Sunday, February 25, 2007

they take care of the money, all right

The Columbus Dispatch - Local/State, KeyBank failed to pay state $170,000: Panel wants interest paid back, questions data-entry contract -- Our friend Anthony Fossaceca over at Blue Ohioan brought this to my attention. It's all coming around fairly quickly. Excerpts:

A Cleveland-based bank shortchanged Ohio taxpayers at least $170,000 last year. The same bank is getting $626,000 a year for work the state can do itself. By fixing both problems, Treasurer Richard Cordray says the state could save more than $1 million. ...Cordray said that when he took a closer look at the state’s "checkbook" — the main depository handled under contract by Cleveland-based Key-Bank — he found at least $170,000 in interest credit that the state should have received last year but didn’t. ...In many cases, the amount to be credited was more than the charges, but the state rarely, if ever, got the full credit, Cordray said. ... The treasurer’s office will look at previous years because KeyBank has had the contract for 14 years. Cordray also said he expects to cancel another Key-Bank deal, a data-entry reporting contract that costs $626,000 annually. ... Cordray said his staff can do the work in-house. The state already has negotiated with KeyBank to avoid $113,000 of that cost this year, he added.

When we go over to and look up KeyBank's financial statement, we notice that the non-interest-bearing deposits are around 21-22% of all deposits in 2005 and 2006. I wonder how they accounted for this state money? The big question, after Cordray gets done: Will the Key financial statement change drastically this year? What was the gist of that book by that treasury guy about Truth?

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