Loading...
HomeMy WebLinkAbout1538 Parrilla In Re: Donna Parrilla, : File Docket: 08-050 Respondent : X-ref: Order No. 1538 : Date Decided: 9/22/09 : Date Mailed: 10/6/09 Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Raquel K. Bergen Nicholas A. Colafella Mark Volk 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 allegation(s). Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an “Investigative Complaint.” An Answer was not filed and a hearing was deemed waived. The averments in the Investigative Complaint are admitted and are set forth as the following Findings. The record is complete. 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. Parrilla, 08-050 Page 2 I.ALLEGATIONS: That Donna Parrilla, a (public official/public employee) in her capacity as a member of the Sto-Rox School District Board of Directors violated the following provisions of the State Ethics Act (Act 93 of 1998) when she used the authority of her public position for a private pecuniary benefit by converting a district owned laptop computer to her personal possession; and when she incurred expenses of a personal nature while traveling to a school related conference and subsequently claimed and received reimbursement for her personal expenses. Section 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). § 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 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. II.FINDINGS: 1. The Investigative Division of the State Ethics Commission received a signed, sworn complaint alleging that Donna Parrilla violated provisions of the State Ethics Act (Act 93 of 1998). 2. Upon review of the complaint the Investigative Division initiated a preliminary inquiry on July 29, 2008. 3. The preliminary inquiry was completed within sixty days. 4. On September 19, 2008, a letter was forwarded to Donna Parrilla, by the Investigative Division of the State Ethics Commission informing herthat a complaint against her was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. 7007 0220 0001 4375 3560. b. The domestic return receipt bore the signature of Louis Parrilla, with a delivery date of September 23, 2008. Parrilla, 08-050 Page 3 5. On February 18, 2009, the Investigative Division of the State Ethics Commission filed an application for a ninety day extension of time to complete the investigation. 6. The State Ethics Commission issued an order on March 12, 2009, granting the ninety day extension. 7. On February 18, 2009, an amended Notice of Investigation was forwarded to Donna Parrilla, by the Investigative Division of the State Ethics Commission informing her that the allegations contained in the September 19, 2008, Notice of Investigation were being amended. a. Said letter was forwarded by certified mail, no. 7007 0220 0001 4375 0637. 1. The letter was returned to the offices of the State Ethics Commission on March 11, 2009, by the United States Postal Service marked “unclaimed.” b. Said letter was personally served on Donna Parrilla by an Investigator for the State Ethics Commission on April 2, 2009, at 12:33 p.m. 8. Periodic notice letters were forwarded to Donna Parrilla in accordance with the provisions of the Ethics Act advising her of the general status of the investigation. 9. The Investigative Complaint/Findings Report was mailed to the Respondent on June 10, 2009. 10. Donna Parrilla served as a Member of the Sto-Rox School District (hereafter SRSD) Board of Directors from May 20, 1999, through December 2, 2007. a. Parrilla was initially appointed to complete the unexpired term of John Ciangiarulo, Jr. b. Parrilla served as the Vice-President of the Board from December 3, 2003, through December 7, 2004. c. Parrilla served as the President of the Board from December 8, 2004, through December 4, 2005. 11. SRSD is governed by a nine member Board of Directors. a. SRSD currently holds committee meetings, workshop meetings, and legislative meetings on the second, third, and fourth Thursday of each month respectively. 1. Voting occurs only at the legislative meeting unless specifically advertised otherwise. 2. Meetings were most recently held on the first, second, and third Thursday of each month until approximately January 2009. b. Special meetings are held as necessary. 12. Voting at SRSD meetings occurs via individual roll call vote or group “aye/nay” vote depending on the subject for which the vote is occurring. a. Roll call votes are utilized to address matters involving the expenditure of District funds, personnel issues, or important/controversial issues. Parrilla, 08-050 Page 4 1. Each individual Board Member’s vote, including abstentions or objections cast, is recorded in the meeting minutes. b. Group “aye/nay” votes are utilized to address routine issues. 1. Any abstentions cast during the group vote are specifically noted in the minutes. c. Minutes of all meetings held are approved for accuracy by the Board at subsequent Board meetings. 13. The SRSD Board of Directors receives informational packets as early as Friday and as late as Wednesday before each meeting held regarding situations, issues, events, etc., which have occurred at the District during the prior week. a. The packets are developed by the superintendent with input from the Board President, Vice-President, and business manager (a/k/a Director of Administrative Services). 1. The information is compiled and organized by the superintendent’s secretary. b. Information provided in the packets is based on the specific meeting held as shown below. 1. The packet for the committee meeting consists of the administrative team agenda and work plans. 2. The packet for the workshop meeting is composed of Board tabs, prior month’s minutes (if prepared and available), listings of the monthly bills (if prepared and available), supporting documentation, and the monthly travel matrix. aa. The travel matrix notes potential travel by District representatives, the date and time of travel, the specific conference/training to be attended, the estimated cost, the conference/training location, and the fund from which payment will occur. bb. The travel matrix is to be voted on and approved by the Board in order for the travel to occur. 1. The registration process for attendance at conferences/training may be initiated prior to the approval of the travel matrix. 2. Travel not documented on the matrix may occur if last minute in nature. 3. The packet for the legislative meeting is composed of the meeting agenda and any applicable updates. 14. The SRSD bill listing is composed of the ratified bill listing and the actual bill listing. a. The ratified bill listing represents all those bills which have been paid since the last legislative meeting. Parrilla, 08-050 Page 5 1. Ratified bills represent those which are paid prior to actual Board approval due to the necessity for timeliness, opportunity for discount, the avoidance of late fees, etc. 2. Bills on the ratified bill listing routinely are normal recurring bills. b. The actual bill listing represents bills received to be paid the day following the Board’s approval. 1. Actual bills are considered atypical bills or those with no urgency to be paid. 15. The ratified bills and actual bills are voted on in one encompassing motion by the Board. a. Reimbursements received by District representatives for travel related expenses appear on either the listing of ratified bills or the listing of actual bills. 1. Reimbursement received for travel expenses which are documented on the list of ratified bills [is] approved by the Board after the fact. 16. Signature authority over SRSD accounts rests with the Board President, Board Secretary, and Board Treasurer. a. SRSD checks require the signature of any two of the three authorized signatories. b. Atypical checks or “spur of the moment” checks are normally signed live by two of the three authorized signatories. c. Routine checks are typically generated automatically with computer generated signatures. 17. SRSD maintains and utilizes a policy manual in association with the day-to-day operation of the District. a. The existing policy manual was created with the assistance of the Pennsylvania School Board Association (PSBA). 18. All SRSD Board Members are to receive a policy manual and policy updates as they occur. a. Policy manuals are also available for review at each District school building. 19. As a Member of the SRSD Board of Directors, Parrilla was subject to the policies set forth in the policy manual. a. Parrilla was issued or had access to an SRSD policy manual during her tenure as a Member of the Board of Directors. 20. Policy No. 331 of the “Administrative Employees” section of the manual, adopted on March 16, 1995, is titled “Job Related Expenses” and mandates, in part, the following: a. Subsection 1 of the policy addresses the purpose of the policy and states, Parrilla, 08-050 Page 6 “Payment of the actual and necessary expenses, including travel expenses, of any administrator of the District that are incurred in the course of performing services for the district whether within or outside the district, shall be reimbursed in accordance with this policy.” b. Subsection 2 of the policy addresses guidelines to be followed in accordance with the policy and includes, in part, the following: “Those on travel status shall exercise the same care in incurring expenses that they would in traveling on personal business.” 21. Accompanying Policy No. 331 was a Memorandum approved by the Board on May 11, 1995, authored by then Director of Administrative Services Paul Imig, which addressed the subject of “Meal Expense Guidelines.” a. Although not employees of the District, Board Members were subject to restrictions established by Policy Number 331 and the attached Memorandum. b. The Memorandum documented per diem rates and guidelines for meal costs incurred by District employees and Board Members traveling on approved school business as shown below: Description National State/Local Travel Conference Breakfast $5.00 $5.00 Lunch $10.00 $7.50 Dinner $30.00 $22.50 Daily Total $45.00 $35.00 c. The Memorandum notes handwritten increases for each meal description for national conferences as well as state/local travel along with the word “reasonable.” 1. The increased rates were not approved by the Board prior to March 2004. 22. Per diem expense reimbursement rates at SRSD for District representatives in travel status remained constant at $45.00 per day until approximately March 2004. a. The Board discussed the possibility of increasing the daily per diem to $70.00 for District representatives in travel status at or about the March 18, 2004, Board meeting. 1. The Board could not come to a consensus regarding raising the daily per diem for District representatives in travel status. b. The Board ultimately approved reimbursement for employees and Board Members for reasonable expenses supported by receipts while on School District business to be effective retroactive to March 1, 2004. 1. Minutes of the March 18, 2004, Board meeting document the motion to establish the reimbursement guideline as passing unanimously. 2. Minutes document Parrilla’s presence at the meeting and Parrilla making the motion to establish the new procedure. 3. “Reasonable expenses” were never specifically defined in the Parrilla, 08-050 Page 7 minutes. 23. SRSD subsequently revised the travel expense procedure and presented the new procedure at the July 20, 2006, legislative Board meeting. a. The procedure included the incorporation of several forms to document Board expenses. b. The procedure instituted a set per diem amount for standardized reimbursement based on the Internal Revenue Service LOW Rate City/HIGH Rate City method for computing per diem meals and incidental expenses. c. The District travel expense reimbursement policy was changed as a result of perceived reimbursement abuse by various Board Members. 24. The National School Board Association (hereafter NSBA) is a non-profit federation of state associations of school boards across the United States. a. The mission of the NSBA is to foster excellence and equity in public education through school board leadership. 25. The NSBA holds an Annual Conference and Exposition for the purpose of providing educational and informational opportunities to educators and school board members through various seminars, workshops, exhibit halls, speakers, etc. a. The NSBA annual conference officially begins on Saturday and concludes on or about noon the following Tuesday. 1. Although the conference officially begins on Saturday, “early bird” workshops, pre-conference workshops, and other sessions as well as registration are available the Friday prior to the start of the conference. b. The location of the NSBA annual conference varies from year to year. 26. The NSBA provides information via the United States Postal Service to school districts as well as individual board members of those districts regarding the annual conference. a. Information is sent out by the NSBA in late summer/early fall annually. 