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.
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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.
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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.
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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:
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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.
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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
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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