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HomeMy WebLinkAbout1557 Shevchik In Re: Deborah Shevchik, : File Docket: 09-004 Respondent : X-ref: Order No. 1557 : Date Decided: 6/22/10 : Date Mailed: 7/9/10 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. Shevchik, 09-004 Page 2 I.ALLEGATION: That Deborah Shevchik, a public official/public employee in her capacity as a Member of the Mid Valley School District Board of Directors, Lackawanna County, violated Section 1103(a) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. § 1103(a), when she used the authority of her public position for private pecuniary benefit by incurring expenses of a personal nature for attending National School Board Association conferences and subsequently submitting and participating in the approval of expenses of a personal nature to be paid for by the School District. II.FINDINGS: 1. Deborah Shevchik served as a Member of the Mid Valley School District (MVSD) Board of Directors from 2005 through 2009. a. Shevchik served as the Treasurer of the MVSD Board of Directors from December 2007 through December 2009. 2. MVSD is governed by a nine member Board of Directors. a. MVSD normally holds workshop and regular meetings on the third and fourth Wednesday of each month. 1. Voting only occurs at the regular meetings. b. Special meetings are held as necessary. 3. Voting at MVSD meetings occurs via individual roll call vote or group “aye/nay” vote depending on the subject for which the vote is occurring. a. Roll call votes are utilized to address matters involving the expenditure of district funds, personnel issues or important/controversial issues. 1. Each individual Board Member’s vote including abstentions or objections cast is recorded in the meeting minutes. b. Group “aye/nay” votes are utilized to address routine issues. 1. Any abstentions cast during the group vote are specifically noted in the minutes. c. Minutes of all meetings held are approved for accuracy by the Board at subsequent Board meetings. 4. The MVSD bill listing is composed of bills referred for payment. a. The bills referred for payment are approved by the Board at its monthly meetings. 5. The bills referred for payment are voted on one motion by the Board Members at their monthly meetings. a. Reimbursements received by Board Members for travel related expenses appear on the listing of bills referred for payment. 6. Signature authority over MVSD accounts rests with the Board President, Board Secretary and Board Treasurer. Shevchik, 09-004 Page 3 a. Stamped signatures are used to sign the checks. 7. MVSD adopted Local Board Procedures titled Board Policy/Procedure/ Administrative Regulations in association with the day-to-day operations of the district. a. The Board Procedures were established in conjunction with the Pennsylvania School District Code. b. The most recent policy was adopted by the Board on May 18, 2005. 8. As a Member of the MVSD Board of Directors, Shevchik was subject to the policies set forth in the Board Policy/Procedure/Administrative Regulations. a. As a Member of the Board of Directors, Shevchik was advised on the policies and procedures of the MVSD. 9. The Local Board Procedures titled 004 Membership, address expenses for Members in Section 7 as follows: a. Board Members, a non-member Board Secretary, and Solicitor(s) shall be reimbursed for necessary expenses actually incurred as delegates to any state convention or association of School Directors Convention held within the Commonwealth, or for necessary expenses actually incurred in attendance authorized by the Board at any other meeting held within the Commonwealth or at an educational convention out- of-state. All such expenses shall be itemized and made available for public inspection at the next succeeding Board Meeting. No Board Member shall be reimbursed for more than two out-of-state meetings in one school year. Expenses shall be reimbursed only upon presentation of an itemized, verified statement, except that advance payments may be made upon presentation of estimated expenses to be incurred. 10. Section 9 of Membership, Local Board Procedures, provides the following guidelines related to conferences: a. No Member of the Board may attend a meeting at Board expense without prior Board approval. b. The Board will periodically decide which meetings appear to offer the most promise of direct and indirect benefits to the School District. c. Funds for participation at meetings and conferences will be budgeted on an annual basis. d. When a conference/convention or workshop is not attended by the full Board, those who do participate will be requested to share information, recommendations and materials acquired at the meeting that will be beneficial to the School District. e. Reimbursement to Board Members for their travel expense will be in accordance with Section 7 of Policy 004 and the travel expense policy for District staff Members. Shevchik, 09-004 Page 4 f. Reimbursement shall be limited to actual expenses incurred, and shall not include or be construed to include compensation to individual Board Members. 11. The National School Board Association (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. 12. The NSBA holds an Annual Conference and Exposition for the purpose of providing educational and informational opportunities to educators and school board members through 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. 2. The location of the NSBA Annual Conference varies from year to year. 13. 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. 14. Individuals desiring to attend the NSBA Annual Conference must pre-register for the event, which includes payment of a registration fee. a. Individuals desiring to attend any of the “early bird” workshops the Friday prior to the start of the conference must pre-register for the workshops, which includes payment of a registration fee separate and apart from the conference registration fee. b. Registration fees for both the conference and “early bird” workshops are reduced if the individual attending is an NSBA member. 15. 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. 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. Shevchik, 09-004 Page 5 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. 16. 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. 17. 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. 18. 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. 19. MVSD had no written policy regarding the number of days Board Members could arrive in advance of a conference start date or the number of days Board Members may remain after a conference close date prior to 2009. a. It was generally understood and a past practice that Board Members could travel one day in advance at the start of an out-of-state conference. b. It was 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 the conference concluded and return the following day. 20. The MVSD has annually approved Board Members and District Administrators to attend NSBA Conferences. Shevchik, 09-004 Page 6 21. Prior to 2009, MVSD had no specific written guidelines on how much a Board Member could spend on meals when attending an NSBA Conference. a. A Board Member would receive an advance payment of anywhere from $600 to $750. 1. The only requirement was that they were to save all their receipts upon returning from the Conference and give them to the Business Manager. 22. MVSD Board Members interested in attending an NSBA Conference would first vote on the matter at a public meeting. a. Authorized participants normally included School Board Members, Solicitor, Superintendent and Business Manager. 1. In 2008, Principals were also authorized to attend. 23. MVSD participants interested in attending an NSBA Conference would notify the Business Manager who would make the reservations. a. The Business Manager would first contact the NSBA to register the MVSD participant for the conference. b. The Business Manager would then contact Abington Travel Agency (ATA) in Clarks Summit, Pennsylvania, to handle the travel and lodging for all MVSD participants. 1. ATA had been utilized to make travel arrangements for Board Members since approximately 2005. c. An MVSD School Employee Travel Expense Reimbursement Expense Form would be filled out and signed by each MVSD participant and the Business Manager. 24. Shevchik, as an MVSD Board Member, attended annual NSBA Conferences in 2007 and 2008. a. Shevchik’s children accompanied her to the conference in 2008. b. Shevchik claimed and received expense reimbursements for her children from the MVSD. c. Shevchik received reimbursement from the MVSD for other personal expenses. THE FOLLOWING FINDINGS RELATE TO MVSD PAYMENT/REIMBURSEMENT FOR EXPENSES OF A PERSONAL NATURE IN ASSOCIATION WITH SHEVCHIK’S TRAVEL TO THE 2007 NSBA ANNUAL CONVENTION. 25. The NSBA held its Annual Convention at the Moscone Convention Center in San Francisco, California, from April 14, 2007, until April 17, 2007. a. The conference began on Saturday, April 14, 2007, at 8:00 a.m. and concluded on Tuesday, April 17, 2007, at 11:00 a.m. Shevchik, 09-004 Page 7 b. The conference had registration periods, various pre-conference workshops and “early bird” workshops available on Friday, April 13, 2007. 1. Attendance at various “early bird” and pre-conference workshops required pre-registration and payment of additional fees to attend. 26. At the MVSD Board of Directors Meeting of November 15, 2006, by a vote of 8-0, the Board voted to approve MVSD officials and employees to attend the NSBA Conference in San Francisco, California. a. Shevchik was present and participated in the vote to approve MVSD participants to attend the conference. b. The authorized participants included interested Board Members, Solicitor, Superintendent and Business Manager. c. The approved travel dates were from April 7-12, 2007. 1. The actual dates of the conference were from April 14-17, 2007. d. The approved reimbursable expenses included registration, meals, travel and lodging. 27. A registration form was completed by Shevchik or at her direction for the 2007 NSBA Conference. a. The registration fee to attend the conference was $820. 28. Shevchik’s registration fee was paid from MVSD General Fund check number 003541 in the amount of $3,280.00. a. Check number 003541 included the registration fees of Shevchik plus three additional MVSD Board Members ($820 × 4 = $3,280). 29. On or around December 20, 2006, the MVSD Board of Directors directed MVSD Business Manager Joseph Patchcoski to contact Ann Summa of ATA to make airline reservations for Shevchik and other Members of the MVSD. a. Shevchik was issued ticket No. 765848253 on December 20, 2006, by ATA. 1. Shevchik was scheduled to depart on April 12, 2007, on United Airlines and return on April 18, 2007, on United Airlines. b. The cost for Shevchik’s air fare totaled $281.45. 1. The cost of the ticket included an air fare of $246.45 and a service charge of $35.00 for ATA. 30. MVSD issued General Fund Check Number 003467 dated January 2, 2007, in the amount of $1,981.33 paid to ATA, which included Shevchik’s and other MVSD officials’ airfares. 31. On or about April 10, 2007, Shevchik requested and received a travel advance for her attendance at the 2007 NSBA Annual Conference. a. The location on the travel advance was listed as CA. Shevchik, 09-004 Page 8 b. The amount of the advance provided to Shevchik by Business Manager Patchcoski was $600. 32. Shevchik received the travel advance via MVSD General Fund check number 003675 dated April 10, 2007, in the amount of $600.00 for the 2007 NSBA Conference. 33. Based on the direction of the MVSD Board of Directors including Shevchik, Business Manager Joseph Patchcoski was directed to contact ATA and advise it to make reservations for Shevchik and other Board Members of the MVSD at the Westin St. Francis Hotel. a. The decision to use ATA for travel arrangements had been a standard procedure prior to 2009 by the MVSD Board of Directors. 1. ATA would make hotel reservations based on the desires of the Board or attempt to find the best available room rate. 34. Room reservations were made for Shevchik at the Westin St. Francis Hotel in San Francisco, California. a. Shevchik’s arrival date was Thursday, April 12, 2007, with a departure date of Wednesday, April 18, 2007. 1. The 2007 NSBA Conference dates were from April 14-17, 2007. 2. Shevchik’s scheduled arrival date was one day earlier than generally accepted practices for MVSD participants attending NSBA Conferences. b. Shevchik’s confirmation notice dated March 6, 2007, from the Westin noted charges of $2,525.73. 1. This included room rate and taxes of $420.96 per night ($2,525.73 ÷ 6 Nights = $420.96). 35. The NSBA Conference brochure provided a listing of 30 hotels with conference rates from which conference attendees could choose that included the Westin St. Francis Hotel. a. If Shevchik’s hotel arrangements were handled through the NSBA Housing Bureau, the nightly room rate if available at the Westin St. Francis Hotel would have been $200 per night. b. Nightly room rates secured by Abington were $369.00 plus $51.96 in taxes. 36. MVSD issued General Fund check number 00057437 dated January 26, 2007, in the amount of $8,840.07 payable to ATA, which included payments for hotel expenses at the Westin St. Francis Hotel for MVSD Board Members Shevchik, Thomas Logan, John Gilgallon and Eric Pusey. a. ATA reimbursed MVSD on June 17, 2007, in the amount of $1,262.86 for the cost of Board Member Eric Pusey’s hotel charges because he did not attend the 2007 NSBA Conference. 37. Shevchik submitted an MVSD School Employee Travel Expense Reimbursement Form documenting expenses incurred as a result of attending the 2007 NSBA Shevchik, 09-004 Page 9 Annual Conference. a. Shevchik did not provide the MVSD with receipts or hotel folio for lodging at the Westin St. Francis. 38. Shevchik submitted expenses totaling $68.97 for reimbursement of meals for receipts listing the number of guests as 3 and 2 respectively: a. The cost of the meal for 2/3 for the expense would have totaled $21.41 ($32.12 × 2/3 (0.666666) = $21.41). b. The cost when divided equally between Shevchik and her guest was $18.43 ($36.85 ÷ 2 = $18.43). 39. Shevchik submitted guest check receipts from two restaurants with no itemized billing information other than the name and total cost. a. The total for the receipts was $118.00. 1. The cost divided equally would have totaled $59.00 ($118.00 ÷ 2 = $59.00). 40. Shevchik as an MVSD Board Member participated in the approval of bills that included payments made to vendors and herself for her expenses at the 2007 NSBA Conference in San Francisco, California. Check Payee Number Date of Check Amount Abington Travel Agency 003467 1/2/07 $1,981.33 Abington Travel Agency 00057437 1/26/07 $8,840.07 NSBA 003541 2/12/07 $3,280.00 Deborah Shevchik 003676 4/10/07 $ 600.00 41. Shevchik received a private pecuniary benefit of $519.80 when she claimed expenses and received reimbursement as a result of traveling to the 2007 NSBA Conference in San Francisco, California, prior to the actual start of the conference and by claiming personal expenses during other days of the conference. Description Amount Westin St. Francis Hotel (1 night 4/12/07) $420.96 Meal Expenses-Guest $ 39.84 Guest Receipt Meal Expenses $ 59.00 Total $ 519.80 THE FOLLOWING FINDINGS RELATE TO MVSD PAYMENT/REIMBURSEMENT FOR EXPENSES OF A PERSONAL NATURE IN ASSOCIATION WITH SHEVCHIK’S TRAVEL TO THE 2008 NSBA ANNUAL CONVENTION. 42. The NSBA held its 2008 Annual Conference at the Orange County Convention Center (OCCC) in Orlando, Florida, from March 29, 2008, until April 1, 2008. a. The brochure for the conference notes that the conference began on Saturday, March 29, 2008, at 8:00 a.m. and concluded on Tuesday, April 1, 2008, at 11:00 a.m. Shevchik, 09-004 Page 10 b. The brochure documents registration, various pre-conference workshops, and “early bird” workshops available on Friday, March 28, 2008. 1. Attendance at various “early bird” and pre-conference workshops required pre-registration and payment of additional fees to attend. 43. At the MVSD Board of Directors Meeting of January 23, 2008, by a unanimous vote of 9-0, the Board Members voted to approve MVSD participants to attend the NSBA Conference in Orlando, Florida. a. Deborah Shevchik was present and participated in the vote to approve MVSD participants to attend. b. The authorized participants included School Board Members, Solicitor, Superintendent, Principals and Business Manager. c. The approved travel dates were from March 28 to April 2, 2008. d. The approved reimbursable expenses included registration, meals, travel and lodging. 44. Shevchik’s registration for the 2008 NSBA Annual Conference was submitted on- line on January 30, 2008. a. Shevchik’s registration fee was $850. 45. Shevchik’s registration fee was paid from MVSD General Fund check number 004291 on February 7, 2008, in the amount of $6,800.00 payable to the NSBA. a. Check number 004291 in the amount of $6,800.00 included the registration fees of Shevchik, six additional MVSD Board Members and the Principal ($850 × 8 = $6,800). b. Shevchik’s signature was listed as one of the authorizing [signatures] on the check. 46. At the direction of the MVSD Board of Directors, MVSD Business Manager Joseph Patchcoski contacted Ann Summa of ATA to make airline reservations for Shevchik and other Members of the MVSD. a. Shevchik’s travel itinerary receipt # 041910 dated February 1, 2008, documented the following regarding Shevchik’s travel to Orlando: Airline Flight No. Date Depart Arrive US Airways 3883S 3/26/08 Scranton/Wlks Phila. 7:40 a.m. 8:29 a.m. US Airways 1019S 3/26/08 Phila. Orlando 9:45 a.m. 12:30 p.m. US Airways 1417G 4/2/08 Orlando Charlotte 5:15 p.m. 6:56 p.m. US Airways 2246G 4/2/08 Charlotte Scran/Wlks 7:40 p.m. 9:17 p.m. b. The cost associated with Shevchik’s air fare totaled $456.50. 1. The cost of the ticket included an air fare of $416.50 and a service charge of $40.00 for ATA totaling $456.50. Shevchik, 09-004 Page 11 47. MVSD issued General Fund Check Number 004288 dated February 5, 2008, in the amount of $22,191.03 paid to ATA that included Shevchik’s air fare and lodging as well as other MVSD participants’ airfare and hotel costs. 48. On or about March 20, 2008, Shevchik requested a travel advance for the 2008 NSBA Annual Convention. a. The travel request was completed by Business Manager Joseph Patchcoski on behalf and at the request of Shevchik. b. The location and date on the travel advance listed Florida from 3/26/08 to 4/2/08. 1. The approved dates of travel from the MVSD Board Meeting of January 23, 2008, that Shevchik voted on were from March 28, 2008, until April 2, 2008. 2. Shevchik was seeking expense advancements for at least 2 days not approved by the Board. c. The amount of the travel advance provided to Shevchik by Business Manager Patchcoski was $750.00. 49. Shevchik received a travel advance for the 2008 NSBA Annual Conference via MVSD General Fund check number 00058962 dated 3/20/08 in the amount of $750.00. 50. Based on the direction of the MVSD Board of Directors including Shevchik, Business Manager Joseph Patchcoski was directed to contact ATA and advise Abington to make reservations for Shevchik and other Board Members of the MVSD at the Hard Rock Hotel. a. The decision to use ATA for travel arrangements had been a standard procedure prior to 2009 by the MVSD Board of Directors 1. ATA would make hotel reservations based on the desires of the Board or attempt to find the best available room rate. 51. The NSBA Conference brochure provided a listing of 27 hotels with conference rates from which conference attendees could choose that included the Hard Rock Hotel. a. If Shevchik’s hotel arrangements were handled through the NSBA Housing Bureau, the nightly room rate if available at the Hard Rock Hotel would have been $210 per night. b. Nightly room rates secured by ATA were $359.00 plus $44.88 in taxes. 52. Shevchik’s hotel folio for the Hard Rock Hotel confirms a check-in-date of March 26, 2008, and a departure date of April 2, 2008. a. No specific check-in or check-out time is noted on the folio. b. Shevchik was assigned Room Number 1139. Shevchik, 09-004 Page 12 c. Shevchik’s account number was 768089. d. The number in Shevchik’s party was listed as 3. 1. Shevchik’s two children accompanied her on the trip. 53. Shevchik’s charges were part of a package deal that included receipt of 7-day complimentary passes for 2 to Universal Orlando Theme Park as a result of her stay lasting more than 3 days. a. The package Shevchik was registered for was Stay-4 Play Free. b. The cost for the 7-day unlimited park admittances to Universal Orlando Theme Park was $120.00. 54. Shevchik’s hotel expenses at the Hard Rock Hotel totaled $2,725.88. a. Each MVSD Board Member’s charges for staying at the Hard Rock Hotel were $2,725.88. b. The charges were part of a package paid by the MVSD totaling $20,570.66. c. MVSD issued General Fund check number 004288 dated February 5, 2008, in the amount of $22,191.03 to Abington Travel Agency, which included payments made to the Hard Rock Hotel for Shevchik and other MVSD participants’ hotel charges. 55. Shevchik’s hotel bill at the Hard Rock Hotel included room charges for March 26 & 27, 2008, the two (2) days prior to the approved travel dates to attend the conference, personal expenses for room service and meals, use of the pool and parking charges for a rental car. a. Expenses included: 2 Nights Lodging Plus Tax $807.76 Meals $109.89 3/27/08 Expenses $ 19.82 Parking $ 14.91 $952.38 56. Other non-conference related charges billed to Shevchik’s room account totaled $101.48. 57. On March 27, 2008, Shevchik rented a vehicle from National Car Rental located at Orlando International Airport. a. The vehicle was charged to Shevchik’s personal credit card. b. The vehicle was picked up by Shevchik on March 27, 2008, at 3:31 p.m. and returned on April 1, 2008, at 7:34 a.m. 1. Shevchik’s rental included one day prior to the approved dates to attend the conference by the MVSD Board of Directors. c. One hundred forty-one (141) miles were driven from March 27, 2008, through April 1, 2008. Shevchik, 09-004 Page 13 58. The Hard Rock Hotel is located approximately 15 ½ miles from the Orlando International Airport. a. The Hard Rock Hotel is located approximately 5 miles from the OCCC. 1. Free shuttle buses traveled from the OCCC to conference hotels including the Hard Rock Hotel continuously throughout the days of the NSBA Conference. b. MVSD Board Members are permitted to rent vehicles at the expense of the School District if the rental is necessary. c. The estimated roundtrip cost between the Hard Rock Hotel and the Orlando International Airport would have been $65.00. 59. Shevchik’s primary purpose of renting a vehicle while in Orlando was convenience and travel related to personal purposes. 60. Shevchik submitted an MVSD School Employee Travel Expense Form as in relation to her travel to the 2008 NSBA Annual Conference. 61. Shevchik also included on her expense report a meal expense of $18.05 on March 27, 2008, for prior to the start of the conference. 62. Shevchik also submitted as part of her expense report meal receipts for reimbursement for her two children and herself while in Florida. a. The total for Shevchik’s meal receipts listed above was $257.28. 1. The cost of the meals for two (2) of Shevchik’s children based on 2/3 the amount of expenses would have totaled $171.58 ($257.28 × 2/3 (0.66666666) = $171.58). 63. Shevchik also submitted other meal receipts for reimbursement listing 2 guests. a. The total ($109.87) includes expenses for two persons. 1. Based on ½ of the $109.87, Shevchik’s portion would be $54.94. 64. On or around May 5, 2008, Shevchik requested and received an additional $654.84 from the MVSD for expenses incurred at the 2008 NSBA Conference in excess of the $750.00 advance amount Shevchik received on March 20, 2008. a. MVSD issued General Fund check number 004478 dated May 5, 2008, payable to Deborah Shevchik. b. The reimbursement received by Shevchik included rental car costs of $561.25 and parking costs of $89.46 totaling $650.71. 65. During the course of the conference, meals were provided by vendors for MVSD participants and their family members. 66. On Friday, March 28, 2008, at 7:00 p.m., while at the NSBA Conference, Shevchik attended a dinner along with her two (2) children at the Palm Restaurant that was paid for by the firm Nutrition, Inc. Shevchik, 09-004 Page 14 a. Also in attendance were six other officials of the MVSD and their family members and Board Members from the Lakeland and Carbondale School Districts of Pennsylvania. b. The cost of the meal including taxes totaled $4,165.41. 67. Shevchik as an MVSD Board Member participated in the approval of the bills that included payments made to vendors and herself for her expenses at the 2008 NSBA Conference in Orlando, Florida. Payee Check Number Date of Check Amount Abington Travel Agency 004288 2/5/08 $22,191.03 NSBA 004291 2/7/08 $ 6,800.00 Deborah Shevchik 00058962 3/20/08 $ 750.00 Deborah Shevchik 004478 5/5/08 $ 654.84 68. Shevchik claimed expenses and received reimbursement as a result of traveling two days earlier than permitted to the 2008 NSBA Conference in Orlando, Florida, and claiming personal expenses for other days of the conference as follows: DescriptionAmount Hard Rock Hotel (3/26, 3/27, 2008 Room plus tax) $807.76 National Car Rental ($561.25 - $65.00=$496.25) $496.25 ($65.00 was the cost of the shuttle to and from the airport) Parking (3/27 to 4/2/08 $14.91/day) $ 89.46 Meal expenses for March 26 and 27, 2008 $129.71 Guest Meal Expenses $226.52 Cost of 7-Day pass to Universal Orlando Theme Park $120.00 Total $1,869.70 69. In or about August 2008, residents of the MVSD questioned expenses incurred and paid by the District for Board Members traveling to Orlando, Florida. a. Residents asserted at Board meetings that costs were excessive and included personal expenses. b. Some Board members and Administrators who attended the Orlando conference made reimbursements to the MVSD. 70. As a result of the expenses that were incurred in 2008 by the MVSD participants who attended the NSBA Conference, the MVSD Board of Directors approved an NSBA Conference Policy (Policy #004B 2009) that had the following guidelines: a. The district office (Superintendent and/or Business Manager) will make all travel arrangements for the NSBA Conference. b. The NSBA Conference will be limited to 3 Board Members and the Superintendent. c. The length of stay for the conference will be four nights/five days, unless the length of the conference changes from its current format. The Superintendent will determine if a change is required. d. The hotel selection will be from the list offered by the NSBA housing (which Shevchik, 09-004 Page 15 are all at discounted rates) or if not on the list must be of equal or lesser cost. The district will only reimburse for the room rate for a single. e. In addition, the district will pay for: conference registration, airfare (plus transportation to and from the airport) rental car (if needed-Budget Vehicles only). f. Meal expenses (set limits) – can change depending on conference location. Specific Rates Dinner $50.00 Lunch $25.00 Breakfast $18.00 (No alcohol) g. Advance payments may be made, but a final itemized verified statement of such expenses shall be submitted upon return from such convention and an adjustment shall be made either by refund or by additional payment to meet the verified expenses actually incurred. h. All expenses shall be itemized and made available to the district office to prepare for public inspection at the next succeeding board meeting. 71. On March 25, 2009, Shevchik made a reimbursement in the amount of $200.00 for selected expenses she incurred at the 2008 NSBA Conference in Orlando, Florida, to the MVSD. a. Shevchik made a payment on March 25, 2009, via Check #547 in the amount of $200.00 paid to the order of the MVSD. 72. Shevchik realized a private pecuniary gain as a result of submitting expenses, accepting payment by/reimbursement from MVSD for submitted expenses, and voting to approve bill lists on which payments/reimbursements were documented for expenses of a personal nature in association with her attendance at the 2008 and 2007 NSBA Annual Conferences . . . . III.DISCUSSION: As a Member of the Mid Valley School District (“MVSD” or “School District”) Board of Directors (“Board”) from 2005 through 2009, and as Treasurer of the Board from December 2007 through December 2009, Respondent Deborah Shevchik (hereinafter also referred to as “Respondent,” “Respondent Shevchik,” and “Shevchik”) was a public official subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. The allegation is that Respondent Shevchik violated Section 1103(a) of the Ethics Act when she used the authority of her public position for private pecuniary benefit by incurring expenses of a personal nature for attending National School Board Association (“NSBA”) conferences and subsequently submitting and participating in the approval of expenses of a personal nature to be paid for by the School District. 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 Shevchik, 09-004 Page 16 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 Shevchik served as a Member of the Board from 2005 through 2009 and as Board Treasurer from December 2007 through December 2009. The Board consists of nine Members. During Shevchik’s service as a Board Member, no Board Member could attend a conference at Board expense without prior Board approval. Expense reimbursement for attendance at NSBA Annual Conferences was limited to necessary expenses actually incurred. Expenses were to be reimbursed only upon presentation of an itemized, verified statement, except that advance payments could be made upon presentation of estimated expenses to be incurred. The “MVSD School Employee Travel Expense Reimbursement Expense Form” was to be completed and signed by each conference participant and the Business Manager. Reimbursements received by Board Members for travel related expenses appeared on monthly bill lists that were reviewed and approved by the Board. Prior to 2009, the MVSD had no written policy regarding the number of days Board Members could arrive in advance of a conference start date. It was generally understood and a past practice that Board Members could travel one day in advance of the start of an out-of-state conference. Signature authority over MVSD accounts rests with the Board President, Board Shevchik, 09-004 Page 17 Secretary and Board Treasurer. Stamped signatures are used to sign the checks. NSBA Annual Conferences: Individuals desiring to attend an NSBA Annual Conference must pre-register for the event, which includes payment of a registration fee for the conference and additional registration fee(s) for any “early bird” workshop(s) the individual plans to attend. Registration procedures for the conference include reservation of a hotel room through the NSBA Housing Bureau at special conference rates. Board Members interested in attending an NSBA Conference would first vote on the matter at a public meeting. The MVSD Business Manager would then make reservations by contacting the NSBA to register the MVSD participants for the conference. Rather than reserving hotel rooms through the NSBA Housing Bureau, the Business Manger would contact Abington Travel Agency (“ATA”) in Clarks Summit, Pennsylvania, to handle the travel and lodging for all MVSD participants. 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. 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. As an MVSD Board Member, Shevchik attended NSBA Annual Conferences in 2007 and 2008. Shevchik’s children accompanied her to the conference in 2008. The 2007 NSBA Annual Conference: The NSBA held its 2007 Annual Conference at the Moscone Convention Center in San Francisco, California. The conference officially began on Saturday, April 14, 2007, at 8:00 a.m. and officially concluded on Tuesday, April 17, 2007, at 11:00 a.m. At the November 15, 2006, Board meeting, Respondent participated in the unanimous 8-0 vote of the Board to approve MVSD officials and employees to attend the 2007 NSBA Annual Conference. Shevchik’s registration fee for the 2007 NSBA Annual Conference was paid via MVSD General Fund check number 003541. Shevchik’s travel itinerary provided for travel to the 2007 NSBA Annual Conference in San Francisco, California, on April 12, 2007--two days in advance of the conference start date--and return from San Francisco to Pennsylvania on April 18, 2007. The MVSD issued General Fund Check Number 003467 dated January 2, 2007, to ATA, as payment for expenses including Shevchik’s airfare. The Board including Shevchik directed MVSD Business Manager Joseph Patchcoski (“Patchcoski”) to advise ATA to make reservations for Shevchik and other Board Members at the Westin St. Francis Hotel. Shevchik’s scheduled arrival date was April 12, 2007, two days in advance of the conference start date. Shevchik’s departure date was Wednesday, April 18, 2007. Shevchik’s room rate including taxes was $420.96 per night. The MVSD issued General Fund check number 00057437 dated January 26, 2007, to ATA, which included payment for hotel expenses at the Westin St. Francis Hotel for Shevchik. On or about April 10, 2007, Shevchik requested and received from the MVSD, through Patchcoski, a travel advance for attendance at the 2007 NSBA Annual Shevchik, 09-004 Page 18 Conference. Shevchik received the travel advance via MVSD General Fund check number 003675 dated April 10, 2007, in the amount of $600.00. Shevchik traveled to San Francisco, California, on April 12, 2007. Shevchik submitted an MVSD School Employee Travel Expense Reimbursement Form claiming expenses as to the 2007 NSBA Annual Conference. Such claimed expenses included $98.84 for reimbursement of meals for guest(s). Shevchik participated in the Board’s approval of the following payments to ATA, NSBA, and herself for her expenses as to the 2007 NSBA Annual Conference: Check Payee Number Date of Check Amount Abington Travel Agency 003467 1/2/07 $1,981.33 Abington Travel Agency 00057437 1/26/07 $8,840.07 NSBA 003541 2/12/07 $3,280.00 Deborah Shevchik 003676 4/10/07 $ 600.00 The parties have stipulated that Shevchik received a private pecuniary benefit in the amount of $519.80 by claiming expenses/receiving reimbursement from the MVSD for the following personal expenses as to the 2007 NSBA Annual Conference: (1) $420.96 for one extra night of lodging at the Westin St. Francis Hotel on April 12, 2007; and (2) $98.84 for meals for Shevchik’s guest(s). The 2008 NSBA Annual Conference: The NSBA held its 2008 Annual Conference at the Orange County Convention Center (“OCCC”) in Orlando, Florida. The conference officially began on Saturday, March 29, 2008, at 8:00 a.m. and officially concluded on Tuesday, April 1, 2008, at 11:00 a.m. At the January 23, 2008, Board meeting, Respondent participated in the unanimous 9-0 vote of the Board to approve MVSD officials and employees to attend the 2008 NSBA Annual Conference. Shevchik’s registration fee for the 2008 NSBA Annual Conference was paid via MVSD General Fund check number 004291. Shevchik’s signature was one of the authorizing signatures on the check. Shevchik’s travel itinerary provided for travel to the 2008 NSBA Annual Conference in Orlando, Florida, on March 26, 2008--three days in advance of the conference start date--and return from Orlando to Pennsylvania on April 2, 2008. The Board including Shevchik directed Patchcoski to advise ATA to make reservations for Shevchik and other Board Members at the Hard Rock Hotel. The MVSD issued General Fund Check Number 004288 dated February 5, 2008, to ATA as payment for expenses including Shevchik’s airfare and hotel costs. On or about March 20, 2008, Shevchik requested and received from the MVSD, through Patchcoski, a travel advance for attendance at the 2008 NSBA Annual Conference. Shevchik sought expense advancements for at least two days of extra travel not approved by the Board. Shevchik received the travel advance for the 2008 NSBA Annual Conference via MVSD General Fund check number 00058962 dated March 20, 2008, in the amount of $750.00. Shevchik, 09-004 Page 19 Shevchik traveled to Orlando, Florida, on March 26, 2008. Shevchik’s two children accompanied her on this trip. While in Orlando for the 2008 NSBA Annual Conference, Shevchik rented a vehicle from March 27, 2008, at 3:31 p.m. to April 1, 2008, at 7:34 a.m. Shevchik rented the vehicle primarily for convenience and personal purposes. The estimated cost for roundtrip shuttle transportation between the Hard Rock Hotel and the Orlando International Airport was $65.00. Free shuttle busses traveled from the conference site to conference hotels, including the Hard Rock Hotel, continuously throughout the days of the NSBA Conference. Shevchik checked-in to the Hard Rock Hotel on March 26, 2008, and checked-out on April 2, 2008. Shevchik’s hotel charges totaled $2,725.88 and reflected a package that included seven-day unlimited admittance passes for two to Universal Orlando Theme Park as a result of staying more than three days. The cost for Shevchik’s passes to Universal Orlando Theme Park was $120.00. Shevchik’s room charges for March 26 and 27, 2008, totaled $807.76. Shevchik also incurred parking charges at the hotel for her rental vehicle. Shevchik submitted an MVSD School Employee Travel Expense Form claiming expenses as to the 2008 NSBA Annual Conference. Such claimed expenses included $129.71 for meals on March 26 and 27, 2008, which expenses were unrelated to any conference event. Shevchik also submitted meal expenses in the amount of $226.52 that were attributable to her guests. In May 2008, Shevchik requested and received $654.84 from the MVSD for claimed expenses in excess of the $750.00 advance that Shevchik had received on March 20, 2008. The MVSD issued General Fund check number 004478 dated May 5, 2008, payable to Deborah Shevchik. The reimbursement received by Shevchik included rental car costs of $561.25 and parking costs of $89.46 totaling $650.71. Shevchik participated in the Board’s approval of the following payments to ATA, NSBA, and herself for her expenses as to the 2008 NSBA Annual Conference: Payee Check Number Date of Check Amount Abington Travel Agency 004288 2/5/08 $22,191.03 NSBA 004291 2/7/08 $ 6,800.00 Deborah Shevchik 00058962 3/20/08 $ 750.00 Deborah Shevchik 004478 5/5/08 $ 654.84 The parties have stipulated that Shevchik claimed expenses/received reimbursement totaling $1,869.70 for the following personal expenses as to the 2008 NSBA Annual Conference: (1) $807.76 for two extra nights of lodging at the Hard Rock Hotel on March 26 and 27, 2008; (2) $496.25 for vehicle rental ($561.25 minus the $65.00 that would have been incurred for shuttle service round trip between the airport and hotel); (3) $129.71 for meals on March 26 and 27, 2008; (4) $89.46 for parking expenses; (5) $226.52 for Shevchik’s guests’ meal expenses; and (6) $120.00 for the cost of passes to Universal Orlando Theme Park. On March 25, 2009, Shevchik made a reimbursement in the amount of $200.00 to the MVSD for selected expenses she incurred at the 2008 NSBA Annual Conference in Orlando, Florida. The parties have stipulated that Shevchik realized a private pecuniary benefit as a result of submitting expenses, accepting payment by/reimbursement from MVSD for submitted expenses, and voting to approve bill lists on which payments/reimbursements Shevchik, 09-004 Page 20 were documented for expenses of a personal nature in association with her attendance at the 2007 and 2008 NSBA Annual Conferences. 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 Shevchik incurring expenses of a personal nature while attending National School Board Association conferences and subsequently submitting and participating in the approval of said personal expenses to be paid for by the School District. 4. Shevchik agrees to make payment in the amount of $1,600.00 in settlement of this matter payable to the Mid Valley 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, we agree with the parties that a violation of Section 1103(a) of the Ethics Act occurred in relation to Shevchik incurring expenses of a personal nature while attending NSBA Annual Conferences and subsequently submitting and participating in the approval of said personal expenses to be paid for by the MVSD. Cf., Jacobs, Order 1554; Karpa, Order 1552; 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. Shevchik used the authority of her public office for a private pecuniary benefit when she submitted expenses, accepted payment by/reimbursement from MVSD for submitted expenses, and voted to approve bill lists on which payments/reimbursements were documented for expenses of a personal nature in association with her attendance at the 2007 and 2008 NSBA Annual Conferences. Shevchik received a private pecuniary benefit in the amount of $519.80 by claiming expenses/receiving reimbursement from the MVSD for personal expenses as to the 2007 NSBA Annual Conference. Shevchik claimed expenses/received reimbursement totaling $1,869.70 for personal expenses as to the 2008 NSBA Annual Conference. The aforesaid personal expenses included lodging and subsistence for extra days spent at conference sites, unnecessary vehicle rental and Shevchik, 09-004 Page 21 parking expenses, meal expenses for Shevchik’s guests, and the cost of passes to Universal Orlando Theme Park. Accordingly, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Shevchik incurring expenses of a personal nature while attending NSBA Annual Conferences and subsequently submitting and participating in the approval of said personal expenses to be paid for by the MVSD. As part of the Consent Agreement, Respondent Shevchik has agreed to make payment in the amount of $1,600.00 payable to the Mid Valley 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 a 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, Shevchik is directed to make payment in the amount of $1,600.00 payable to the Mid Valley 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. 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 Mid Valley School District (“MVSD”) Board of Directors (“Board”) from 2005 through 2009, and as Treasurer of the Board from December 2007 through December 2009, Respondent Deborah Shevchik (“Shevchik”) was a public official subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. 2. Shevchik violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when she incurred expenses of a personal nature while attending National School Board Association Annual Conferences and subsequently submitted and participated in the approval of said personal expenses to be paid for by the MVSD. In Re: Deborah Shevchik, : File Docket: 09-004 Respondent : Date Decided: 6/22/10 : Date Mailed: 7/9/10 ORDER NO. 1557 1. As a Member of the Mid Valley School District (“MVSD”) Board of Directors, Deborah Shevchik (“Shevchik”) violated Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), when she incurred expenses of a personal nature while attending National School Board Association Annual Conferences and subsequently submitted and participated in the approval of said personal expenses to be paid for by the MVSD. 2. Per the Consent Agreement of the parties, Shevchik is directed to make payment in the amount of $1,600.00 payable to the Mid Valley School District and forwarded to th the 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