody heard of this and should I claim it? Where is it in the rules? We are talking about a few dollars. Thanks for your help.
02-28-2004, 05:54 PM #2
- Join Date
- Aug 2002
- Rising Sun, MD
Re: Where to put your money?We are receiving the money
I suggest that if you want an accurate response to your questions you contact that person.
02-29-2004, 12:18 AM #3
- Join Date
- Jan 2004
Be honest because FEMA will ask either way if you earned interest or not.
I had the same problem 2 years ago. FEMA has asked me to check with the bank and find out how much interest we had earned for the few days the money was in our account. It turned out to be something like $2.10.
FEMA told me that since it was under $100 we could keep the money and we just had to send them a letter to them stating that we were keeping the money for administrative costs, which was far less then it cost for phone calls to FEMA; mailing the 1199; mailing the final report.
To save time in the future I would call your bank and find out how much money you earned those few days the money was in the account (if any money was earned). Then when you submit your final report to FEMA tell them how much it was and that your Dept will retain this funds for Administrative Costs and Expenses.
And even if you didn't earn any interest I would still state this in your final report saying "no interest was earned from the money deposited into our account."
So if you tell them yes or no up front they won't ask later and save yourself some time and hassle.
Last edited by KMG698; 02-29-2004 at 12:29 AM.
03-01-2004, 11:09 AM #4
We actually opened up a seperate account and made sure it was non-interest bearing, then we transfered our matching funds into that account. As we recieve invoices we request the feds share and then write the check the day its transfered....Make for easy tracking
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