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Home My WebLink About1445 LATKANICHIn Re: Joanne Latkanich, Respondent File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Paul M. Henry Raquel K. Bergen Nicholas A. Colafella Reverend Scott Pilarz 06 -041 Order No. 1445 10/23/07 11/7/07 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was filed and a hearing was requested. A Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were subsequently submitted by the parties to the Commission for consideration. The Stipulation of Findings is quoted as the Findings in this Order. The Consent Agreement has been approved. This adjudication of the State Ethics Commission is issued under the Ethics Act and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with the Ethics Act. Any person who violates such confidentiality commits a misdemeanor and, upon conviction, may be subject to a fine of not more than $1,000 or imprisonment for not more than one year. Confidentiality does not preclude discussing this case with an attorney at law. Latkanich, 06 -041 Page 2 I. ALLEGATIONS: That Joanne Latkanich, a public official /public employee, in her capacity as a Supervisor of Washington Township, Fayette County, violated Section 1103(a) provisions of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. § 1103(a) when, acting as township secretary, she claimed and then approved payments to herself for annual leave in excess of the leave available for her use and when she authorized and participated in approving payments to herself as Secretary /Treasurer for days /hours prior to her appointment to the position by the Board of Supervisors; and when she authorized payment to herself for time in excess of actual hours worked, including approving compensation for lunch breaks. II. FINDINGS: 1. Joanne Latkanich has served as a Supervisor for Washington Township, Fayette County since 1997. a. Latkanich has held the following positions with the township: Assistant Roadmaster: 2003, 2004, 2005. Superintendent of Police: 2002, 2003, 2004, 2005. Secretary /Treasurer: 1998 through 2005; March 15, 2006 to Present. 2. Latkanich was appointed Secretary /Treasurer of the township annually between 1998 and 2005. a. Latkanich was not reappointed to the office of Secretary /Treasurer at the Reorganization Meeting on January 3, 2006. b. Latkanich was subsequently appointed Secretary/Treasurer March 15, 2006, and has continued to serve in that capacity to the present time. 3. The position of Washington Township Secretary /Treasurer has been full -time since at least 1998. a. The secretary /treasurer office hours are normally 8:00 a.m. to 4:00 p.m. Monday through Friday. b. Latkanich is compensated based upon a 40 hour work week. c. Latkanich's work hours are Monday through Friday, 8:00 a.m. to 4:00 p.m., with a one -half hour unpaid lunch break. 4. Washington Township, Fayette County, is a Second Class Township governed by a Board of three Supervisors. 5. Compensation for supervisors who are employed by the township is established by the elected Board of Auditors. 6. The Washington Township Board of Auditors ( "Auditors ") reorganization meeting minutes reflect compensation set for supervisors employed by the township as follows: 1999: Roadmaster - $11.05 /hour ($.50 /hr raise) 2000: Roadmaster - $11.80 /hour ($.50 /hr raise) 2001: Roadmaster - $12.15 /hour (January -June $.35 /hr. raise) 12.50 /hour (July- December $.35 /hr. raise) 2002: Roadmaster - $12.85 /hour (January -June $.35 /hr. raise) Latkanich, 06 -041 Page 3 13.20 /hour (July- December $.35 /hr. raise) 2003: Roadmaster - $13.60 /hour (January -June $.40 /hr. raise) 14.00 /hour (July- December $.40 /hr. raise) 2004: All working supervisors - $14.00 /hour 2005: All working supervisors - $14.00 /hour 2006: All working supervisors - $14.00 /hour 7 Historically, the auditors have not set a specific rate of pay for the position of Secretary /Treasurer. a. The auditors believed that by setting the compensation for the roadmaster they were setting compensation for any supervisor working for the township in any capacity, including the position of Secretary /Treasurer. 8. The Board of Auditors did not discuss or take action to approve any other form of compensation for the working supervisors other than setting the hourly rate. a. The auditors intended for the working supervisors to receive the same benefits as those afforded to the township road workers through the union contract, but took no formal action to approve those benefits. 9. The township road workers are members of the United Steelworkers of America, Local Union 3401 -31. a. The current Labor Agreement between the township and the union covers the time period November 1, 2004, through October 31, 2007. 10. The Agreement entered into between the Washington Township Board of Supervisors and the United Steelworkers defines the benefits afforded to the road workers as township employees. a. Article XIV — Hours of Work and Overtime (in part): Section 14.1 - Eight (8) consecutive hours, exclusive of lunch period, shall constitute a normal work day in a twenty -four (24) hour period. Section 14.2 — Any time worked over eight (8) hours per day shall be classified as overtime and be paid for at no less than the rate of one and one -half (1 1/2) times the regular rate. In a twenty -four hour period there shall be no hours duplicated to calculate overtime. b. Article XVI - Vacation: Section 16.1 — The vacation program of the Township shall be as follows: - Six (6) months to less than one (1) year of seniority shall receive one (1) week paid vacation. - One (1) year but less than six (6) years of seniority shall receive two (2) weeks paid vacation. - Six (6) years but less than twenty (20) years of seniority shall receive four (4) weeks vacation. - Over twenty (20) years of seniority shall receive five weeks of paid vacation. Employees shall submit to the Township Secretary (on forms provided by the Secretary and mailed to the Employees) their requests for vacation for the following year by noon the last Wednesday of March. Every effort shall be made to grant the weeks requested, providing seniority and /or vacation provisions are not violated under the terms of this agreement. Latkanich, 06 -041 Page 4 Vacation periods requested shall start on Monday of the week requested and continue five (5 consecutive days from that period). This procedure recognizes emergency and convenience of parties and when circumstances permit, a change of vacation weeks may (be) granted. c. Article XVIII — Sick Days: Section 18.1 — A minimum of one (1) year employment is required before any sick days are available. There shall be no accumulation or carry over of unused sick days. Section 18.3 — Schedule for sick days: 1 year to 2 years seniority — 8 days 2 years to 3 years seniority — 9 days 3 years to 4 years seniority — 10 days 11. The Contract does not contain a specific provision authorizing the carryover of vacation leave. a. Carryover of sick leave is specifically prohibited in the contract per Section 18.1. b. The township supervisors have not permitted the carryover of vacation time. 12. Latkanich has been employed by the township as Secretary /Treasurer for at least nine years (1997 to the present) entitling her to receive paid vacation as an employee with (6) to less than (20) years of service. a. Latkanich accumulates sick leave at the maximum rate of the union contract. 13. The current union contract provides that the road workers employed by the township with between six years and twenty years seniority are entitled to a combined total of 30 days and sick leave each year as follows: Vacation 20 days (4 weeks) (Section 16.1) Sick 10 days (Section 18.3) 14. Based on the provisions of the contract, Latkanich has been entitled to 20 days vacation leave and 10 days sick leave since 2004. a. Prior to 2004 Latkanich was entitled to receive 2 weeks paid vacation. (10 days @ 8 hours a day). 15. Township road employees and police utilize time cards to record their work hours. a. The time cards are not signed by the department heads before being submitted for the preparation of payroll. 16. In lieu of time cards, Latkanich has maintained time sheets for her days /hours worked or any records of her absences on a computer located at the township office(s). a. The Board of Supervisors [does] not oversee or verify the accuracy of Latkanich's personal payroll information, but [does] monitor her work as secretary /treasurer. b. Latkanich's maintained logs or notes of her time and leave usage were unable to be located throughout the course of the investigation. Check No. Check Date Check Amount Pay Period Signatures Endorsements 7056 01 -10 -05 $ 794.97 12/26/05- JL, MW JL, TL 01/08/05 7074 01 -24 -05 $ 804.97 01/09/05- JL, MW JL, TL 01/22/05 7095 02 -04 -05 $ 804.98 01/23/05- JL, MW JL 02/05/05 7110 02 -21 -05 $ 804.97 02/06/05- JL, MW JL 02/19/05 7131 03 -07 -05 $ 762.97 02/20/05- JL, MW JL, TL 03/05/05 7149 03 -18 -05 $ 804.97 03/06/05- JL, MW JL 03/19/05 7179 04 -04 -05 $ 804.97 03/20/05- JL, MW JL 04/02/05 7193 04 -14 -05 $ 804.97 04/03/05- JL, MW JL 04/16/05 Latkanich, 06 -041 Page 5 17. Latkanich administers the payroll for the police department, road department, and other supervisors employed by the township, including herself. a. Latkanich prepares the payroll for each employee based on work reports submitted to her by the road master for employees of the road crew. b. Latkanich also prepares payroll for the police department based on information submitted by the police chief. c. Latkanich does payroll for herself and is responsible for documenting absences, including leave usage, and observes when leave is not used. 18. Washington Township issues payroll on a bi- weekly basis. 19. Payroll checks require the signatures of any two of the three supervisors. a. Payroll checks are generally signed by Latkanich in her capacity as Secretary /Treasurer, and one of the other two supervisors. 20. Latkanich signed all payroll checks issued to her in 2005. 21. In 2005, Board Chairman Melvin Weiss permitted Latkanich to maintain a facsimile stamp of his signature in her office. a. Latkanich was required to inform him when she used the facsimile stamp. b. The stamp was implemented because Weiss had difficulty writing. c. In 2005, Weiss was unable to frequent the township building on a regular basis. d. Latkanich used Weiss' facsimile stamp when issuing payroll checks, including those issued to her. 22. In 2005, payroll checks were issued to Latkanich for her position of Secretary /Treasurer as follows: 7222 04 -29 -05 $ 804.97 04/17/05- 04/30/05 JL, MW JL, TL 7236 05 -13 -05 $ 804.97 05/01/05- 05/14/05 JL, MW JL 7256 05 -27 -05 $ 804.97 05/15/05- 05/28/05 JL, MW JL 7276 06 -13 -05 $ 804.97 05/29/05- 06/11/05 JL, MW JL 7294 06 -24 -05 $ 804.98 06/12/05- 06/25/05 JL, MW JL 7321 07 -11 -05 $ 804.97 06/26/05- JL, JY JL 07/09/05 7335 07 -22 -05 $ 804.97 07/10/05- JL, MW JL 07/23/05 7359 08 -04 -05 $ 804.97 07/24/05- JL, MW JL 08/06/05 7372 08 -19 -05 $ 804.97 08/07/05- JL, MW JL 08/20/05 7394 09 -02 -05 $ 804.97 08/21/05- JL, MW JL 09/03/05 7412 09 -16 -05 $ 804.97 09/04/05- JL, MW JL 09/17/05 7433 09 -30 -05 $ 804.97 09/18/05- JL, MW JL 10/01/05 7455 10 -14 -05 $ 804.97 10/02/05- JL, MW JL 10/15/05 7478 10 -31 -05 $ 804.97 10/16/05- JL, MW JL 10/29/05 7497 11 -14 -05 $ 723.19 10/30/05- JL, MW JL, TL 11/12/05 7514 11 -28 -05 $ 804.97 11/13/05- JL, MW JL, TL 11/26/05 7534 12 -12 -05 $ 804.97 11/27/05- JL, MW JL, TL 12/10/05 7553 12 -21 -05 $ 804.97 12/11/05- JL, MW JL 12/24/05 TOTAL $20,795.44* Latkanich, 06 -041 Page 6 *[sic]. [There is a $.02 error in the calculation, which does not affect the outcome of this case. We accept the amount as stipulated by the parties.] a. All checks with the exception of check #7321 were signed by Joanne Latkanich (JL) and Melvin Weiss (MW). b. Supervisor John Yetsconish, JY, signed check #7321. c. All of the checks were endorsed by Latkanich, or Latkanich and her husband Thomas Latkanich. 23. The Board of Supervisors' meetings were held once a month on the 3 Wednesday of the month. a. The supervisors are provided with a copy of the bill list several days prior to the monthly meeting. 1. The bill list reflects those bills that have accrued from the previous Latkanich, 06 -041 Page 7 month's meeting. b. The bills are approved to be paid by a yea /nay vote. 1. Abstention and objection votes are recorded separately. c. Payroll is reflected on the bill lists that are approved at the monthly meetings. 1. Payroll is listed by employee name, check number, and amount. 2. Payroll is retroactively approved. 24. Latkanich, as Secretary /Treasurer, is responsible for documenting the use of vacation and sick time for employees each pay period. a. Latkanich documents vacation or sick leave usage on the paycheck detail for each employee. 25. In 2002 and 2005 Latkanich, in her position as Secretary /Treasurer, approved compensation for herself for periods of absences when leave was not available to her. 26. In calendar year 2002 Latkanich was entitled to receive 10 days paid vacation. a. Article 16 of the Labor Agreement provides that employees with one year but less than six years are entitled to receive two weeks paid vacation. b. In 2002 Latkanich had five years seniority. 27. The only township records of Latkanich's use of vacation in 2002 are recorded on pay stub details; no computer records were available at the time of the Investigative Division's investigation. a. Pay stub details are completed by Latkanich to document the days /hours of leave. b. Latkanich did not maintain an accounting of days and hours that she used for vacation leave. 28. Pay stub details prepared and submitted by Latkanich confirm that she was compensated for 152 hours vacation in 2002 as outlined below: Payroll Period Vacation Leave Hours Rate per Hour Compensation 02/24/02 - 03/09/02 8.0 $12.85 $102.80 05/19/02-06/01/02 8.0 102.80 06/02/02 - 06/15/02 40.0 $13.20 528.00 07/14/02 - 07/27/02 16.0 211.20 09/22/02 - 10/05/02 8.0 105.60 10/06/02 - 10/19/02 8.0 105.60 10/20/02-11/02/02 8.0 105.60 11/03/02-11/16/02 8.0 105.60 11/17/02-11/30/02 8.0 105.60 12/01/02-12/14/02 16.0 211.20 12/15/02 - 12/28/02 24.0 316.80 TOTAL 152.0 $2,000.40* Latkanich, 06 -041 Page 8 *[sic]. [There is a $.40 error in the calculation, in favor of the Respondent. We accept the amount as stipulated by the parties.] 29. Although all supervisors of the township reviewed and approved the township payroll in general, Latkanich was the main individual responsible for the administration of the township payroll. a. None of the other members of the township Board of Supervisors specifically reviewed or approved Latkanich's payroll. 30. In 2002 Latkanich authorized compensation to her for (72) hours excess vacation leave totaling $950.40. a. 72 hours excess leave @ $13.20 /hour = $950.40 31. In 2005 Latkanich's pay stub details reflect her use of vacation and sick leave. a. The leave is reflected on the paycheck detail for the respective payroll period. 1. Hours are broken down as regular, vacation and sick in each payroll period. b. No separate accounting exists of the specific dates and times leave was used by Latkanich. 32. In 2005 Latkanich, as Secretary /Treasurer, did not report on paycheck details all of her absences from work for which she received compensation. 33. Beginning in January 2005, and continuing until November 2005, Latkanich's hours worked at the township building were monitored by the township road department and confirmed by road master John Yetsconish. a. The township road crew consists of three full -time employees. 1. Hours of work are Monday through Friday, 7:00 a.m. - 3:30 p.m. 2. The road crew reports to the Supervisor /roadmaster, or the available supervisor in the absence of the roadmaster. Latkanich, 06 -041 Page 9 3. The road department is located in the same building as the township offices, including that of Latkanich, Secretary /Treasurer. b. The road crew employees and road master John Yetsconish observed and noted days and times that Latkanich was not working. 34. Joseph Guy Bilsky has been a full -time employee of the township road crew for twenty -three years. a. Bilsky has routinely kept a log of the duties performed by the road crew each day. 1. Bilsky records other things in the log as he deems necessary. 35. In 2005, Bilsky started tracking Latkanich's absences in his log. a. Bilsky initiated the log as a result of recently completed labor negotiations with the township. 36. Bilsky used a weekly calendar book to record Latkanich's absences regarding her employment as Secretary /Treasurer. a. Bilsky documented both whole days and half days that Latkanich was absent from the township office. 37. Latkanich's absences were observed by the road crew who are in and out of the township office throughout the day. 38. The road crew and Bilsky were also informed of Latkanich's absences by Supervisor John Yetsconish. a. Yetsconish would advise the road crew that Latkanich was not in for a particular day when he met with the road crew in the morning. b. Yetsconish was aware of and received a copy of the log maintained by Bilsky. 39. In or about October 2005, Bilsky transposed the information from his log book to a piece of paper. a. The dates listed ranged from January 18 through October 10, 2005. b. Bilsky quit maintaining the log of Latkanich's absences after October 10, 2005. 40. Bilsky gave Supervisor John Yetsconish a copy of the one page log atYetsconish's request. 41. Bilsky's log information disclosed that Latkanich was absent from work at the township on 43.5 days between January 18, 2005, through October 10, 2005: 2005 DAYS MISSED BY JOAN [sic] LATKANICH 1 Jan — 18 2 Jan — 19 Mar — 15 — work'/ day Mar — 17 Pay Period Regular Hours/ Check Detail Vacation Hours/ Check Detail Sick Hrs/ Check Detail 01/06-01/22 64 - 16 02/06 -02/19 - 80 - 02/20 -03/05 40 - 40 03/06 -03/19 64 - 16 04/17 -04/30 80 - - 05/01 -05/14 40 40 - 05/15 -05/28 72 8 - 05/29 -06/11 64 16 - 06/26 -07/09 80 - - 07/10 -07/25 80 - - 07/24 -08/06 80 - - 08/07 -08/20 64 16 - 08/21 -09/03 76 - 4 09/04 -09/17 80 - - 09/18 -10/01 80 - - 10/02 -10/15 80 - - 10/30 -11 /12 72* - - 11/13-11/26 78 - 2 160 78 3 Feb — 7 Apr — 22 4 Feb — 8 May — 2 to 6 vacation 5 Feb — 9 May — 17 — election day 6 Feb — 10 May 31 7 Feb — 11 Jun — 6 8 Feb — 14 Jun — 7 9 Feb — 15 Jun — 10 — Pete Golf outing 10 Feb — 16 July — 8 — work' / day 11 Feb — 17 July — 12 — work'/ day 12 Feb — 18 July — 13 — came in at 2:30 Feb — 21 — came in at 11 am Aug — 2 — left at noon 13 Feb — 23 Aug — 8 14 Feb — 24 Aug — 9 15 Feb — 25 Sep — 9 16 Feb — 28 Sep — 10 17 Mar — 2 Sep —14 — worked'/ day 18 Mar — 4 Sep — 21 19 Mar — 9 Sep — 22 20 Mar — 10 Sep — 23 21 Mar — 14 Oct — 10 Latkanich, 06 -041 Page 10 42. In 2005 Latkanich reported the following vacation and sick leave usage on pay reports as follows: a. Latkanich reported using (2) hours sick leave during the 11/13/05 to 11/26/05 pay period. b. Latkanich also reported using (4) hours leave during the 8/21/05 to 9/3/05 pay period. Pay Period Bilsky log of absences Latkanich pay details of leave used Excess in hours 1/6/05 to 1/18/05 to 1/19/05 16 0 1/22/05 16 hours 2/6/05 to 2/7/05 thru 2/11/05 80 0 2/19/05 2/14/05 thru 2/18/05 2/20/05 to 2/21/05- 4 hours 40 12 3/5/05 2/23/05 thru 2/25/05 -24 hours 2/28/05, 3/2/05, 3/4/05 -24 hours Total 52 hours 3/6/05 to 3/9/05, 3/10/05, 3/14/05, 16 20 3/19/05 3/17/05- 32 hours 3/15/05 -4 hours Total 36 hours 4/17/05 to 4/22/05 -8 hours 0 8 4/30/05 5/2/05 to 5/2/05 thru 5/6/05 40 0 5/14/05 40 hours 5/15/05 to 5/17/05 -8 hours 8 0 5/28/05 5/29/05 to 5/31/05, 6/6/05, 6/7/05, 16 16 6/11/05 6/10/05 32 hours 6/26/05 to 7/8/05- 4 hours 0 4 7/9/05 7/10/05 to 7/12/05 -4 hours 0 10.5 7/24/05 7/13/05 -6.5 hours (arrive 2:30pm) 10.5 hours 7/25/05 to 8/2/05 — 4 hours 0 4 8/6/05 Left at noon 8/7/05 to 8/8/05 thru 8/10/05 — 24 hours 16 8 8/20/05 9/4/05 to 9/9/05, 9 /14 /05- 4hours 0 12 9/17/05 12 hours 9/18/05 to 9/21/05 thru 9/23/05 0 24 10/1/05 10/2/05 to 10/10/05 -8 hours 0 8 10/15/05 Total hours 358.5 232 126.5 Latkanich, 06 -041 Page 11 1. Bilsky's log did not reflect any Latkanich absence from work during that pay period. c. Latkanich did not report using any vacation or sick leave during the time period November 26 through December 31, 2005. d. Total leave usage for Latkanich during calendar year 2005 was 238 hours. 43. The following chart reflects the differences between the information from the Bilsky log for Latkanich's absences from work and the leave claimed by Latkanich on pay details for the period January 18, 2005, through October 10, 2005: Latkanich, 06 -041 Page 12 a. This chart does not include leave used by Latkanich used during pay period 8/21/05 to 9/30/05 [sic] (4 hours) and 11/13/05 to 11/26/05 (2 hours). 44. In 2005 Latkanich was compensated at the rate of $14.00 per hour. 45. Latkanich was entitled to a total of 240 leave hours in 2005 based on the following: 20 days vacation @ 8 hours = 160 hours 10 days sick @ 8 hours = 80 hours 240 hours 46. Between January 2005 and October 10, 2005, Bilsky's log documented Latkanich as not present for work a total of 358.5 hours. a. Latkanich reported using a combined 238 hours during all of 2005. b. Latkanich was compensated for 118.5 hours without having leave available for use. 47. Latkanich used her position to authorize compensation of $1,659.00 in 2005 for hours not worked or for hours for which leave was not available. a. 118.5 hours @ $14.00 /hour = $1,659.00 THE FOLLOWING FINDINGS RELATE TO THE ALLEGATION THAT LATKANICH [WAS] COMPENSATED IN MARCH 2006 FOR HOURS NOT WORKED. 48. Latkanich was not reappointed to [the] position of Secretary /Treasurer at the 2006 reorganization meeting of the Board of Supervisors. 49. At the Wednesday, March 15, 2006, board meeting held at 7:00 p.m., Latkanich was appointed to the position of Secretary /Treasurer. a. Latkanich was appointed to the position due to the resignation of John Yetsconish, who was appointed in January 2006. 50. Latkanich assisted Yetsconish by assuming Secretary /Treasurer duties on March 13, 2006. a. Latkanich purports to have also assisted on March 14 and 15 2006 as well, but no evidence of such was discovered during the course of the investigation. 51. For the payroll period ending Saturday, March 18, 2006, Latkanich authorized compensation for forty hours of work. a. This included (24) hours for March 13 14th, and 15th, 2006 prior to the effective date of her appointment. 52. Latkanich issued township check #7677 to herself in the amount of $353.10 (40 hours x $14.00 /hour = $560.00 less deductions). a. Authorizing signatures include that of Latkanich and John Yetsconish. b. The check was endorsed by Latkanich and Tom Latkanich. 53. Latkanich received a private pecuniary gain of $336.00 when she authorized Latkanich, 06 -041 Page 13 payments to her for 24 hours for 3/13/06, 3/14/06 and 3/15/06, prior to being appointed to an employment position with the township. 24 hours x $14.00 per hour = $336.00 THE FOLLOWING FINDINGS [RELATE] TO THE ALLEGATION THAT JOANNE LATKANICH AUTHORIZED PAYMENT TO HER IN EXCESS OF ACTUAL HOURS WORKED, INCLUDING PAYMENT FOR LUNCH BREAKS. 54. Members of the Board of Supervisors employed full time by the township substantially follow the conditions of employment set for the employees who are part of the bargaining unit. a. These conditions include health benefits, leave accrual and work hours. 55. Article XIV -Hours and Overtime, Section 14.1 of the Labor Agreement provides as follows regarding the hours worked during a day: Section 14.1: Eight (8) consecutive hours, exclusive of lunch period, shall constitute a normal work day in a (24) hour work period. 56. Members of the township road crew work (8) hours per day with a one -half hour unpaid lunch break. 57. Joanne Latkanich's work hours since at least 2002, have been 8:00 a.m. to 4:00 p.m. with a one -half hour unpaid lunch. a. Latkanich has, at times, utilized her lunch period while on premises and as such, interpreted that her lunch period is not duty free, thus she has compensated herself for the'/ hour lunch break throughout her employment with the township. b. Latkanich considers herself essentially a salaried employee since no overtime is paid to her and therefore she believes the actual amount of hours she works is irrelevant. 58. In light of the 1/2 hour lunch period, Latkanich has not worked a full (8) hour day since at least 2002. 59. Latkanich, admitted to State Ethics Commission Investigators during a Sworn Statement that she works (7 1/2) hours each day. a. Latkanich stated that she works (7'/) hours, yet gets paid for (8) hours. b. Latkanich purports that although she works 7'/ hours per day, since lunch is taken on the premises, she is entitled to compensation for 8 hours per day. 60. By excluding the'/ hour lunch period from Latkanich's work schedule, since 2002, Latkanich has been paid an extra 2'/ hours each week as a result of working 7'/ hours each day. a. Latkanich has been paid 130 hours per year since 2002 totaling $1,820.00 annually for paid lunch breaks which was not approved compensation. b. Unapproved compensation was determined as follows: 1. 5 hours per pay period x 26 pay periods = 130 hours Latkanich, 06 -041 Page 14 2. 130 hours @ $14.00 /hour = $1,820.00. 61. Between 2002 and 2006 Latkanich, along with other board members, authorized payments to herself potentially totaling $9,100.00 in unauthorized and unapproved compensation, based upon the'/ hour unpaid lunch period. 2002: $1,820.00 2003: $1,820.00 2004: $1,820.00 2005: $1,820.00 2006: $1,820.00 Total: $9,100.00 62. Latkanich's use of the authority of her public position resulted in the potential of a private pecuniary gain of the following: Paid lunches *: $9,100.00 Excess leave: $1,659.00 Compensation: $336.00 5/13 to 3/15/06 $11,095.00 *Estimated amount since periods of the time overlap with times which Latkanich was alleged to have received unauthorized compensation due to unauthorized leave. Based on an estimated calculation, Latkanich received no more than $9,100.00 in compensation for lunch periods. An actual amount of unpaid lunch periods was unable to be calculated. III. DISCUSSION: At all times relevant to this matter, Respondent Joanne Latkanich, hereinafter also referred to as "Respondent," "Respondent Latkanich," or "Latkanich," has been a public official /public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Latkanich, a public official /public employee in her capacity as a Supervisor of Washington Township ( "Township "), Fayette County, violated Section 1103(a) of the Ethics Act when she, acting as Township Secretary, claimed and then approved payments to herself for annual leave in excess of the leave available for her use and when she authorized and participated in approving payments to herself as Secretary /Treasurer for days /hours prior to her appointment to the position by the Board of Supervisors; and when she authorized payment to herself for time in excess of actual hours worked, including approving compensation for lunch breaks. Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted Activities (a) Conflict of interest. —No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions Latkanich, 06 -041 Page 15 "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa. C. S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are reproduced above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Respondent Latkanich has served as a Township Supervisor since 1997. The Township Board of Supervisors is a three - member board. Latkanich has held the position of Township Secretary/Treasurerfrom 1998 through 2005 and from March 15, 2006, to the present. The position of Township Secretary /Treasurer has been full -time since at least 1998. As Township Secretary /Treasurer, Latkanich's work hours are Monday through Friday, 8:00 a.m. to 4:00 p.m., with a one -half hour unpaid lunch break. The Township Board of Auditors ( "Auditors ") has set the compensation for Supervisors employed by the Township as detailed in Fact Finding 6. The Auditors believed that by setting the compensation for the roadmaster they were setting compensation for any Supervisor working for the Township in any capacity. Additionally, the Auditors intended for the working Supervisors to receive the same benefits as those afforded to the Township road workers through the Labor Agreement ( "Contract ") between the Township and the United Steelworkers of America, Local Union 3401 -31. With respect to leave, the Contract does not contain a specific provision authorizing the carryover of vacation leave, and the Township Supervisors have not permitted the carryover of vacation time. Carryover of sick leave is specifically prohibited by the Contract. As Secretary /Treasurer, Latkanich's official duties include administering the payroll for the police department, road department, and Supervisors employed by the Township, including herself. Latkanich is responsible for documenting the use of vacation and sick time for employees each pay period. The Board of Supervisors does not oversee or verify the accuracy of Latkanich's personal payroll information. In calendar year 2002 Latkanich was entitled to receive 10 days paid vacation. Pay stub details prepared and submitted by Latkanich confirm that she was compensated for 152 hours of vacation leave in 2002. In 2002, Latkanich authorized compensation to herself in the amount of $950.40 for excess vacation leave. Latkanich, 06 -041 Page 16 In 2005, Latkanich was entitled to 160 hours of vacation leave and 80 hours of sick leave. Latkanich reported using a combined 238 hours leave during all of 2005. However, during most of 2005, Latkanich's hours worked at the Township building were monitored by other Township employees. It was documented that between January 2005 and October 10, 2005, Latkanich was not present for work for a total of 358.5 hours. In 2005, Latkanich authorized compensation to herself in the amount of $1,659 for hours that she did not work without having leave available for use. Although all Township Supervisors reviewed and approved the Township payroll in general, as included within the bill lists approved at monthly meetings of the Board of Supervisors, Latkanich was the main individual responsible for the administration of the Township payroll. None of the other members of the Township Board of Supervisors specifically reviewed or approved Latkanich's payroll. The Township issues payroll on a bi- weekly basis. Payroll checks require the signatures of any two of the three Supervisors. In 2005, 26 payroll checks were issued to Latkanich for her position of Secretary /Treasurer as detailed in Fact Finding 22. Latkanich signed all of the payroll checks issued to her in 2005, thereby providing one of the two required Supervisor signatures. With the exception of only one check, identified as check #7321, all of these checks were also signed by Board Chairman Melvin Weiss ( "Weiss "), who permitted Latkanich to maintain a facsimile stamp of his signature in her office. Latkanich used Weiss' facsimile stamp when issuing payroll checks, including those issued to Latkanich. Respondent and Supervisor John Yetsconish signed check #7321. All of the checks were endorsed by Latkanich, or by Latkanich and her husband. At the January 2006 reorganization meeting of the Township Board of Supervisors, Supervisor Yetsconish —not Latkanich —was appointed Township Secretary /Treasurer. However, at the Wednesday, March 15, 2006, board meeting held at 7:00 p.m., Latkanich was again appointed to the position of Township Secretary /Treasurer, due to the resignation of Yetsconish from the position. Prior to the said appointment, Latkanich assisted Yetsconish by assuming Secretary /Treasurer duties on March 13, 2006. Latkanich purports to have assisted on March 14, 2006, and March 15, 2006, as well. For the payroll period ending Saturday, March 18, 2006, Latkanich authorized compensation to herself for forty hours of work, including 24 hours of work on March 13 -15, 2006, prior to her appointment. Latkanich issued Township check #7677 to herself in the amount of $353.10 for 40 hours of work at $14 per hour, less deductions. The authorizing signatures were of Latkanich and John Yetsconish. The check was endorsed by Latkanich and her husband. The parties have stipulated that Latkanich received a private pecuniary gain in the amount of $336 when she authorized payments to herself for 24 hours of work on March 13, 2006, March 14, 2006, and March 15, 2006, prior to her appointment to an employment position with the Township. Since at least 2002, Latkanich's work hours as Township Secretary/Treasurer have been 8:00 a.m. to 4:00 p.m. with a one -half hour unpaid lunch break. However, Latkanich has compensated herself for the one -half hour lunch break throughout her employment with the Township. Latkanich purports that although she works 7'/ hours per day, since lunch is taken on the premises, she is entitled to compensation for 8 hours per day. Latkanich considers herself essentially a salaried employee since no overtime is paid to her, and she believes the actual amount of hours she works is irrelevant. The parties have stipulated that for the years 2002 through 2006, Latkanich has been paid an estimated total of $9,100 for lunch breaks, which amount constituted unauthorized and unapproved compensation. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. Latkanich, 06 -041 Page 17 The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in relation to Latkanich approving payments in excess of annual leave available for herself; and b. That a violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in relation to Latkanich approving payments to herself as Secretary /Treasurer for days /hours which she was not entitled to receive; and c. That a violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in relation to Latkanich authorizing payment to herself for time in excess of actual hours worked, including approving compensation for lunch breaks. 4. Latkanich agrees to make payment in the amount of $4,000.00 in settlement of this matter payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. 5. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. 6. Latkanich agrees to waive her rights to an evidentiary hearing and appellate rights without prejudice to so proceed in the event that the State Ethics Commission does not accept this agreement. Consent Agreement, at 2. In considering the Consent Agreement, we conclude that the elements of the three recommended violations of Section 1103(a) of the Ethics Act have been established. As Township Secretary /Treasurer, Latkanich's official duties include administering the payroll for Township employees, including herself, and documenting the use of Latkanich, 06 -041 Page 18 vacation and sick time for employees. Latkanich used the authority of her public position as Township Secretary /Treasurer to submit and approve payments to herself for excess leave and for hours that she did not work without having leave available for use. In 2002, Latkanich used the authority of her public position to authorize compensation to herself in the amount of $950.40 for excess vacation leave. In 2005, Latkanich used the authority of her public position to authorize compensation to herself in the amount of $1,659 for hours that she did not work without having leave available for use. Latkanich used the authority of her office as Township Supervisor when she signed all of the payroll checks issued to her in 2005, thereby providing one of the two required Supervisor signatures. With the exception of only one check, check #7321, all of these checks were also signed by Board Chairman Weiss. Latkanich used Weiss' facsimile stamp when issuing payroll checks, including those issued to Latkanich. Respondent and Supervisor John Yetsconish signed check #7321. Through the aforesaid use of the authority of her public positions, Latkanich obtained private pecuniary benefits consisting of excess compensation in the amount of $950.40 in 2002 and in the amount of $1,659 in 2005. Additionally, for the years 2002 through 2006, Latkanich used the authority of her public positions to obtain unauthorized and unapproved compensation in an estimated total amount of $9,100 for lunch breaks. Based upon the above, we hold that: (1) A violation of Section 1103(a) of the Ethics Act occurred in relation to Latkanich approving payments to herself in excess of annual leave available for herself (cf., St. Peter, Order 1418); and (2) A violation of Section 1103(a) of the Ethics Act occurred in relation to Latkanich authorizing payment to herself for time in excess of actual hours worked, including approving compensation for lunch breaks (see, Stacknick, Order 1385; Large, Order 1117). The parties have recommended that we find that an additional violation of Section 1103(a) of the Ethics Act occurred in relation to Latkanich approving payments to herself as Secretary /Treasurer for days /hours which she was not entitled to receive. Factually, the parties have stipulated that Latkanich received a private pecuniary gain in the amount of $336 when she authorized payments to herself for assisting with Township Secretary /Treasurer work on March 13, 2006, March 14, 2006, and March 15, 2006, prior to John Yetsconish's resignation as Secretary /Treasurer and Latkanich's appointment as Secretary /Treasurer. The element of use of authority of office is established by Latkanich's submission /authorization of these hours as part of payroll, as well as her provision of one of the two authorizing signatures on the Township check paying herself for these hours. The element of a private pecuniary benefit is established by the fact that Latkanich was not entitled to receive compensation as Township Secretary /Treasurer for submitted work hours prior to her appointment as Secretary /Treasurer. As for the amount of the aforesaid private pecuniary gain, specifically $336, we are mindful of the judicial decision in Bixler v. State Ethics Commission, 847 A.2d 785 (Pa. Cmwlth. 2004) (holding that a net profit in the amount of $561.77 resulting from business transactions between a township supervisor's employer and the township would fall within the "de minimis" exclusion to the definition of "conflict of interest "). If the parties had not determined to enter into a Consent Agreement, we might have been presented with factual and legal issues as to whether, under the circumstances of this case, Bixler would apply as to the aforesaid $336 private pecuniary gain obtained by Latkanich. However, given: (1) that the parties have entered into a comprehensive Consent Agreement with the benefit of Latkanich, 06 -041 Page 19 legal counsel to assist them in weighing all relevant factual and legal considerations; and (2) the parties are in agreement that a violation of Section 1103(a) of the Ethics Act as to the aforesaid private pecuniary benefit would be appropriate as part of an overall settlement of this case, we shall accept the parties' proposed disposition. We note that this particular determination in this case based upon the agreement of the parties should not be considered as precedent for other cases, which would be determined based upon their facts and circumstances. Per the Consent Agreement of the parties, we hold that a violation of Section 1103(a) of the Ethics Act occurred in relation to Latkanich approving payments to herself as Township Secretary /Treasurer for days /hours which she was not entitled to receive. Latkanich has agreed to make payment in the amount of $4,000 in settlement of this matter, payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. We determine that the Consent Agreement submitted by the parties sets forth the proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, per the Consent Agreement, Latkanich is directed to make payment in the amount of $4,000 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of this adjudication and Order. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Joanne Latkanich ( "Latkanich "), as a Supervisor of Washington Township ("Township "), Fayette County, since 1997, and as the Township Secretary /Treasurer from 1998 through 2005 and from March 15, 2006, to the present, has at all times relevant to this matter been a public official /public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Latkanich violated Section 1103(a) of the Ethics Act in relation to her approval of payments to herself in excess of annual leave available for herself. 3. Latkanich violated Section 1103(a) of the Ethics Act in relation to her authorizing payment to herself for time in excess of actual hours worked, including approving compensation for lunch breaks. 4. Latkanich violated Section 1103(a) of the Ethics Act in relation to her approval of payments to herself as Township Secretary /Treasurer for days /hours which she was not entitled to receive. In Re: Joanne Latkanich, Respondent ORDER NO. 1445 File Docket: 06 -041 Date Decided: 10/23/07 Date Mailed: 11/7/07 1 Joanne Latkanich ( "Latkanich "), a public official /public employee in her capacities as a Supervisor of Washington Township ( "Township "), Fayette County, since 1997, and as the Township Secretary /Treasurer from 1998 through 2005 and from March 15, 2006, to the present, violated Section 1103(a) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), in relation to her approval of payments to herself in excess of annual leave available for herself. 2. Latkanich violated Section 1103(a) of the Ethics Act in relation to her authorizing payment to herself for time in excess of actual hours worked, including approving compensation for lunch breaks. 3. Latkanich violated Section 1103(a) of the Ethics Act in relation to her approval of payments to herself as Township Secretary /Treasurer for days /hours which she was not entitled to receive. 4. Per the Consent Agreement of the parties, Latkanich is directed to make payment in the amount of $4,000 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of this Order. a. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. b. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair