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HomeMy WebLinkAbout1484 NeffIn Re: Dianah Neff, 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 07 -020 Order No. 1484 7/21/08 8/5/08 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) 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." A Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth 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. Neff, 07 -020 Page 2 I. ALLEGATIONS: That Dianah Neff, a public official /public employee in her capacity as Chief Information Officer for the City of Philadelphia, violated Sections 1103(a), 1103(d), 1104(a), and 1105(b) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a), 1103(d), 1104(a), and 1105(b), when she failed to disclose on Statements of Financial Interests filed for the 2004, 2005, and 2006 calendar years, transportation and /or lodging and hospitality paid on her behalf for appearances as a speaker at conferences and conventions; when she participated in the award of no -bid contracts and approved payments to a company at a time when she was negotiating employment with that company; when she accepted payments in recognition for her appearances, speeches, and presentations in her position as Chief Information Officer which were not intended as consideration for the value of such services; and when she failed to file a Statement of Financial Interests with the City of Philadelphia for the 2006 calendar year by May 1, 2007. II. FINDINGS: 1. Dianah Neff (Neff) served as the Chief Information Officer (CIO) for the City of Philadelphia (City) Mayor's Office of Information Services (MOIS) from May 7, 2001, until September 8, 2006. a. Neff was appointed to the position by Mayor John Street and was a member of Mayor Street's cabinet. b. Neff reported directly to Mayor John Street through his Chief of Staff, Joyce Wilkerson. c. Neff did not have a formal job description as CIO. 1. A job description for the CIO position does not exist as it is an executive -level position. 2. Neff, as the CIO, had overall responsibility for every facet of Philadelphia's information technology infrastructure except telecommunications operations. a. Neff had oversight for the delivery of reliable, dependable, stable, and available information technology capabilities to the City employees who would assist the residents of Philadelphia. b. Neff, as the CIO, was responsible for all development and support functions involving core information technology services for the City as well as project management organization. c. Neff supervised a staff of approximately 120 employees. d. Neff was responsible for reviewing and evaluating contracts involving information technology. e. Neff did not have authority to award no bid City contracts in relation to the City's Neighborhood Transformation Initiative (NTI) unless they pertained to wireless Internet access in support of NTI. f. Neff had authority to award no bid contracts pertaining to wireless Internet access with an estimated cost of $25,000 or less after verification of available funds by the Budget Director. Neff, 07 -020 Page 3 g. All no bid contracts with an estimated cost between $25,000 and $100,000 required that the Budget Director verify the availability of funds and that the Mayor's Chief of Staff approve the contract before Neff could sign the contract. h. All no bid contracts with an estimated cost over $100,000 required verification of available funds by the Budget Director, approval of the Chief of Staff, and then approval of the Information Technology Governing Board (ITGB) consisting of the Chief of Staff, Managing Director, Solicitor, Finance Director, Budget Director, and Neff, as CIO. Neff had the right to submit proposed contracts to the Law Department and often did so. 3. In April 2001, Mayor Street established NTI. a. NTI was a strategy to preserve and rebuild Philadelphia's neighborhoods as thriving communities. b. The strategy included improving availability of technology. 4. In August 2004, Mayor Street established the Wireless Philadelphia project. a. The goal of the project was to help with the Digital Divide that would provide Internet access to deprived areas of the City. b. The term "Digital Divide" refers to the gap between those people with effective access to digital and information technology and those without access to it. c. The Wireless Philadelphia project established a charter to strengthen the City's economy and transform Philadelphia's neighborhoods by providing wireless Internet access throughout the City. d. Mayor Street appointed a 17- member Wireless Philadelphia Executive Committee (Committee) that was chaired by Neff. 5. Neff, as the CIO for the City, was responsible for helping to develop a strategy for the Wireless Philadelphia project. 6. During the summer of 2004, Neff met Gregory Richardson (Richardson) of Civitium, LLC (Civitium) at a municipal wireless event sponsored by Sprint Communications. a. At this event, Neff and Richardson discussed the Wireless Philadelphia project. 7 Civitium is a management and technology consulting firm for the public broadband market. a. Civitium was incorporated on July 8, 2004, in the state of Georgia. b. Richardson was the founder and managing partner of Civitium. 8. As CIO, Neff negotiated five contracts on behalf of the City with Civitium between October 2004 and August 2005, for studies related to the implementation of the wireless initiative. Neff, 07 -020 Page 4 a. The contracts were not required to be and were not submitted by bid. b. Neff negotiated contract prices with Richardson. c. On October 20, 2004, the City's Office of the Director of Finance issued a Miscellaneous Order with respect to Civitium. 1. The first document identified in the Investigative Complaint as a contract was this Miscellaneous Order approving a $10,000 payment. The Miscellaneous Order was to cover Richardson's travel expenses. 2. The Miscellaneous Order was approved by ITGB. d. The next three contracts had estimated costs between $25,000 and $100,000. 1. The Budget Director verified the availability of funds. 2. The Chief of Staff approved the three contracts entered into between the City and Civitium. 3. Neff then signed the three contracts. e. The August 1, 2005, contract identified in the Investigative Complaint was not with the City. The contract was with Wireless Philadelphia, which is discussed below. 1. The contract was approved by the Board of Directors of Wireless Philadelphia. 2. Neff then signed the contract in her capacity as Acting CEO of Wireless Philadelphia, not as CIO of the City. 9. On November 30, 2004, a Provider Agreement was entered into by MOIS and Civitium in which Civitium was to provide a Citywide Radio Frequency (RF) Study. a. The terms of the contract called for the City to pay a flat fee of $44,608 to Civitium for commencement of the services and an additional fee once the project was completed. b. The contract period was from November 15, 2004, to December 17, 2004. c. The Provider Agreement was not put out for bid as it was considered a Professional Services Contract. 1. Professional Services Contracts are not required to be put out for bid per the City Code. d. The Provider Agreement was approved by the Chief of Staff. e. Neff, as the CIO for MOIS, and Richardson of Civitium then signed the contract. 10. The objectives of the RF Study were, in part, to: Neff, 07 -020 Page 5 a. Survey the radio environment throughout the 135 square miles of Philadelphia (using a [thorough] sampling of locations) to determine the level of congestion in license exempt 2.4 GHz and 5.8 GHz frequency bands. b. Document the results of the RF Study in such a way as to allow them to be incorporated into the Committee's findings and recommendations. 