27. Individuals desiring to attend the NSBA annual conference must pre-register for the event which includes payment of a registration fee. a. Individuals desiring to attend any of the “early bird” workshops the Friday prior to the start of the conference must pre-register for the workshops which includes payment of a registration fee separate and apart from the conference registration fee. b. Registration fees for both the conference and “early bird” workshops are reduced if the individual attending is an NSBA member. 28. The registration procedures for the NSBA annual conference are outlined in the conference brochure provided by the NSBA and document the following steps. a. Completion of the registration form located at the end of the brochure provided. Parrilla, 08-050 Page 8 1. Instructions document that all participants, speakers, spouses, and children must be registered. 2. The board member’s registration fee includes attendance for his/her spouse and children. b. Selection of optional events including “early bird” workshops, meal functions, and other social events and addition of the required fees to the board member’s total. c. Submission of registration information either on-line, via telephone, via facsimile transmission, or via the United States Postal Service. d. Reservation of a hotel room through the NSBA Housing Bureau. 1. Select hotels offering special conference rates are documented in the brochure provided. 2. The conference brochure documents the hotel name and address [and] room rates, and provides a general map noting the hotel locations in relation to the NSBA conference site. 3. Individuals must register for the conference prior to reserving a room through the NSBA Housing Bureau. e. Arranging of travel accommodations either through an official travel agency named by the NSBA, by a travel agency utilized by the registered individual’s district or via specified vendors directly. 1. Specific vendors are listed in the brochure along with specific ID numbers for cost savings opportunities. 29. Individuals registering for housing through the NSBA Housing Bureau are to provide information including their registration confirmation ID number; contact information; number and identification of occupants; arrival date, departure date, and room type; guarantee and deposit information; and first five choices of hotels. a. Rooms may be reserved on line, via telephone, via facsimile transmission, or via the United States Postal Service. 30. The NSBA offers complimentary all-day shuttles between conference hotels and the conference site. a. The registrant’s conference badge is the ticket for the registrant, his/her spouse or guest, and his/her children to ride the shuttle. 31. The NSBA keeps no attendance records regarding individuals actually attending the conference and/or “early bird” workshops in comparison with individuals registered to attend the conference and/or “early bird” workshops. a. No documentation exists to validate the attendance of individuals registered for the conference in comparison with those individuals actually attending the conference. 32. A specific line item exists in the SRSD budget for Board Member travel under Account No. 2310, Object No. 580. Parrilla, 08-050 Page 9 a. Specific amounts are budgeted each year for Board Member travel to various training classes, including the NSBA annual conference, among other travel. b. Board Members are encouraged to attend such events in order to assist in Board Member development and education. 33. Board Members interested in attending the NSBA annual conference inform the superintendent’s secretary upon their receipt of the annual NSBA conference information. a. The superintendent’s secretary documents interested Board Members’ names on the travel matrix to be approved at the next legislative meeting. 34. The superintendent’s secretary typically registers the interested Board Members for the NSBA annual conference after notification by those interested in attending. a. Registration is routinely completed on-line by the superintendent’s secretary. 35. Registration by the superintendent’s secretary includes submission of hotel choices for the attending Board Members once their registration is confirmed. a. Each Board Member provides [his or her] specific hotel choices to the superintendent’s secretary for submission. b. The NSBA Housing Bureau subsequently notifies the superintendent’s secretary of the hotels with which Board Member reservations have been made. 36. Once registered, the superintendent’s secretary generally makes flight arrangements for Board Member travel regarding the NSBA annual conference. a. Although often completed by the superintendent’s secretary, Board Members can opt to make their own flight arrangements. 37. Payment for hotel and airfare expenses can be paid in advance by SRSD, paid by District check upon arrival (hotel expenses only), or paid personally by the traveling Board Member for subsequent reimbursement by the District. a. Payment in advance requires documentation from the hotel and/or travel agency/airline to verify the amount due. 38. SRSD Board Members are permitted to request advances from the District for other travel related expenses such as subsistence, transportation, etc. a. Amounts expended while in travel status in excess of the advance could be reimbursed if reasonable and supported by receipts. b. Any advance monies issued which were not utilized were required to be returned to the District upon return. 39. SRSD Board Members traveling on District related business are required to submit an expense report upon return detailing the specific amount of expense reimbursement requested. a. The report utilized by SRSD from at least 2004 to June 2006 was titled Parrilla, 08-050 Page 10 “SRSD Professional Development Expense Report.” b. The report documented the individual claiming reimbursement, travel information (dates, conference name and location, etc.), specific expenses incurred, and total reimbursement claimed. 1. Any advances issued were subtracted from the total amount due. c. The report was processed through the business office and required the signature of the individual submitting the report as well as review by the District business manager and/or the District superintendent. 1. Once reviewed, the reimbursement was coded and a reimbursement check was issued. 2. The expense reimbursement check was included on one of the two bill lists to be approved at the next legislative Board meeting. 40. SRSD has no written policy regarding the number of days Board Members may arrive in advance of a conference start date or the number of days Board Members may remain after a conference close date. a. It has been understood by the Board that Board Members may travel one day in advance of the start of an out of state conference. b. It has been understood by the Board that Board Members may remain on site at the conference location after the close of the conference depending on the time of day that the conference concludes. 1. Board Members are expected to return the day that the conference closes if the conference concludes by or about mid-day. 41. The NSBA held its 2004 annual conference at the Orange County Convention Center (OCCC) in Orlando, Florida, spanning the dates of March 27, 2004, to March 30, 2004. a. The brochure for the conference notes that the conference officially began on Saturday, March 27, 2004, at 8:00 a.m. 1. The brochure notes that registration and the conference bookstore were open as of 7:00 a.m. b. The brochure for the conference notes that the conference officially concluded on Tuesday, March 30, 2004, at 10:30 a.m. c. The brochure for the conference documents registration, various pre- conference workshops, and “early bird” workshops available on Friday, March 26, 2004. 1. Attendance at various “early bird” and pre-conference workshops required pre-registration and payment of additional fees to attend. 2. Pre-conference workshops which did not require prior registration or additional fees primarily addressed conference orientation, board clerks/assistants, National Affiliates, and networking. 42. Parrilla’s registration for the 2004 NSBA annual conference was submitted on-line Parrilla, 08-050 Page 11 on September 22, 2003. a. Parrilla was not officially approved to attend the 2004 NSBA annual conference until the travel matrix which documented Parrilla’s travel was approved by the Board (See Finding No. 13). 1. Parrilla’s travel to the 2004 NSBA annual conference was documented on the November 2003 travel matrix. 2. The November 2003 travel matrix documented the date and time of Parrilla’s travel to be approved as “March 27, 28, 29, 30 2004.” 43. The travel matrix documenting Parrilla’s travel to the 2004 NSBA annual conference was approved by the SRSD Board of Directors at the November 20, 2003, regular Board meeting via 6-0 unanimous vote. a. Parrilla was present at the meeting. b. Parrilla participated in the Board vote to approve conference attendance as listed on the travel matrix. 44. Parrilla was assigned lodging for the 2004 NSBA annual conference for herself and her guest, Robin Parrilla, at the Hard Rock Hotel located at 5800 Universal Boulevard, Orlando, FL 32819. a. The room rate at the Hard Rock Hotel for a double occupancy room was $185.00 per night plus applicable taxes in the amount of $21.28 per night for a total cost of $206.28 per night 1. The 2004 NSBA conference brochure provided a listing of twenty- three hotels with conference rates from which conference attendees could choose. 2. Only four hotels documented higher conference rates than the Hard Rock Hotel for double occupancy rooms. b. Parrilla and Robin Parrilla were scheduled to arrive on March 25, 2004, two days prior to the start of the conference, and to depart on March 30, 2004. 1. Robin Parrilla is Parrilla’s husband. 2. Robin Parrilla’s formal name is Louis F. Parrilla. c. The Hard Rock Hotel was Parrilla’s first choice regarding hotel options. 1. Parrilla chose the Hard Rock Hotel at the suggestion of another Board Member. 2. Nineteen other hotels were available with rates less expens[ive] than the Hard Rock. d. The Hard Rock Hotel is located approximately five miles from the OCCC. 45. The fee associated with Parrilla’s registration for the 2004 NSBA annual conference totaled $585.00. a. SRSD received a discount on Parrilla’s registration fee as a result of the Parrilla, 08-050 Page 12 District being a National Affiliate of the NSBA. b. No additional fees were incurred regarding registration for Parrilla. 1. Parrilla did not register for any pre-conference workshops for the 2004 NSBA annual conference. 46. Parrilla’s registration fee was paid via the issuance of SRSD General Fund check number 035114, dated December 18, 2003, in the amount of $585.00 payable to the NSBA. a. Check number 035114 represented registration payment for Parrilla only. 47. Parrilla was approved for travel to the 2004 NSBA annual conference in Orlando, Florida, at the November 20, 2003, Board meeting. a. Parrilla and three additional Board Members were approved for travel to the NSBA annual conference from March 27-30, 2004, at a total anticipated cost of $7,900.00 ($1,975.00 each Member). b. Parrilla was present and participated in the unanimous vote to approve the November 2003 travel matrix. 48. Parrilla obtained airline reservations through US Airways on October 17, 2003, for transportation to the 2004 NSBA annual conference. a. Passenger reservation records document Parrilla’s travel itinerary as follows: Airline Flight Ticket No. Date Depart Arrive No. US Airways 231 0372181923244 March 25, 2004 Pittsburgh, Pa---9:20a Orlando, Fl---11:35a US Airways 1156 0372181923244 March 30, 2004 Orlando, Fl---2:25p Pittsburgh, Pa---4:41p b. Parrilla’s airline tickets were purchased via a Visa credit card account. 1. The specific cost associated with Parrilla’s air fare could not be determined. 49. On or about October 21, 2003, Parrilla requested a travel advance in order to reimburse her for the cost of her air fare to and from the 2004 NSBA annual conference. a. Parrilla requested an advance/reimbursement in the amount of $300.00. b. Parrilla inaccurately documented the dates of the conference as March 26, 2004, to March 30, 2004. 1. The conference did not officially begin until March 27, 2004. c. The advance was approved by Charles Lanna, Director of Administrative Services. d. Handwritten on the request form by Lanna was “For airline ticket already purchased.” 