Posted on 06/05/2003 11:38:07 AM PDT by chance33_98
United Way, state investigators looking for missing money
Tens of thousands of dollars meant for the United Way of Kern County are unaccounted for due to the abrupt closure of a payroll-deduction management company, according to the president of the non-profit organization.
United Way President Miriam Krehbiel said she doesn't know what might have happened to Pipevine, Inc. However, a note on the company’s website said it experienced a “severe liquidity crisis,” causing the company to close June 2.
“I am comfortable in saying that it could potentially be in the tens of thousands [of dollars],” said Krehbiel.
Pipevine Inc. is a San Francisco-based firm responsible for managing employee payroll deductions for several corporations, including some in the Bakersfield area. The company’s closure has the United Way concerned about how to make up the shortfall for the local charities it funds.
“We received approximately $40,000 this last year, which has been an increase from previous years,” said Richard Temple, Chief Executive Office of the local chapter of the American Red Cross.
According to Temple, funding from the United Way is critical to helping the agency serve the community.
According to the San Francisco Chronicle, the California Attorney General’s Office is investigating the mystery of the missing money. Meanwhile, the United Way said it is determined to keep local charities funded, even if it means dipping into its reserve cash fund.
“Even if it's a temporary change for how we fund them, we'll try to make sure that they do not feel the impact of what situation has gone on with Pipevine,” said Krehbiel.
Krehbiel said she hopes to have more answers before June 17, when the agency begins distributing funds.
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