11. On February 4, 2005, a second Provider Agreement was entered into between MOIS and Civitium in which Civitium was to provide the City with services throughout the Request for Proposal (RFP) process for the Wireless Philadelphia project. a. The contract period commenced on January 24, 2005, and ended on June 24, 2005. b. The estimated cost was $165,000. c. The City's Budget Director verified the availability of funds, the City's Chief of Staff approved the contract, and then ITGB approved the contract. d. The contract was then signed by Neff, as the CIO of MOIS, and Richardson of Civitium. 12. In or around January 2005, members of the Executive Committee for the Wireless Philadelphia project recommended establishing a non - profit corporation to carry out the mission of the Wireless Philadelphia project. a. Articles of Incorporation were established for the Wireless Philadelphia project on March 29, 2005, as a non - profit corporation. b. Mayor John Street was listed as the Incorporator. c. The address of the corporation was as follows: 1234 Market Street, Suite 1850 Philadelphia, PA 19107 1. This was the same address as MOIS. 13. Wireless Philadelphia was created by Mayor John Street to develop a metropolitan wireless broadband Internet Access System in the City in an effort to spur economic development; enhance community neighborhoods; assist in overcoming the digital divide; and assist in reducing the cost of government. 14. As of March 30, 2005, until July 18, 2005, Neff was the sole Director of the Wireless Philadelphia project and served as the Acting CEO, President, Secretary, and Treasurer. a. There were no contracts between Civitium and the Wireless Philadelphia project that Neff approved or signed during this period. 1. The reason that there were no contracts during the period is because Neff was deferring such matters until the full Board of Directors (Board) was appointed. Neff, 07 -020 Page 6 2. On July 18, 2005, Mayor John Street appointed four other persons to the Board of Wireless Philadelphia. 15. On August 1, 2005, a third Provider Agreement was entered into between Wireless Philadelphia and Civitium to provide services related to the Wireless Philadelphia project. a. The contract was to begin on July 18, 2005, and end on December 16, 2005. b. The contract was approved by the Board. c. Neff then signed the contract as Acting CEO of Wireless Philadelphia on August 12, 2005. 16. In or around September 2005, the Board elected Derek Pew as the Acting CEO. a. As the former Acting CEO of Wireless Philadelphia, Neff became an Ex- Officio Board Member. 17. Wireless Philadelphia reviewed various proposals to actually construct a wireless network. a. One of the major considerations was that neither Wireless Philadelphia, nor the City of Philadelphia, would be responsible for making any payments regarding the building of the network. b EarthLink, Inc. was selected by Wireless Philadelphia to build the network. 18. On February 21, 2006, and June 2, 2006, Wireless Philadelphia entered into a Network Agreement with EarthLink, Inc. to build and design a wireless network system throughout the City. a. The agreement did not require Wireless Philadelphia to make any payments to build the system other than paying the Philadelphia Electric Company the costs and charges of the electricity for the operation of the system. b. EarthLink, Inc. was responsible for paying the Philadelphia Authority for Industrial Development (PAID) a $2,000,000 fee over a two year period of time for the use of street lights to be used by EarthLink, Inc. in operating the system. c. EarthLink, Inc. was responsible for paying a $24.00 annual user fee per street light to PAID. d. EarthLink, Inc. was responsible for paying Wireless Philadelphia each month either the greater of one dollar ($1.00) or five percent (5 %) of the Net Access revenue generated per month for every retail Wi -Fi subscriber utilizing the system each month. 19. On February 21, 2006, Wireless Philadelphia entered into a Management Agreement with the City to manage the Network Agreement with Earthlink, Inc. a. The Management Agreement was approved by Philadelphia City Council on May 11, 2006, and signed by Mayor Street on May 25, 2006. Neff, 07 -020 Page 7 20. In or around the middle of May 2006, more than one year after Neff had last participated in the award of a contract to Civitium, Neff first had discussions with Richardson about her possible employment by Civitium.* a. The discussions occurred after Neff participated in awarding no bid contracts to Civitium. 1. Neff had not awarded a no bid contract to Civitium for over a year.* b. The discussions were initiated by Richardson. c. The discussions were just one of four [sic] that Neff had with prospective employers beginning in May 2006. *[Cf. Fact Findings 8, 15]. 21. In or around the middle of July 2006, Neff was offered a position with Civitium as a partner. a. Neff accepted the position in August 2006. b. Neff officially started with Civitium on September 11, 2006. 22. Neff's employment with Civitium was eventually reviewed by the Philadelphia Board of Ethics (Philadelphia Board) after questions were raised in connection with her acceptance of employment with a vendor to whom she had earlier awarded no bid contracts. 23. In an after - the -fact opinion issued on September 20, 2006, the Philadelphia Board of Ethics determined that Neff did not violate the conflict of interest rules of the Philadelphia Ethics Code or the State Ethics Act. a. The Philadelphia Board has no authority or jurisdiction to render determinations of an alleged or actual violation of the Pennsylvania Public Official and Employee Ethics Act (65 Pa.C.S. §1101 et seq.) as that authority is vested exclusively in the Pennsylvania State Ethics Commission or in a court of competent jurisdiction. b. The Philadelphia Board found no evidence that Neff used the authority of her office to ensure that she would be hired by Civitium, or to benefit Civitium, having determined that she would be hired by Civitium. c. The Philadelphia Board also noted the following in its finding: Nevertheless, the Board considers it a matter of concern that a high City official, who has very recently had responsibility for awarding and monitoring a contract with a vendor, would pursue an employment opportunity with the vendor, without consulting with either the Law Department or the Board of Ethics about possible restrictions under the ethics laws. Mayor's Executive Order No. 001 -04 charges this Board with the responsibility to "advise the Mayor, the Cabinet, the Personnel Director, and such other officials as the Board deems appropriate, regarding the most effective manner of ensuring that all City officials and employees fully understood [sic] and appreciate both the specifics of the applicable laws and importance of compliance with such laws." Neff, 07 -020 Page 8 THE FOLLOWING FINDINGS RELATE TO THE ALLEGATIONS THAT NEFF FAILED TO DISCLOSE THE RECEIPT OF TRANSPORTATION, LODGING AND HOSPITALITY ON STATEMENTS OF FINANCIAL INTERESTS. 24. Neff, as the CIO, traveled to many conferences and conventions related to information and wireless technology. a. Neff's attendance was requested at many of the conferences because of her knowledge and involvement in the Wireless Philadelphia project. b. The Chief of Staff approved Neff's travel to speak about Wireless Philadelphia, provided that Neff's transportation and lodging were covered by the sponsoring organization as a "Gift to the City." 25. Neff, as a City employee, was eligible to be reimbursed by the City for expenses that she incurred in the performance of her duties as CIO. a. This would have included allowable expenses Neff incurred while attending conferences where Neff discussed the Wireless Philadelphia project. b. Nevertheless, the City's Chief of Staff approved Neff's travels to speak about Wireless Philadelphia only if Neff's travel and lodging were covered by the sponsoring organization as a "Gift to the City." 26. Neff claimed and received reimbursement of travel - related expenses from the City for her relocation and travel related to her position as CIO for the City. 27. Neff also attended conventions /conferences in her capacity as the CIO where her expenses were paid for by vendors or organizations that sponsored the events. a. Vendors paying for Neff's travel included: 1. Digiport. 2. Rock Media. 3. Wireless Internet Institute (W2i). b. Also paying for Neff's expenses were the cities of Taipei, Taiwan, and Bilbao, Spain. 28. The City's Law Department has authorized expenses for City employees to be paid for by vendors provided it was in the performance of their duties and would benefit the City for the employee to be in attendance at the conference. a. The City Law Department's determination of the receipt of such expenses paid by vendors has been referred to as a "Gift to the City." 29. The term "Gift to the City" stems from Section 8 -204 of the 1952 Philadelphia Home Rule Charter that provides the following on the Acceptance of Gifts or Donations: a. Every department, board and commission may accept on behalf of the City gifts or donations of money, securities, or other personal property, which shall be useful in connection with the work of such department, board or commission, or for the benefit of the inmates or patients of any City institution administered by such department, board or commission. Neff, 07 -020 Page 9 b. A department, board or commission shall not accept any gift of real estate or any interest in real estate without specific authority from the Council so to do. 30. The City's Law Department cited to the Pennsylvania State Ethics Commission (Commission) [ruling in] Daqhir, Opinion No. 86 -012, when determining if a City Official can accept a trip paid for by a vendor. 31. The Pennsylvania State Ethics Commission's Daqhir Opinion concluded that there was no prohibition [upon] a school board member accepting a trip paid for by a potential contractor to inspect their [sic] facilities and assist in [the] decision whether to do business with the contractor, but the following criteria needed to be present: a. The traveling official may not directly bill or receive reimbursement from the vendor or contractor. b. Such reimbursement should be arranged by the vendor with the school district. c. The nature of the expenses incurred and the amounts paid by the vendor should be specifically outlined and enumerated to the school district and the information should be available to the general public. d. The nature and extent of the travel must be reasonable in nature. e. Public officials may not accept travel expenses and accommodations for spouses of the public official. f. The travel must be in accordance with the official duties and responsibilities of the individuals involved, and the travel must not be related to any tangential items not related to the official duties and responsibilities of the public official. 32. The Commission's Opinion in Daqhir was issued prior to the 1989 amendments to the Ethics Law requiring the reporting of certain expenses reimbursed to public officials and public employees. 33. In or around October 2004, Dianah Neff, in her capacity as CIO, had been asked to speak at a plenary session on December 2, 2004, concerning public - private partnerships at the Net 2004 conference in Lille, France, held from November 30, 2004, through December 2, 2004. a. Digiport sponsored the conference. 1. Digiport is a French firm that promotes business development in areas where the Information Technology market is expanding. b. Digiport had offered to pay Neff's airline fees and lodging expenses for appearing as a speaker at the conference. 34. Neff's Office Manager, Pat Shaw, requested a legal opinion for Neff from the City's Law Department on whether Neff could attend. Neff, 07 -020 Page 10 35. On November 16, 2004, by way of e -mail, Evan Meyer of the City's Law Department issued the following Informal Opinion No. 111 -204 to Pat Shaw regarding Neff's travel request: a. Pat (Shaw) — I have been advised that the sponsor, Digiport (apparently a French Firm), does no business with the City; Public Technology Inc. (PTI) had referred them to Dianah as a speaker on wireless since the City has announced our Wireless Philadelphia initiative. Dianah (Neff) also ran this by the Mayor's office and they have approved her speaking at the conference in France. I suggest that not only does the usual "gift to the city" principle apply, but we may not even need to go there, since this [is a] French firm that does no business with the City [and] does not even qualify as a prohibited source under Section 1 of the gift executive order. Since the Ethics Board confirmed this view at yesterday's meeting, I advise you that Ms. Neff may accept the invitation. 36. Neff attended the Net 2004 conference in Lille, France, from November 30, 2004, through December 2, 2004. a. All expenses for the trip, including airfare, hotel, and meals, were paid for by Digiport. b. Neff did claim expense reimbursement from the City for attending this conference totaling $379.41. 1. These expenses were for meals, taxi service, and international phone calls not paid for by Digiport. c. Total expenses paid by Digiport exceeded $650.00. 37. Neff's estimated airfare costs for the trip to Lille, France, per www.expedia.com and www.travelocity.com, totaled at least $1,000.00. a. Lodging expenses could not be determined. 38. On November 26, 2004, Neff, in her capacity as the CIO, was asked by Julie O'Hegarty of Rock Media to be a speaker at the Wireless Broadband & Home Networking Seminar that was part of the Wireless LAN Event held at the Olympia in London, England, from April 20 -21, 2005. a. Rock Media was offering to pay Neff $1,100 in United States currency towards Neff's traveling expenses and hotel stay. b. Rock Media is an International Private Company located in London, England, that handles business, technical, and scientific services. 39. On November 29, 2004, Pat Shaw requested an approval by the Philadelphia Ethics Committee for Neff's trip to London, England, on April 20 -21, 2005. 40. On December 1, 2004, Evan Meyer of the City's Law Department issued the following Informal Opinion No. 116 -2004 to Pat Shaw in the form of an e -mail regarding Neff's trip to England: a. Pat- I have consulted with the Board of Ethics. Unlike the Lille, France conference, this one is sponsored by a U.S. vendor, Texas Instruments, so it is conceivable that the sponsor could be, or [could] seek to be a City vendor. Neff, 07 -020 Page 11 However, the Board has concluded that the "gift to the city" analysis still applies. That would require Ms. Neff's appointing authority (the Mayor) to approve her attendance at the seminar. I interpret the Board's approval as advice to the Mayor to accept this invitation as a "gift to the city" and designate Dianah Neff as the official to accept the invitation and the "gift" of traveling expenses and accommodations. If a free lunch is provided to all conference attendees during the conference, that would not be a problem. would, however, caution Dianah that accepting [a] fancy dinner after conference hours from U.S. vendors might pose a problem. 41. Neff attended the Wireless LAN event in London, England, from April 20, 2005, through April 21, 2005. a. Expenses for airfare and lodging totaling $1,100.00 for Neff were paid for by Rock Media. 1. Rock Media provided Neff with airline tickets while also paying for Neff's lodging and meals. b. Neff did not claim any expenses for reimbursement from the City regarding her London trip. 42. Neff attended a Digital Cities Convention, in her capacity as the CIO, that was sponsored by the Wireless Internet Institute, LLC (W2i) and held in Shanghai, China, from May 30 -31, 2005. a. Neff attended the W2i convention in Shanghai, China, as a Panelist /Speaker. b. Neff was invited to speak by W2i. 43. W2i was founded in 2002 and is an independent forum that brings together stakeholders from around the world to accelerate the adoption of the Wireless Internet in support of social and economic development and better managed cities, communities and regions. a. W2i is part of World Times, Inc., which was established in 1978 and brings fresh pluralistic perspectives on today's primary global issues and trends. 