The specific accounting and business tasks of United Way’s overall financial
management are separated amongst a team of professionals. This separation of duties constitutes a system of checks and balances that ensure a transparent accountability.
Specifically, a financial associate receives incoming payments and makes deposits. An accountant prints checks for payment. And the vice president of finance signs checks after ensuring that the appropriate “Request For Check” form from staff is properly signed, executed and attached. In addition, the person that signs the checks is different from the person that reconciles the bank statement.

Also, as part of the annual audit, independent accountants / auditors make random inspections of checks written to discourage any possible illicit use. The most recent audit, that ending the fiscal year 2003, was completed by the firm of Campbell,
Rappold & Yurasits LLP. The auditors’ report was presented to and accepted by United Way’s Board of Directors in February of 2004.

According to the auditors, an important part of the audit is risk evaluation – including fraud risk. And an important part of evaluating fraud risk is evaluating the control
environment. “Your United Way has a management that understands the importance of accounting controls, is concerned about accurate campaign and financial statement reporting and communicates high ethical values to the employees,” say the auditors in the management letter.

Additional checks and balances include:
-a pyramid-structure campaign with comprehensive campaign reports that are faithfully reconciled to the financial statements

-published lists of investments – also reconciled to the financial statements

-a strong budgetary process monitored by a functioning committee of community volunteers for finance and administration

-United Way of the Greater Lehigh Valley has a fully-functioning volunteer finance committee chaired by a member of our board who also serves as treasurer of the organization. The committee is charged with overseeing and determining the appropriateness of all financial matters related to United Way.

-Financial overview and the finance statements of our United Way are shared five times a year with the 47 community volunteers who serve on the board of directors.

-United Way is audited annually by the accounting firm of Campbell, Rappold & Yurasits LLP. The finance committee and board review and accept this audit.

-United Way’s board approves the distribution of all dollars raised during the annual fundraising campaign as well as all administrative and fundraising costs.

-United Way distributes, as part of its annual report, a condensed version of its financials each year and welcomes questions and comments from donors and the general public regarding any aspect of our fund raising, funds distributions or management.

The recent decision by United Way of Southeastern Pennsylvania (UWSEPA) to
discontinue support for the Cradle of Liberty and Chester County Boy Scout councils due to noncompliance with UWSEPA's nondiscrimination policy may raise questions about the position of the United Way of the Greater Lehigh Valley. The United Way of the Greater Lehigh Valley has NOT withdrawn support to local Scout programs.
The decision by Philadelphia’s United Way to discontinue funding of its local Boy Scouts councils was a local decision, made by the board of that United Way. The
actions of the Philadelphia United Way’s board do not impact the decisions or actions of the Lehigh Valley’s United Way, which is governed by its own board of local
community leaders. Also, it is important to understand that decisions as to which
organizations will receive United Way support are local decisions; United Way of America, the national trade association for local United Ways, does not mandate the funding policies for local United Ways.

The policy of our United Way is that funded agencies be in compliance with all federal, state and local laws governing civil rights, discrimination, disabilities, equal opportunity and affirmative action. The Scouts are in compliance with the law. In addition, the Minsi Trails Council is guided by a statement on tolerance, adopted by its board and approved by the national Boy Scouts of America.

The United Way of the Greater Lehigh Valley currently provides more than $105,000 of unrestricted support for programs operated through the Boy Scouts’ Minsi Trails Council: Learning for Life, Urban Scouting, and Low-income Scouting.

These funding decisions are made by community volunteers who serve on United Way’s allocations panels and whose funding decisions reflect the value that our community and our donors place on the programs. It is United Way’s intent to continue to support these and other worthwhile youth-serving programs in our community.

United Way holds in the highest regard an individual’s right to choose the programs, agencies and causes he or she wishes to support or not support. We therefore offer all donors the opportunity to designate or withhold their gifts from any agency of their choice.

Donors who do not wish to support a particular agency have two options. They can
select one or more agencies to benefit directly from their gift or they can choose to make an unrestricted gift, but specify on their designation form that certain agencies not receive any of their donation. United Way refers to this as a “negative designation.”

Negative designation allows donors to continue to support the important community work of United Way agencies, except those with which they take exception. In this way, United Way can ensure that critically needed help will remain available in our
community.

More than 500 volunteers put in countless hours in support of United Way. But, United Way's primary purpose--to provide sustaining financial support to critically needed human services agencies and programs and build community throughout the Lehigh Valley--requires more than what a purely volunteer organization can provide.

Your United Way consistenly raises more than $11 million annually. That level of fundraising requires a talented, dedicated and professional staff to carry out the directions of volunteer leaders. Professional staff effectively communicate the needs of agencies, help agencies solve problems and work together and handle the considerable accounting tasks of collecting pledges and getting that support to people in need.

Even with all the programs and agencies that United Way contributions support, there are still gaps in the services our community has to offer. In addition, some essential services have waiting lists due to insufficient funding. Unfortunately, that often means many needs still go unmet. If you want to see proven programs available for more people who need them, that is a good reason to give generously to our human care needs through United Way.

United Way strongly urges employers to be sensitive to the highly personal nature of charitable giving. If you feel you are, or have been, a victim of coercive tactics to require you to give, please notify the campaign coordinator at your company or your supervisor. If you don't feel comfortable discussing your concerns at your company, please call your United Way. We will discreetly speak with your company's officers or take whatever steps necessary to ensure that coercion does not play a part in your company's campaign.

