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HomeMy WebLinkAbout1552 Karpa In Re: John Karpa, : File Docket: 09-014 Respondent : X-ref: Order No. 1552 : 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, 09-014 Page 2 I.ALLEGATIONS: That John Karpa, a public official/public employee in his 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 he used the authority of his 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. John Karpa has served as a member of the Sto-Rox School District (hereafter SRSD) Board of Directors for three separate periods of time between the time frame of December 1989 to December 2009. a. Karpa previously served as a voting member of the SRSD board from December 4, 1989, through June 11, 1992. 1. The SRSD Board of Directors lost governing rights regarding the district as of June 11, 1992, due to the implementation of a three member Board of Control. 2. The Board of Control was dissolved on February 11, 1999. b. Karpa served three consecutive four year terms on the SRSD board from December 4, 1995, through December 2, 2007. 1. Karpa served as the board president from December 2, 1997, through November 30, 1998, and from December 3, 2003, through December 7, 2004. 2. Karpa served as the board vice-president from December 5, 2002, through December 2, 2003. c. Karpa was appointed to a vacant seat on the SRSD board at the March 20, 2008, board meeting. 1. The existing term for which Karpa was appointed expired on 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. Karpa, 09-014 Page 3 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 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. Karpa, 09-014 Page 4 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 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 was issued a SRSD policy manual in his 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: Karpa, 09-014 Page 5 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: 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. Minutes document Karpa’s presence at the meeting. Karpa, 09-014 Page 6 3. “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 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 Karpa, 09-014 Page 7 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. 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 Karpa, 09-014 Page 8 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. 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. Karpa, 09-014 Page 9 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. 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. The NSBA held its 2004 annual conference at the Orange County Convention Center (OCCC) in Orlando, FL, 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. Karpa, 09-014 Page 10 2. Pre-conference workshops which did not require prior registration or additional fees primarily addressed conference orientation, board clerks/assistants, National Affiliates, and networking. 33. Karpa’s registration for the 2004 NSBA annual conference was processed by the NSBA on or about September 23, 2003. a. Karpa’s actual registration form could not be located at SRSD for review. 1. Invoice number 0000410119 from the NSBA documenting Karpa’s registration fee is dated September 23, 2003. b. Karpa was not officially approved to attend the 2004 NSBA annual conference until the travel matrix which documented Karpa’s travel was approved by the board (see, Finding No. 4). 1. Karpa’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 Karpa’s travel to be approved as “March 27, 28, 29, 30 2004.” 34. The travel matrix documenting Karpa’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. Karpa was present at the meeting and participated in the unanimous vote to approve conference attendance as listed on the travel matrix. 35. Karpa was assigned lodging for the 2004 NSBA annual conference for himself and his spouse (Lenora Karpa) 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. Karpa was scheduled to arrive on March 25, 2004, two days prior to the start of the conference, and depart on March 30, 2004. c. The Hard Rock Hotel was Karpa’s first choice regarding hotel options. 1. Nineteen other hotels were available with rates less [expensive] than the Hard Rock. d. The Hard Rock Hotel is located approximately five miles from the OCCC. 36. The fee associated with Karpa’s registration for the 2004 NSBA annual conference totaled $585.00. Karpa, 09-014 Page 11 a. SRSD received a discount on Karpa’s registration fee as a result of the district 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 2004 NSBA annual conference. 37. Karpa’s registration fee was paid via the issuance of SRSD General Fund check number 034774, dated October 31, 2003, in the amount of $1,755.00 payable to the NSBA. a. Check number 034774 accounted for the registration fees of Karpa and two additional SRSD board members ($1,755.00 ÷ 3 = $585.00). b. Check number 034774 was documented on the register of bills presented for approval at the November 20, 2003, regular board meeting. 1. Minutes document Karpa’s presence at the meeting. 2. The motion to approve and ratify bills presented passed via 6-0 unanimous vote with no objections or abstentions. 38. Karpa was approved for travel to the 2004 NSBA annual conference in Orlando, FL, at the November 20, 2003, board meeting. a. Karpa 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 apiece). b. Karpa was present and participated in the unanimous vote to approve the November 2003 travel matrix. 39. Karpa obtained airline tickets for transportation to the 2004 NSBA annual conference through US Airways. a. Karpa’s travel itinerary, dated October 13, 2003, documented the following: Airline Flight No. Ticket No. Date Depart Arrive US Airways 1199 0372171785099 March 25, 2004 Pittsburgh, PA---7:55a Orlando, FL---10:09a US Airways 1156 0372171785099 March 30, 2004 Orlando, FL---2:45p Pittsburgh, PA---4:50p b. The cost associated with Karpa’s air fare totaled $241.64. 40. SRSD issued General Fund check number 035012, dated November 26, 2003, in the amount of $241.64 to Karpa as reimbursement for the cost of Karpa’s 2004 NSBA conference air fare. a. Check number 035012 was documented on the register of bills presented for approval at the January 22, 2004, regular board meeting. 1. Minutes document Karpa’s presence at the meeting. 2. The motion to approve and ratify bills presented passed via 6-0 unanimous vote with no objections or abstentions. b. Karpa cashed check number 035012 on or about November 28, 2003. Karpa, 09-014 Page 12 c. SRSD did not issue payment for Lenora Karpa’s airfare. 41. On or about March 12, 2004, Karpa requested a travel advance for his upcoming travel to the 2004 NSBA annual convention. a. A Request for Travel Advance was completed by Beverly Tisci, the superintendent’s secretary, on Karpa’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 Karpa’s scheduled travel dates and not the official conference dates. b. The amount of the advance was calculated at $1,589.40 as shown below: Estimated Expenses Amount Hotel $1,030.00 Transportation (Airfare) Reimbursed Meals ($50 X 5 Days) 250.00 Other (Tolls, Cabs, Car Rental) 486.00 Total 1,766.00 Advance at 90% of Estimate $1,589.40 c. The advance was approved by Superintendent Thomas [sic] Skender. 42. Karpa received SRSD General Fund check number 035619, dated March 15, 2004, in the amount of $1,589.40 as a travel advance for his attendance at the 2004 NSBA annual conference. a. Check number 035619 was documented on the register of bills presented for approval at the April 22, 2004, 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. b. Karpa deposited check number 035619 into his personal checking account at Citizens Bank (account number XXXXXX5438) on March 19, 2004. 43. Karpa and his spouse traveled to the 2004 NSBA annual conference with SRSD board member Linda Jacobs and her spouse (Martin Jacobs). a. The Karpas and Jacobses both flew to Orlando, FL, via US Airways Flight No. 1199. 