44. W2i insisted on paying expenses for Neff's travel from Seoul, South Korea, to Shanghai, China, and a return to Seoul charged by Neff to an American Express account. a. Neff was to be in Seoul, South Korea, for an unrelated event and incurred necessary expenses for the trip from Seoul to Shanghai. 45. As a Panelist /Speaker, Neff's registration fee of $295.00 was waived. 46. Neff submitted expenses to W2i for the convention in Shanghai as follows: Date Expense Foreign Currency US $ 5/28/05 Taxi -Home to Phila. Airport $ 25.00 5/28/05 Korea Hotel 237.050 Won $239.11 5/29-5/31/05 Shanghai Hotel 4047.94 Yuan $500.61 VISA — China $168.00 5/28 - 5/29/05 Korea - Dinner & Breakfast 21,000 Won $ 30.87 Neff, 07 -020 Page 12 5/29 - 6/01/05 China -Food & $600 toward bill 824.74 [sic] $100.00 6/01/05 Taxi - Chicago Airport to Hotel $ 43.00 Total $1,106.59 47. World Times, Inc., parent company of W2i, paid Neff for the expenses outlined in Finding 46. 48. There is no record of Neff seeking any type of legal opinion from the City's Law Department on whether Neff could accept the trip to China as a "Gift to the City." a. The direct payment made to Neff by W2i for Neff's expenses was not in compliance with the Daghir Opinion issued by the State Ethics Commission. 1. W2i required that Neff be directly reimbursed. 2. Neff did not have the time necessary to obtain an opinion from the City's Law Department because W2i's reimbursement requirement was communicated to Neff for the first time when Neff was already on the first leg of the China trip. 49. Neff attended another W2i convention from November 7, 2005, to November 9, 2005, in Bilbao, Spain, as a Panelist /Speaker in her capacity as the CIO for the City of Philadelphia. a. Neff was recruited by W2i. b. Neff was offered a complimentary pass to attend the conference and social functions. 1. The registration fee that was waived for Neff amounted to $295.00. c. Neff was to serve as the Chairperson of a Planning Panel: The Role of Local Authorities. 50. Neff's travel and accommodations were paid properly by the government of the City of Bilbao, which co- hosted the event as part of the United Nations Summit of Cities on Information Society. a. Neff's airfare expenses for the cost of the trip, per www.expedia.com and www.travelocity.com, were at least $1,000 in U.S. currency. b. Neff did not seek reimbursement from the City for any expenses related to this trip. 51. Neff did not request a legal opinion from the City's Law Department as to whether or not Neff could accept the trip to Spain because she understood it to be a "Gift to the City." 52. Neff, in her capacity as the CIO, attended the W2i Digital Cities Convention in Taipei, Taiwan, from June 28, 2006, through June 30, 2006. a. W2i and the City of Taipei government sponsored the convention. 53. Neff's travel and accommodations were paid for by the City of Taipei. Neff, 07 -020 Page 13 a. Neff flew Business Class when she traveled to Taipei. 1. Neff's Business Class airfare per www.accessfares.com would have amounted to at least $3,000 in U.S. currency. 2. Neff's lodging expenses were also paid by the City of Taipei. b. Neff attended the Taipei Conference, in her capacity as CIO, during the time when she was negotiating employment with Civitium. 54. Neff did not request a legal opinion from the City's Law Department as to whether Neff could accept the trip because she understood the trip to be a "Gift to the City." 55. On February 15, 2006, Neff appeared as a speaker at the Black Data Processing Association (BDPA), Philadelphia Chapter. a. The BDPA is a non - profit, tax - exempt organization that consists primarily of persons directly employed in the Information Technology Industry who provide professional and personal enrichment through monthly meetings. b. Neff spoke at the event in her capacity as CIO for the City. 56. Neff received a payment from the BDPA on February 15, 2006, in the amount of $50.00 for appearing as a speaker. a. Noted on the memo section of the check issued to Neff by the BDPA was that the payment was for a speaking honorarium for a program meeting on 2/15. b. Neff endorsed and deposited the check into her personal account with the Philadelphia Federal Credit Union. c. Neff states that she contributed $50.00 in cash to Wireless Philadelphia but has no receipt. 57. In her capacity as CIO for the City, Neff filed Statements of Financial Interests (SFIs) for calendar years 2001 through 2005. a. Neff filed SFIs as follows: Calendar Year Date Filed 2001 04/15/02 2002 04/21/03 2003 04/21/04 2004 04/18/05 2005 04/19/06 58. The Public Official and Employee Ethics Act requires that public officials and public employees disclose the name and address of the source and the amount of payment for or reimbursement of expenses for transportation and lodging or hospitality received in conjunction with public service if such actual expenses exceed $650.00 in a single occurrence.* a. Prior to January 1, 2007, Section 1105(b)(7) of the State Ethics Act required the name and address of the source and the amount of payment for or reimbursement of actual expenses for transportation and lodging or Neff, 07 -020 Page 14 hospitality received in connection with public office or employment where such actual expenses for transportation and lodging or hospitality exceeded $650 in the course of a single occurrence. b. Section 1105(b)(7) shall not apply to expenses reimbursed by a governmental body or to expenses reimbursed by an organization or association of public officials or employees [of political subdivisions] which the public official or employee serves in an official capacity. *[sic]. [Effective January 1, 2007, Section 1105(b)(7) of the Ethics Act was amended to require disclosure where the amount of payment for or reimbursement of actual expenses for transportation /lodging /hospitality received in connection with public office or employment exceeds $650 in an aggregate amount per year]. 59. Neff did not disclose on her Statements of Financial Interests filed for the 2004 and 2005 calendar years the transportation and lodging expenses paid for or to her by the following because the City's Law Department approved the Digiport payment as a "Gift to the City" and Neff understood the payments by Rock Media and the W2i trips to likewise be "Gifts to the City ": a. Digiport — 11/30/04 to 12/2/04 - $1,000.00. b. Rock Media — 4/20/05 to 4/21/05 - $1,100.00. c. W2i — 5/30/05 to 5/31/05 - $1,106.00. 60. Neff, pursuant to Section 1105(b)(7) of the Ethics Act, was not required to disclose expenses reimbursed by a governmental body as follows: a. Bilbao, Spain — 11/7/05 to 11/9/05 - $1,000.00. b. City of Taipei — 6/28/06 to 6/30/06 - $3,000.00. 61. Neff filed Statements of Financial Interests for calendar years 2004 and 2005 which included the following: a. Calendar Year: 2004 Date Filed: 4/18/05 Public Position: Chief Information Officer Direct or Indirect Source of Income: City of Philadelphia and H & M Jordan Family Limited Partnership Gifts: None Transportation, Lodging, or Hospitality: None 1. Neff did not list the transportation, lodging and hospitality expenses that were paid on her behalf by Digiport while attending the Net 2004 Convention in Lille, France, that exceeded $650.00 because she understood the trip to be a "Gift to the City." b. Calendar Year: 2005 Date Filed: 4/19/06 Public Position: Chief Information Officer Direct or Indirect Source of Income: City of Philadelphia and H & M Family Limited Partnership Gifts: None Transportation, Lodging, or Hospitality: None Neff, 07 -020 Page 15 1 Neff did not list the transportation, lodging, and hospitality [expenses] that were paid on her behalf by W2i for attending the W2i Convention in Shanghai, China, that exceeded $650.00 because she understood the trip to be a "Gift to the City." 2. Neff did not list the transportation, lodging, and hospitality [expenses] that were paid on her behalf by Rock Media for attending the Wireless LAN Event held in London, England, that exceeded $650.00 because she understood the trip to be a "Gift to the City." 62. [The State Ethics Commission is not bound by the City's position on "Gifts to the City. "] THE FOLLOWING FINDINGS RELATE TO THE ALLEGATION THAT NEFF FAILED TO FILE A STATEMENT OF FINANCIAL INTERESTS AS A FORMER CITY OF PHILADELPHIA EMPLOYEE. 