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HomeMy WebLinkAbout1553 Karpa In Re: Lenora Karpa, : File Docket: 09-015 Respondent : X-ref: Order No. 1553 : Date Decided: 3/25/10 : Date Mailed: 4/9/10 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 allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an “Investigative Complaint.” A Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement has been approved. This adjudication of the State Ethics Commission is issued under the Ethics Act and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with the Ethics Act. Karpa, 09-015 Page 2 I.ALLEGATIONS: That Lenora Karpa, a public official/public employee in her capacity as a member of the School Board of Directors of the Sto-Rox School District, Allegheny County, violated Section 1103(a) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §1103(a), when she used the authority of her public position for private pecuniary benefit, including but not limited to claiming and receiving expenses for travel to conventions which included expenses of a personal nature not related to any official Board function. II.FINDINGS: 1. Lenora Karpa has served as a member of the Sto-Rox School District (hereafter SRSD) Board of Directors from December 5, 2005, through December 7, 2009. a. Karpa served as the Vice-President of the board from December 9, 2006, through December 7, 2009. 2. 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. 3. 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. 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. 4. 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 Karpa, 09-015 Page 3 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. 5. 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. 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. 6. 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 Karpa, 09-015 Page 4 on the list of ratified bills are approved by the board after the fact. 7. 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. 8. 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). 9. 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. 10. As a member of the SRSD board of directors, Karpa was subject to the policies set forth in the policy manual. a. Karpa had access to a SRSD policy manual in her position as a member of the board of directors. 11. 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, “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.” 12. 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: Karpa, 09-015 Page 5 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. 13. 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. “Reasonable expenses” were never specifically defined in the minutes. 14. 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. 15. 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. 16. The NSBA holds an Annual Conference and Exposition for the purpose of providing Karpa, 09-015 Page 6 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. 17. 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. 18. 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 a NSBA member. 19. 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; 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. Karpa, 09-015 Page 7 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. 20. 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. 21. 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. 22. 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. 23. A specific line item exists in the SRSD budget for board member travel under Account No. 2310, Object No. 580. 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. 24. 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. 25. 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. 26. Registration by the superintendent’s secretary includes submission of hotel choices for the attending board members once their registration is confirmed. Karpa, 09-015 Page 8 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. 27. Once registered, the superintendent’s secretary or the individual board members make flight arrangements for board member travel regarding the NSBA annual conference. a. Although at times completed by the superintendent’s secretary, board members can opt to make their own flight arrangements. 28. 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. 29. SRSD board members were permitted to request advances from the district for other travel related expenses such as subsistence, transportation, etc., prior to the adoption of new travel procedures in June 2006. 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. 30. 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 SRSD Professional Development Expense Report. b. The report utilized by SRSD in 2008 was titled SRSD Travel Expense Report Form. c. 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. d. 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. Karpa, 09-015 Page 9 31. 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 is generally understood that board members may travel one day in advance of the start of an out-of state-conference. b. It is generally understood 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. 32. Karpa (Lenora) is the spouse of former SRSD board member John Karpa. a. John Karpa served as a SRSD board member for three separate periods of time between the time frame of December 1989 to December 2009. 33. John Karpa attended NSBA annual conferences in 1999, 2000, 2002, 2003, 2004, and 2005. a. Karpa routinely accompanied her spouse to the NSBA annual conventions, even prior to her becoming a SRSD board member. 34. The NSBA held its 2006 annual conference at the Lakeside Center at McCormick Place, Chicago, IL, 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, National Affiliates, board member “boot camp,” board support professionals, and conference orientation. 35. Although Karpa was a board member for SRSD at the time of the 2006 NSBA annual conference, Karpa did not pay registration fees to attend the 2006 NSBA annual conference. a. Spouses of registered district representatives are to be identified on the attendee’s registration form but are permitted to attend the NSBA annual conference at no cost. b. Karpa and her spouse each claimed two days worth of hotel expenses in Karpa, 09-015 Page 10 association with their travel to the 2006 NSBA annual convention. 36. John Karpa’s registration for the 2006 NSBA annual conference was processed by the NSBA on or about November 5, 2005. a. John Karpa’s actual registration form submitted online to the NSBA bears a submission date of November 1, 2005, for the 2006 annual convention. 