50. SRSD issued General Fund check number 034746, dated October 22, 2003, in the Parrilla, 08-050 Page 13 amount of $300.00 to Parrilla as an advance/reimbursement for Parrilla’s 2004 NSBA conference air fare. a. SRSD did not issue payment for Robin Parrilla’s air fare. 51. On or about March 12, 2004, Parrilla requested a travel advance for the 2004 NSBA annual convention. a. A Request for Travel Advance was completed by Beverly Tisci, superintendent’s secretary, on Parrilla’s behalf. 1. The request incorrectly documented the conference dates as March 25, 2004, to March 30, 2004. aa. Dates on the advance request document Parrilla’s scheduled travel dates and not the official conference dates. b. The amount of the advance was calculated at $1,300.50 as shown below: Estimated Expenses Amount Hotel $1,030.00 Transportation Reimbursed Meals 250.00 Other (Tolls, Cabs, Car 165.00 Rental) Total 1,445.00 Advance at 90% of Estimate $1,300.50 c. The advance was approved by Superintendent Thomas Skender. 52. Parrilla received SRSD General Fund check number 035626, dated March 15, 2004, in the amount of $1,300.50 as a travel advance for her attendance at the 2004 NSBA annual conference. a. Parrilla negotiated the check on or about March 25, 2004. 53. Upon arrival in Orlando, Parrilla rented a vehicle at Budget Car Rental for transportation purposes. a. The vehicle rental was charged to Parrilla’s Visa Credit Card. 54. Parrilla’s hotel folio for the Hard Rock Hotel documents a check-in date of March 25, 2004, and a departure date of March 30, 2004. a. Parrilla checked into the hotel two days prior to the start of the conference. b. No specific check-in or check-out time is noted on the folio. c. Parrilla was assigned Room Number 1127. d. Parrilla’s account number was 362818. 55. In addition to the nightly room rate and applicable taxes, Parrilla incurred additional charges at the Hard Rock Hotel for long distance telephone calls placed, valet parking of her rented vehicle, meals/subsistence charges to her room, and theme Parrilla, 08-050 Page 14 park tickets to Universal Studios Orlando. a. The complete cost for Parrilla’s lodging and additional expenses documented on her folio totaled $1,584.92. 1. On March 29, 2004, a $300.00 credit was applied to Parrilla’s account via charge to Parrilla’s Visa Credit Card account. 2. Parrilla issued payment to the Hard Rock Hotel in the amount of $1,284.92 upon check out on March 30, 2004. 56. Parrilla’s expense in association with her rental of a vehicle for the 2004 NSBA conference totaled $239.92. a. The rental receipt notes an “Out” date and time of March 25, 2004, at 12:28 p.m. and an “In” date and time of March 30, 2004, at 11:55 a.m. b. One hundred twelve miles were driven between March 25, 2004, and March 30, 2004. 57. On or about October 14, 2004, Parrilla completed and submitted for approval an SRSD Professional Development Expense Report requesting reimbursement totaling $298.07 in association with the 2004 NSBA annual conference. a. Parrilla signed the form as the individual requesting reimbursement. 58. The report documented expenses of $1,898.57 less the $1,600.50 advance (via check numbers 34746 and 35626) for a total of $298.07 claimed by Parrilla. a. The reimbursement request was approved by Skender. 59. Parrilla was issued SRSD General Fund check number 037206, dated November 18, 2004, in the amount of $298.07 for reimbursement claimed as a result of traveling to Orlando, Florida, for the 2004 NSBA annual [conference]. a. Check number 037206 appeared on the bill list presented for approval at the January 20, 2005, regular Board meeting. . b. The motion to approve the monthly bills passed unanimously c. Parrilla was present at the meeting. 60. Although attending the 2004 NSBA annual conference as a representative of SRSD, Parrilla traveled to Orlando, Florida, two days in advance of the official conference start and charged expenses incurred to SRSD. a. SRSD Board Members in travel status are permitted to travel to out of state conferences only one day in advance. 1. One day advance travel applies to the official start of the conference or to any pre-conference workshops that Board Members have been pre-registered to attend. 2. Parrilla was not registered for any pre-conference workshops regarding the 2004 NSBA annual conference. aa. NSBA invoice number 0000410112, dated September 23, Parrilla, 08-050 Page 15 2003, documents Parrilla as having been registered for only the annual conference. b. Parrilla was cognizant of her early arrival as hotel reservations and flight arrangements made for Parrilla noted an arrival date of March 25, 2004. 61. SRSD incurred an expense of $270.21 as a result of paying for Parrilla’s hotel expenses, subsistence expenses, and parking expenses for March 25, 2004. a. Parrilla’s room expense totaled $206.28 per night ($185.00 nightly rate + $21.28 in applicable taxes). b. Parrilla submitted and received reimbursement for subsistence totaling a minimum of $54.43 for March 25, 2004. 1. Parrilla submitted reimbursement for funds expended at The Kitchen (located in the Hard Rock Hotel) on March 25, 2004, at 3:04 p.m. in the amount of $28.44. 2. Parrilla submitted reimbursement for funds expended at Walgreens on March 25, 2004, at 6:40 p.m. in the amount of $25.99. aa. Items purchased at Walgreens included milk, Gatorade, bottled water, candy, snacks, etc. c. Parrilla [claimed] and received reimbursement for parking fees in the amount of $9.50 for March 25, 2004. 1. Pittsburgh International Airport long term parking fees are charged at the rate of $1.50 per hour up to a maximum of $9.50 per day. 62. Receipts submitted by Parrilla for reimbursement for the days of March 27, 2004, and March 28, 2004, document that Parrilla spent no significant amount of time at the convention center on either of those days. a. Receipts submitted by Parrilla for reimbursement for March 27, 2004, document Parrilla’s presence outside of the convention center as shown below: Time Location Activity Cost 12:51 p.m. Beach Club (HRH)* Dining $14.70 13:51 p.m. Beach Club (HRH)*! Dining $31.35 3:26 p.m. Emack & Bolio (HRH)* Dining $4.79 8:03 p.m. Boulangerie (Universal Studios) Dining $5.05 9:46 p.m. Boulangerie (Universal Studios) Dining $2.12 Total $58.01 *Located inside the Hard Rock Hotel !Reimbursement for alcohol in the amount of $7.70 included on receipt b. Receipts submitted by Parrilla for reimbursement for March 28, 2004, document Parrilla’s presence outside of the convention center as shown below: Time Location Activity Cost Parrilla, 08-050 Page 16 10:57 a.m. Emack & Bolio* Dining $17.51 1:19 p.m. Beach Club (HRH)* Dining $8.46 1:22 p.m. Emack & Bolio* Dining $7.99 6:50 p.m. Emack & Bolio* Dining $3.14 Total $37.10 *Located inside the Hard Rock Hotel 63. SRSD incurred an expense of $507.67 as a result of paying for Parrilla’s hotel expenses, subsistence expenses, and parking expenses for March 27, 2004, and March 28, 2004, when Parrilla spent no confirmed time attending the NSBA annual conference. a. Parrilla realized a financial gain of $206.28 in lodging expenses and $58.01 in subsistence expenses paid by SRSD while primarily engaged in personal activities on March 27, 2004. b. Parrilla realized a financial benefit of $206.28 in lodging expenses and $37.10 in subsistence expenses paid by SRSD while primarily engaged in personal activities on March 28, 2004. 64. SRSD Board Members are permitted to rent vehicles at the expense of the District while in travel status if the rental is necessary and can be justified. a. If a rental vehicle is not necessary, the District will reimburse Board Members for fees incurred regarding necessary public transportation (i.e. taxis, etc.). 65. Parrilla incurred personal expenses of $180.17 as a result of renting a vehicle which was not necessary for transportation purposes in association with the 2004 NSBA annual conference. a. The Hard Rock Hotel is located approximately fifteen and one-half miles from Orlando International Airport. b. The Hard Rock Hotel is located approximately five miles from the OCCC. 1. Free shuttle buses traveled from the OCCC to conference hotels, including the Hard Rock Hotel, continuously throughout the days of the NSBA conference. c. Parrilla rented the vehicle out of convenience rather than necessity. d. Parrilla submitted for reimbursement for only $180.17 of the $239.92 total vehicle expense. 1. Parrilla did not submit for reimbursement for $59.75 in charges regarding Supplemental Liability Insurance obtained on the rental. 66. SRSD incurred additional expenses totaling $60.00 in association with Parrilla’s vehicle rental via the accumulation of parking fees at the Hard Rock Hotel. a. Fees for valet parking at the Hard Rock Hotel totaled $12.00 per night. 67. Parrilla’s expense report for the 2004 NSBA annual conference documents reimbursement claimed in the amount of $270.00 for meals. a. Handwritten on Parrilla’s 2004 NSBA expense report next to “Meals” is, “6 Parrilla, 08-050 Page 17 days @ $45.00 a day.” 1. Board Members were not receiving flat per diem amounts for travel at that time. aa. Parrilla motioned and voted affirmatively at the March 18, 2004, Board meeting to approve travel expenses supported by receipt (Findings No. 23). b. Actual receipts/documentation submitted by Parrilla totaled $173.59. 1. Parrilla did not reimburse the District the excess $96.41 that she was reimbursed above and beyond subsistence/meal amounts supported by receipts. 68. Parrilla realized a private pecuniary benefit of $1,114.46 as a result of traveling one day earlier than permitted and renting a vehicle in association with her attendance at the 2004 NSBA Annual Convention, being advanced or reimbursed District funds for expenses associated with personal travel while not at the conference, and voting to approve the advances/reimbursements in her capacity as a School Board Member as shown below: Description Financial Gain Hard Rock Hotel (All hotel related expenses minus $618.84 parking fees) Subsistence 245.95 Parking--Pittsburgh Int. Airport 9.50 Vehicle Rental 180.17 Valet Parking (Hard Rock Hotel) 60.00 Total $1,114.46 THE FOLLOWING FINDINGS RELATE TO SRSD PAYMENT/REIMBURSEMENT FOR EXPENSES OF A PERSONAL NATURE IN ASSOCIATION WITH PARRILLA’S TRAVEL TO THE 2006 NSBA ANNUAL CONVENTION 69. The NSBA held its 2006 annual conference at the Lakeside Center at McCormack Place, Chicago, Illinois, spanning the dates of April 8, 2006, to April 11, 2006. a. The brochure for the conference notes that the conference officially began on Saturday, April 8, 2006, at 8:00 a.m. 1. The brochure notes that registration and the conference bookstore were open as of 7:00 a.m. b. The brochure for the conference notes that the conference officially concluded on Tuesday, April 11, 2006, at 11:00 a.m. c. The brochure documents registration and various pre-conference and “early bird” workshops available on Friday, April 7, 2006. 1. Attendance at various “early bird” workshops required pre-registration and payment of additional fees to attend. 2. Pre-conference workshops which did not require prior registration or additional fees primarily addressed briefing for board members, Parrilla, 08-050 Page 18 National Affiliates, board member “boot camp,” board support professionals, and conference orientation. 70. Parrilla’s registration for the 2006 NSBA annual conference was submitted on-line on December 17, 2005. a. Parrilla was not officially approved to attend the 2006 NSBA annual conference until the travel matrix which documented Parrilla’s travel was approved by the Board (See Finding No. 13). 1. Parrilla’s travel to the 2006 NSBA annual conference was documented on the December 2005—January 2006 travel matrix. aa. Board Members Elizabeth Bencho and Luanne Schipani were documented on the travel matrix for travel to the 2006 NSBA annual conference along with Parrilla. 2. The December 2005—January 2006 travel matrix documented the date and time of Parrilla’s travel to be approved as “April 8, 9, 10, 11, 2006.” 71. The travel matrix documenting Parrilla’s travel to the 2006 NSBA annual conference was approved by the SRSD Board of Directors at the January 19, 2006, regular Board meeting via 9-0 unanimous vote. a. Parrilla was present at the meeting. b. Parrilla participated in the Board vote to approve conference attendance as listed on the travel matrix. 72. Hotel reservations for the 2006 NSBA annual conference for Parrilla and Board Member Elizabeth Bencho were made at the Four Seasons Hotel Chicago located at 120 East Delaware Place, Chicago, IL 60610. a. The room rate at the Four Seasons Hotel for a double occupancy room was $275.00 per night plus applicable taxes in the amount of $42.32 per night for a total nightly cost of $317.32 1. The 2006 NSBA conference brochure provided a listing of forty-five hotels with conference rates from which conference attendees could choose. aa. The Four Seasons Hotel was incorrectly identified as being located at 126 East Delaware Place, Chicago, Illinois, in the brochure instead of 120 East Delaware Place, Chicago, Illinois. 2. Only one hotel documented a higher conference rate than did the Four Seasons Hotel for double occupancy rooms. b. Parrilla and Bencho were scheduled to arrive on April 7, 2006, and depart on April 12, 2006. c. The Four Seasons Hotel is located approximately six miles from the Lakeside Center at McCormick Place. 73. The fee associated with Parrilla’s initial registration for the 2006 NSBA annual Parrilla, 08-050 Page 19 conference totaled $620.00. a. SRSD received a discount on Parrilla’s registration fee as a result of being a National Affiliate of the NSBA. b. Parrilla registered for no “early bird”/pre-conference workshops at the time of her registration. 74. Parrilla was approved for travel to the 2006 NSBA annual conference in Chicago, Illinois, at the January 19, 2006, Board meeting. a. Parrilla, Bencho and Schipani were approved for travel to the NSBA annual conference from April 8-11, 2006, at a total anticipated cost of $7,500.00 ($2,500.00 each). b. Parrilla was present and participated in the unanimous vote to approve the December 2005—January 2005 [sic] travel matrix. 75. Parrilla’s registration fee was paid via the issuance of SRSD General Fund check number 040621, dated January 19, 2006, in the amount of $1,860.00 payable to the NSBA. a. Check number 040621 accounted for the registration fee for Parrilla, Bencho, and Schipani ($1,860.00 ÷ 3 = $620.00). 76. Airline reservations for Parrilla were obtained through Greater Pittsburgh Travel Agency, Inc. for transportation to the 2006 NSBA annual conference. a. Ticket number 0371363373685 issued in Parrilla’s name was processed on March 17, 2006. 77. Parrilla’s travel itinerary, dated March 17, 2006, under Itinerary/Invoice No. 0038510 documented the following: Airline Flight No. Ticket No. Date Depart Arrive US Airways 991 US1363373685 April 7, 2006 Pittsburgh, PA---5:45pp Chicago, IL---6:23p US Airways 506 US1363373685 April 12, 2006 Chicago, IL---2:45p Pittsburgh, Pa---5:07p NOTE: All times shown represent local times at their respective locations a. The cost associated with Parrilla’s air fare totaled $208.60 78. SRSD issued General Fund check number 041140, dated March 31, 2006, in the amount of $417.20 to Greater Pittsburgh Travel Agency in payment for Parrilla’s conference air fare. a. Payment for Bencho’s conference air fare was also included in check number 041140. 79. On or about April 4, 2006, Parrilla requested and subsequently received a travel advance totaling $2,200.00 via the receipt of SRSD General Fund check number 041202 dated April 4, 2006, for her attendance at the 2006 NSBA conference. a. Parrilla deposited check number 041202 into her personal bank account (Account Number XXXXXX9106) at PNC Bank on April 7, 2006. Parrilla, 08-050 Page 20 b. No documentation was present at the District detailing the advance calculations. 80. Parrilla did not rent a vehicle for transportation purposes upon arrival at O’Hare International Airport in Chicago, Illinois, on April 7, 2006. a. Board Member Edward Maritz rented a four-door Ford Taurus at Budget Rent-A-Car for transportation purposes upon arrival at O’Hare International Airport in Chicago, Illinois, on April 6, 2006. 1. Maritz traveled to O’Hare International Airport on April 7, 2007 [sic], picked up Parrilla and Bencho, and transported Parrilla and Bencho to the Four Seasons Hotel. b. Parrilla rode in the vehicle for convenience purposes regarding transportation while in Chicago, Illinois, for the 2006 NSBA conference. c. Maritz was the sole operator of the vehicle. 81. Parrilla’s hotel folio (number 80837) for the Four Seasons Hotel documents a check-in date of April 7, 2006, and a departure date of April 12, 2006. a. Parrilla’s check-in and check-out times could not be determined. 1. The Four Seasons Hotel had no documentation available to document Parrilla’s specific check-in and/or check-out time. b. Parrilla was assigned Room Number 4510. 1. Parrilla shared Room Number 4510 with Bencho. 82. In addition to the nightly room rate and applicable taxes, Parrilla’s folio for the Four Seasons Hotel documented additional expenses for room service received. a. The cost of the additional expenses associated with room service provided totaled $167.76. 1. Room service ordered was for Bencho. b. The cost of room service received was claimed by Parrilla on her travel expenses submitted. 1. Parrilla claimed the room service expense as reimbursement payable to her due to the fact that Parrilla paid the entire folio due upon check-out. 2. Bencho did not claim the room service expenses on her travel expenses submitted for reimbursement. 83. Expenses incurred by Parrilla and Bencho in association with their stay at the Four Seasons Hotel were paid upon check-out via Parrilla’s Visa Credit Card. a. A total of $1,756.36 was charged to Parrilla’s Visa Credit Card upon check- out. b. The charge consisted of $1,586.60 in room fees and $169.76 in room service fees. Parrilla, 08-050 Page 21 84. Although Parrilla did [not] rent a vehicle for transportation purposes at the 2006 NSBA conference, Parrilla utilized the vehicle rented by Maritz on a consistent basis for convenience and personal purposes unrelated to any conference purpose. a. The vehicle was rented on April 6, 2006, at 3:08 p.m. and returned on April 12, 2006, at 12:58 p.m. b. The vehicle was driven one hundred seventeen miles between April 6, 2006, and April 12, 2006. c. The total cost of the vehicle rental was $346.73 85. On or about September 13, 2006, Parrilla completed and submitted for approval an SRSD Professional Development Expense Report documenting reimbursement due SRSD from Parrilla in the amount of $66.95 in association with the 2006 NSBA annual conference. a. Parrilla signed the form as the individual submitting the report. b. Parrilla’s expense report was signed/approved by Lanna on September 13, 2006. c. The report documented expenses of $2,341.65 less the $2,408.60 advance via check number 041140 (air fare) and check number 041202 (general advance) for a total of $66.95 to be returned to SRSD. 86. Parrilla issued payment due SRSD via personal check number 1025, dated August 31, 2006, in the amount of $66.95 to account for advance funds supplied but not utilized for the 2006 NSBA conference. a. SRSD deposited check number 1025 into the District General Fund on or about September 15, 2006. 87. Although attending the 2006 NSBA annual conference as a representative of SRSD, Parrilla traveled to Chicago, Illinois, and remained one night after the close of the conference and charged expenses incurred to SRSD. a. SRSD Board Members in travel status are permitted to travel to out of state conferences only one day in advance of the conference and are expected to return dependent upon the time that the conference closes. 1. One day advance travel applies to the official start of the conference or to any pre-conference workshops that Board Members have been pre-registered to attend. 2. Board Members are expected to return no later than the day that the conference closes if the conference concludes by or about mid-day. 3. The conference concluded on or about 11:30 a.m. on April 11, 2006. b. Parrilla was cognizant of her late departure as airline arrangements noted an arrival date of April 7, 2006, and a departure date of April 12, 2006. 1. The 2006 NSBA brochure documented the closing session as occurring on April 11, 2006, from 9:30 a.m. to 11:30 a.m. Parrilla, 08-050 Page 22 88. Parrilla’s primary reason for staying in Chicago the evening of April 11, 2006, was personal. a. Parrilla attended two morning (a.m.) tapings of the Oprah Winfrey show in Chicago, Illinois, on April 12, 2006, after checking out from the Four Seasons Hotel. b. Parrilla attended the tapings with Bencho, Maritz, and Elizabeth Smith (Maritz’s guest). 1. Smith obtained the tickets for Parrilla, Bencho, Maritz, and herself shortly before their scheduled travel to Chicago, Illinois. aa. Travel arrangements made document Parrilla’s intent to stay in Chicago, Illinois, until April 12, 2006, prior to the tickets being obtained. c. Parrilla, Bencho, Maritz, and Smith traveled directly to O’Hare International Airport upon conclusion of the second taping. 89. The SRSD incurred personal expenses on behalf of Parrilla totaling $337.61 as a result of Parrilla’s hotel and subsistence expenses for the night of April 11, 2006, and during the day of April 12, 2006. a. Parrilla’s room expense totaled $317.32 for the night of April 11, 2006 ($275.00 nightly rate + $42.32 in applicable taxes). b. Parrilla paid a minimum of $20.29 for subsistence on April 12, 2006, from funds advanced by SRSD for travel as shown below: Time Location Activity Cost 12:03 p.m. Starbucks Snack $4.94 12:18 p.m. Starbucks Snack $1.20 12:40 p.m. Starbucks Coffee $4.51 1:47 p.m. Skybridge Lunch $9.64 Total $20.29 90. Parrilla sent an e-mail message to Serenka dated April 11, 2006, at 4:18 p.m. which addressed the subject of “conference” as shown below: “Hi Fran- th The NSBA 66 Annual Conference has just completed. We are back from enjoying the closing speaker Richard Simmons. It was a funny, light-hearted ending to a great conference and was a motivating kick off to send all school directors back home with energy to share knowledge from the conference. I think we picked up some great information to share and we look forward to seeing you Thursday. Thanks to Beth’s hard work the 4 of us will be enjoying the 7:00 am taping of the Oprah Winfrey Show. We have a private movie viewing tonight for Oprah guests of “Akeelah and the Bee” and Wednesdays [sic] topic is on the movie, which is supposed to be about a young girl in a spelling bee and how she brought the community together. It should be interesting!! Oprah will be at the taping!!! I’ll see if I can get her to donate a couple of her millions to Sto-Rox!! Parrilla, 08-050 Page 23 Fran, I hope in the future you can attend a conference when things are less busy. You would have enjoyed it!!! See you on Thursday, Donna” a. Parrilla’s e-mail implied that the conference did not end until late afternoon on April 11, 2006. b. The conference was scheduled to conclude at 11:00 a.m. 1. Simmons was scheduled from 9:30 a.m. to 11:00 a.m. as the closing speaker. 91. SRSD Board Members are permitted to rent vehicles at the expense of the District while in travel status if the rental is necessary and can be justified. a. If a rental vehicle is not necessary, the District will reimburse Board Members for fees incurred regarding necessary public transportation (i.e. taxis, etc.). 92. Maritz rented a vehicle for convenience purposes while in Chicago attending the 2006 NSBA conference (See Finding No. 81). a. The total cost of the rental vehicle was $346.73. b. A total of three SRSD Board Members utilized the vehicle (Parrilla, Bencho, and Maritz). 93. Parrilla realized a private pecuniary benefit of $115.58 ($346.73 cost ÷ 3 Board Members) as a result of renting a vehicle which was not necessary for transportation purposes in association with the 2006 NSBA annual conference. a. The Four Seasons Hotel is located approximately seventeen and one-half miles from O’Hare International Airport. b. The Four Seasons Hotel is located approximately six miles from Lakeside Center at McCormack Place. 1. Free shuttle buses traveled from Lakeside Plaza at McCormack Place to conference hotels, including the Four Seasons Hotel, continuously throughout the days of the NSBA conference. c. Parrilla utilized the vehicle out of convenience rather than necessity. 94. In addition to utilization of a rental vehicle for transportation purposes, Parrilla submitted a cab receipt totaling $35.00 for fares incurred. a. The receipt submitted by Parrilla did not document the time or date. b. The receipt documented only the $35.00 cost and “cab fare to museum.” 1. Parrilla submitted the cab receipt even though the purpose of utilizing cab services was personal in nature. c. Parrilla’s submission of cab receipts indicates that public transportation was available for any necessary transportation. 95. SRSD incurred additional expenses totaling $240.00 in association with Maritz’s Parrilla, 08-050 Page 24 vehicle rental via the accumulation of various parking fees incurred from April 6, 2006, through April 12, 2006. a. Fees for valet parking at the Four Seasons Hotel totaled $40.00 per night for a total of $240.00 as documented on Maritz’s hotel folio. b. Parrilla stayed at the Four Seasons Hotel a total of five nights. 96. Parrilla realized an additional private pecuniary benefit of $66.67 as a result of utilizing valet parking at the Four Seasons Hotel for a rental vehicle which was not necessary for transportation purposes in association with the 2006 NSBA annual conference. a. Parrilla’s gain is based on her stay at the Four Seasons Hotel for five nights only ($200.00 in fees for five nights valet parking ÷ 3 Board Members = $66.67). b. Valet parking fees would not have been incurred had Parrilla, Bencho, and Maritz not utilized a rental vehicle at the District’s expense. 