63. As a former employee of the City, Neff was required to file a Statement of Financial Interests for calendar year 2006, by May 1, 2007. 64. On or about February 13, 2008, Linda Townsel, Executive Secretary for the Commissioner's Office with the Philadelphia Records Department, and Custodian of the Records for Statements of Financial Interests for the City of Philadelphia, submitted an affidavit to the Investigative Division of the Commission, indicating that no 2006 calendar year Statement of Financial Interests form was located within the City's files for Neff. 65. On or about June 10, 2008, Linda A. McBride - Brock, Human Resources Manager, Administrative Services Center, Finance Department, City of Philadelphia, attested as follows: a. It is the usual practice of the City to send out the Financial Disclosure forms with a cover letter to former City employees, whose employment terminated in the immediately preceding year, prior to the May 1 deadline for the prior year's reporting. b. The cover letter requests that the Financial Disclosure forms be completed, signed and returned to the City of Philadelphia Records Department by the due date. c. It is also the usual practice of the City to keep a copy of each such cover letter in the Financial Disclosure file. d. Upon request of Neff, [the] Financial Disclosure file for 2006 was searched, where it was found that said file does not contain copies of the letters sent to former employees who were required to file. 1. Neff was on the list for required filers for 2006. e. Neff's personnel file was also searched at her request. 1. Neff's personnel file likewise does not contain a copy of the cover letter. 66. In light of the above indications of McBride - Brock, it is Neff's position that she did not receive the customary "cover letter" and Statement of Financial Interests form from the City for the year following her public employment. Neff, 07 -020 Page 16 a. The City's mailing of the Statement of Financial Interests form and "cover letter" serves as a reminder to former public officials /public employees of their obligation to file. 67. Despite the perceived oversight on behalf of the City in failing to send the customary "cover letter" and form, Neff acknowledges that she possessed a duty to file. a. Neff's non - filing was an oversight and not a conscious effort to transgress the filing requirements – quite simply, Neff forgot to file. III. DISCUSSION: As the Chief Information Officer for the City of Philadelphia Mayor's Office of Information Services from May 7, 2001, until September 8, 2006, Respondent Dianah Neff (hereinafter also referred to as "Respondent," "Respondent Neff," or "Neff "), has been a public official /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 Neff violated Sections 1103(a), 1103(d), 1104(a), and 1105(b) of the Ethics Act when she failed to disclose on Statements of Financial Interests filed for calendar years 2004, 2005, and 2006 transportation and /or lodging and hospitality paid on her behalf for appearances as a speaker at conferences and conventions; when she participated in the award of no -bid contracts and approved payments to a company at a time when she was negotiating employment with such company; when she accepted payments in recognition for her appearances, speeches, and presentations in her position as Chief Information Officer that were not intended as consideration for the value of such services; and when she failed to file a Statement of Financial Interests with the City of Philadelphia for the 2006 calendar year by May 1, 2007. 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 "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 Neff, 07 -020 Page 17 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. Section 1103(d) of the Ethics Act provides that no public official shall accept an honorarium: § 1103. Restricted activities. (d) Honorarium. - -No public official or public employee shall accept an honorarium. 65 Pa.C.S. § 1103(d). The Ethics Act defines the term "honorarium" as follows: § 1102. Definitions "Honorarium." Payment made in recognition of published works, appearances, speeches and presentations and which is not intended as consideration for the value of such services which are nonpublic occupational or professional in nature. The term does not include tokens presented or provided which are of de minimis economic impact. 65 Pa.C.S. § 1102. Section 1104(a) of the Ethics Act provides that each public official /public employee must file a Statement of Financial Interests for the preceding calendar year, each year that he holds the position and the year after he leaves it. Section 1105(b) of the Ethics Act sets forth the substantive information that must be disclosed on the Statement of Financial Interests form. Section 1105(b)(7) of the Ethics Act in particular requires the filer to list the name and address of the source and the amount of any payment for or reimbursement of actual expenses for transportation and lodging or hospitality received in connection with public office or employment where such actual expenses exceed $650 in an aggregate amount per year. Prior to January 1, 2007, the disclosure requirement of Section 1105(b)(7) of the Ethics Act applied where the amount of payment for or reimbursement of actual expenses for transportation and lodging or hospitality received in connection with public office or employment exceeded $650 in the course of a single occurrence. The disclosure requirement of Section 1105(b)(7) of the Ethics Act excludes expenses reimbursed by a governmental body or by an organization or association of public officials or employees of political subdivisions which the public official or employee serves in an official capacity. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Respondent Neff served as the Chief Information Officer ( "CIO ") for the City of Philadelphia ( "City ") Mayor's Office of Information Services ( "MOIS ") from May 7, 2001, until September 8, 2006. Neff was appointed to the aforesaid position by Mayor John Neff, 07 -020 Page 18 Street ( "the Mayor ") and served as a member of the Mayor's cabinet. Neff reported directly to the Mayor through his Chief of Staff. As CIO, Neff had overall responsibility for every facet of the City's information technology infrastructure except telecommunications operations. Specifically, Neff was responsible for all development and support functions involving core information technology services for the City. In her public position, Neff was responsible for reviewing and evaluating contracts involving information technology. Neff did not have the authority to award no bid City contracts in relation to a City strategy entitled "Neighborhood Transformation Initiative" ( "NTI ") unless the contracts pertained to wireless Internet access in support of NTI, in which case Neff had the authority to award no bid contracts after the Budget Director verified the availability of funds. Where the estimated cost of such a no bid contract exceeded certain limits, the contract was required to be approved by the City's Information Technology Governing Board and /or the Mayor's Chief of Staff. In August 2004, the Mayor established a project named "Wireless Philadelphia" to develop a metropolitan wireless broadband Internet access system in the City in an effort to, inter alia, spur economic development and assist in reducing the cost of government. In her capacity as CIO, Neff was responsible for helping to develop a strategy for Wireless Philadelphia. The Mayor appointed a seventeen - member Wireless Philadelphia Executive Committee ( "Committee ") that was chaired by Neff. Wireless Philadelphia was subsequently established as a non - profit corporation in March 