1. Invoice number 0000475238 from the NSBA documenting John Karpa’s registration fee is dated November 5, 2005. b. John Karpa was not officially approved to attend the 2006 NSBA annual conference until the travel matrix which documented John Karpa’s travel was approved by the board (see, Finding No. 4). 1. John Karpa’s travel to the 2006 NSBA annual conference was documented on the November 2005 travel matrix. 2. The November 2005 travel matrix documented the date and time of John Karpa’s travel to be approved as “April 8, 9, 10, 11, 2006” from “8:00-5:00.” 37. The travel matrix documenting John Karpa’s travel to the 2006 NSBA annual conference was approved by the SRSD board of directors at the November 17, 2005, regular board meeting via 6-0 unanimous vote. a. John Karpa was present at the meeting and participated in the board vote to approve conference attendance as listed on the travel matrix. 38. John Karpa was assigned lodging for the 2006 NSBA annual conference for himself and Karpa at the Marriott Chicago Downtown Magnificent Mile located at 540 North Michigan Avenue, Chicago, IL 60611. a. The room rate at the Marriott Chicago Downtown Magnificent Mile for a double occupancy room was $199.00 per night plus applicable taxes in the amount of $30.64 per night for a total cost of $229.64 per night. 1. The 2006 NSBA conference brochure provided a listing of forty-five hotels with conference rates from which conference attendees could choose. 2. Nineteen of the forty-five hotels documented lower conference rates than the Marriott Chicago Downtown Magnificent Mile for double occupancy rooms. aa. Five additional hotels documented the same conference rate as the Marriott Chicago Downtown Magnificent Mile. b. The Karpas were scheduled to arrive on April 6, 2006, two days prior to the start of the conference, and depart on April 10, 2006. c. The Marriott Chicago Downtown Magnificent Mile is located approximately five and one-half miles from the Lakeside Center at McCormick Place. 39. The fee associated with John Karpa’s registration for the 2006 NSBA annual conference totaled $620.00. Karpa, 09-015 Page 11 a. SRSD received a discount on John Karpa’s registration fee as a result of being a National Affiliate of the NSBA. b. No additional fees were incurred regarding registration for John Karpa. 1. Neither Karpa nor her spouse registered for any pre-conference workshops prior to the official start date of the 2006 NSBA annual conference. 40. John Karpa’s registration fee was paid via the issuance of SRSD General Fund check number 040380, dated December 15, 2005, in the amount of $1,860.00 payable to the NSBA. a. Check number 040380 accounted for the registration fees of John Karpa, Linda Jacobs, and one additional SRSD board member ($1,860.00 ÷ 3 = 620.00 each). b. Check number 040380 was documented on the register of bills presented for approval at the January 19, 2006, regular board meeting. 1. Minutes document Karpa’s presence at the meeting. 2. The motion to approve and ratify bills presented passed via 9-0 unanimous vote with no objections or abstentions. 41. John Karpa was approved for travel to the 2006 NSBA annual conference in Chicago, IL, at the November 17, 2005, board meeting. a. John Karpa and two additional board members were approved for travel to the NSBA annual conference from April 8-11, 2006, at a total anticipated cost of $6,000.00 ($2,000.00 each). b. Karpa was present and participated in the unanimous vote to approve the November 2005 travel matrix. 42. Karpa obtained airline reservations for transportation to the 2006 NSBA annual conference through US Airways. a. Ticket number 2161243241 issued in Karpa’s name was processed on October 6, 2005. 1. The price of the ticket was $130.40. 43. SRSD issued reimbursement to Karpa via check number 040712, dated January 31, 2006, in the amount of $130.40 for personal funds expended in relation to air fare costs for travel to the 2006 NSBA annual convention. a. Check number 040712 was documented on lists of bills presented for approval at that February 16, 2006, board meeting. 1. Karpa was present at the February 16, 2006, board meeting and participated in the vote to approve the bills presented. 2. The vote to approve the bills presented passed unanimously (7-0). b. Karpa’s signature appears on the back of check number 040712 effectively endorsing the check. Karpa, 09-015 Page 12 44. Karpa’s flight itinerary to Chicago, IL, from Pittsburgh, PA, and back, regarding attendance at the 2006 NSBA annual conference, is documented below: Airline Flight Ticket No. Date Depart Arrive No. US Airways 105 2161243241 April 6, 2006 Pittsburgh, PA---8:30am Chicago, IL---9:00am US Airways 1625 2161243241 April 10, 2006 Chicago, IL---10:10am Pittsburgh, PA---12:36pm NOTE: All times shown represent local time at their respective locations. 45. On March 25, 2006, Karpa completed and submitted for consideration a SRSD Request for Advance totaling $920.00 for lodging in relation to her travel to the 2006 NSBA annual conference. a. Karpa’s Request for Advance inaccurately documented the dates of the conference as “April 6-10, 2006.” 1. The official dates of the 2006 NSBA annual conference were April 8, 2006, into April 11, 2006. b. The comments section of the request noted, “Did not register for the conference, since I can get in for free as the spouse of a board member.” c. Director of Administrative Services, Charles Lanna, approved the request in the amount of $300.00 on March 27, 2006. 46. On or about March 31, 2006, Karpa received a travel advance totaling $300.00 via the receipt of SRSD General Fund check number 041144 in association with her attendance at the 2006 NSBA Conference. a. Check number 041144 was documented on the register of bills presented for approval at the April 20, 2006, regular board meeting. 1. Minutes document Karpa’s presence at the meeting. 2. The motion to approve and ratify bills presented passed via 9-0 unanimous vote with no objections or abstentions. b. Check number 041144 is dated March 31, 2006. c. Karpa endorsed and cashed check number 041144. 47. Karpa’s hotel folio (account number 15784) for the Marriott Chicago Downtown Magnificent Mile documents a check-in date of April 6, 2006, and a departure date of April 10, 2006. a. Karpa checked-in to the hotel at 10:17 a.m. local time and departed at 7:49 a.m. local time. b. Karpa was assigned Room Number 2235. 48. Karpa incurred no additional expenses at the Marriott Chicago Downtown Magnificent Mile in relation to her stay for the 2006 NSBA annual convention. a. The complete cost for Karpa’s lodging totaled $459.30. 1. Only April 8, 2006, and April 9, 2006, room expenses were Karpa, 09-015 Page 13 specifically charged to Karpa. 2. Charges incurred for April 6, 2006, and April 7, 2006, were specifically assigned to John Karpa’s folio (account number 15782). b. John Karpa issued payment to the Marriott Chicago Downtown Magnificent Mile via personal credit card for lodging expenses. 49. Karpa and her spouse traveled to and from the 2006 NSBA annual convention with Jacobs and her spouse (Martin Jacobs). a. The Karpas and Jacobses both flew to Chicago, IL, from Pittsburgh, PA, via US Airways Flight No. 105. b. The Karpas and Jacobses both flew from Chicago, IL, to Pittsburgh, PA, via US Airways Flight No. 1625. 50. Neither Karpa, John Karpa, nor Jacobs rented a vehicle for transportation purposes in relation to the 2006 NSBA annual conference. a. The Karpas and Jacobs routinely utilized public transportation (taxis) for transportation purposes. b. The Karpas and Jacobs typically traveled together in taxis utilized. 1. John Karpa and Jacobs routinely alternated payment of taxi fares incurred (one paid for the trip from the hotel to the applicable destination while the other paid for the trip from the destination back to the hotel). 51. On April 17, 2006, Karpa completed and submitted for approval a SRSD Professional Development Expense Report requesting reimbursement totaling $346.49 in association with the 2006 NSBA annual conference. a. Karpa signed the form as the individual requesting reimbursement. 52. The report documented expenses of $646.49 less the advance of $300.00 for general expenses for a total of $346.49 claimed by Karpa. a. The reimbursement request was approved by Lanna. 53. Karpa was issued SRSD General Fund check number 041367, dated April 28, 2006, in the amount of $346.49 for reimbursement claimed as a result of traveling to Chicago, IL, for the 2006 NSBA annual convention. a. Check number 041367 appeared on the bill list presented for approval at the May 18, 2006, regular board meeting. b. Karpa seconded the motion to approve the monthly bills at the May 18, 2006, meeting. 1. The vote to approve the bills presented passed unanimously (9-0). 2. Karpa participated in the unanimous vote. c. Karpa deposited check number 041367 into her personal checking account at Citizen’s Bank (account number XXXX5438) on May 1, 2006. Karpa, 09-015 Page 14 54. Although attending the 2006 NSBA annual conference as a representative of SRSD, Karpa traveled to Chicago, IL, 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 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. Karpa was not registered for any pre-conference workshops regarding the 2006 NSBA annual conference. b. Karpa was cognizant of her early arrival as her hotel reservations and flight arrangements documented an arrival date of April 6, 2006. 55. Receipts submitted by Karpa for reimbursement for the day of April 7, 2006, document Karpa’s presence in Chicago, IL, as well as the fact that Karpa spent no significant amount of time at the convention center on that day. a. Receipts submitted by Karpa for reimbursement for April 7, 2006, document Karpa’s presence outside of the convention center as shown below: Time Location Address Activity 6:32am Gourmet Bean 540 N. Michigan Ave Dining/Subsistence 8:06am Ventoso 540 N. Michigan Ave Dining 11:21am Hot Diggity Dogs 251 E. Ohio St. Dining 56. The SRSD incurred an unnecessary expense of $188.94 as a result of paying for Karpa’s hotel expenses, subsistence expenses, and parking expenses for April 6, 2006. a. Karpa’s room expense totaled $229.64 per night ($199.00 nightly rate + $30.64 in applicable taxes). 1. The actual unnecessary expense assessed to Karpa is $114.82 ($229.64 ÷ 2 = $114.82) due to splitting lodging expenses with John Karpa. b. Karpa submitted and received reimbursement for subsistence totaling a minimum of $74.12. 1. Karpa submitted for reimbursement of funds expended at TGI Friday’s on April 6, 2006, at 6:50 a.m. in the amount of $8.07. 2. Karpa submitted for reimbursement of funds expended at the Grand Lux Cafe on April 6, 2006, at 11:39 a.m. in the amount of $29.20. 3. Karpa submitted for reimbursement of funds expended at Gourmet Bean on April 6, 2006, at 2:50 p.m. in the amount of $4.52. 4. Karpa submitted reimbursement for funds expended at the Grand Lux Cafe on April 6, 2006, at 6:56 p.m. in the amount of $32.33. Karpa, 09-015 Page 15 57. SRSD board members in travel status are permitted to be reimbursed for actual expenses incurred in relation to the utilization of public transportation, including taxis. a. Board members are not permitted to inflate the amount of reimbursement claimed. 1. Reimbursement amounts permitted are limited to the expense amount actually incurred. 58. Taxi meter rates/fares are regulated by the City of Chicago through the Department Consumer Services. a. All taxi businesses within the city are to charge meter rates/fares as established by the Department of Consumer Services. b. Information provided by the Department of Consumer Services documents cab fare rates for the City of Chicago as of May 11, 2005. 59. Taxicab rates in effect in Chicago, IL, during the time frame of the 2006 NSBA annual convention were as follows: a. Flag pull or initial charge = $2.25 for the first 1/9 mile or less (approximately 581 feet). b. $.20 per each additional 1/9 mile (or $1.80 per mile after the first mile). c. $.20 per each 36 seconds of time elapsed. d. $1.00 flat fee for first additional passenger and $0.50 flat fee for each additional passenger after the first additional passenger. e. Optional tipping. 60. John Karpa’s SRSD Professional Development Expense Report associated with his travel to the 2006 NSBA annual conference documented $258.00 due in reimbursement for “Other” expenses. a. “Other” on the expense report is defined as, “airfare, tolls, cab, transfers, etc.” b. Additionally present on the expense report by the “Other” section written in handwriting was “for: Karpa-Jacobs-Karpa-(Schipani).” 61. John Karpa submitted documentation with his SRSD Professional Development Expense Report in relation to cab fare claimed in association with the 2006 NSBA annual conference by way of eight separate receipts. a. Eight cab receipts totaling $251.00 were submitted with John Karpa’s expense report. 1. All eight of the receipts bear the same handwriting. b. All of the cab receipts submitted were generic in nature. 1. None of the cab receipts submitted identified the cab company providing the service. Karpa, 09-015 Page 16 c. One additional cab fare totaling $7.00 was claimed on the expense report. 1. The additional expense was claimed in association with John Karpa’s attendance at an AIU Dinner held on March 30, 2006. 62. Of the eight receipts submitted for reimbursement by John Karpa in relation to the 2006 NSBA annual convention all were inflated over the actual fares incurred which resulted in a financial gain of approximately $148.17 to John Karpa as shown in the chart below: DATE CAB CO. FROM TO DISTANCE TIME AMOUNT AMOUNT DUE PER CLAIMED TAXIFINDER 4/6/06 Unknown O’Hare Intl. Airport 540 N. Michigan Ave., 17.9 Miles Twenty-Five $36.35 $70.00 Chicago, IL 60611 Minutes 4/6/06 Unknown 600 N. Michigan Ave., 540 N. Michigan Ave. 0.1 Mile One Minute $4.30 $12.00 Chicago, IL 60611 Chicago, IL 60611 4/6/06 Unknown 600 N. Michigan Ave., 540 N. Michigan Ave. 0.1 Mile One Minute $4.30 $12.00 Chicago, IL 60611 Chicago, IL 60611 4/7/06 Unknown 100 E. Chestnut St. 540 N. Michigan Ave. 0.7 Mile Four Minutes $5.80 $25.00 Chicago, IL, 60611 Chicago, IL 60611 4/8/06 Unknown 230 N. Michigan Ave., 540 N. Michigan Ave. 0.4 Mile One Minute $5.31 $25.00 Chicago, IL 60601 Chicago, IL 60611 4/9/06 Unknown 160 East Pearson St. 540 N. Michigan Ave. 0.6 Mile Three Minutes $5.62 $25.00 Chicago, IL, 60611 Chicago, IL 60611 4/9/06 Unknown 600 N. Michigan Ave., 540 N. Michigan Ave. 0.1 Mile One Minute $4.80 $12.00 Chicago, IL 60611 Chicago, IL 60611 4/10/06 Unknown 540 N. Michigan Ave., O’Hare Intl. Airport 17.9 Miles Twenty-Five $36.35 $70.00 Chicago, IL 60611 Minutes TOTAL $102.83 $251.00 Unknown=Generic Receipt a. Amounts due per taxifinder were obtained from http://www.taxifinder.com. b. All amounts due include fare increases for extra passengers. 1. Receipts submitted by John Karpa document the individuals utilizing the taxi per individual date. c. Time estimates were obtained from directions per taxifinder.com. d. John Karpa’s financial gain was the difference between the total amount claimed and the actual amount due ($251.00 - $102.83 = $148.17). 63. Karpa realized a private pecuniary benefit of $188.94 as a result of traveling one day earlier than permitted to the 2006 NSBA Annual Convention and being advanced or reimbursed district funds for expenses associated with personal travel as shown below: Description Financial Gain Marriott Chicago Downtown Magnificent Mile (Night of April 6, $114.82 2006) Subsistence 74.12 Total $188.94 THE FOLLOWING FINDINGS RELATE TO SRSD PAYMENT/REIMBURSEMENT FOR EXPENSES OF A PERSONAL NATURE IN ASSOCIATION WITH KARPA’S TRAVEL TO THE 2008 NSBA ANNUAL CONVENTION. Karpa, 09-015 Page 17 64. The NSBA held its 2008 annual conference at the Orange County Convention Center (OCCC) in Orlando, FL, spanning the dates of March 29, 2008, to April 1, 2008. a. The brochure for the conference notes that the conference officially began on Saturday, March 29, 2008, at 8:00 a.m. 1. The brochure notes that registration was open at 7:00 a.m. and the conference bookstore was open as of 8:00 a.m. b. The brochure for the conference notes that the conference officially concluded on Tuesday, April 1, 2008, at 11:00 a.m. c. The brochure documents registration and various pre-conference and “early bird” workshops available on Friday, March 28, 2008. 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 National Affiliates, board member “boot camp,” board support professionals, and conference orientation. 65. Karpa’s registration for the 2008 NSBA annual conference was processed by the NSBA on or about December 17, 2007. a. Karpa’s actual registration form was submitted online to the NSBA for the 2008 annual convention on December 17, 2007. 1. Invoice number 0000308578 from the NSBA documenting Karpa’s registration fee is dated December 17, 2007. b. Karpa was not officially approved to attend the 2008 NSBA annual conference until the travel matrix which documented Karpa’s travel was approved by the board. 1. Karpa’s travel to the 2008 NSBA annual conference was documented on the out of-state 2007-2008 travel matrix. 2. The out of-state 2007-2008 travel matrix documented the date and time of Karpa’s travel to be approved as “March 28, 29, 30, 31” and “April 1, 2, 2008.” 66. The travel matrix documenting Karpa’s travel to the 2008 NSBA annual conference was approved by the SRSD board of directors at the January 24, 2008, regular board meeting. a. Karpa was present at the meeting. b. The matrix was approved via 5-2-1 vote of the eight board members present. 1. Karpa voted in favor of approving the travel matrix. 2. Board members Elizabeth Smith and Jeannie Hughes voted in opposition to out-of-state travel by board members as documented on the travel matrix. Karpa, 09-015 Page 18 3. Board member Ed Maritz abstained from the vote. 67. Karpa was assigned lodging for the 2008 NSBA annual conference for herself and John Karpa at the La Quinta Inn & Suites located at 8504 Universal Blvd., Orlando, FL 32819. a. The room rate at the La Quinta Inn & Suites for a double occupancy room was $102.00 per night. 1. The 2008 NSBA conference brochure provided a listing of twenty- seven hotels with conference rates from which conference attendees could choose. 2. Only one hotel offered a conference rate less than that offered through La Quinta Inn & Suites. b. Karpa was scheduled to arrive on March 28, 2008, and depart on April 1, 2008. c. The La Quinta Inn & Suites is located approximately one mile from the OCCC. 68. John Karpa was serving as a board member for SRSD at the time of the 2008 NSBA annual conference. a. John Karpa was appointed to fill a vacant seat on the board on March 20, 2008. b. John Karpa attended the 2008 NSBA annual conference as the guest of Karpa. 1. There was no registration cost to SRSD associated with John Karpa’s attendance at the 2008 NSBA conference. c. John Karpa submitted no expenses for reimbursement to SRSD in relation to his attendance [at] the 2008 NSBA annual conference. 69. The fee associated with Karpa’s initial registration for the 2008 NSBA annual conference totaled $660.00. a. SRSD received a discount on Karpa’s registration fee as a result of being a National Affiliate of the NSBA. b. No additional fees were incurred regarding registration for Karpa. 1. Karpa did not register for any pre-conference workshops for the 2008 NSBA annual conference. 70. Karpa’s registration fee was paid via the issuance of SRSD General Fund check number 046893, dated March 14, 2008, in the amount of $3,350.00 payable to the NSBA. a. Check number 046893 accounted for the registration fees of Karpa, Jacobs, and three additional SRSD board members. 1. Three board members were charged registration rates of $660.00 Karpa, 09-015 Page 19 while two were charged registration rates of $685.00. aa. The actual registration fee was determined, in part, by the date that the registration occurred. b. Check number 046893 was documented on the register of bills presented for approval at the April 24, 2008, regular board meeting. 1. Minutes document Karpa’s presence at the meeting. 2. The motion to approve and ratify bills presented passed via 7-0 unanimous vote with no objections or abstentions. c. Check number 046893 was signed by members Luanne Schipani and John Karpa. 71. Karpa was approved for travel to the 2008 NSBA annual conference in Orlando, FL, at the January 24, 2008, board meeting. a. Karpa and three additional board members were approved for travel to the NSBA annual conference from March 28, 2008-April 1, 2008, at a total anticipated cost of $1,200.00 each. b. Karpa was present at the January 24, 2008, meeting and voted affirmatively to approve the out of-state 2007-2008 travel matrix. 72. Karpa obtained airline reservations for transportation to the 2008 NSBA annual conference through US Airways via payment by personal credit card. a. Ticket number 03721536778750, issued in Karpa’s name, was processed on December 30, 2007. 1. The price of the ticket was $252.80. 73. SRSD issued reimbursement to Karpa via check number 046840 dated February 29, 2008, in the amount of $252.80 for personal funds expended in relation to air fare costs for travel to the 2008 NSBA annual convention. a. Check number 046840 was documented on lists of bills presented for approval at the March 20, 2008, board meeting. 1. Karpa was present at and participated in the March 20, 2008, board meeting. 2. The vote to approve the bills presented passed unanimously (8-0) with no objections or abstentions. b. SRSD did not issue payment or reimbursement for John Karpa’s airfare. 74. Karpa’s flight itinerary to Orlando, FL, from Pittsburgh, PA, and back regarding attendance at the 2008 NSBA annual conference is documented below: Airline Flight Ticket No. Date Depart Arrive No. US Airways 1791 03721536778750 March 28, 2008 Pittsburgh, PA---9:30am Orlando, FL---11:54am US Airways 1830 03721536778750 April 1, 2008 Orlando, FL---12:40pm Pittsburgh, PA---3:00pm NOTE: All times shown represent local time at their respective locations. Karpa, 09-015 Page 20 75. On March 13, 2008, Karpa requested and subsequently received a travel advance totaling $180.00 via the receipt of SRSD General Fund check number 047012 dated March 25, 2008, for her attendance at the 2008 NSBA Conference. a. Karpa’s signature is present on the back of check number 047012 effectively endorsing the check. b. Check number 047012 was documented on lists of bills presented for approval at the April 24, 2008, board meeting. 1. Karpa was present at and participated in the April 24, 2008, board meeting. 2. The vote to approve the bills presented passed unanimously (7-0) with no objections or abstentions. c. The $180.00 represented an advance of $45.00 per day for meals per the revised travel policy (see, Finding No. 14). d. The request was approved by Lanna on March 25, 2008. 76. Karpa’s hotel folio (folio number 01821315) for the La Quinta Inn & Suites documents a check-in date of March 28, 2008, and a departure date of April 1, 2008. a. No check in or check out time is noted on the folio. b. Karpa was assigned Room Number 415. 77. Karpa incurred no additional expenses at the La Quinta Inn & Suites in relation to her stay for the 2008 NSBA annual convention. a. The complete cost for Karpa’s lodging totaled $408.00. b. Karpa issued payment to the La Quinta Inn & Suites via personal credit card for lodging expenses. 78. Upon arrival in Orlando, FL, John Karpa rented a vehicle at Alamo for transportation purposes which was ultimately utilized by the Karpas and board * member Luanne Schipani for convenience and personal purposes. * [Cf., Fact Finding 83 b.] a. The vehicle was rented on March 28, 2008, at 12:58 p.m. and returned on April 1, 2008, at 10:04 a.m. b. The vehicle was driven one hundred forty-nine miles between March 28, 2008, and April 1, 2008. 1. The La Quinta Inn & Suites is located approximately 0.96 mile from the OCCC. 2. The La Quinta Inn & Suites is located approximately 14.83 miles from Orlando International Airport. c. The vehicle rental was charged to John Karpa’s personal credit card in the Karpa, 09-015 Page 21 amount of $252.17. 79. On or about April 17, 2008, Karpa completed and submitted for approval a SRSD Travel Expense Report Form requesting reimbursement totaling $688.17 in association with the 2008 NSBA annual conference. a. Karpa signed the form as the individual requesting reimbursement. 80. The report documented expenses of $1,780.97 less the $1,092.80 previously paid by the district (for registration fees, airfare, and per diem advance) for a total of $688.17 claimed by Karpa. a. The reimbursement request was approved by Lanna. 81. Karpa was issued SRSD General Fund check number 047246, dated April 30, 2008, in the amount of $688.17 for reimbursement claimed as a result of traveling to Orlando, FL, for the 2008 NSBA annual convention. a. Check number 047246 appeared on the bill list presented for approval at the May 22, 2008, regular board meeting. b. The motion to approve the monthly bills passed unanimously (8-0). 1. Karpa was present and voted in favor of approving the bills presented at the May 22, 2008, meeting. c. Karpa deposited check number 047246 into her personal checking account at Citizen’s Bank (account number XXXXXX5438) on May 2, 2008. 82. SRSD board members are permitted to rent vehicles at the expense of the district while in travel status and receive reimbursement 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.). 83. John Karpa rented a vehicle for convenience purposes while in Orlando attending the 2008 NSBA conference (see, Finding No. 78). a. The total cost of the rental vehicle was $252.17 plus $28.00 in fuel. b. A total of three SRSD board members (Karpa, John Karpa, and Kevin * Kochirka) utilized the vehicle. * [Cf., Fact Finding 78.] c. Karpa submitted for and received reimbursement from SRSD for the cost of the rental vehicle and fuel although the vehicle was specifically rented by John Karpa. * 84. Karpa realized a financial gain of $186.78 ($280.17 cost ÷ 3 board members) as a result of utilizing a rental vehicle which was not necessary for transportation purposes in association with the 2008 NSBA annual conference. * [The quotient multiplied by 2, representing the Karpas, equals $186.78, that is, $93.39 x 2 = $186.78.] Karpa, 09-015 Page 22 a. The La Quinta Hotel & Suites is located approximately 14.83 miles from Orlando International Airport. b. The La Quinta Hotel & Suites is located approximately 0.96 mile from the OCCC. 1. Free shuttle busses traveled from the OCCC to conference hotels, including the La Quinta Hotel & Suites, continuously throughout the days of the NSBA conference. c. The Karpas rented the vehicle out of convenience rather than necessity. 85. Incidental expenses of a personal nature incurred by Karpa for which Karpa ultimately claimed but did not receive reimbursement from SRSD included reimbursement for tips totaling $10.00. a. Karpa claimed reimbursement in the amount of $10.00 for “tips for luggage at airport.” 1. Although documented on Karpa’s Travel Expense Report Form, Karpa was not issued reimbursement by SRSD for the expense. 86. Karpa realized a total financial gain of $186.78 as a result of utilizing a rental vehicle in association with her attendance at the 2008 NSBA Annual Convention which was unnecessary and being reimbursed district funds for expenses associated with said rental as shown below: Description Financial Gain Vehicle Rental 186.78 Total $186.78 87. Travel expenses (including applicable registration fees, pre-paid items, reimbursements, etc.) claimed by Karpa in association with her attendance at the 2006 and 2008 NSBA annual conferences totaled $2,557.86. a. Karpa’s expenses for the 2006 NSBA conference totaled $776.89. b. Karpa’s expenses for the 2008 NSBA conference totaled $1,780.97. 88. In a sworn statement provided to Commission investigators on February 8, 2010, Karpa stated the following: a. Karpa believed the first official day of the NSBA conferences to be Friday. b. Pre-conference workshops (a/k/a early bird workshops) are available on Friday. 1. Pre-conference workshops which charge a fee required pre- registration. aa. Karpa did not register for any pre-conference workshops in relation to the 2004, 2005, or 2006 NSBA conferences. bb. Karpa could not specifically identify her attendance at any pre- conference workshops which did not require pre-registration while in travel status regarding the 2004, 2005, or 2006 NSBA conferences. Karpa, 09-015 Page 23 c. Karpa utilized rental vehicles at the 2004 and 2008 NSBA conferences for convenience purposes. 1. Karpa believed renting a vehicle at the 2004 and 2008 NSBA conferences would result in savings to SRSD in comparison with utilization of public transportation. 2. Board members attempted to minimize transportation related costs at the conferences by sharing rental vehicles. d. Karpa was not aware of any official or written policy which dictated the number of days board members could arrive or depart prior to the official start of out-of-state conferences. e. Karpa actually saved SRSD funds in association with her attendance at the 2006 NSBA conference. 1. Karpa incurred no registration fee as a result of traveling to the 2006 NSBA conference as the guest of her spouse (John Karpa). f. Karpa did not inflate taxi receipts submitted for reimbursement. 1. Karpa, her spouse, and Schipani did not utilize public taxis while in Chicago, IL. 2. Karpa, her spouse, and Schipani utilized a Lincoln Towncar owned by an independent individual for transportation purposes while in Chicago, IL. 89. Karpa maintains that her actions were unintentional; nonetheless she acknowledges the legal and factual conclusions which are supported by the Stipulated Findings. 90. Karpa realized a total private pecuniary gain of no less than $375.72 as a result of submitting expenses, accepting payment by/reimbursement from SRSD for submitted expenses, and voting to approve bill lists on which payments/reimbursement[s] were documented for expenses of a personal nature in association with her attendance at the 2006 and 2008 NSBA annual conferences as shown below: Year/Conference Personal Expenses Paid/Reimbursed By SRSD 2006 NSBA Annual Conference $188.94 2008 NSBA Annual Conference $186.78 Total $375.72 III.DISCUSSION: As a Member of the Sto-Rox School District (“School District’) Board of Directors (“Board”) from December 5, 2005, through December 7, 2009, Respondent Lenora Karpa, hereinafter also referred to as “Respondent,” “Respondent Karpa,” and “Karpa,” 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 Karpa violated Section 1103(a) of the Ethics Act when she used the authority of her public position for private pecuniary benefit, including but not limited to claiming and receiving expenses for travel to conventions which included Karpa, 09-015 Page 24 expenses of a personal nature not related to any official Board function. 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 employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Background Respondent Karpa served as a Member of the Board from December 5, 2005, through December 7, 2009. Respondent served as Vice-President of the Board from December 9, 2006, through December 7, 2009. The Board consists of nine Members. Signature authority over School District accounts rests with the Board President, Board Secretary, and Board Treasurer. School District checks require the signatures of any two of the three authorized signatories. The Board receives informational packets before each meeting. 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) and include the monthly travel matrix. The travel matrix notes potential travel by district representatives, the date Karpa, 09-015 Page 25 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. The travel matrix is to be voted on and approved by the Board in order for the travel to occur. The registration process for attendance at conferences/training may be initiated prior to the approval of the travel matrix. Travel not documented on the matrix may occur if last minute in nature. 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 School District while in travel status if the rental is necessary and can be justified. If a rental vehicle is not necessary, the School District will reimburse Board Members for fees incurred regarding necessary public transportation such as the use of taxis. Board Members traveling on School District related business are required to submit a written expense report (“Expense Report”) upon return, detailing the specific amount of expense reimbursement requested. During the time period relevant to this case, 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 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 Karpa, 09-015 Page 26 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. Karpa is the spouse of former Board Member John Karpa. Karpa routinely accompanied John Karpa to the NSBA annual conferences, even prior to becoming a Board Member herself. The NSBA permits spouses of conference attendees to attend the annual conferences without paying a registration fee. The 2006 NSBA Annual Conference The NSBA held its 2006 annual conference at the Lakeside Center at McCormick Place in 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 November 17, 2005, Board meeting, John Karpa and two additional Board Members were approved for travel to the 2006 NSBA annual conference for the specified dates of April 8-11, 2006. John Karpa was present and participated in the unanimous vote to approve the November 2005 travel matrix authorizing the aforesaid travel. Respondent took office as a Board Member on December 5, 2005. Respondent was a Board Member at the time she attended the 2006 NSBA annual conference. However, the School District was not required to pay a registration fee for Respondent’s attendance at the conference due to her status as the spouse of attendee John Karpa. John Karpa’s registration fee for the 2006 NSBA annual conference was paid via School District General Fund check number 040380, dated December 15, 2005. Check number 040380 was approved by the Board on January 19, 2006, with Respondent present and participating in the unanimous vote of approval. Respondent obtained airline tickets for travel to the 2006 NSBA annual conference. Respondent’s travel itinerary provided for travel to Chicago, Illinois, on April 6, 2006, and return from Chicago, Illinois, to Pittsburgh, Pennsylvania, on April 10, 2006. Respondent’s travel itinerary included one extra day in advance of the conference beyond what was permitted by the School District. School District check number 040712 dated January 31, 2006, was issued to Respondent as reimbursement for the cost of her 2006 NSBA conference air fare. Check number 040712 was approved by the Board on February 16, 2006, with Respondent present and participating in the unanimous vote of approval. In March 2006 Respondent requested a travel advance for the 2006 NSBA annual conference. Respondent received School District General Fund check number 041144, dated March 31, 2006, in the amount of $300.00 as a travel advance in relation to the 2006 NSBA Annual Conference. Check number 041144 was approved by the Board on April 20, 2006, with Respondent present and participating in the unanimous vote of approval. Respondent traveled to Chicago, Illinois, for the 2006 NSBA annual conference on April 6, 2006, two days in advance of the official conference start. Neither Respondent nor John Karpa was registered for any pre-conference workshops at the 2006 NSBA annual conference. Karpa, 09-015 Page 27 John Karpa was assigned lodging for the 2006 NSBA annual conference for himself and Respondent at the Marriott Chicago Downtown Magnificent Mile located at 540 North Michigan Avenue, Chicago, Illinois, approximately five and one-half miles from the Lakeside Center at McCormick Place. The room rate at the Marriott Chicago Downtown Magnificent Mile for a double occupancy room was $199.00 per night plus taxes of $30.64 per night for a total cost of $229.64 per night. The Karpas were scheduled to arrive on April 6, 2006, two days prior to the start of the conference, and depart on April 10, 2006. Respondent checked-in to the Marriott Chicago Downtown Magnificent Mile on April 6, 2006, and checked-out on April 10, 2006. The complete cost for Respondent’s lodging on April 8, 2006, and April 9, 2006, totaled $459.30. Charges incurred for April 6, 2006, and April 7, 2006, were assigned to John Karpa’s hotel folio. Respondent’s lodging expense for April 6, 2006--the extra night Respondent spent in Chicago--totaled $229.64 ($199.00 nightly rate + $30.64 in applicable taxes). The actual unnecessary expense assessed to Respondent is $114.82 ($229.64 ÷ 2 = $114.82) due to splitting lodging expenses with John Karpa. Respondent’s expenses for subsistence for April 6, 2006, totaled a minimum of $74.12. Receipts submitted by Respondent for reimbursement for the day of April 7, 2006, document Respondent’s presence in Chicago, Illinois, as well as the fact that Respondent spent no significant amount of time at the convention center on that day. On April 17, 2006, Respondent completed, signed and submitted for approval an Expense Report for the 2006 NSBA annual conference requesting reimbursement totaling $346.49 in addition to the travel advance she had already received. The Expense Report documented expenses of $646.49 less the $300.00 advance for a total of $346.49 claimed by Respondent. The reimbursement request was approved by Lanna. Respondent was issued School District General Fund check number 041367, dated April 28, 2006, in the amount of $346.49 for reimbursement claimed as a result of traveling to Chicago, Illinois, for the 2006 NSBA annual conference. Check number 041367 was on a bill list that was approved for payment at the May 18, 2006, regular Board meeting. Respondent was present and seconded the motion and participated in the unanimous vote to approve bills presented at the May 18, 2006, Board meeting. The parties have stipulated that Respondent realized a private pecuniary benefit of $188.94 by claiming and receiving reimbursement from the School District for the following personal expenses relative to the 2006 NSBA annual conference: (1) $114.82 for one extra night of lodging at the Marriott Chicago Downtown Magnificent Mile on April 6, 2006 ($199.00 nightly rate + $30.64 in applicable taxes = $229.64; $229.64 ÷ 2 = $114.82 ); and (2) $74.12 for subsistence for April 6, 2006. Fact Findings 63, 90. The 2008 NSBA Annual Conference The NSBA held its 2008 annual conference at the Orange County Convention Center (“OCCC”) in Orlando, Florida. The conference officially began on Saturday, March 29, 2008, at 8:00 a.m. and officially concluded on Tuesday, April 1, 2008, at 11:00 a.m. At the January 24, 2008, Board meeting, Respondent and three additional Board Members were approved for travel to the 2008 NSBA annual conference for the specified dates of March 28-31 and April 1-2, 2008. Respondent was present and voted in favor of approving the out-of-state 2007-2008 travel matrix authorizing the aforesaid travel. Respondent’s registration fee for the 2008 NSBA annual conference was paid via School District General Fund check number 046893, dated March 14, 2008. Check Karpa, 09-015 Page 28 number 046893 was approved by the Board on April 24, 2008, with Respondent present and participating in the unanimous vote of approval. Respondent obtained airline tickets for travel to the 2008 NSBA annual conference. Respondent’s travel itinerary provided for travel to Orlando, Florida, on March 28, 2008, and return from Orlando, Florida, to Pittsburgh, Pennsylvania, on April 1, 2008. School District check number 046840 dated February 29, 2008, was issued to Respondent as reimbursement for the cost of her 2008 NSBA conference air fare. Check number 046840 was approved by the Board on March 20, 2008, with Respondent present and participating in the unanimous vote of approval. In March 2008 Respondent requested a travel advance for the 2008 NSBA annual conference. Respondent received School District General Fund check number 047012, dated March 25, 2008, in the amount of $180.00 as a travel advance for meals in relation to travel to the 2008 NSBA Annual Conference. Check number 047012 was approved by the Board on April 24, 2008, with Respondent present and participating in the unanimous vote of approval. Respondent was assigned lodging for the 2008 NSBA annual conference for herself and her spouse (John Karpa) at the La Quinta Inn & Suites located at 8504 Universal Blvd., Orlando, Florida, approximately one mile from the OCCC. The room rate at the La Quinta Inn & Suites for a double occupancy room was $102.00 per night. Respondent checked-in to the La Quinta Inn & Suites on March 28, 2008, and checked-out on April 1, 2008. The complete cost for Respondent’s lodging totaled $408.00. John Karpa was a Board Member at the time of the 2008 NSBA annual conference. There was no registration cost to the School District in relation to John Karpa’s attendance at the 2008 NSBA annual conference because he attended the conference as Respondent’s guest/spouse. John Karpa submitted no expenses for reimbursement to the School District in relation to his attendance at the 2008 NSBA annual conference. Free shuttle busses traveled from the OCCC to conference hotels, including the La Quinta Inn & Suites, continuously throughout the days of the 2008 NSBA annual conference. However, John Karpa rented a vehicle while in Orlando, Florida, attending the 2008 NSBA annual conference. The total cost of the rental vehicle was $252.17 plus $28.00 for fuel. The Karpas and one other Board Member used the rental vehicle. The parties have stipulated that the rental vehicle was used for convenience and personal purposes. On or about April 17, 2008, Respondent completed, signed and submitted for approval an Expense Report for the 2008 NSBA annual conference requesting reimbursement totaling $688.17 in addition to the travel advance she had already received. The Expense Report documented expenses of $1,780.97 less the $1,092.80 previously paid by the School District for items including the advance to Respondent, for a total of $688.17 claimed by Respondent. Respondent submitted for and received reimbursement from the School District for the cost of the aforesaid vehicle rental and fuel. The parties have stipulated that Respondent realized a financial gain of $186.78 as a result of utilizing a rental vehicle that was not necessary for transportation purposes in association with the 2008 NSBA annual conference. The vehicle was rented out of convenience rather than necessity. Respondent claimed but did not receive reimbursement from the School District for incidental expenses of a personal nature including tips. Respondent was issued School District General Fund check number 047246, dated April 30, 2008, in the amount of $688.17 for reimbursement claimed as a result of traveling to Orlando, Florida, for the 2008 NSBA annual conference. Check number 047246 was on Karpa, 09-015 Page 29 a bill list that was approved for payment at the May 22, 2008, regular Board meeting. Respondent was present and participated in the unanimous vote to approve the bills presented at the May 22, 2008, Board meeting. The parties have stipulated that Respondent realized a financial gain of $186.78 by claiming and receiving reimbursement from the School District for the aforesaid vehicle rental and fuel expense relative to the 2008 NSBA annual conference. Fact Findings 86, 90. In a sworn statement provided to Commission investigators on February 8, 2010, Respondent stated, inter alia, that: (1) she did not register for any pre-conference workshops in relation to the 2004, 2005, or 2006 NSBA conferences; (2) she could not specifically identify her attendance at any pre-conference workshops which did not require pre-registration while in travel status regarding the 2004, 2005, or 2006 NSBA conferences; (3) she utilized rental vehicles at the 2004 and 2008 NSBA conferences for convenience purposes; (4) she believed renting a vehicle at the 2004 and 2008 NSBA conferences would result in savings to the School District in comparison with utilization of public transportation; and (5) she saved School District funds in association with her attendance at the 2006 NSBA annual conference because she incurred no registration fee as the guest of her spouse (John Karpa). Respondent maintains that her actions were unintentional. Nonetheless she acknowledges the legal and factual conclusions which are supported by the Stipulated Findings. Respondent realized a total private pecuniary gain of no less than $375.72 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 expenses of a personal nature in association with her attendance at the 2006 and 2008 NSBA annual conferences. Fact Finding 90. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That no violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. §1103(a) occurred in relation to Karpa’s receipt of personal expenses and travel to conventions not related to any official Board function, in that any private pecuniary benefit received was de minimis. 4. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Karpa, 09-015 Page 30 Consent Agreement, at 1-2. In considering the Consent Agreement of the parties, we agree that no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Respondent received payment/reimbursement by the School District for personal expenses claimed as to her attendance at the 2006 and 2008 NSBA annual conferences, for the reason that the resulting private pecuniary benefit was de minimis. See, Bixler v. State Ethics Commission, 847 A.2d 785 (Pa. Commw. Ct. 2004) (holding that a net profit in the amount of $561.77 resulting from business transactions between a township supervisor’s employer and the township would fall within the “de minimis” exclusion to the definition of “conflict of interest”). Accordingly, we hold that no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Respondent’s receipt of a private pecuniary benefit consisting of payments/reimbursements by the School District for personal expenses as to her attendance at the 2006 and 2008 NSBA annual conferences, in that any private pecuniary benefit received was de minimis. IV.CONCLUSIONS OF LAW: 1. As a Member of the Sto-Rox School District (“School District’) Board of Directors (“Board”) from December 5, 2005, through December 7, 2009, Respondent Lenora Karpa (“Karpa”) 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. Karpa did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to her receipt of a private pecuniary benefit consisting of payments/reimbursements by the School District for personal expenses as to her attendance at the 2006 and 2008 National School Board Association (“NSBA”) annual conferences, in that any private pecuniary benefit received was de minimis. In Re: Lenora Karpa, : File Docket: 09-015 Respondent : Date Decided: 3/25/10 : Date Mailed: 4/9/10 ORDER NO. 1553 As a Member of the Sto-Rox School District (“School District’) Board of Directors, Lenora Karpa did not violate Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), in relation to her receipt of a private pecuniary benefit consisting of payments/reimbursements by the School District for personal expenses as to her attendance at the 2006 and 2008 National School Board Association (“NSBA”) annual conferences, in that any private pecuniary benefit received was de minimis. BY THE COMMISSION, ___________________________ Louis W. Fryman, Chair