97. Parrilla realized a total private pecuniary benefit of at least $519.86 as a result of traveling one day later than approved, utilizing a rental vehicle in association with her attendance at the 2006 NSBA annual [conference], being advanced District funds for expenses associated with personal travel, and voting to approve the advances in her capacity as a School Board Member as shown below: Description Financial Gain Four Seasons Hotel (All hotel related expenses $317.32 minus parking fees) Subsistence 20.29 Vehicle Rental 115.58 Valet Parking (Four Seasons Hotel) 66.67 Total $519.86 THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT PARRILLA MAINTAINED POSSESSION OF AN SRSD LAPTOP COMPUTER FOR HER OWN PERSONAL USE AFTER COMPLETION OF HER TERM AS AN SRSD BOARD MEMBER 98. Article XVII-B, the Education Empowerment Act (EEA), Act 16 of 2000, was signed into law on May 10, 2000. a. The EEA was designed to provide school districts with new tools to improve education and grant funds to implement the changes. b. Districts with a combined average of fifty percent or more of [their] students scoring in the bottom quartile for math and reading on the Pennsylvania System of School Assessment (PSSA) tests for two years were to be identified as distressed. 99. The EEA required the Department of Education to prepare and publish an annual list of school districts that fell below specified performance levels on the PSSA tests. Parrilla, 08-050 Page 25 [a.] The EEA required the Department of Education to provide guidance and resources to those districts to improve their performance over a designated time period. 100. On July 1, 2000, nine school districts were placed on the Education Empowerment List and two school districts were certified as Education Empowerment Districts. a. SRSD was one of nine school districts identified on the Education Empowerment List. b. SRSD was informed of its placement on the Education Empowerment List via correspondence from Eugene W. Hickok, then Secretary of Education, dated July 3, 2000. 101. SRSD was required to develop and implement a School District School Improvement Plan as a result of being placed on the Education Empowerment List. a. SRSD was provided with annual School Improvement Grants to assist in the implementation of the improvement plan. b. Improvement plans developed are to be submitted to the Pennsylvania Department of Education for approval. 1. SRSD’s improvement plan was approved by the Pennsylvania Department of Education on March 28, 2001. 102. On November 16, 2000, SRSD adopted Policy No. 012, titled “Education Empowerment Act” within the “Local Board Procedures” section of the SRSD policy manual. a. Section One of the policy documented its purpose as ensuring compliance with law concerning its duties and responsibilities regarding the Education Empowerment Act whenever the District meets the established criteria and is placed on the Education Empowerment List. b. Section Three of the policy calls for the establishment of a District empowerment team to work cooperatively with the academic advisory team in order to develop an improvement plan that will improve District operations and student learning and performance. 1. The District empowerment team is to be composed of the following: aa. A Board Member designated by the School Board; bb. The District superintendent; cc. The District business manager; dd. A School principal selected by all District principals; ee. A District teacher selected by all District teachers; ff. Two parents of District students with at least one parent with a child attending a school identified as achieving below accepted standards; gg. A local business representative; Parrilla, 08-050 Page 26 hh. A local community leader; and ii. Two members of the general public, which may include local law enforcement, social service providers, or health care providers. c. Section Five of the policy mandates that the District use school improvement grants to implement the improvement plan developed by the District empowerment team and that a separate budget account for the grants will be maintained to monitor the use of the grants. 103. In association with the School Improvement Grants issued, the District empowerment team recommended the purchase of laptop computers for use by individuals serving on the School Board. a. The purchase of laptop computers was recommended in order to facilitate communication between the Board Members and the District (i.e. for updates, involvement, etc.). b. The purchase of laptop computers was incorporated in the School Improvement Plan developed by the District empowerment team. 104. SRSD reached the end of [its] third year following placement on the Education Empowerment List at the conclusion of the 2002-2003 school year and received an evaluation to determine eligibility to be removed from the list. a. SRSD was determined to have met the criteria in the legislation and was removed from the Education Empowerment List by the Department of Education. 105. SRSD maintains and utilizes a policy manual in association with the day-to-day operation of the District (See Finding Numbers 17-19). 106. Policy No. 708 of the “Property” section of the manual, adopted on June 14, 1995, is titled “Lending of School Owned Equipment and Books.” a. Policy No. 708, Section 2, Authority, states in part, the following: “[T]he user of school-owned equipment shall be fully liable for any damage or loss occurring to the equipment during the period of its use, and shall be responsible for its safe return.” 107. Policy No. 815 of the “Operations” section of the manual, adopted on January 23, 1997, and revised on July 26, 2001, is titled “Acceptable Use of the Internet.” a. Although titled “Acceptable Use of the Internet,” Policy No. 815 is viewed as the general policy applicable towards District technology equipment. 108. Policy No. 815, Section 4 mandates guidelines to be followed in association with use of District technology equipment. a. Section 4, sub-section “Prohibitions” identifies seventeen specific prohibited uses of District technology. 1. Non-work or non-school related work is specifically documented as a prohibited activity. Parrilla, 08-050 Page 27 109. Catherine Jones, SRSD Network Administrator, researched the laptops to be purchased for the Board Members and provided the information to Paul Crawford, then Director of Administrative Services, for ordering. a. The purchase of laptop computers for use by the Board Members occurred at or about the beginning of the 2001-2002 school year. 110. Dell Invoice Number 641246079, dated September 9, 2001, documented the purchase of three Dell Inspiron 4000 laptop computers and accompanying accessories, warranty contracts, etc., by SRSD in the total amount of $4,281.00. a. The individual unit price of the laptops was $1,427.00. 1. Dell Invoice Number 641246079 was paid via check number 028802, dated October 18, 2001, in the amount of $20,869.10 from the District general fund account. aa. Invoice number 641246079 was one of multiple invoices paid via check number 028802. b. The laptops purchased under invoice 641246079 were documented via System Service Tags/Serial Numbers 1RSBV01, 2RSBV01, and 3RSBV01. 111. Upon receipt by the District, Jones installed all pertinent software and logged all computers received into the District inventory. a. Jones maintains an access data base on the District server in which all District technology equipment is documented/inventoried. 1. The inventory documents the date of purchase, where the item is located, to whom the item is assigned, etc. 112. The District had no procedure requiring District representatives to complete/sign any documentation/instructions regarding receipt or return of technology equipment at the time the laptop computers were initially obtained. a. Individuals assigned technology equipment were expected to return the equipment to the District if they became disassociated with the District. 113. Parrilla was initially assigned a Dell Inspiron 4000 laptop computer, Serial Number, 3RSBV01, by the District in her capacity as a Board Member. a. The laptop assigned to Parrilla was documented as having been purchased under Dell Invoice Number 641246079. 114. Parrilla utilized the laptop computer provided her by the District from approximately mid-September 2001 to approximately August 2006. a. Parrilla’s laptop began malfunctioning during or about August 2006. 115. On Friday, August 4, 2006, Parrilla sent e-mail correspondence to Jones regarding her laptop computer. a. Parrilla indicated that her laptop was overheating. b. Parrilla requested that Jones contact her regarding the issue. Parrilla, 08-050 Page 28 116. Parrilla subsequently provided the malfunctioning computer to Lanna for ultimate delivery to Jones for examination. a. While examining Parrilla’s malfunctioning laptop, Jones re-assigned Lanna’s laptop to Parrilla and issued Lanna a newer model laptop for use. 117. After examination of Parrilla’s laptop, Jones determined that the computer was too obsolete to justify repairing. a. Jones discussed the situation with Lanna and recommended replacing the laptop. b. Lanna agreed with Jones’s assessment and advised Jones to replace the laptop. 118.Jones researched specifications regarding the laptop to be ordered and ultimately ordered the replacement laptop computer through the Pennsylvania Purchasing Program for Microcomputers (PEPPM) program. a. PEPPM is a technology product bid/buy site for schools and other eligible [entities] across several states. 1. Pennsylvania is a participating State regarding the PEPPM program. b. PEPPM is designed to reduce the time and effort between the decision to purchase and the receipt of products by centralizing the bid process. 119. Dell Invoice Number T36231562, dated December 17, 2006, documented the purchase of one Dell Inspiron 1501 laptop computer and accompanying accessories, warranty contracts, etc., by SRSD in the total amount of $1,211.45. a. Dell Invoice Number T36231562 was paid via check number 044109, dated February 22, 2007, in the amount of $2,487.56 from the SRSD General Fund. 1. Check number 044109 represented payment issued to Dell for Parrilla’s laptop as well as a laptop purchased for use by Gerry Miller, SRSD Director of Pupil Services at that time. b. The laptop purchased for Parrilla’s use was documented on the invoice under System Service Tag/Serial Number 8BXL8C1. 120. Check number 044109 was approved for payment via approval of bills presented at the February 22, 2007, regular Board meeting. a. The motion to approve payment of bills presented carried via 7-0 vote. 1. Parrilla and Board Member Linda Jacobs were absent from the meeting. 2. Parrilla did not participate in the motion to approve bills presented at the meeting. 121. Jones configured the laptop, assigned the laptop to Parrilla, and logged the laptop into the District inventory system upon receipt. Parrilla, 08-050 Page 29 a. SRSD inventory logs note the laptop with System Service Tag/Serial Number 8BXL8C1 assigned to Parrilla as a District Board Member. b. The laptop was received in or about mid-January 2007 and issued to Parrilla immediately thereafter. 122. Parrilla utilized the new laptop received from the District throughout the remainder of her term. a. Parrilla’s term expired on December 2, 2007 (See Finding No. 10). 123. Parrilla did not return the District laptop assigned to her (System Service Tag/Serial Number 8BXL8C1) for use as a Board Member to the District upon expiration of her term. a. Parrilla made no effort to return the computer to the District and took no steps to determine if she could legally maintain possession of the laptop computer. 124. Upon the seating of newly elected Board Members at the December 2007 Board meeting, discussion was held regarding obtaining District laptops from those Members who had not been re-elected or whose terms had expired. a. The Board determined that of those exiting Members with District laptops, only Parrilla’s was worth pursuing for return. 1. Parrilla’s laptop was only approximately one year old. 2. Remaining laptops outstanding were those obtained through the original laptop purchase which occurred in the 2001-2002 school year and were determined to be obsolete and/or damaged. b. The Board directed Superintendent Franny Jo Serenka to contact Parrilla and have Parrilla return the computer to the District. 125. Following completion of Parrilla’s term of office in December 2007, SRSD representatives contacted Parrilla on multiple occasions to arrange for the return of the laptop assigned to Parrilla. a. Kimberly Bash, [the] Superintendent’s Secretary, contacted Parrilla multiple times via telephone and informed Parrilla of the need to return the laptop computer. 1. Parrilla did not return the laptop computer although informed to do so by Bash. b. Serenka personally contacted Parrilla via telephone on at least one occasion regarding the need for Parrilla to return the laptop computer to the District. 1. Parrilla did not return the laptop computer although informed to do so by Serenka. 126. Serenka subsequently sent correspondence to Parrilla via the United States Postal Service (USPS)-Certified Mail-regarding the District laptop computer and accessories. a. The correspondence documented the following. Parrilla, 08-050 Page 30 1. Discussion between Serenka and Parrilla regarding the return of the laptop computer to the District. 2. Parrilla’s desire to establish a payment plan for her purchase of the laptop computer. 3. The School Board’s negative response to Parrilla’s inquiry to purchase the laptop computer due to the fact that another Board Member needed it, the laptop computer was new, and the laptop computer had not depreciated. 4. Catherine Jones’s (maiden name Doyle) ability to remove any personal items stored on the laptop computer and transfer the information to disk for Parrilla. 5. Direction for Parrilla to call the District office to make arrangement for the return of the laptop computer by December 20, 2007. b. Parrilla signed the return receipt associated with the Certified Mailing on January 5, 2008, signifying receipt of the letter. 1. Parrilla did not return or make any arrangements to return the laptop computer subsequent to receipt of the letter. 127. On or about September 22, 2008, Parrilla received a Notice of Investigation letter from the Pennsylvania State Ethics Commission dated September 19, 2008, via the USPS-Certified Mail. a. The Notice of Investigation set forth allegations that Parrilla had used the authority of her public position for private pecuniary benefit by converting a District owned laptop computer to her personal possession. 128. On September 25, 2008, at approximately 3:00 p.m., Parrilla initiated telephonic contact with Robert P. Caruso, Pennsylvania State Ethics Commission Deputy Executive Director/Director of Investigations, regarding the Notice of Investigation received and the allegations set forth. a. Parrilla provided the following information during the conversation. 1. Parrilla had intentions of paying for the computer because she wanted to keep the computer once her term of office ended. 2. Parrilla had utilized the computer for personal purposes and had a large amount of personal information and material on the computer hard drive. 3. Parrilla had contacted the District Superintendent and Business Manager and was attempting to negotiate a price for the purchase of the computer. 4. Parrilla would make contact with the District in an attempt to resolve the matter and either pay for the computer or return the computer to the District. b. Caruso provided the following information during the conversation. Parrilla, 08-050 Page 31 1. The Investigative Division was in possession of a certified letter sent to Parrilla in December 2007 from SRSD where she was directed to return the computer to the District and [informed] that the District had no interest in selling the computer to her. aa. Parrilla acknowledged her awareness of the letter. 2. The contents of the letter sent by the District included that the District was not inclined to sell the computer to her as another Board Member was in need of its use. aa. Parrilla did not respond to Caruso’s assertion. 129. Parrilla took no substantive steps to return or make arrangements to return the laptop computer to the District until February 23, 2009. a. Parrilla sent e-mail correspondence from her personal e-mail account at [address redacted] to Serenka with “laptop” documented in the “Subject” section of the e-mail. 1. Parrilla claimed her intent was to return the laptop to the District before the holidays but she had not been able to do so. 2. Parrilla questioned if “one of the guys” could stop at her residence one evening to pick-up the computer. 3 Parrilla claimed she had had the laptop ready for return for some time and had not had a chance to do so. 4. Parrilla provided her cellular telephone number to make arrangements regarding the computer if possible to do so. 130. No immediate arrangements were made by either the District or Parrilla regarding the return of the laptop computer to the District. 131. Parrilla continued to maintain possession of the SRSD laptop computer assigned to her as a Board Member (System Service Tag/Serial Number 8BXL8C1) from the time that her term expired on December 2, 2007, until April 2, 2009. a. Parrilla’s conversion of an SRSD owned laptop computer to her own personal use negated the need for Parrilla to purchase a laptop computer for continued personal use. b. Parrilla personally returned the laptop to Serenka on April 2, 2009, at approximately 5:12 p.m. 132. Parrilla realized an approximate financial gain of $1,211.45 when she maintained possession of the SRSD laptop computer issued to her as a District Board Member after her term expired on December 2, 2007, until April 2, 2009. 133. Parrilla realized a total financial gain of approximately $2,845.92 [sic – see chart below] as a result of submitting and receiving reimbursement from SRSD for personal expenses incurred while attending the NSBA annual conference in 2004 and 2006 and when she voted to approve bill lists on which advance and/or reimbursement checks were documented; and when she converted an SRSD laptop to her own possession for personal use as shown below: Parrilla, 08-050 Page 32 Description Financial Gain 2004 NSBA Personal Expenses $1,114.46 2006 NSBA Personal Expenses 519.86 Possession of SRSD Laptop 1,211.45 Total $2,845.77 III.DISCUSSION: As a Member of the Sto-Rox School District (“School District” or “District”) Board of Directors (“Board”) from May 20, 1999, through December 2, 2007, Respondent Donna Parrilla, hereinafter also referred to as “Respondent,” “Respondent Parrilla,” and “Parrilla,” has been a public official 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 Respondent Parrilla violated Section 1103(a) of the Ethics Act when she used the authority of her public position for a private pecuniary benefit by converting a District owned laptop computer to her personal possession; and when she incurred expenses of a personal nature while traveling to a school related conference and subsequently claimed and received reimbursement for her personal expenses. 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 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 Parrilla, 08-050 Page 33 employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. We shall now summarize the facts pertaining to this case. Given Respondent Parrilla’s failure to file an Answer to the Investigative Complaint, the facts as averred by the Investigative Complaint are deemed admitted by Respondent Parrilla. 65 Pa.C.S. § 1108(e); 51 Pa. Code § 21.5(k)(1). Background Respondent Parrilla served as a Member of the Board from May 20, 1999, through December 2, 2007. Parrilla served as Vice-President of the Board from December 3, 2003, through December 7, 2004, and as President of the Board from December 8, 2004, through December 4, 2005. The Board consists of nine Members. During the time period from March 2004 until July 2006, School District employees and Board Members were authorized to receive reimbursement for reasonable expenses supported by receipts while on School District business. In July 2006, the School District changed the travel expense reimbursement policy as a result of perceived reimbursement abuse by various Board Members. Board Members are encouraged to attend training events including conferences. Board Members in travel status are permitted to travel to out of state conferences only one day in advance. One day advance travel applies to the official start of the conference or to any pre-conference workshops that Board Members have been pre-registered to attend. Board Members in travel status are permitted to remain on site at the conference location after the close of the conference depending on the time of day that the conference concludes. Board Members are expected to return the same day that the conference closes if the conference concludes by or about mid-day. Board Members are permitted to rent vehicles at the expense of the District while in travel status if the rental is necessary and can be justified. Board Members traveling on School District related business are required to submit an expense report upon return, detailing the specific amount of expense reimbursement requested. From at least 2004 to June 2006, the School District used a form titled “SRSD Professional Development Expense Report” (hereinafter, “Expense Report”) for this purpose. The Expense Report documented the individual claiming reimbursement, travel information (dates, conference name and location, etc.), specific expenses incurred, and total reimbursement claimed. Any advances issued were subtracted from the total amount due. The report was processed through the business office and required the signature of the individual submitting the report as well as review by the School District business manager and/or superintendent. Once reviewed, the reimbursement was coded and a reimbursement check was issued. The expense reimbursement check was included on one of the two bill lists to be approved at the next legislative Board meeting. The National School Board Association Annual Conferences The National School Board Association (“NSBA”) holds an Annual Conference and Exposition for the purpose of providing educational and informational opportunities to educators and school board members. The NSBA annual conference officially begins on Saturday and concludes on or about noon the following Tuesday. “Early bird” workshops, pre-conference workshops, and other sessions as well as registration are available the Friday prior to the start of the Conference. Individuals desiring to attend the NSBA annual conference must pre-register for the event, which includes payment of a registration fee for the conference and additional Parrilla, 08-050 Page 34 registration fee(s) for any “early bird” workshop(s) the individual plans to attend. Registration procedures for the conference include reservation of a hotel room through the NSBA Housing Bureau. The conference brochure identifies hotels offering special conference rates. Individuals registering for housing through the NSBA Housing Bureau are to provide their first five choices of hotels. The NSBA offers complimentary all-day shuttles between conference hotels and the conference site. The registrant’s conference badge is the ticket for the registrant, his/her spouse or guest, and his/her children to ride the shuttle. Board Members interested in attending the NSBA annual conference inform the superintendent’s secretary, who lists their names on a “travel matrix” to be approved at the next legislative Board meeting. The superintendent’s secretary typically registers the interested Board Members for the NSBA annual conference and submits hotel choices for the attending Board Members once registration is confirmed. Each Board Member provides his or her specific hotel choices to the superintendent’s secretary for submission. The NSBA Housing Bureau subsequently notifies the superintendent’s secretary of the hotels with which Board Member reservations have been made. The 2004 NSBA Annual Conference The NSBA held its 2004 annual conference at the Orange County Convention Center (OCCC) in Orlando, Florida. The conference officially began on Saturday, March 27, 2004, at 8:00 a.m. and officially concluded on Tuesday, March 30, 2004, at 10:30 a.m. At the November 20, 2003, Board meeting, Parrilla and three other Board Members were approved for travel to the 2004 NSBA annual conference for the specified dates of March 27-30, 2004. Parrilla was present and participated in the unanimous 6-0 vote to approve the November 2003 travel matrix authorizing the aforesaid travel. Parrilla’s registration fee for the 2004 NSBA annual conference was paid via a School District General Fund check. Parrilla obtained airline reservations from US Airways for her travel to the 2004 NSBA annual conference. Parrilla’s travel itinerary provided for travel to Orlando, Florida, on March 25, 2004, and return from Orlando to Pittsburgh, Pennsylvania, on March 30, 2004. Parrilla’s travel itinerary included one extra day in Orlando, Florida, beyond what was permitted by the School District for attendance at the conference. Parrilla subsequently requested and received a travel advance in the amount of $300.00 from the School District for the cost of her airfare to and from the 2004 NSBA annual conference. In March 2004, Parrilla requested and received a travel advance from the School District for travel to the 2004 NSBA annual conference. Beverly Tisci (“Tisci”), the Superintendent’s secretary, prepared the Request for Travel Advance on Parrilla’s behalf. The Request for Travel Advance incorrectly listed Parrilla’s March 25-30, 2004, travel dates as conference dates. Parrilla received a travel advance in the amount of $1,300.50. Parrilla traveled to Orlando, Florida, for the 2004 NSBA annual conference on March 25, 2004, two days in advance of the official conference start. Parrilla was not registered for any pre-conference workshops at the 2004 NSBA annual conference. Parrilla was assigned lodging for the 2004 NSBA annual conference for herself and her spouse, Louis F. Parrilla, at the Hard Rock Hotel located at 5800 Universal Boulevard, Orlando, Florida, approximately five miles from the OCCC. The room rate at the Hard Rock Hotel for a double occupancy room was $185.00 per night plus taxes of $21.28 per night for a total cost of $206.28 per night. Parrilla and her spouse were scheduled to arrive on March 25, 2004, and depart on March 30, 2004. Parrilla, 08-050 Page 35 Upon arriving in Orlando, Parrilla rented a vehicle. The vehicle was rented from March 25, 2004, at 12:28 p.m. to March 30, 2004, at 11:55 a.m. The cost of the vehicle rental was $180.17 without an additional charge for supplemental liability insurance. Free shuttle buses traveled from the OCCC to conference hotels, including the Hard Rock Hotel, continuously throughout the days of the NSBA conference. Parrilla rented the vehicle out of convenience rather than necessity. Parrilla checked-in to the Hard Rock Hotel on March 25, 2004, and checked-out on March 30, 2004. In addition to the nightly room rate and applicable taxes, Parrilla incurred additional charges at the Hard Rock Hotel for long distance telephone calls placed, valet parking of her rented vehicle at a total cost of $60.00, meals/subsistence charged to her room, and theme park tickets to Universal Studios Orlando. The complete cost for Parrilla’s lodging and additional expenses documented on her hotel folio totaled $1,584.92. Parrilla’s lodging expense for March 25, 2004--the extra night she spent in Orlando- -totaled $206.28 ($185.00 nightly rate plus $21.28 in taxes). Parrilla’s expenses for subsistence for March 25, 2004, totaled a minimum of $54.43. Parrilla incurred expenses in the amount of $9.50 for long term parking fees at Pittsburgh International Airport on March 25, 2004. On or about October 14, 2004, Parrilla completed and submitted for approval an Expense Report requesting reimbursement totaling $298.07 in addition to the travel advances she had already received. The Expense Report documented expenses of $1,898.57 less $1,600.50 in advances for a total of $298.07 claimed by Parrilla. The reimbursement request was approved by School District Superintendent Thomas Skender. For meal expenses, Parrilla’s Expense Report claimed a per diem of $45.00 per day for six days for a total amount of $270.00, even though Board Members were not receiving flat per diem amounts for travel at that time. Parrilla’s meal expenses as supported by actual receipts totaled $173.59. Parrilla was reimbursed $96.41 in excess of her actual documented meal expenses. Receipts submitted to the School District by Parrilla for reimbursement document that Parrilla was primarily engaged in personal activities and spent no significant amount of time at the 2004 NSBA annual conference on either March 27, 2004, or March 28, 2004, as detailed in Fact Findings 62 a and 62 b. The receipts submitted by Parrilla documented meal expenses of $58.01 for March 27, 2004, and $37.10 for March 28, 2004. Per admitted Fact Findings 63 a and 63 b, Parrilla realized a financial gain in the amount of $507.67 for lodging and subsistence expenses paid by the School District while Parrilla was primarily engaged in personal activities on March 27, 2004, and March 28, 2004. Parrilla was issued School District General Fund check number 037206, dated November 18, 2004, in the amount of $298.07 for reimbursement as a result of traveling to Orlando, Florida, for the 2004 NSBA annual convention. Check number 037206 was on a bill list that was approved for payment at the January 20, 2005, regular Board meeting. Parrilla was present and participated in the unanimous vote to approve the monthly bills. Per admitted Fact Finding 68, Parrilla received a private pecuniary benefit of $1,114.46 by traveling to the 2004 NSBA annual conference one day earlier than permitted, renting a vehicle in association with her attendance at the conference, being advanced or reimbursed District funds for expenses associated with personal travel while not at the conference, and voting to approve the advances/reimbursements in her capacity as a School Board Member, calculated as the sum of the following: (1) $618.84 for hotel expenses, including one extra night of lodging at the Hard Rock Hotel on March 25, 2004, and lodging for March 27, 2004, and March 28, 2004, while primarily engaged in personal activities; (2) $245.95 for subsistence; (3) $9.50 for valet parking at the Pittsburgh Parrilla, 08-050 Page 36 International Airport on March 25, 2004; (4) $180.17 for vehicle rental; and (5) $60.00 for valet parking of the rented vehicle at the Hard Rock Hotel. The 2006 NSBA Annual Conference The NSBA held its 2006 annual conference at the Lakeside Center at McCormack Place, Chicago, Illinois. The conference officially began on Saturday, April 8, 2006, at 8:00 a.m. and officially concluded on Tuesday, April 11, 2006, at 11:00 a.m. At the January 19, 2006, regular Board meeting, Parrilla and two additional Board Members were approved for travel to the 2006 NSBA annual conference for the specified dates of April 8-11, 2006. Parrilla was present at the meeting and participated in the unanimous 9-0 vote to approve the December 2005--January 2006 travel matrix authorizing the aforesaid travel. Parrilla’s registration fee for the 2006 NSBA annual conference was paid via a School District General Fund check. Parrilla obtained airline reservations for her travel to the 2006 NSBA annual conference. Parrilla’s travel itinerary provided for travel to Chicago, Illinois, on April 7, 2006, and return from Chicago to Pittsburgh, Pennsylvania, on April 12, 2006. Parrilla traveled to Chicago for the 2006 NSBA annual conference on April 7, 2006, and returned April 12, 2006, one day after the close of the conference. While in Chicago, Parrilla stayed at the Four Seasons Hotel. Board Member Edward Maritz (“Maritz”) traveled to the 2006 NSBA annual conference on April 6, 2006. When Parrilla and Board Member Elizabeth Bencho (“Bencho”) arrived at the airport in Chicago, Illinois, on April 7, 2006, Maritz picked them up in a vehicle that he had rented the previous day. While in Chicago for the annual conference, Maritz, Parrilla, and Bencho used Maritz’s rental vehicle. Parrilla used the rental vehicle for convenience rather than necessity. Free shuttle buses traveled from the conference site to conference hotels, including the hotel where Parrilla stayed, continuously throughout the days of the NSBA conference. The total cost of Maritz’s vehicle rental was $346.73. The cost for valet parking at the Four Seasons Hotel was $40.00 per night and totaled $240.00 for the rented vehicle for the six nights that Maritz spent in Chicago. On April 11, 2006, the conference was scheduled to conclude at 11:00 a.m. At 4:18 p.m. on April 11, 2006, Parrilla sent an e-mail to School District Superintendent Franny Jo Serenka, the contents of which e-mail implied that the conference had just ended. See, Fact Findings 90-90 b(1). On the following morning, April 12, 2006, Parrilla, Bencho, Maritz, and Maritz’s guest, Elizabeth Smith, attended two morning tapings of the Oprah Winfrey show in Chicago, Illinois, and traveled to O’Hare International Airport upon conclusion of the second taping. Parrilla checked-in to the Four Seasons Hotel on April 7, 2006, and checked-out on April 12, 2006. Parrilla shared a room with Bencho. The room rate at the Four Seasons Hotel for a double occupancy room was $275.00 per night plus taxes in the amount of $42.32 per night for a total nightly cost of $317.32. The cost for Parrilla’s and Bencho’s lodging and additional expenses associated with room service for Bencho totaled $1,756.36. The nightly room rate and taxes for Parrilla’s extra night of lodging at the Four Seasons Hotel on April 11, 2006, cost the School District $317.32. Parrilla’s subsistence expenses for the extra day in Chicago on April 12, 2006, totaled a minimum of $20.29. Prior to the conference, Parrilla had requested and received a travel advance totaling $2,200.00. Following the conference, on or about September 13, 2006, Parrilla Parrilla, 08-050 Page 37 completed and submitted for approval an Expense Report documenting reimbursement due the School District from Parrilla for advance funds supplied but not utilized by Parrilla for the 2006 NSBA annual conference. The Expense Report documented advances of $2,408.60 (including prepayment of Parrilla’s airfare of $208.60) and expenses of $2,341.65 for a total of $66.95 to be repaid to the School District. Parrilla’s expense report was signed/approved by Charles Lanna (“Lanna”), the School District’s Director of Administrative Affairs. Parrilla issued payment in the amount of $66.95 to the School District via a personal check dated August 31, 2006. Parrilla received a private pecuniary benefit of at least $519.86 as a result of remaining at the 2006 NSBA annual conference site one day longer than approved, utilizing a rental vehicle in association with her attendance at the conference, being advanced District funds for expenses associated with personal travel, and voting to approve the advances in her capacity as a School Board Member, calculated as the sum of the following: (1) $317.32 for hotel expenses for an extra night of lodging at the Four Seasons Hotel on April 11, 2006; (2) $20.29 for subsistence on April 12, 2006; (3) $115.58 for vehicle rental (consisting of a 1/3 share of the total rental cost of $346.73); and (4) $66.67 for valet parking of the rented vehicle at the Four Seasons Hotel (consisting of 1/3 of the cost for valet parking of the rented vehicle for the five nights Parrilla stayed at the Four Seasons Hotel). Fact Findings 93, 96 a, 97. Possession of a School District Laptop At or about the beginning of the 2001-2002 school year, the School District purchased laptop computers for use by Board Members. The purchase had been recommended to facilitate communication between the Board Members and the School District as part of a School Improvement Plan developed by a School District empowerment team pursuant to the Education Empowerment Act, Act 16 of 2000. Parrilla, in her capacity as a Board Member, was initially assigned one of three Dell Inspiron 4000 laptops purchased by the School District on or about September 9, 2001. The School District had no procedure requiring District representatives to complete/sign any documentation/instructions regarding receipt or return of technology equipment at the time the laptop computers were initially obtained. Individuals assigned technology equipment were expected to return the equipment to the School District if they became disassociated with the District. In or about August 2006, the School District laptop assigned to Parrilla began to malfunction. On August 4, 2006, Parrilla sent an email to Catherine Jones (“Jones”), the School District Network Administrator, indicating that the laptop was overheating. Parrilla’s laptop was subsequently delivered to Jones, who examined it and determined that it was too obsolete to justify being repaired. Jones discussed the situation with Lanna, who agreed with Jones’ assessment and advised her to replace the laptop. Jones researched specifications regarding the laptop to be ordered and ultimately ordered the replacement laptop through the Pennsylvania Purchasing Program for Microcomputers (PEPPM) program. Dell Invoice Number T36231562, dated December 17, 2006, documented the School District’s purchase of one Dell Inspiron 1501 laptop computer and accompanying accessories and warranties for the total cost of $1,211.45. The School District paid the invoice for the laptop via School District General Fund check number 044109. Check number 044109 was on a bill list that was approved for payment at the February 22, 2007, regular Board meeting. Parrilla was not present at that meeting. The laptop was received by the School District in or about mid-January 2007. Upon receipt, Jones configured the laptop, assigned the laptop to Parrilla, and logged the laptop into the District inventory system. The laptop was issued to Parrilla immediately Parrilla, 08-050 Page 38 thereafter. School District inventory logs note the laptop, with System Service Tag/Serial Number 8BXL8C1, was assigned to Parrilla as a Board Member. Parrilla utilized the new laptop assigned to her by the School District from mid- January 2007 through the expiration of her term on December 2, 2007. Parrilla did not return the School District laptop upon the expiration of her term. Parrilla made no effort to return the laptop to the District and took no steps to determine if she could legally maintain possession of the laptop. Upon the seating of newly elected Board Members at the December 2007 Board meeting, discussion was held regarding obtaining District laptops from those Members who had not been re-elected or whose terms had expired. Parrilla’s laptop was only approximately one year old, while the remaining outstanding laptops were purchased in the 2001-2002 school year and were determined to be obsolete and/or damaged. The Board determined that only Parrilla’s laptop was worth pursuing for return. The Board directed Superintendent Franny Jo Serenka (“Serenka”) to contact Parrilla and have Parrilla return the laptop to the District. On at least one occasion, Serenka personally contacted Parrilla by telephone regarding the need for Parrilla to return the laptop to the District. Kimberly Bash (“Bash”), the Superintendent’s Secretary, contacted Parrilla multiple times via telephone and informed her of the need to return the laptop. Parrilla did not return the laptop although informed to do so by both Serenka and Bash. Serenka subsequently sent a letter to Parrilla via certified mail regarding the District laptop and accessories. The letter documented, inter alia, discussion between Serenka and Parrilla regarding the return of the laptop to the District, Parrilla’s desire to establish a payment plan for her purchase of the laptop, and the Board’s negative response to Parrilla’s proposed purchase of the laptop computer due to the fact that the laptop was new, had not depreciated, and was needed by another Board Member. Serenka’s letter directed Parrilla to call the School District office to arrange for the return of the laptop by December 20, 2007. Parrilla received Serenka’s letter, but she did not return or make any arrangements to return the laptop subsequent to receiving the letter. On or about September 22, 2008, Parrilla received a Notice of Investigation letter from the Pennsylvania State Ethics Commission which set forth allegations that Parrilla had used the authority of her public position for private pecuniary benefit by converting a District owned laptop computer to her personal possession. On September 25, 2008, Parrilla telephoned Robert P. Caruso (“Caruso”), Deputy Executive Director/Director of Investigations of the Pennsylvania State Ethics Commission, regarding the Notice of Investigation and the allegations set forth therein. Parrilla indicated, in pertinent part, that she had utilized the School District laptop for personal purposes and had a large amount of personal information and material on the hard drive. Parrilla further indicated that she was attempting to negotiate a price with the School District for the purchase of the laptop and would either pay for the laptop or return it to the District. Parrilla took no substantive steps to return or make arrangements to return the laptop to the School District until she sent an email to Serenka on February 23, 2009. In her email, Parrilla claimed that she had intended to return the laptop to the District before the holidays but had not been able to do so. Parrilla asked if “one of the guys” could stop at her residence one evening to pick up the laptop. Parrilla provided her cellular telephone number to make arrangements regarding the laptop if possible. No immediate arrangements were made by either the District or Parrilla regarding the return of the laptop computer to the District. Parrilla continued to maintain possession of the School District laptop until she personally returned the laptop to Serenka on April 2, 2009, at approximately 5:12 p.m. Parrilla, 08-050 Page 39 Parrilla’s conversion of the School District laptop to her own personal use negated the need for her to purchase a laptop for her continued personal use. Per admitted Fact Finding 132, Parrilla realized an approximate financial gain of $1,211.45 when she maintained possession of the School District laptop issued to her as a Board Member from the expiration of her term on December 2, 2007, until April 2, 2009. Per admitted Fact Finding 133, Parrilla realized a total financial gain of approximately $2,845.77 as a result of submitting and receiving reimbursement from the School District for personal expenses incurred while attending the NSBA annual conference in 2004 and 2006, voting to approve bill lists on which advance and/or reimbursement checks for such expenses were documented, and converting a School District laptop to her own possession for personal use, calculated as the sum of the following: (1) personal expenses from the 2004 NSBA annual conference valued at $1,114.46; (2) personal expenses from the 2006 NSBA annual conference valued at $519.86; and (3) possession of the School District laptop valued at $1,211.45. Having summarized the above relevant facts, we must now determine whether the actions of Respondent violated Section 1103(a) of the Ethics Act. As we apply the facts to the allegations, due process requires that we not depart from the allegations. Pennsy v. Department of State, 594 A.2d 845 (Pa. Commw. Ct. 1991). A violation of the Ethics Act must be based upon clear and convincing proof. 65 Pa.C.S. § 1108(g). Clear and convincing proof is “so ‘clear, direct, weighty, and convincing as to enable the trier of fact to come to a clear conviction, without hesitance, of the truth of the precise facts in issue.’” In Re: Charles E.D.M., 550 Pa. 595, 601, 708 A.2d 88, 91 (1998) (Citation omitted). Based upon the particular factual averments of the Investigative Complaint that Parrilla is deemed to have admitted, the necessary conclusion is that Parrilla violated Section 1103(a) of the Ethics Act when she incurred expenses of a personal nature while traveling to school related conferences and subsequently claimed and received reimbursement for her personal expenses. Cf., Regola, Order 1517; Melenia, Order 1516; Hopkin, Order 1515; Matta, Order 1439; Tancredi, Order 1434; Hoover, Order 1348; Sullivan, Order 1245; Choura, Order 942. Per admitted Fact Findings 68 and 97, Parrilla realized a total private pecuniary benefit of $1,634.32 as a result of submitting expenses, accepting payment by/reimbursement from the School District for submitted expenses, and voting to approve bill lists on which payments/reimbursements were documented for personal expenses incurred in association with her attendance at the 2004 and 2006 NSBA annual conferences, calculated as the sum of the following: (1) $1,114.46 in personal expenses related to the 2004 NSBA annual conference; and (2) $519.86 in personal expenses related to the 2006 NSBA annual conference. Such personal expenses included lodging and subsistence for unauthorized extra days spent at conference sites prior to or after conferences, unnecessary vehicle rental expenses, valet parking, and other personal expenses. Parrilla used the authority of office by claiming and accepting payments/reimbursements for such personal expenses and by voting to approve bill lists that included payments/reimbursements for such personal expenses. Accordingly, we hold that Parrilla violated Section 1103(a) of the Ethics Act when she incurred expenses of a personal nature while traveling to school related conferences and subsequently claimed and received reimbursement for her personal expenses. The second allegation pertains to Parrilla’s conversion of a District owned laptop computer to her personal possession. We determine that each element of a violation of Section 1103(a) of the Ethics Act has been established. Parrilla, 08-050 Page 40 Parrilla used the authority of her public position as a Board Member when she took possession of a new laptop assigned to her by the School District in January 2007. Parrilla used the new laptop through the expiration of her term on December 2, 2007. Parrilla did not return the laptop upon the expiration of her term, and she did not return the laptop to the School District until April 2, 2009, despite multiple communications from the School District regarding the need to return the laptop. But for being in her public position, Parrilla would not have been in a position to maintain possession of the laptop for her personal use following the expiration of her term as a Board Member. Per admitted Fact Finding 132, Parrilla realized a private pecuniary benefit of $1,211.45 when she maintained possession of the School District laptop issued to her as a Board Member from the expiration of her term on December 2, 2007, until April 2, 2009. With each element of a violation of Section 1103(a) established, we hold that Parrilla violated Section 1103(a) of the Ethics Act when she used the authority of her public position for a private pecuniary benefit by converting a District owned laptop computer to her personal possession. Cf., Pagan, Order 1466; Cagno, Order 1204. Based upon the above, we find that Parrilla received private pecuniary benefits in the total amount of $2,845.77 as a direct result of her violations of Section 1103(a) of the Ethics Act referenced herein. Section 1107(13) of the Ethics Act empowers this Commission to require the payment of restitution in instances where a public official/public employee has obtained a financial gain in violation of the Ethics Act. The Investigative Division has filed a Position Statement seeking an order for restitution. Respondent has filed a Position Statement asserting that: she did not intend to do anything deceitful or dishonest; she trusted the experience of more senior Board Members and followed their lead when attending the NSBA annual conferences; she tried to make a good faith effort to purchase the laptop from the School District; and the delay in eventually returning the laptop was not out of malicious intent. Based upon the totality of the facts and circumstances, we determine that restitution is warranted as to the private pecuniary benefit in the amount of $2,845.77 that Parrilla realized as a direct result of her violations of Section 1103(a) of the Ethics Act referenced herein. Accordingly, Parrilla is directed to make payment of restitution to the School District th in the total amount of $2,845.77 by no later than the thirtieth (30) day after the mailing date of this adjudication and Order, by forwarding a check payable to the School District in the amount of $2,845.77 to the Pennsylvania State Ethics Commission for processing. Non-compliance will result in the institution of an order enforcement action. IV.CONCLUSIONS OF LAW: 1. As a Member of the Sto-Rox School District (“District”) Board of Directors from May 20, 1999, through December 2, 2007, Respondent Donna Parrilla has been a public official subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. 2. Parrilla violated Section 1103(a) of the Ethics Act when she incurred expenses of a personal nature while traveling to school related conferences and subsequently claimed and received reimbursement for her personal expenses. Parrilla, 08-050 Page 41 3. Parrilla violated Section 1103(a) of the Ethics Act when she used the authority of her public position for a private pecuniary benefit by converting a District owned laptop computer to her personal possession. In Re: Donna Parrilla, : File Docket: 08-050 Respondent : Date Decided: 9/22/09 : Date Mailed: 10/6/09 ORDER NO. 1538 1. Respondent Donna Parrilla, a public official in her capacity as a Member of the Sto- Rox School District (“School District” or “District”) Board of Directors from May 20, 1999, through December 2, 2007, violated Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), when she incurred expenses of a personal nature while traveling to school related conferences and subsequently claimed and received reimbursement for her personal expenses. 2. Parrilla violated Section 1103(a) of the Ethics Act when she used the authority of her public position for a private pecuniary benefit by converting a District owned laptop computer to her personal possession. 3. Parrilla is directed to make payment of restitution to the School District in the total th amount of $2,845.77 by no later than the thirtieth (30) day after the mailing date of this Order, by forwarding a check payable to the School District in the amount of $2,845.77 to the Pennsylvania State Ethics Commission for processing. a. Non-compliance will result in the institution of an order enforcement action. BY THE COMMISSION, ___________________________ Louis W. Fryman, Chair