2005. From March 30, 2005, until at least August 12, 2005, Neff served as Acting Chief Executive Officer ( "Acting CEO ") for Wireless Philadelphia. At a municipal wireless event sponsored by Sprint Communications during the summer of 2004, Neff met Gregory Richardson ("Richardson "), the founder and managing partner of a company named "Civitium, LLC" ("Civitium"). Civitium is a management and technology consulting firm for the public broadband market. At the aforesaid event, Neff and Richardson discussed the Wireless Philadelphia project. Between October 2004 and August 2005, Neff negotiated five no bid contracts with Civitium on behalf of the City /Wireless Philadelphia. Of the five said contracts, Neff signed three in her capacity as CIO and one in her capacity as Acting CEO of Wireless Philadelphia. In or around September 2005, the Board of Directors ( "Board ") of Wireless Philadelphia elected another individual as Acting CEO. As the former Acting CEO, Neff became an ex- officio Member of the Board. On February 15, 2006, Neff, in her capacity as CIO for the City, appeared as a speaker at a program meeting of the Black Data Processing Association ("BDPA "), Philadelphia Chapter. BDPA is a non - profit, tax - exempt organization that consists primarily of persons directly employed in the information technology industry. BDPA gave Neff a check in the amount of $50.00 for appearing as a speaker at the BDPA event. The memo section of the aforesaid check noted that the payment was an honorarium for speaking at the program meeting on February 15, 2006. Neff deposited the check into her personal account with the Philadelphia Federal Credit Union. Neff states that she contributed $50.00 in cash to Wireless Philadelphia but has no receipt. In or around the middle of May 2006, Neff began having discussions with Richardson about her possible employment with Civitium. The aforesaid discussions were initiated by Richardson. In or around the middle of July 2006, Neff was offered a position with Civitium as a partner. Neff accepted the offered position in August 2006 and officially started with Civitium on September 11, 2006. The City Board of Ethics subsequently Neff, 07 -020 Page 19 reviewed Neff's employment with Civitium and concluded that Neff did not violate the conflict of interest rules of the City Ethics Code. We shall now review the stipulated Fact Findings relating to the allegations that Neff failed to disclose on Statements of Financial Interests filed for calendar years 2004, 2005, and 2006 transportation and lodging or hospitality paid on her behalf for appearances as a speaker at conferences and conventions, and that Neff failed to file a Statement of Financial Interests for calendar year 2006 by May 1, 2007. Neff, in her public capacity as CIO, traveled to many conferences and conventions related to information and wireless technology. Because of Neff's knowledge and involvement in Wireless Philadelphia, her attendance was requested at many of the conferences. As a City employee, Neff was eligible to be reimbursed by the City for expenses incurred while performing her duties as CIO, including allowable expenses incurred while attending conferences where Neff discussed the Wireless Philadelphia project. Nevertheless, the City's Chief of Staff approved Neff's trips to speak about Wireless Philadelphia only if Neff's travel and lodging were covered by the sponsoring organization as a "Gift to the City." The City Law Department has authorized expenses for City employees to be paid for by vendors provided it was in the performance of their duties and would benefit the City for the employee to be in attendance at the conference. The City Law Department refers to the receipt by a City employee of vendor -paid expenses as a "Gift to the City." The term "Gift to the City" stems from Section 8 -204 of the 1952 Philadelphia Home Rule Charter, which provides in pertinent part that every department, board, and commission may accept on behalf of the City gifts or donations of money, securities, or other personal property that shall be useful in connection with the work of such department, board, or commission. In or around October 2004, Neff was asked to speak in her capacity as CIO at a session during the Net 2004 conference scheduled to be held in Lille, France, from November 30, 2004, through December 2, 2004. The conference was sponsored by a French firm named Digiport that promotes business development in areas where the information technology market is expanding. Since Digiport had offered to pay Neff's airfare and lodging expenses for appearing as a speaker at the Net 2004 conference, Neff's Office Manager requested a legal opinion for Neff from the City's Law Department as to whether Neff could attend said conference. Evan Meyer ( "Meyer ") of the City Law Department subsequently issued an Informal Opinion advising that Neff could accept Digiport's invitation to attend the Net 2004 conference and that the "Gift to the City" rule would be applicable. Neff attended the Net 2004 conference in Lille, France, from November 30, 2004, through December 2, 2004. Digiport paid Neff's expenses for airfare, lodging, and some meals. The parties have stipulated that the total expenses paid by Digiport exceeded $650.00, with Neff's estimated airfare costs alone totaling at least $1,000.00. See, Fact Findings 36c, 37. On November 26, 2004, Neff, in her capacity as CIO, was asked by a representative of a business named "Rock Media" to be a speaker at a seminar during the Wireless LAN Event to be held in London, England, from April 20, 2005, to April 21, 2005. Rock Media, an international private company that handles business, technical, and scientific services, offered to pay Neff $1,100 toward her traveling expenses and hotel stay. Following a request from Neff's Office Manager for approval of the aforesaid trip to London, England, Meyer issued an Informal Opinion advising that the "Gift to the City" rule would be applicable such that Neff could be the designated City official to accept the invitation for the trip and the "gift" of traveling expenses and accommodations. Neff, 07 -020 Page 20 From April 20, 2005, to April 21, 2005, Neff attended the Wireless LAN event in London, England. Rock Media paid $1,100 in expenses for Neff's airfare and lodging. Rock Media also paid for Neff's meals. Neff, in her capacity as CIO, also attended a Digital Cities Convention ( "the Convention ") held in Shanghai, China, from May 30, 2005, to May 31, 2005. The Convention was sponsored by an entity named the Wireless Internet Institute, LLC" ( "W2i "). Neff attended and spoke at the Convention at the invitation of W2i. Prior to attending the Convention, Neff was in Seoul, South Korea, for an unrelated event. W2i insisted on paying expenses for Neff's travel from Seoul, South Korea, to Shanghai, China, to attend the Convention and her subsequent return trip to Seoul. As detailed in Fact Findings 46 and 47, Neff sought and received reimbursement from W2i in the amount of $1,106.59 for transportation, lodging, and meal expenses related to her attendance at the Convention. There is no record of Neff seeking any type of legal opinion from the City Law Department as to whether Neff could accept the trip to China as a "Gift to the City." Neff, as CIO, subsequently attended two additional W2i conventions. From November 7, 2005, to November 9, 2005, Neff attended a W2i convention held in Bilbao, Spain. The government of the City of Bilbao, which co- hosted the event, paid for Neff's travel and accommodations. From June 28, 2006, through June 30, 2006, Neff attended a W2i convention in Tapei, Taiwan. The City of Tapei co- sponsored the convention with W2i and paid Neff's travel and lodging expenses. In her capacity as CIO, Neff filed Statements of Financial Interests (SFIs) for calendar years 2001 through 2005. Neff did not disclose on her Statement of Financial Interests for calendar year 2004 the expenses for transportation /lodging /hospitality that were paid on her behalf by Digiport in connection with her attendance at the Net 2004 convention in Lille, France. Neff also did not disclose on her Statement of Financial Interests for calendar year 2005 the expenses for transportation /lodging /hospitality that were paid on her behalf by Rock Media for her attendance at the Wireless Lan Event held in London, England in April 2005 or by W2i for her attendance at the Convention held in Shanghai, China, in May 2005. Neff did not disclose any of the aforesaid expenses paid on her behalf because she understood the payments to be "Gifts to the City." As a former employee of the City, Neff was required to file a Statement of Financial Interests for calendar year 2006 by May 1, 2007. The parties have stipulated that Neff forgot to file a Statement of Financial Interests with the City for calendar year 2006. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. 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 no violation of Section 1103(a) of the Public Official and Employee Ethics Act (65 Pa.C.S. §1103(a)) occurred in relation to Neff's participation in the awarding of no -bid contracts and approval of payments to Civitium, LLC at a time when she was negotiating employment with that company in that Neff's initial inquiry regarding employment with Civitium, LLC occurred in or about May of 2006, more than one year Neff, 07 -020 Page 21 [sic] after Neff last participated in the approval of a contract between the City's Mayor's Office of Information Services (MOIS) /Wireless Philadelphia and Civitium, LLC. b. That no violation of Section 1103(d) of the Public Official and Employee Ethics Act (65 Pa.C.S. §1103(d)) occurred in relation to Neff's acceptance of one payment in recognition of her appearance, speech and presentation in relation to her position as Chief Information Officer, when such payment was not intended as consideration for the value of such services in that the amount of payment received by Neff was de minimis. c. That a violation of Section 1104(a) of the Public Official and Employee Ethics Act (65 Pa.C.S. §1104(a)) occurred in relation to Neff's failure to file a Statement of Financial Interests with the City for the 2006 calendar year by May 1, 2007. d. That an unintentional violation of Section 1105(b)(5) [sic] of the Public Official and Employee Ethics Act (65 Pa.C.S. §1105(b)(5)) [sic] occurred in relation to Neff's failure to disclose on her Statement of Financial Interests filed for the 2004 calendar year transportation and /or lodging and hospitality paid on her behalf for appearances as a speaker at a conference sponsored by Digiport in that the City's Law Department had approved the trip and the payments as a "Gift to the City." e. That an unintentional violation of Section 1105(b)(5) [sic] of the Public Official and Employee Ethics Act (65 Pa.C.S. §1105(b)(5)) [sic] occurred in relation to Neff's failure to disclose on her Statements of Financial Interest filed for the 2005 calendar year transportation and /or lodging and hospitality paid on her behalf for a total of two appearances as a speaker at one conference or convention sponsored by Rock Media and another conference or convention sponsored by W2i in that Neff relied on the City's Law Department's rationale for approving the trip and payments by Digiport as "Gifts to the City." 4. Neff agrees to make payment in the amount of $500.00 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. This, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Neff's failure to comply with this agreement or the Commission's order nor from cooperating with any other authority who Neff, 07 -020 Page 22 may so choose to review this matter further. Consent Agreement, at 2 -3. In considering the Consent Agreement, we accept the parties' recommendation that no violation of Section 1103(a) of the Ethics Act occurred under the Stipulated Fact Findings. Between October 2004 and August 2005, Neff, in her public position as CIO /Acting CEO of Wireless Philadelphia, negotiated five no bid contracts with Civitium on behalf of the City /Wireless Philadelphia. Neff did not begin having discussions with Richardson about her possible employment with Civitium until May 2006, approximately ten months after she last participated in awarding a no bid contract to Civitium, and such discussions were not initiated by Neff. There is no basis in the Stipulated Fact Findings for concluding that Neff participated in approving no bid contracts and approving payments to Civitium at a time when she was seeking employment with Civitium, or had any reasonable expectation of seeking employment with Civitium. See, Amato, Opinion 89 -002. Accordingly, based upon the Stipulated Findings, we hold that no violation of Section 1103(a) of the Ethics Act occurred in relation to the allegation that Neff participated in the award of no bid contracts and approval of payments to Civitium at a time when she was negotiating employment with said company. With respect to the Section 1103(d) allegation, Section 1103(d) of the Ethics Act is an absolute prohibition against accepting honoraria. The statutory definition of "honorarium" generally includes payments which are made in recognition of speaking engagements /presentations, appearances, and published works, but excludes such payments if: (1) they are legitimately intended as consideration for the value of such services; and (2) they are undertaken in the public official's /public employee's private professional or occupational capacity and are not related to the public position. Fiorello, Order 1363; Confidential Opinion, 01 -001; 65 Pa.C.S. §1102. The statutory definition of the term "honorarium" excludes "tokens presented or provided which are of de minimis economic impact." 65 Pa.C.S. § 1102. In the instant matter, the Stipulated Findings reflect that Neff, in her public capacity as CIO, appeared as a speaker at a BDPA event on February 15, 2006. Neff accepted a monetary payment in the amount of $50.00 from BDPA for speaking at the aforesaid event. Based upon the Stipulated Fact Findings, it appears that the elements for a transgression of Section 1103(d) of the Ethics Act have been established. However, we recognize that when a Consent Agreement is negotiated, there is a give and take by both sides as part of the negotiation process. Therefore, we will treat the Section 1103(d) allegation as a "non pros" by the Investigative Division. Accordingly, we hold that Neff did not violate Section 1103(d) of the Ethics Act in relation to her acceptance of one payment in recognition of her appearance, speech and presentation in relation to her position as CIO, based upon a non pros by the Investigative Division. Turning to the recommended violation of Section 1104(a) of the Ethics Act, the parties have stipulated that Neff, as the former CIO for the City, was required to file a Statement of Financial Interests with the City for calendar year 2006 by May 1, 2007, but forgot to do so. Accordingly, we hold that a violation of Section 1104(a) of the Ethics Act occurred in relation to Neff's failure to file a Statement of Financial Interests with the City for the 2006 calendar year by May 1, 2007. Next, we shall consider the two recommended unintentional violations of Section 1105(b)(7) of the Ethics Act. Neff, in her public capacity as CIO, attended the Net 2004 conference held in Lille, France, from November 30, 2004, through December 2, 2004. Digiport paid over $650.00 of Neff's airfare, lodging and meal expenses for her attendance at said conference. Neff, Neff, 07 -020 Page 23 as CIO, subsequently attended the Wireless Lan Event held in London, England, from April 20, 2005, to April 21, 2005, and the Digital Cities Convention held in Shanghai, China, from May 30, 2005, to May 31, 2005. Rock Media paid $1,100 of Neff's airfare and lodging expenses for her attendance at the Wireless Lan Event in April 2005, and W2i reimbursed Neff in the amount of $1,106.59 for transportation, lodging, and meal expenses related to her attendance at the Digital