In February 1992, William Aramony, president and CEO of United Way of America (UWA) resigned under allegations that he conspired to defraud UWA and its spin-off companies. On April 3, 1995, Mr. Aramony was convicted in a U.S. District Court of various counts of conspiracy, fraud, and filling false tax returns. He was sentenced to 84 months in prison to run until October 1, 2001. He was also fined $300,000.

UWA is a service organization and training center for the more than 1,400 independent United Ways across the country. UWA is NOT the national headquarters or controlling authority of local United Ways. United Way is a national "movement" of independent, local organizations. These local organizations pay dues to UWA to support the training, public policy research and other services UWA provides to the movement.

The spin-off companies Aramony defrauded were distributors of United Way merchandise and campaign materials. Aramony had helped create these companies to provide campaign materials to local United Ways. His wrong-doing included improper use of profits from the companies.

UWA has since revamped its auditing and financial controls to ensure that this type of abuse will not occur again.

United Way of the Greater Lehigh Valley was not involved in the Aramony controversy in any way.

Your United Way does not fund "agencies," it funds programs. In this way, United Way can ensure that donors' gifts are going directly to important services that help people, not capital projects or overhead costs. Individual agencies must do separate fundraising to cover those expenses. However, United Way helps agencies in other ways besides funding particular programs.

Funding through United Way can increase the credibility of agencies, making it easier for them to win foundation, state and federal grants. Indeed, tens of thousands of dollars or more in such grants may be awarded in the Lehigh Valley each year as a result of the endorsing quality of United Way funding.

No. The money raised in the Lehigh Valley stays in the Lehigh Valley, unless you, as the donor, request that it be sent to another United Way.

Your local United Way does pay annual dues to United Way Worldwide, the trade association for United Ways, and also to United Way of Pennsylvania, the state trade association. Those dues (which amount to less than one cent of every dollar given) are used to help underwrite the costs of the United Way/NFL television spots; help defray the costs of marketing materials that our local United Way uses; and support training for United Way staff. Those dues represent the only money that leaves the Lehigh Valley -- and those dollars eventually are returned to the community in services received.

People like you, right here in the Lehigh Valley. Nearly 100 experienced volunteers from all walks of life undertake the lengthy, detailed process of studying our community’s needs, visiting current and potential United Way agencies in the area and reviewing their programs and financial requests.

By the time the process is complete, more than 2,000 volunteer hours are devoted to making the best decisions possible for our community. If you would like to serve as an investment volunteer, you can do so, just by contacting United Way.

No. Every decision at your United Way is made locally for the benefit of our community.

The United Way of the Greater Lehigh Valley is a separate organization, operating independently of the trade organization, United Way of America.

United Way of the Greater Lehigh Valley is governed by its Board of Directors, comprised of local business and community leaders, and assisted by more than 500
volunteers from the local community.

Annual events, such as Day of Caring and the Campaign Wrap-Up celebration, are
designed to boost morale and create a synergy among volunteers. Nearly all the costs for these events are paid through ticket prices and generous corporate sponsorships.

Giving directly to United Way is the least expensive and most cost-effective way to raise money to help those in need.

By giving to United Way, you are giving to a system of agencies that work closely together to best serve our community's needs. In many cases, one agency cannot meet a family's or individual's total needs by itself. That's why it's so important that all agencies receive adequate funding. Nearly 100 local volunteers, drawn from some 60 Lehigh Valley companies and organizations, work throughout the year visiting United Way agencies, reviewing their programs and budgets, and then deciding how much money each program should receive, based on community needs and the program’s effectiveness in meeting those needs.

Through United Way’s donor choice program, you have the option of designating your United Way gift back to the community in which you live, so that it will benefit agencies there. For example, if you live in Berks County, but work in Lehigh County, you can specify that your gift go to the United Way in Berks County.

You can specify which United Way agency or agencies will receive your gift by designating your gift.

Donor designation forms can be obtained from a campaign solicitor. Or, you can exclude an agency or agencies from your gift by simply noting your wishes on the designation portion of a pledge form.

Yes. While United Way strongly supports donors' rights to choose which agencies will receive their support, we want donors to know that designating gifts bypasses one of United Way's greatest values--the citizen review process that not only identifies our communities' greatest needs, but those agencies that are working most effectively and efficiently to address them. United Way's volunteers do not take designated gifts into account when they decide on the annual allocation amount. Therefore, any dollars designated to an agency are a gift over and above the United Way allocation amount.

All of the agencies receiving United Way funding are valued. But no one agency can provide our community with all the social services needed. An undesignated gift to United Way acts as a security blanket for Lehigh Valley residents, providing a broad range of essential services.

No. At one time, United Way did provide funding to Planned Parenthood, but the funds were used only for counseling and educational services.

In the early 1980s, Planned Parenthood’s Board of Directors voluntarily withdrew from United Way funding so that other United Way agencies would not be harmed by the controversy surrounding their agency.

None of us know when or if we’ll need the services of a United Way agency. Indeed, one out of three Lehigh Valley residents will use the services of a United Way-funded agency at least once in his or her lifetime.