44. Upon arrival in Orlando, FL, Karpa rented a vehicle at Hertz at Orlando International Airport for transportation purposes. a. The vehicle rental was charged to Karpa’s Visa Credit Card. 45. Karpa’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. Karpa, 09-014 Page 13 a. No specific check-in or check-out time is noted on the folio. b. Karpa was assigned Room Number 1131. c. Karpa’s Hard Rock Hotel account number was 362737. 46. Karpa incurred no charges at the Hard Rock Hotel beyond nightly room charges and applicable taxes even though the Hard Rock Hotel charged valet parking fees at that time regarding guest’s vehicles. a. Valet parking fees of $12.00 per night were charged as expenses to Jacobs’s hotel folio. 47. Karpa, Jacobs, and their spouses utilized the rental vehicle on a consistent basis for convenience and personal purposes in addition to transportation purposes while attending the 2004 NSBA conference. a. The vehicle was rented on March 25, 2004, at 11:06 a.m. and returned on March 29, 2004, at 9:54 a.m. 1. Jacobs returned the vehicle to Hertz at Orlando International Airport on March 29, 2004, prior to her departure that same day. b. The vehicle was driven two hundred five miles between March 25, 2004, and March 29, 2004. c. The total cost of the vehicle rental was $604.84. 48. On or about April 14, 2004, Karpa completed and submitted for approval a SRSD Professional Development Expense Report requesting reimbursement totaling $344.77 in association with the 2004 NSBA annual conference. a. Karpa signed the form as the individual requesting reimbursement. 1. Karpa did not date the expense report submitted. b. The expense report was approved on April 14, 2004. 49. The report documented expenses of $1,934.17 less the $1,589.40 advance for a total of $344.77 claimed by Karpa. a. The reimbursement request was approved by Anthony Skender, SRSD Superintendent at that time. 50. Karpa was issued SRSD General Fund check number 035930, dated April 26, 2004, in the amount of $344.77 for reimbursement claimed as a result of traveling to Orlando, FL, for the 2004 NSBA annual convention. a. Check number 035930 appeared on the bill list presented for approval at the May 20, 2004, regular board meeting. b. The motion to approve the monthly bills passed unanimously with no abstentions noted. 1. Karpa was present and participated in the vote to approve the monthly bills at the May 20, 2004, meeting. Karpa, 09-014 Page 14 c. Karpa cashed check number 035930 on or about April 28, 2004. 51. Although attending the 2004 NSBA annual conference as a representative of SRSD, Karpa traveled to Orlando, FL, two days in advance of the official conference start date 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. Karpa was not registered for any pre-conference workshops regarding the 2004 NSBA annual conference. aa. NSBA invoice number 0000410119, dated September 23, 2003, documents Karpa as having been registered for only the annual conference. b. Karpa was cognizant of his early arrival as his hotel reservations and flight arrangements documented an arrival date of March 25, 2004. 52. The SRSD incurred an unnecessary expense of $240.18 as a result of paying for Karpa’s hotel expenses, subsistence expenses, and parking expenses for March 25, 2004. a. Karpa’s room expense totaled $206.28 per night ($185.00 nightly rate + $21.28 in applicable taxes). b. Karpa submitted and received reimbursement for subsistence totaling a minimum of $24.40 for March 25, 2004. 1. Karpa submitted reimbursement for funds expended at TGI Friday’s on March 25, 2004, at 5:40 a.m. in the amount of $6.21. 2. Karpa submitted reimbursement for funds expended at the Hard Rock Hotel on March 25, 2004, at 2:02 p.m. in the amount of $18.19. c. Karpa submitted 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. 53. 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 actual fees incurred regarding necessary public transportation (i.e. taxis, etc.). 54. Karpa rented a vehicle for convenience purposes while in Orlando, FL, attending the 2004 NSBA conference (see, Finding No. 44). a. The total cost of the rental vehicle was $604.84. Karpa, 09-014 Page 15 b. A total of two SRSD board members (Karpa and Jacobs) and their spouses utilized the vehicle. 55. Karpa realized a financial gain of $302.42 ($604.84 cost ÷ 2 board members) as a result of utilizing a rental vehicle which was not necessary for transportation purposes in association with attendance at the 2004 NSBA annual conference. a. The Hard Rock Hotel is located approximately 17.9 miles from Orlando International Airport. b. The Hard Rock Hotel is located approximately five miles from the OCCC. 1. Free shuttle busses traveled from the OCCC to conference hotels, including the Hard Rock Hotel, continuously throughout the days of the NSBA conference. c. Karpa and Jacobs utilized a rental vehicle out of convenience rather than necessity. 56.SRSD incurred additional expenses totaling $48.00 in association with Karpa’s vehicle rental via the accumulation of valet parking fees at the Hard Rock Hotel which were ultimately reimbursed to Jacobs. a. Fees for valet parking at the Hard Rock Hotel totaled $12.00 per night. b. Karpa realized a financial gain of $24.00 ($48.00 ÷ 2 = $12.00 [sic]) in relation to valet parking fees incurred at the Hard Rock Hotel during his attendance at the 2004 NSBA annual conference. 57. Karpa realized a total financial gain of $566.60 as a result of traveling one day earlier than permitted and utilizing a rental vehicle in association with his attendance at the 2004 NSBA Annual Convention and being advanced or reimbursed district funds for expenses associated with personal travel as shown below: Description Financial Gain Hard Rock Hotel (Night of March 25, 2004) $206.28 Subsistence 24.40 Parking--Pittsburgh Int. Airport 9.50 Vehicle Rental 302.42 Valet Parking (Hard Rock Hotel) 24.00 Total $566.60 THE FOLLOWING FINDINGS RELATE TO SRSD PAYMENT/REIMBURSEMENT FOR EXPENSES OF A PERSONAL NATURE IN ASSOCIATION WITH KARPA’S TRAVEL TO THE 2005 NSBA ANNUAL CONVENTION. 58. The NSBA held its 2005 annual conference at the San Diego Convention Center (SDCC) in San Diego, CA, spanning the dates of April 16, 2005, to April 19, 2005. a. The brochure for the conference notes that the conference officially began on Saturday, April 16, 2005, 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 Karpa, 09-014 Page 16 concluded on Tuesday, April 19, 2005, at 11:00 a.m. c. The brochure for the conference documents registration, various pre- conference workshops, and “early bird” workshops available on Friday, April 15, 2005. 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. 59. Karpa’s registration for the 2005 NSBA annual conference was processed by the NSBA on or about September 16, 2004. a. Karpa’s actual registration form could not be located at SRSD for review. 1. Invoice number 00004439712 from the NSBA documenting Karpa’s registration fee is dated September 16, 2004. b. Karpa was not officially approved to attend the 2005 NSBA annual conference until the travel matrix which documented Karpa’s travel was approved by the board (see, Finding No. 4). 1. Karpa’s travel to the 2005 NSBA annual conference was documented on the October 2004 travel matrix. 2. The October 2004 travel matrix documented the date and time of Karpa’s travel to be approved as “April 14, 15, 16, 17, 18, 19, 20, 2005.” 60. The travel matrix documenting Karpa’s travel to the 2005 NSBA annual conference was approved by the SRSD board of directors at the October 21, 2004, regular board meeting via 7-0 unanimous vote. a. Karpa was present at the meeting and participated in the board vote to approve conference attendance as listed on the travel matrix. 61. Karpa was assigned lodging for the 2005 NSBA annual conference for himself and his spouse (Lenora Karpa) at the Sheraton San Diego Hotel & Marina located at 1380 Harbor Island Drive, San Diego, CA 92101. a. The room rate at the Sheraton San Diego Hotel & Marina for a double occupancy room was $184.00 per night plus applicable taxes in the amount of $19.40 per night for a total cost of $203.40 per night. 1. The 2005 NSBA conference brochure provided a listing of twenty- eight hotels with conference rates from which conference attendees could choose. 2. Only nine hotels documented higher conference rates than the Sheraton San Diego Hotel & Marina for double occupancy rooms. b. Karpa was scheduled to arrive on April 14, 2005, two days prior to the start of the conference, and depart on April 19, 2005. Karpa, 09-014 Page 17 c. The Sheraton San Diego Hotel & Marina was Karpa’s first choice regarding hotel options. 1. Eighteen other hotels were available with rates less expensive than the Sheraton San Diego Hotel & Marina. d. The Sheraton San Diego Hotel & Marina is located approximately 4.09 miles from the SDCC. 62. The fee associated with Karpa’s registration for the 2005 NSBA annual conference totaled $610.00. a. SRSD received a discount on Karpa’s registration fee as a result of the district 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 2005 NSBA annual conference. 63. Karpa’s registration fee was paid via the issuance of SRSD General Fund check number 037789, dated February 17, 2005, in the amount of $1,445.00 payable to the NSBA. a. Check number 037789 accounted for the registration fees of Karpa and Jacobs ($1,220.00 ÷ 2 = 610.00 each) and registration cancellation fees for three additional SRSD board members ($225.00 ÷ 3 = $75.00 each). b. Check number 037789 was documented on the register of bills presented for approval at the February 17, 2005, regular board meeting. 1. Minutes document Karpa’s presence at the meeting. 2. The motion to approve and ratify bills presented passed via 8-0 unanimous vote with no objections or abstentions. 64. Karpa was approved for travel to the 2005 NSBA annual conference in San Diego, CA, at the October 21, 2004, board meeting. a. Karpa and four additional board members were approved for travel to the NSBA annual conference from April 14-20, 2005, at a total anticipated cost of $12,055.00 ($2,411.00 each) plus car rentals and meals. b. Karpa was present and participated in the unanimous vote to approve the October 2004 travel matrix. 65. Karpa obtained airline tickets for transportation to the 2005 NSBA annual conference through US Airways. a. Karpa’s US Airways Passenger Name Record (PNR) documents Karpa’s travel itinerary as follows: Airline Flight Ticket No. Date Depart Arrive No. US Airways 151 2188680946 April 14, 2005 Pittsburgh, PA---6:05p San Diego, CA---8:07p US Airways 154 2188680946 April 19, 2005 San Diego, CA---7:30a Pittsburgh, PA---2:54p Karpa, 09-014 Page 18 b. Karpa’s airfare to the 2005 NSBA annual convention totaled $322.70. 66. SRSD issued General Fund check number 036966, dated October 21, 2004, in the amount of $322.70 to Karpa as reimbursement for the cost of Karpa’s 2005 NSBA conference air fare. a. Check number 036966 was documented on the register of bills presented for approval at the October 21, 2004, 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. b. Karpa deposited check number 036966 into his personal checking account at Citizens Bank (account number XXXXXX5438) on October 25, 2004. c. SRSD did not issue payment for Lenora Karpa’s airfare. 67. On or about March 31, 2005, Karpa received a travel advance from SRSD for his upcoming travel to the 2005 NSBA annual convention. a. Karpa’s travel advance request form documented a request of $225.00 for food and an additional $75.00 for “other” for a total advance amount of $300.00. 1. Karpa’s travel advance request form is dated April 7, 2005. 2. Typewritten on the form is that the $300.00 advance was actually approved by Lanna on March 31, 2005. 68. Karpa received SRSD General Fund check number 038064, dated March 31, 2005, in the amount of $300.00 as a travel advance regarding his attendance at the 2005 NSBA annual conference. a. Check number 038064 was documented on the register of bills presented for approval at the April 21, 2005, regular board meeting. 1. Minutes document Karpa’s presence at the meeting. 2. The motion to approve and ratify bills presented passed via 8-0 unanimous vote with no objections or abstentions. b. Karpa cashed check number 038064 on or about April 7, 2005. 69. Karpa’s hotel folio for the Sheraton San Diego Hotel & Marina documents a check- in date of April 14, 2005, and a departure date of April 19, 2005. a. Karpa’s hotel folio documents a check in time of 8:41 p.m. b. No check out time is documented on Karpa’s folio. c. Karpa was assigned Room Number 490. d. Karpa’s Sheraton San Diego Hotel & Marina folio number was 2255650. 70. Karpa incurred no additional expenses at the Sheraton San Diego Hotel & [Marina] Karpa, 09-014 Page 19 in relation to his stay for the 2005 NSBA annual convention. a. The complete cost for Karpa’s lodging totaled $1,017.00 as documented on Karpa’s hotel folio. b. Karpa issued payment to the Sheraton San Diego Hotel & Marina via personal credit card for lodging expenses. 71. Karpa and his spouse traveled to and from the 2005 NSBA annual conference with Jacobs and her spouse (Martin Jacobs). a. The Karpas and Jacobses both flew to San Diego, CA, from Pittsburgh, PA, via US Airways Flight No. 151. b. The Jacobses and Karpas both flew from San Diego, CA, to Pittsburgh, PA, via US Airways Flight No. 154. 72. Neither Karpa nor Jacobs rented a vehicle for transportation purposes in relation to the 2005 NSBA annual conference. a. Karpa and Jacobs routinely utilized public transportation (taxis) for transportation purposes. b. Karpa and Jacobs typically traveled together in taxis utilized. 1. Jacobs and Karpa routinely alternated payment of taxi fares incurred (one paid for the trip from the hotel to the applicable destination and the other paid for the trip from the destination back to the hotel). 73. On April 20, 2005, Karpa completed and submitted for approval a SRSD Professional Development Expense Report requesting reimbursement totaling $1,203.52 in association with the 2005 NSBA annual conference. a. Karpa signed the form as the individual requesting reimbursement. 74. The expense report documented expenses of $1,503.52 less the advance of $300.00 for a total of $1,203.52 claimed by Karpa. a. The reimbursement request was approved by Skender. 75. Karpa was issued SRSD General Fund check number 038216, dated April 25, 2005, in the amount of $1,203.52 for reimbursement claimed as a result of traveling to San Diego, CA, for the 2005 NSBA annual convention. a. Check number 038216 appeared on the bill list presented for approval at the May 26, 2005, regular board meeting. b. The motion to approve the monthly bills passed unanimously. 1. Karpa was present and participated in the unanimous vote to approve the bills at the May 26, 2005, meeting. c. Karpa deposited check number 038216 into his personal checking account at Citizens Bank (account number XXXXXX5438) on April 26, 2005. 76. Although attending the 2005 NSBA annual conference as a representative of SRSD, Karpa traveled to San Diego, CA, two days in advance of the official Karpa, 09-014 Page 20 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. Karpa was not registered for any pre-conference workshops regarding the 2005 NSBA annual conference. aa. NSBA invoice number 0000439712, dated September 16, 2004, documents Karpa as having been registered for only the annual conference. b. Karpa was cognizant of his early arrival as his hotel reservations and flight arrangements documented an arrival date of April 14, 2005. 77. The SRSD incurred an unnecessary expense of $223.85 as a result of paying for Karpa’s hotel expenses and subsistence expenses for April 14, 2005. a. Karpa’s room expense totaled $203.40 per night ($184.00 nightly rate + $19.40 in applicable taxes). b. Karpa submitted and received reimbursement for subsistence totaling a minimum of $16.29 for April 14, 2005. 1. Karpa submitted reimbursement for funds expended at TGI Friday’s on April 14, 2005, at 3:33 p.m. in the amount of $12.53. 2. Karpa submitted reimbursement for funds expended at The Hudson Group on April 14, 2005, at 5:10 p.m. in the amount of $3.76. 78. 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. 79. The Metropolitan Transit System (MTS) Taxicab Administration is responsible for the licensing and regulation of taxicabs, jitneys, and other private for-hire passenger transportation services by contract with the city of San Diego as well as six additional cities. a. The MTS is the body responsible for establishing taxicab rates within San Diego and other cities under contract. 80. Taxicab rates in effect in San Diego, CA, during the approximate time frame of the 2005 NSBA annual convention were in the process of being changed. a. From June 2003 into April 2005 taxicab rates were as follows: Karpa, 09-014 Page 21 th 1. $2.10 flag drop for first 1/11 mile. th 2. $2.20 per mile at the rate of $0.20 for each additional 1/11 mile. 3. $18.00 per hour waiting time/traffic delay. b. From April 2005 through 2007 taxicab rates were as follows: rd 1. $2.20 flag drop for the first 1/23 mile. rd 2. $2.30 per mile at the rate of $0.20 for each additional 1/23 mile. 3. $19.00 per hour waiting time/traffic delay. 81. Karpa’s SRSD Professional Development Expense Report associated with his travel to the 2005 NSBA annual conference documented $294.00 due in reimbursement for “Other” expenses. a. “Other” on the expense report is defined as, “airfare, tolls, cab, transfers, etc.” 82. Karpa submitted documentation with his SRSD Professional Development Expense Report in relation to cab fare claimed by way of eleven separate receipts. a. Four USA Cab LTD. receipts, one Yellow Cab receipt, and six generic receipts totaling $294.00 were submitted with Karpa’s expense report. 1. All eleven of the receipts bear the same handwriting. b. Three additional receipts (one U.S.A Cab LTD. and two generic) totaling $90.00 relating to cab fare claimed by Jacobs were submitted with the expense report submitted by Karpa. 1. All three of the receipts bear the same handwriting. 2. Karpa did not submit for nor did Karpa receive reimbursement for the three additional cab receipts. 83. Of the eleven cab fare receipts submitted by Karpa for reimbursement, five of the receipts were inflated over the actual fares incurred resulting in a financial gain of approximately $85.91 to Karpa as shown in the chart below: Date Cab Co. From To Distance Estimated Amt. Difference (Miles) Amt. Due Claimed 4/14/05 USA Cab Airport Sheraton 1.50 $5.65 $40.00 $34.35 4/15/05 Unknown* Convention Ctr. Sheraton 4.09 $11.61 $25.00 $13.39 4/16/05 USA Cab Convention Ctr. Sheraton 4.09 $11.61 $25.00 $13.39 4/17/05 USA Cab Sheraton Convention Ctr. 4.09 $11.61 $23.00 $11.39 4/18/05 Unknown* Sheraton Convention Ctr. 4.09 $11.61 $25.00 $13.39 TOTAL: $52.09 $138.00 $85.91 *Generic receipt a. Karpa’s six remaining receipts documented individual differences of less than $5.00 between actual amounts due and amounts claimed. 1. Estimated amounts due have a margin of error of approximately +/- $5.00. Karpa, 09-014 Page 22 84. Incidental expenses of a personal nature incurred by Karpa for which Karpa ultimately claimed and received reimbursement from SRSD included charges for computer services and tips given totaling $17.00. a. Karpa submitted a receipt for reimbursement for computer usage and printing from the Sheraton San Diego Hotel & Marina dated April 18, 2005, in the amount of $4.65. 1. The receipt documents a minimum fee of $5.00. b. The expense report submitted by Karpa detailed tips given “for bags” in the amount of $12.00. 85. Karpa realized a total financial gain of $322.60 as a result of traveling one day earlier than permitted, submitting cab receipts in excess of that actually incurred in association with his attendance at the 2005 NSBA Annual Convention, and being advanced or reimbursed district funds for expenses associated with personal travel as shown below: Description Financial Gain Sheraton San Diego Hotel & Marina (Night of April 14, 2005) $203.40 Subsistence 16.29 Excess Cab Fare Reimbursement 85.91 Reimbursement For Tips 17.00 Total $322.60 THE FOLLOWING FINDINGS RELATE TO SRSD PAYMENT/REIMBURSEMENT FOR EXPENSES OF A PERSONAL NATURE IN ASSOCIATION WITH KARPA’S TRAVEL TO THE 2006 NSBA ANNUAL CONVENTION. 86. 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. 87. Karpa’s registration for the 2006 NSBA annual conference was processed by the NSBA on or about November 5, 2005. Karpa, 09-014 Page 23 a. 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 Karpa’s registration fee is dated November 5, 2005. b. Karpa was not officially approved to attend the 2006 NSBA annual conference until the travel matrix which documented Karpa’s travel was approved by the board (see, Finding No. 4). 1. 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 Karpa’s travel to be approved as “April 8, 9, 10, 11, 2006” from “8:00- 5:00.” 88. The travel matrix documenting 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. Karpa was present at the meeting and participated in the board vote to approve conference attendance as listed on the travel matrix. 89. Karpa was assigned lodging for the 2006 NSBA annual conference for himself and his spouse (Lenora 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. Karpa was 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. 90. Lenora Karpa was a member of the SRSD board of directors at the time of the 2006 NSBA annual conference. a. Lenora Karpa was elected to the SRSD board of directors in the 2005 election. b. Lenora Karpa took office as a SRSD board member on December 5, 2005. Karpa, 09-014 Page 24 91. Although Lenora Karpa was a board member for SRSD at the time of the 2006 NSBA annual conference, Lenora Karpa did not officially register for the conference. a. Spouses of registered district representatives must be registered but are permitted to attend the NSBA annual conference at no cost. b. John and Lenora Karpa each claimed two days worth of hotel expenses in association with their travel to the 2006 NSBA annual convention. 92. The fee associated with Karpa’s registration for the 2006 NSBA annual conference totaled $620.00. 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 2006 NSBA annual conference. 93. 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 Karpa, 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. 94. Karpa was approved for travel to the 2006 NSBA annual conference in Chicago, IL, at the November 17, 2005, board meeting. a. 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. 95. Karpa obtained airline reservations for transportation to the 2006 NSBA annual conference through US Airways. a. Ticket number 2161243240 issued in Karpa’s name was processed on October 6, 2005. 1. The price of the ticket was $130.40. 96. Karpa’s flight itinerary to Chicago, IL, from Pittsburgh, PA, and back regarding attendance at the 2006 NSBA annual conference is documented below: Karpa, 09-014 Page 25 Airline Flight Ticket No. Date Depart Arrive No. US Airways 105 2161243240 April 6, 2006 Pittsburgh, Pa---8:30am Chicago, Il---9:00am US Airways 1625 2161243240 April 10, 2006 Chicago, Il---10:10am Pittsburgh, Pa---12:36pm . NOTE: All times shown represent local time at their respective locations 97. SRSD issued reimbursement to Karpa via check number 040711 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 040711 was documented on lists of bills presented for approval at the February 18, 2006, board meeting. 1. Karpa was present at the February 18, 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 cashed check number 040711 on or about February 2, 2006. 98. On or about March 31, 2006, Karpa requested and subsequently received a travel advance totaling $300.00 via the receipt of SRSD General Fund check number 041143 in association with his attendance at the 2006 NSBA Conference. a. Check number 041143 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. Karpa’s travel advance request form was not available at SRSD for review. 1. Check number 041143 is dated March 31, 2006. c. Karpa endorsed and cashed check number 041143 on or about March 31, 2006. 99. Karpa’s hotel folio (account number 15782) 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. 100. Karpa incurred no additional expenses at the Marriott Chicago Downtown Magnificent Mile in relation to his stay for the 2006 NSBA annual convention. a. The complete cost for Karpa’s lodging totaled $459.30. 1. Only April 6, 2006, and April 7, 2006, room expenses were specifically charged to Karpa. Karpa, 09-014 Page 26 2. Charges incurred for April 8, 2006, and April 9, 2006, were specifically assigned to Lenora Karpa’s folio (account number 15784). b. Karpa issued payment to the Marriott Chicago Downtown Magnificent Mile via personal credit card for lodging expenses. 101. Karpa and his 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. 102. Neither Karpa nor Jacobs rented a vehicle for transportation purposes in relation to the 2006 NSBA annual conference. a. Karpa and Jacobs routinely utilized public transportation (taxis) for transportation purposes. b. Karpa and Jacobs typically traveled together in taxis utilized. 1. 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). 103. On April 17, 2006, Karpa completed and submitted for approval a SRSD Professional Development Expense Report requesting reimbursement totaling $558.73 in association with the 2006 NSBA annual conference. a. Karpa signed the form as the individual requesting reimbursement. b. Karpa initially miscalculated expenses as $858.73. 1. Actual expenses were determined to total $859.63 by SRSD personnel. 2. The mathematical error was corrected by SRSD personnel upon processing the report. 104. The corrected report documented expenses of $859.63 less the advance of $300.00 for general expenses for a total of $559.63 claimed by Jacobs. a. The reimbursement request was approved by Lanna. 105. Karpa was issued SRSD General Fund check number 041366, dated April 28, 2006, in the amount of $559.63 for reimbursement claimed as a result of traveling to Chicago, IL, for the 2006 NSBA annual convention. a. Check number 041366 appeared on the bill list presented for approval at the May 18, 2006, regular board meeting. b. Karpa made 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). Karpa, 09-014 Page 27 2. Karpa participated in the unanimous vote. c. Karpa deposited check number 041366 into his personal checking account at Citizen’s Bank (account number XXXX5438) on May 1, 2006. 106. 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. aa. NSBA invoice number 0000475238, dated November 5, 2005, documents Karpa as having been registered for only the annual conference. b. Karpa was cognizant of his early arrival as his hotel reservations and flight arrangements documented an arrival date of April 6, 2006. 107. 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 8:24 am Ventoso 540 N. Michigan Ave Dining 11:21am Hot Diggity Dogs 251 E. Ohio St. Dining 1:19 pm Gourmet Bean 540 N. Michigan Ave Dining/Subsistence 108. The SRSD incurred an unnecessary expense of $177.60 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 Lenora Karpa. b. Karpa submitted and received reimbursement for subsistence totaling a minimum of $62.78. 1. Karpa submitted reimbursement for funds expended at TGI Friday’s on April 6, 2006, at 6:50 a.m. in the amount of $10.83. Karpa, 09-014 Page 28 aa. SRSD personnel discovered a mathematical error on the total and corrected the total submitted to $11.83. 2. Karpa submitted reimbursement for funds expended at the Grand Lux Cafe on April 6, 2006, at 11:39 a.m. in the amount of $11.20. 3. Karpa submitted reimbursement for funds expended at the Grand Lux Cafe on April 6, 2006, at 6:56 p.m. in the amount of $39.85. aa. SRSD personnel discovered a mathematical error on the total and corrected the total submitted to $39.75. 109. 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. 110. 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. 111. 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. 112. 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).” 113. Karpa submitted documentation with his SRSD Professional Development Expense Karpa, 09-014 Page 29 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 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. c. One additional cab fare totaling $7.00 was claimed on the expense report. 1. The additional expense was claimed in association with Karpa’s attendance at an AIU Dinner held on March 30, 2006. 114. Of the eight receipts submitted for reimbursement by 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 Karpa as shown in the chart below: Unknown=Generic Receipt 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-$36.35 $70.00 Chicago, IL 60611 Five Minutes 4/6/06 Unknown 600 N. Michigan Ave., 540 N. Michigan Ave. 0.1 Mile One $4.30 $12.00 Chicago, IL 60611 Chicago, IL 60611 Minute 4/6/06 Unknown 600 N. Michigan Ave., 540 N. Michigan Ave. 0.1 Mile One $4.30 $12.00 Chicago, IL 60611 Chicago, IL 60611 Minute 4/7/06 Unknown 100 E. Chestnut St. 540 N. Michigan Ave. 0.7 Mile Four $5.80 $25.00 Chicago, IL, 60611 Chicago, IL 60611 Minutes 4/8/06 Unknown 230 N. Michigan Ave., 540 N. Michigan Ave. 0.4 Mile One $5.31 $25.00 Chicago, IL 60601 Chicago, IL 60611 Minute 4/9/06 Unknown 160 East Pearson St. 540 N. Michigan Ave. 0.6 Mile Three $5.62 $25.00 Chicago, IL, 60611 Chicago, IL 60611 Minutes 4/9/06 Unknown 600 N. Michigan Ave., 540 N. Michigan Ave. 0.1 Mile One $4.80 $12.00 Chicago, IL 60611 Chicago, IL 60611 Minute 4/10/06 Unknown 540 N. Michigan Ave., O’Hare Intl. Airport 17.9 Miles Twenty-$36.35 $70.00 Chicago, IL 60611 Five Minutes TOTAL $102.83 $251.00 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 Karpa document the individuals utilizing the taxi per individual date. c. Time estimates were obtained from directions per taxifinder.com. d. Karpa’s financial gain was the difference between the total amount claimed and the actual amount due ($251.00 - $102.83 = $148.17). 115. Karpa realized a total financial gain of $325.77 as a result of traveling one day earlier than permitted, submitting cab receipts in excess of that actually incurred in Karpa, 09-014 Page 30 association with his attendance at 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 62.78 Excess Cab Fare Reimbursement 148.17 Total $325.77 116. Travel expenses (including applicable registration fees, pre-paid items, reimbursements, etc.) claimed by Karpa in association with his attendance at the 2004, 2005, and 2006 NSBA annual conferences totaled $6,807.06. a. Karpa’s expenses for the 2004 NSBA conference totaled $2,760.81. b. Karpa’s expenses for the 2005 NSBA conference totaled $2,436.22. c. Karpa’s expenses for the 2006 NSBA conference totaled $1,610.03 117. In a sworn statement provided to Commission investigators on February 8, 2009, Karpa indicated 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. 2. Pre-conference workshops provided at no cost are primarily conferences for new board members, directors, etc. 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 or recall attending any pre-conference workshops while in travel status regarding the 2004, 2005, or 2006 NSBA conferences. 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. aa. Karpa believed that the vehicle rental for the 2008 NSBA conference was necessary because the La Quinta Inn did not contain a restaurant within the hotel. 2. Board members attempted to minimize transportation related costs at Karpa, 09-014 Page 31 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 his attendance at the 2008 NSBA conference. 1. Karpa incurred no registration fee as a result of traveling to the 2008 NSBA conference as the guest of his spouse (Lenora Karpa). aa. By traveling with his spouse, Karpa was able to avoid the $660.00 2008 NSBA annual conference registration fee. 2. Karpa incurred no expenses in relation to his air travel to the 2008 NSBA conference as a result of utilizing air miles accrued on his credit card. aa. Karpa did not seek reimbursement from SRSD for the use of his air miles, the approximate value of which was $252.80. bb. Karpa did not seek reimbursement from SRSD for $225.00 in per diems (5 days @ $45.00/day) of which Karpa could have claimed that were associated with travel to the 2008 NSBA annual conference. f. Karpa did not inflate taxi receipts submitted for reimbursement. g. By traveling as a spouse and not claiming reimbursement for air fare and per diems, SRSD realized a savings of approximately $1,137.80 in relation to Karpa’s attendance at the 2008 NSBA conference. 118. Karpa maintains that his actions were unintentional; nonetheless he acknowledges the legal and factual conclusions which are supported by the Stipulated Findings. 119. Karpa realized a total private pecuniary benefit of at least $1,214.97 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 his attendance at the 2004, 2005, and 2006 NSBA annual conferences as shown below: Year/Conference Personal Expenses Paid/Reimbursed By SRSD 2004 NSBA Annual Conference $566.60 2005 NSBA Annual Conference $322.60 2006 NSBA Annual Conference $325.77 Total $1,214.97 III.DISCUSSION: As a Member of the Sto-Rox School District (“School District’) Board of Directors (“Board”) from: (1) December 4, 1989, through June 11, 1992; (2) December 4, 1995, through December 2, 2007; and (3) on or about March 20, 2008, to December 7, 2009, Respondent John Karpa, hereinafter also referred to as “Respondent,” “Respondent Karpa, 09-014 Page 32 Karpa,” and “Karpa,” has been a public official subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), now codified at 65 Pa.C.S. § 1101 et seq. The allegations are that Karpa violated Section 1103(a) of the Ethics Act when he used the authority of his 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. 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 4, 1995, through December 2, 2007, and from on or about March 20, 2008, to December 7, 2009. Respondent previously served as a Member of the Board from December 4, 1989, through June 11, 1992. Respondent has served as President and Vice-President of the Board, most recently serving as President from December 3, 2003, through December 7, 2004. Karpa, 09-014 Page 33 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 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 Karpa, 09-014 Page 34 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 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, Respondent and three additional Board Members were approved for travel to the 2004 NSBA annual conference for the specified dates of March 27-30, 2004. Respondent was present and participated in the unanimous 6-0 vote to approve the November 2003 travel matrix authorizing the aforesaid travel. Respondent’s registration fee for the 2004 NSBA annual conference was paid via School District General Fund check number 034774, dated October 31, 2003. Check number 034774 was approved by the Board on November 20, 2003, with Respondent present and participating in the unanimous vote of approval. Respondent obtained airline tickets for travel to the 2004 NSBA annual conference. Respondent’s travel itinerary provided for travel to Orlando, Florida, on March 25, 2004, and return from Orlando to Pittsburgh, Pennsylvania, on March 30, 2004. Respondent’s travel itinerary included one extra day in advance of the conference beyond what was permitted by the School District. School District General Fund check number 035012 dated November 26, 2003, was issued to Respondent as reimbursement for the cost of his 2004 NSBA conference air fare. Check number 035012 was approved by the Board on January 22, 2004, with Respondent present and participating in the unanimous vote of approval. In March 2004 Respondent requested and received a travel advance for travel to the 2004 NSBA Annual Conference. Beverly Tisci, the School District Superintendent’s secretary, prepared the Request for Travel Advance on Respondent’s behalf. The Request for Travel Advance incorrectly listed Respondent’s March 25-30, 2004, travel dates as conference dates. Respondent received a travel advance in the amount of $1,589.40. The travel advance was paid to Respondent by School District General Fund check number 035619, which was approved by the Board on April 22, 2004, with Respondent present and participating in the unanimous vote of approval. Respondent traveled to Orlando, Florida, for the 2004 NSBA annual conference on March 25, 2004, two days in advance of the official conference start. Respondent was not Karpa, 09-014 Page 35 registered for any pre-conference workshops at the 2004 NSBA annual conference. Respondent was assigned lodging for the 2004 NSBA annual conference for himself and his spouse (Lenora Karpa) 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. Respondent was scheduled to arrive on March 25, 2004, two days prior to the start of the conference, and depart on March 30, 2004. Free shuttle busses traveled from the OCCC to conference hotels, including the Hard Rock Hotel, continuously throughout the days of the NSBA conference. However, upon arrival in Orlando, Respondent rented a vehicle for convenience/transportation purposes while in Orlando, Florida, attending the 2004 NSBA conference. The vehicle was rented from March 25, 2004, at 11:06 a.m. to March 29, 2004, at 9:54 a.m., at a total cost of $604.84. Respondent, Board Member Jacobs (“Jacobs”), and their spouses used the rental vehicle on a consistent basis for convenience and personal purposes in addition to transportation purposes. The parties have stipulated that Respondent realized a financial gain of $302.42 ($604.84 cost ÷ 2 Board Members) as a result of utilizing a rental vehicle that was not necessary for transportation purposes in association with the 2004 NSBA annual conference. Respondent and Jacobs utilized a rental vehicle out of convenience rather than necessity. Respondent checked-in to the Hard Rock Hotel on March 25, 2004, and checked- out on March 30, 2004. Jacobs incurred charges at the Hard Rock Hotel for valet parking fees totaling $48.00. The parties have stipulated that Respondent realized a financial gain of $24.00 ($48.00 ÷ 2 Board Members) in relation to valet parking fees incurred at the Hard Rock Hotel during his attendance at the 2004 NSBA annual conference. Respondent’s lodging expense for March 25, 2004--the extra night Respondent spent in Orlando--totaled $206.28 ($185.00 nightly rate plus $21.28 in taxes). Respondent’s expenses for subsistence for March 25, 2004, totaled a minimum of $24.40. Respondent also claimed and received reimbursement from the School District for airport parking fees in the amount of $9.50 for March 25, 2004. On or about April 14, 2004, Respondent completed, signed and submitted for approval an Expense Report for the 2004 NSBA annual conference requesting reimbursement totaling $344.77 in addition to the travel advance he had already received. The Expense Report documented expenses of $1,934.17 less the $1589.40 advance for a total of $344.77 claimed by Respondent. The reimbursement request was approved by School District Superintendent Skender. Respondent was issued School District General Fund check number 035930, dated April 26, 2004, in the amount of $344.77 for reimbursement claimed as a result of traveling to Orlando, Florida, for the 2004 NSBA annual conference. Check number 035930 was on a bill list that was approved for payment at the May 20, 2004, regular Board meeting. Respondent was present and participated in the vote to approve bills presented at the May 20, 2004, Board meeting. The parties have stipulated that Respondent realized a financial gain of $566.60 by claiming and receiving reimbursement from the School District for the following personal expenses relative to the 2004 NSBA annual conference: (1) $206.28 for one extra night of lodging at the Hard Rock Hotel on March 25, 2004 ($185.00 nightly rate plus taxes of $21.28); (2) $24.40 for subsistence for March 25, 2004; (3) $9.50 for airport parking fees on March 25, 2004; (4) $302.42 for vehicle rental; and (5) $24.00 for valet parking of the Karpa, 09-014 Page 36 rented vehicle at the Hard Rock Hotel. Fact Findings 57, 119. The 2005 NSBA Annual Conference The NSBA held its 2005 annual conference at the San Diego Convention Center (“SDCC”) in San Diego, California. The conference officially began on Saturday, April 16, 2005, at 8:00 a.m. and officially concluded on Tuesday, April 19, 2005, at 11:00 a.m. At the October 21, 2004, Board meeting, Respondent and four additional Board Members were approved for travel to the 2005 NSBA annual conference for the specified dates of April 14-20, 2005. Respondent was present and participated in the unanimous vote to approve the October 2004 travel matrix authorizing the aforesaid travel. Respondent’s registration fee for the 2005 NSBA annual conference was paid via School District General Fund check number 037789, dated February 17, 2005. Check number 037789 was approved by the Board on February 17, 2005, with Respondent present and participating in the unanimous vote of approval. Respondent obtained airline tickets for travel to the 2005 NSBA annual conference. Respondent’s travel itinerary provided for travel to San Diego, California, on April 14, 2005, and return from San Diego, California, to Pittsburgh, Pennsylvania, on April 19, 2005. Respondent’s travel itinerary included one extra day in advance of the conference beyond what was permitted by the School District. School District General Fund check number 036966 dated October 21, 2004, was issued to Respondent as reimbursement for the cost of his 2005 NSBA conference air fare. Check number 036966 was approved by the Board on October 21, 2004, with Respondent present and participating in the unanimous vote of approval. In or about March 2005 Respondent requested a travel advance for the 2005 NSBA annual conference. Respondent received School District General Fund check number 038064, dated March 31, 2005, in the amount of $300.00, as a travel advance for travel to the 2005 NSBA Annual Conference. School District General Fund check number 038064 was approved by the Board on April 21, 2005, with Respondent present and participating in the unanimous vote of approval. Respondent traveled to San Diego, California, for the 2005 NSBA annual conference on April 14, 2005, two days in advance of the official conference start. Respondent was not registered for any pre-conference workshops at the 2005 NSBA annual conference. Respondent was assigned lodging for the 2005 NSBA annual conference for himself and his spouse (Lenora Karpa) at the Sheraton San Diego Hotel & Marina located at 1380 Harbor Island Drive, San Diego, California, approximately 4.09 miles from the SDCC. The room rate at the Sheraton San Diego Hotel & Marina for a double occupancy room was $184.00 per night plus taxes of $19.40 per night for a total cost of $203.40 per night. Respondent was scheduled to arrive on April 14, 2005, two days prior to the start of the conference, and depart on April 19, 2005. Neither Respondent nor Jacobs rented a vehicle for transportation purposes in relation to the 2005 NSBA annual conference. Respondent and Jacobs routinely utilized public transportation (taxis) for transportation purposes. Respondent checked-in to the Sheraton San Diego Hotel & Marina on April 14, 2005, and checked-out on April 19, 2005. The complete cost for Respondent’s lodging as documented on his hotel folio totaled $1,017.00. Respondent’s lodging expense for April 14, 2005--the extra night Respondent spent Karpa, 09-014 Page 37 in San Diego--totaled $203.40 ($184.00 nightly rate plus $19.40 in taxes). Respondent’s expenses for subsistence for April 14, 2005, totaled a minimum of $16.29. Respondent also claimed and received reimbursement from the School District for inflated taxi expenses. Of the eleven cab fare receipts that Respondent submitted for reimbursement, five of the receipts were inflated over the actual fares incurred, resulting in a financial gain of approximately $85.91 to Respondent as shown in the chart at Fact Finding 83. Board Members are not permitted to inflate the amount of reimbursement claimed and are limited to the expense amount actually incurred. On April 20, 2005, Respondent completed, signed and submitted for approval an Expense Report for the 2005 NSBA annual conference requesting reimbursement totaling $1,203.52 in addition to the travel advance he had already received. The Expense Report documented expenses of $1,503.52 less the $300.00 advance for a total of $1,203.52 claimed by Respondent. The reimbursement request was approved by School District Superintendent Skender. Respondent was issued School District General Fund check number 038216, dated April 25, 2005, in the amount of $1,203.52 for reimbursement claimed as a result of traveling to San Diego, California, for the 2005 NSBA annual conference. Check number 038216 was on a bill list that was approved for payment at the May 26, 2005, regular Board meeting. Respondent was present and participated in the unanimous vote to approve bills presented at the May 26, 2005, Board meeting. Incidental expenses of a personal nature incurred by Respondent for which Respondent claimed and received reimbursement from the School District included a $5.00 charge for computer services plus tips totaling $12.00. The parties have stipulated that Respondent realized a financial gain of $322.60 by claiming and receiving reimbursement from the School District for the following personal expenses relative to the 2005 NSBA annual conference: (1) $203.40 for one extra night of lodging at the San Diego Hotel & Marina on April 14, 2005 ($184.00 nightly rate plus taxes of $19.40); (2) $16.29 for subsistence for April 14, 2005; (3) $85.91 for excess cab fare reimbursement; and (4) $17.00 for computer services and claimed tips. Fact Findings 85, 119. 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, Respondent and two additional Board Members were approved for travel to the 2006 NSBA annual conference for the specified dates of April 8-11, 2006. Respondent was present and participated in the unanimous vote to approve the November 2005 travel matrix authorizing the aforesaid travel. Respondent’s spouse, Lenora Karpa, was elected to the Board in the 2005 election and took office as a Board Member on December 5, 2005. Lenora Karpa was a Board Member at the time of the 2006 NSBA annual conference. Respondent’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. Karpa, 09-014 Page 38 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 040711 dated January 31, 2006, was issued to Respondent as reimbursement for the cost of his 2006 NSBA conference air fare. Check number 040711 was approved by the Board on February 18, 2006, with Respondent present and participating in the unanimous vote of approval. In or about March 2006 Respondent requested a travel advance for the 2006 NSBA annual conference. Respondent received School District General Fund check number 041143, dated March 31, 2006, in the amount of $300.00 as a travel advance in relation to the 2006 NSBA Annual Conference. Check number 041143 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. Respondent was not registered for any pre-conference workshops at the 2006 NSBA annual conference. Respondent was assigned lodging for the 2006 NSBA annual conference for himself and his spouse (Lenora Karpa) 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. Respondent was scheduled to arrive on April 6, 2006, two days prior to the start of the conference, and depart on April 10, 2006. Neither Respondent nor Jacobs rented a vehicle for transportation purposes in relation to the 2006 NSBA annual conference. Respondent and Jacobs routinely utilized public transportation (taxis) for transportation purposes. 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 6, 2006, and April 7, 2006, totaled $459.30. Charges incurred for April 8, 2006, and April 9, 2006, were assigned to Lenora 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 Karpa is $114.82 ($229.64 ÷ 2 = $114.82) due to splitting lodging expenses with Lenora Karpa. Respondent’s expenses for subsistence for April 6, 2006, totaled a minimum of $62.78. 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. Respondent also claimed and received reimbursement from the School District for inflated taxi expenses. All eight of the cab fare receipts that Respondent submitted for reimbursement were inflated over the actual fares incurred, resulting in a financial gain of approximately $148.17 to Respondent as shown in the chart at Fact Finding 114. Board Members are not permitted to inflate the amount of reimbursement claimed and are limited to the expense amount actually incurred. On April 17, 2006, Respondent completed, signed and submitted for approval an Expense Report for the 2006 NSBA annual conference requesting reimbursement totaling $558.73 in addition to the travel advance he had already received. A miscalculation in the Karpa, 09-014 Page 39 Expense Report was corrected by School District personnel upon processing the Expense Report. The corrected Expense Report documented expenses of $859.63 less the $300.00 advance for a total of $559.63 claimed by Respondent. The reimbursement request was approved by Lanna. Respondent was issued School District General Fund check number 041366, dated April 28, 2006, in the amount of $559.63 for reimbursement claimed as a result of traveling to Chicago, Illinois, for the 2006 NSBA annual conference. Check number 041366 was on a bill list that was approved for payment at the May 18, 2006, regular Board meeting. Respondent was present and made 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 financial gain of $325.77 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 ); (2) $62.78 for subsistence for April 6, 2006; and (3) $148.17 for excess cab fare reimbursement. Fact Findings 115, 119. In a sworn statement provided to Commission investigators, Respondent indicated, inter alia, that: (1) he did not register for any pre-conference workshops in relation to the 2004, 2005, or 2006 NSBA conferences; (2) he could not specifically identify or recall attending any pre-conference workshops while in travel status regarding the 2004, 2005, or 2006 NSBA conferences; (3) he utilized rental vehicles at the 2004 and 2008 NSBA conferences for convenience purposes; (4) he 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) as a result of his traveling as a spouse to the 2008 NSBA annual conference and not claiming reimbursement for air fare and per diems, the School District realized a savings of approximately $1,137.80 in relation to his attendance at the 2008 NSBA conference. Respondent maintains that his actions were unintentional. Nonetheless, he acknowledges the legal and factual conclusions which are supported by the Stipulated Findings. Respondent realized a total private pecuniary benefit of at least $1,214.97 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 his attendance at the 2004, 2005, and 2006 NSBA annual conferences. Fact Finding 119. 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 a 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. 4. Karpa agrees to make payment in the amount of $1,214.97 in Karpa, 09-014 Page 40 settlement of this matter payable to the Sto-Rox School District and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. 5. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Consent Agreement, at 1-2. In considering the Consent Agreement of the parties, we agree that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Respondent received reimbursement from the School District for expenses of a personal nature claimed as to his attendance at the 2004, 2005, and 2006 NSBA annual conferences. Cf., Maritz, Order 1525; Regola, Order 1517; Melenia, Order 1516; Hopkin, Order 1515; Matta, Order 1439; Tancredi, Order 1434; Hoover, Order 1348; Sullivan, Order 1245; Choura, Order 942. Respondent realized a total private pecuniary gain of at least $1,214.97 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 his attendance at the 2004, 2005, and 2006 NSBA annual conferences, as calculated at Fact Finding 119. Such personal expenses included lodging and subsistence for unauthorized extra days spent at conference sites prior to conferences, unnecessary vehicle rental expenses, excess cab fare reimbursement, valet parking and airport parking expenses, computer services, and tips. Respondent 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 a 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 his attendance at the 2004, 2005, and 2006 NSBA annual conferences, which expenses were not related to any official Board function. As part of the Consent Agreement, Respondent has agreed to make payment in the amount of $1,214.97 payable to the Sto-Rox School District and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. We determine that the Consent Agreement submitted by the parties sets forth the proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, per the Consent Agreement of the parties, Respondent is directed to make payment in the amount of $1,214.97 payable to the Sto-Rox School District and th forwarded to this Commission by no later than the thirtieth (30) day after the mailing date of this adjudication and Order. Karpa, 09-014 Page 41 Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV.CONCLUSIONS OF LAW: 1. As a Member of the Sto-Rox School District (“School District’) Board of Directors (“Board”) from: (1) December 4, 1989, through June 11, 1992; (2) December 4, 1995, through December 2, 2007; and (3) on or about March 20, 2008, to December 7, 2009, Respondent John Karpa (“Karpa”) has been a public official subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), now codified at 65 Pa.C.S. § 1101 et seq. 2. Karpa violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his receipt of a private pecuniary benefit consisting of payments/reimbursements by the School District for personal expenses as to his attendance at the 2004, 2005, and 2006 National School Board Association (“NSBA”) annual conferences, which expenses were not related to any official Board function. In Re: John Karpa, : File Docket: 09-014 Respondent : Date Decided: 3/25/10 : Date Mailed: 4/9/10 ORDER NO. 1552 1. As a Member of the Sto-Rox School District (“School District’) Board of Directors, John Karpa (“Karpa”) violated Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), in relation to his receipt of a private pecuniary benefit consisting of payments/reimbursements by the School District for personal expenses as to his attendance at the 2004, 2005, and 2006 National School Board Association (“NSBA”) annual conferences, which expenses were not related to any official Board function. 2. Per the Consent Agreement of the parties, Karpa is directed to make payment in the amount of $1,214.97 payable to the Sto-Rox School District and forwarded to the th Pennsylvania State Ethics Commission by no later than the thirtieth (30) day after the mailing date of this Order. 3. Compliance with Paragraph 2 of this Order will result in the closing of this case with no further action by this Commission. a. Non-compliance will result in the institution of an order enforcement action. BY THE COMMISSION, ___________________________ Louis W. Fryman, Chair