Cities Convention in May 2005. Based upon the Stipulated Findings, it was necessary for the aforesaid information regarding the transportation /lodging /hospitality expenses paid on Neff's behalf to be disclosed pursuant to Section 1105(b)(7) of the Ethics Act. However, the parties have stipulated that Neff's Statements of Financial Interests for calendar years 2004 and 2005 failed to disclose the aforesaid transportation /lodging /hospitality expenses paid on her behalf for her attendance at the events held in each respective year because Neff understood the payments to be "Gifts to the City." Regardless of how the City might have viewed the payments of Neff's aforesaid expenses, for purposes of the Ethics Act, they were subject to disclosure on Neff's Statements of Financial Interests for the 2004 and 2005 calendar years. Accordingly, we hold that an unintentional violation of Section 1105(b)(7) of the Ethics Act occurred in relation to Neff's failure to disclose on her Statement of Financial Interests filed for the 2004 calendar year transportation and /or lodging and hospitality paid on her behalf for appearances as a speaker at a conference sponsored by Digiport, in that the City's Law Department had approved the trip and the payments as a "Gift to the City." Likewise, we hold that an unintentional violation of Section 1105(b)(7) of the Ethics Act occurred in relation to Neff's failure to disclose on her Statement of Financial Interests filed for the 2005 calendar year transportation and /or lodging and hospitality paid on her behalf for a total of two appearances as a speaker at one conference or convention sponsored by Rock Media and another conference or convention sponsored by W2i, in that Neff relied on the City Law Department's rationale for approving the above - mentioned trip and payments by Digiport as "Gifts to the City." As for that particular portion of the allegations involving Neff's alleged failure to disclose on a Statement of Financial Interests filed for calendar year 2006 transportation and /or lodging and hospitality paid on her behalf for appearances as a speaker at conferences and conventions, it would appear from the Consent Agreement that the Investigative Division has exercised its prosecutorial discretion to not further pursue that particular allegation. Therefore, we shall treat it is as a non pros. As part of the Consent Agreement, Neff has agreed to make payment in the amount of $500.00 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 of the parties, Neff is directed to make payment in the amount of $500.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of this adjudication and Order. To the extent that she has not already done so, Neff is directed to file with the City amended Statements of Financial Interests for calendar years 2004 and 2005 and an accurate and complete Statement of Financial Interests for calendar year 2006, providing full financial disclosure as required by the Ethics Act, within thirty (30) days of the date of Neff, 07 -020 Page 24 the issuance of this adjudication and Order, and to provide a copy of each such filing to this Commission for compliance verification purposes. 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. As the Chief Information Officer ( "CIO ") for the City of Philadelphia ( "City ") Mayor's Office of Information Services from May 7, 2001, until September 8, 2006, Respondent Dianah Neff 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. 2. No violation of Section 1103(a) of the Ethics Act occurred in relation to the allegation that Neff participated in the award of no bid contracts and approval of payments to Civitium, LLC at a time when she was negotiating employment with said company. 3. Neff did not violate Section 1103(d) of the Ethics Act in relation to her acceptance of one payment in recognition of her appearance, speech and presentation in relation to her position as CIO, based upon a non pros by the Investigative Division. 4. A violation of Section 1104(a) of the Ethics Act occurred in relation to Neff's failure to file a Statement of Financial Interests with the City for the 2006 calendar year by May 1, 2007. 5. An unintentional violation of Section 1105(b)(7) of the Ethics Act occurred in relation to Neff's failure to disclose on her Statement of Financial Interests filed for the 2004 calendar year transportation and /or lodging and hospitality paid on her behalf for appearances as a speaker at a conference sponsored by Digiport, in that the City's Law Department had approved the trip and the payments as a "Gift to the City." 6. An unintentional violation of Section 1105(b)(7) of the Ethics Act occurred in relation to Neff's failure to disclose on her Statement of Financial Interests filed for the 2005 calendar year transportation and /or lodging and hospitality paid on her behalf for a total of two appearances as a speaker at one conference or convention sponsored by Rock Media and another conference or convention sponsored by W2i, in that Neff relied on the City Law Department's rationale for approving the above - mentioned trip and payments by Digiport as "Gifts to the City." In Re: Dianah Neff, Respondent ORDER NO. 1484 File Docket: 07 -020 Date Decided: 7/21/08 Date Mailed: 8/5/08 1 No violation of Section 1103(a) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), occurred in relation to the allegation that Dianah Neff ( "Neff "), as the Chief Information Officer ( "CIO ") for the City of Philadelphia ( "City ") Mayor's Office of Information Services, participated in the award of no bid contracts and approval of payments to Civitium, LLC at a time when she was negotiating employment with said company. 2. Neff did not violate Section 1103(d) of the Ethics Act in relation to her acceptance of one payment in recognition of her appearance, speech and presentation in relation to her position as CIO, based upon a non pros by the Investigative Division. 3. A violation of Section 1104(a) of the Ethics Act occurred in relation to Neff's failure to file a Statement of Financial Interests with the City for the 2006 calendar year by May 1, 2007. 4. An unintentional violation of Section 1105(b)(7) of the Ethics Act occurred in relation to Neff's failure to disclose on her Statement of Financial Interests filed for the 2004 calendar year transportation and /or lodging and hospitality paid on her behalf for appearances as a speaker at a conference sponsored by Digiport, in that the City's Law Department had approved the trip and the payments as a "Gift to the City." 5. An unintentional violation of Section 1105(b)(7) of the Ethics Act occurred in relation to Neff's failure to disclose on her Statement of Financial Interests filed for the 2005 calendar year transportation and /or lodging and hospitality paid on her behalf for a total of two appearances as a speaker at one conference or convention sponsored by Rock Media and another conference or convention sponsored by W2i, in that Neff relied on the City Law Department's rationale for approving the above - mentioned trip and payments by Digiport as "Gifts to the City." 6. Per the Consent Agreement of the parties, Neff is directed to make payment in the amount of $500.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission by no later than the thirtieth (30 ") day after the mailing date of this Order. 7 To the extent that she has not already done so, Neff is directed to file with the City amended Statements of Financial Interests for calendar years 2004 and 2005 and an accurate and complete Statement of Financial Interests for calendar year 2006, providing full financial disclosure as required by the Ethics Act, within thirty (30) days of the date of the issuance of this Order, and to provide a copy of each such filing to this Commission for compliance verification purposes. 8. Compliance with Paragraphs 6 and 7 of this Order will result in the closing of this case with no further action by this Commission. Neff, 07 -020 Page 26 a. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair