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HomeMy WebLinkAbout1577 Hockenberry In Re: Evelyn Hockenberry, : File Docket: 09-010 Respondent : X-ref: Order No. 1577 : Date Decided: 12/15/10 : Date Mailed: 12/20/10 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.” An Answer was filed and a hearing was requested. 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. Hockenberry, 09-010 Page 2 I.ALLEGATIONS: That Hockenberry, a public official/public employee in her capacity as a Supervisor for Connoquenessing Township, Butler County, violated Sections 1103(a), 1104(a) and 1105(b) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a), 1104(a) and 1105(b), when she used the authority of her office for a private pecuniary benefit when she participated in actions of the Board of Supervisors to set her compensation as Township Secretary/Treasurer without Auditor approval; when she participated in actions as Secretary/Treasurer to issue payments to her; and when she failed to file Statements of Financial Interests for [the] 2005 and 2006 calendar years and failed to disclose all direct/indirect sources of income on the Statement of Financial Interests filed for the 2008 calendar year. II.FINDINGS: 1. Evelyn Hockenberry has served as a Supervisor of Connoquenessing Township (hereafter Township), Butler County since January 3, 2006. a. Hockenberry served as Road Master and Code Enforcement Officer in 2008. b. Hockenberry served as Secretary from April 24, 2008, to October 7, 2009. c. Hockenberry served as Treasurer from April 24, 2008, to December 29, 2009. 2. Connoquenessing Township is a Second Class Township governed by a three- Member Board of Supervisors. a. The Supervisors hold regular monthly meetings on the first Wednesday of each month. b. Special meetings are held as necessary. 3. Connoquenessing Township Supervisors are compensated $156.25 (gross) monthly for their service. a. The Supervisors are not required to attend regular monthly meetings in order to receive the stipend. 4. Board voting procedures occur in roll call fashion after a motion is made and seconded. a. All objections and abstentions are noted in the minutes. 1. The minutes of each meeting are approved for accuracy at each subsequent meeting. 5. The Supervisors receive their meeting packets for review fifteen to twenty minutes prior to the start of the monthly meeting. a. Bill lists included in the meeting packets represent all those bills received by the Township since the previous monthly meeting. b. Payment issued to the Township employees as well as the Supervisors are itemized on the bill lists. Hockenberry, 09-010 Page 3 1. Supervisor payment documented on the bill lists includes payment for services as elected Supervisors as well as any working Supervisor payment due. c. The bill lists are approved for payment at the regular monthly meetings. 6. All three Supervisors and the Treasurer maintain signature authority over the financial accounts associated with the Township. a. Two signatures are required on all checks issued by the Township. 1. Facsimile stamps are not utilized. 7. Prior to 2008 the Supervisors traditionally appointed an individual to serve as Secretary/Treasurer at the Supervisors re-organizational meeting. a. The individual appointed was responsible for performing the duties of a Secretary and Treasurer as described in the Second Class Township Code. 8. Article VIII, Section 802 of the Second Class Township Code details the duties of the Secretary as follows: a. Record the proceedings of the Board of Supervisors and all court orders relative to the laying out, opening and vacating of roads in a minute book. b. Preserve the minute book and other records and turn them over to the successor in office. c. With the consent of the Board of Supervisors and in conformity with other laws governing the retention and disposition of municipal records, have the authority to destroy records and papers of the Township other than the minute book and account book after the lapse of six years from the date of the records. d. Inform Supervisors of all Township meetings, including special meetings of the Board of Supervisors. 9. Article VII, Section 704 of the Second Class Township Code details the duties of the Treasurer as follows: a. Receive all moneys due the Township and deposit them promptly in a designated depository in the name of the Township. b. Keep distinct and accurate accounts of all sums received from taxes and other sources, which accounts shall be open to the inspection of the Board of Supervisors and any citizens of this Commonwealth. c. Pay out all moneys of the Township only on direction by the Board of Supervisors. d. Annually state the accounts and make them available to the Board of Auditors for settlement. e. Preserve the account books, papers, documents, and other records of the office and turn them over to the successor in office. Hockenberry, 09-010 Page 4 10. For multiple years, the Township's auditing firm recommended that the Supervisors split the Secretary/Treasurer position into two separate positions. a. Maher-Duessel CPA has been the Township's auditing firm for numerous years. 11. In 2007, Supervisors advertised the vacant positions, conducted interviews, and eventually appointed Sandy Burtner as Secretary and Joetta Edmonds as Treasurer. 12. The Supervisors re-appointed Burtner as Secretary and Edmonds as Treasurer at the re-organizational meeting held on January 7, 2008. a. The appointment of both individuals passed via a 3-0 vote with Hockenberry voting affirmatively. 13. Three months later, at the April 2, 2008, meeting, the Supervisors accepted the resignation of Burtner and Edmonds via a 2-0 vote with Hockenberry voting affirmatively. 14. In mid-April 2008, Hockenberry and Township Supervisor Jack Kaltenbaugh interviewed a number of applicants for the position of Secretary/Treasurer. a. After being interviewed by Hockenberry and Kaltenbaugh, Patricia Marath spoke with Hockenberry. As a result of that conversation, Patricia Marath believed she had been offered the position of Secretary/Treasurer. b. Hockenberry later informed Marath that she was not, in fact, hired because, according to Hockenberry, she was not qualified and could not be bonded for the sufficient amount. 1. This was placed in the minutes of the May 7, 2008, Township meeting. 2. Marath had been previously bonded as a Notary Public. 15. On April 22, 2008, Hockenberry completed and submitted a bond application to C.W. Howard Agency so that she could be bonded as Township Treasurer. a. Hockenberry's bond application indicated that her term as Treasurer would begin on April 24, 2008, and end on April 29, 2009. 16. Hockenberry was not officially appointed Secretary/Treasurer until April 24, 2008, when the Supervisors held a special meeting to appoint Hockenberry to the position. a. Hockenberry seconded Kaltenbaugh’s motion to appoint Hockenberry as Township Secretary/Treasurer. b. The motion passed 2-0 with Hockenberry and Kaltenbaugh both voting affirmatively. 1. Township Supervisor Steven Misko was not present at the meeting. 17. At the conclusion of the May 7, 2008, meeting, Hockenberry and Kaltenbaugh held an executive session attended by Township Solicitor Robert Hawk and approved a wage of $500.00 a month for Hockenberry. Hockenberry, 09-010 Page 5 a. The payment of $500.00 was to "cover expenses," "consultation," and "day- to-day operations" associated with the Township. 1. The $500.00 payments were classified as “cover expenses,” “consultation,” and “day-to-day operations” and not compensation. 18. Hockenberry participated in the discussions that occurred during the executive session held on May 7, 2008, regarding her compensation, and approved payments to her at $500.00 a month. The decision was made public at the May 7, 2008, meeting without a formal vote. 19. Article VII, Section 703, and Article VIII, Section 803, of the Second Class Township Code provides that the Board of Auditors shall determine the compensation of the Township Secretary and Treasurer when a Supervisor is appointed to said positions. Pursuant to Section 606 of the Second Class Township Code, the Board of Auditors is also responsible for determining any compensation to a Supervisor outside of [his/her Supervisor] salary. a. The Township Board of Auditors did not set Hockenberry's compensation. b. Hockenberry's compensation was determined by Hockenberry and Kaltenbaugh in executive session on May 7, 2008. 20. Hockenberry, as the Township Secretary/Treasurer, was responsible for simultaneously fulfilling the duties of Secretary and Treasurer in accordance with responsibilities detailed in the Second Class Township Code, including the following: a. Preparation of meeting agendas, bills to be approved by the Board; b. Custody and maintenance of all Township financial records including making deposits/withdrawals; c. Preparation of checks for payment/issuance; d. Signature authority over all Township accounts; e. Taking minutes at monthly meetings; f. Retention and preservation of Township documents/records; g. Receiving and forwarding complaints to the Board of Supervisors; and h. Various administrative duties. 21. Maher-Duessel CPA annually audits the Township's accounts. 22. During the 2008 audit, representatives of Maher-Duessel had difficulty classifying Hockenberry's compensation, as well as the legitimacy of the compensation, and required documentation confirming such. a. The Township was unable to provide Maher-Duessel representatives with elected Auditor minutes documenting the approval of Hockenberry's compensation. Hockenberry, 09-010 Page 6 23. On or about February 27, 2009, Maher-Duessel representatives spoke with Hockenberry about concerns they had regarding her receipt of monthly $500.00 payments for serving as Secretary/Treasurer and/or receiving compensation without Auditor approval. a. Maher-Duessel representatives recommended that Hockenberry obtain documentation from the elected Auditors detailing the approval of Hockenberry's Secretary/Treasurer pay. 24. On March 4, 2009, Hockenberry asked elected Auditor Sharon Pawlowicz for documentation that the elected Auditors approved Hockenberry's compensation. a. Pawlowicz was unable to comply with Hockenberry's request because the elected Auditors did not establish and/or approve any compensation/payments for Hockenberry in 2008 or 2009. 25. Hockenberry continued to receive compensation until December 2009. 26. In or about September 2009, Hockenberry and Kaltenbaugh interviewed Brenda Davis for the position of Secretary and Lee Ann Kradel for the position of Treasurer. a. On September 17, 2009, Hockenberry and Kaltenbaugh appointed Davis as Secretary and Kradel as Treasurer. b. Misko was not in attendance at said meeting. 27. At the October 7, 2009, meeting, Hockenberry resigned from her Secretary position due to Davis' appointment. a. Hockenberry did not resign as Treasurer due to the fact that Kradel had yet to be bonded. 28. On December 29, 2009, Hockenberry resigned from the Treasurer position as a result of Kradel's appointment, obtaining a bond. 29. Hockenberry stopped receiving the $500.00 monthly payments as of December 29, 2009. 30. At the January 2010 re-organizational meeting of the Board, Hockenberry was appointed Chairman of the Board. a. Hockenberry was not appointed as Secretary and/or Treasurer. 31. Hockenberry received 20 checks issued from the Township's General Fund totaling $10,015.86 during the time period of May 2008 to December 2009, as shown below: Check Check # Check Amount Check Signatures Memo Section of Check Date 5-8-08 11346 $500.00 EH/JK May Payment 6-4-08 11388 $500.00 EH/JK June Payment 6-25-08 11479 $500.00 EH/JK July Payment 8-5-08 11590 $500.00 EH/JK August Payment 9-3-08 11656 $500.00 EH/JK Sept. Payment 9-29-08 11708 $500.00 EH/JK October Payment 11-5-08 11804 $500.00 EH/JK Consult/Nov. 12-3-08 11876 $500.00 EH/JK Consult/Dec. Hockenberry, 09-010 Page 7 Check Check # Check Amount Check Signatures Memo Section of Check Date 1-2-09 11966 $510.54* EH/JK Consult/Jan 2-4-09 12047 $500.00 EH/JK Consult Fee 3-4-09 12143 $500.00 EH/JK Consultation Fee March 4-1-09 12188 $500.00 EH/JK Consult/April 5-6-09 12269 $505.32* EH/JK Consult/Postage 5-29-09 12330 $500.00 EH/JK Consult/June 7-1-09 12397 $500.00 EH/JK Consult/July 8-5-09 12502 $500.00 EH/JK Consultation fee - July 09 8-28-09 12565 $500.00 EH/JK August consultation 10-6-09 12638 $500.00 EH/JK - 11-4-09 12790 $500.00 LK/JK November 2009 consultation 12-1-09 12837 $500.00 LK/JK December 2009 consultation fee Total: $10,015.86 EH = Supervisor Evelyn Hockenberry JK = Supervisor Jack Kaltenbaugh LK = Treasurer Lee Ann Kradel * = Check includes reimbursement payments a. Hockenberry was paid a total of $10,015.86; however, $15.86 was in regards to reimbursements owed to Hockenberry for expenses she incurred on behalf of the Township. b. Hockenberry signed 18 of the 20 checks issued to her as an authorized Township signatory. 32. Hockenberry participated in official actions of the Board, including voting to approve bill lists that documented the $500.00 monthly payments to her, and signing checks as shown below: Meeting Vote to Approve Check # Check Amount Authorized Date Payment at Meeting Signatures 6-4-08 Motion, Aye 11346 $500.00 EH/JK * N/A 11388 $500.00 EH/JK 7-2-08 Motion, Aye 11479 $500.00 EH/JK 8-6-08 Motion, Aye 11590 $500.00 EH/JK 10-1-08 Motion, Aye 11656 $500.00 EH/JK 10-1-08 Motion, Aye 11708 $500.00 EH/JK 11-5-08 Motion, Aye 11804 $500.50** [sic] EH/JK 12-3-08 Motion 11876 $500.00 EH/JK 1-5-09 Motion 11966 $510.54** EH/JK 2-4-09 Motion 12047 $500.00 EH/JK 3-4-09 Motion 12143 $500.00 EH/JK 4-1-09 Motion 12188 $500.00 EH/JK 6-3-09 Motion 12269 $505.32** EH/JK 7-1-09 Motion 12330 $500.00 EH/JK 8-5-09 Motion 12397 $500.00 EH/JK 9-2-09 Motion 12502 $500.00 EH/JK 10-7-09 Motion 12565 $500.00 EH/JK 10-7-09 Motion 12638 $500.00 EH/JK Hockenberry, 09-010 Page 8 Meeting Vote to Approve Check # Check Amount Authorized Date Payment at Meeting Signatures 11-4-09 Motion 12790 $500.00 LK/JK 12-2-09 Motion 12837 $500.00 LK/JK Total: $10,015.86 EH = Supervisor Evelyn Hockenberry JK = Supervisor Jack Kaltenbaugh LK = Treasurer Lee Ann Kradel * Never appears on a monthly bill list for approval ** Checks include reimbursement payments a. Hockenberry motioned and/or voted for the approval of all of the above payments issued to her as documented on Township bill lists. b. Township check #11388 issued to Hockenberry on June 4, 2008, was not listed on a bill list for approval. 33. Hockenberry has maintained personal bank accounts at Huntington National Bank since at least 2008. a. Hockenberry maintains three bank accounts at Huntington National Bank, as detailed below: Account # Type of Account 1. xxxxxxxx741 Checking 2. xxxxxxxx761 Savings 3. xxxxxxxx478 Certificate of Deposit b. Hockenberry has had signature authority over said accounts since at least 2008. 34. Hockenberry deposited sixteen of the twenty $500.00 payments into her Huntington National Bank accounts as shown below: Check Check # Check Check Date Bank Account Date Amount Signatures Deposited Deposited Into 5-8-08 11346 $500.00 EH/JK 5-12-08 xxxxxxxx741 6-4-08 11388 $500.00 EH/JK 6-5-08 xxxxxxxx741 6-25-08 11479 $500.00 EH/JK 7-3-08 xxxxxxxx741 8-5-08 11590 $500.00 EH/JK 8-7-08 xxxxxxxx741 9-3-08 11656 $500.00 EH/JK 9-5-08 xxxxxxxx761 9-29-08 11708 $500.00 EH/JK 10-1-08 xxxxxxxx741 12-3-08 11876 $500.00 EH/JK 12-4-08 xxxxxxxx741 4-1-09 12188 $500.00 EH/JK 4-3-09 xxxxxxxx741 5-6-09 12269 $505.32* EH/JK 5-7-09 xxxxxxxx741 5-29-09 12330 $500.00 EH/JK 6-3-09 xxxxxxxx741 7-1-09 12397 $500.00 EH/JK 7-1-09 xxxxxxxx741 8-5-09 12502 $500.00 EH/JK 8-5-09 xxxxxxxx741 8-28-09 12565 $500.00 EH/JK 9-4-09 xxxxxxxx741 10-6-09 12638 $500.00 EH/JK 10-8-09 xxxxxxxx741 11-4-09 12790 $500.00 LK/JK 11-6-09 xxxxxxxx741 Hockenberry, 09-010 Page 9 12-1-09 12837 $500.00 LK/JK 12-3-09 xxxxxxxx741 Total: $8,005.32 EH = Supervisor Evelyn Hockenberry JK = Supervisor Jack Kaltenbaugh LK = Treasurer Lee Ann Kradel * Checks include reimbursement payments a. Hockenberry deposited $8,005.32 in payments from the Township into her Huntington National Bank accounts. 1. Of the $8,005.32, $5.32 was not related to Hockenberry’s services to the Township and/or appointment as Secretary/Treasurer, but related to reimbursements owed to her. 35. Hockenberry has maintained a personal bank account (#xxxxxxx961) at Butler ARMCO Credit Union since at least 2008. a. Hockenberry has had signature authority over said account since at least 2008. 36. Hockenberry deposited four of the Township payments into the ARMCO Credit Union account(s) as shown below: Check Check Check Amount Check Date Date # Signatures Deposited 11-5-08 11804 $500.00 EH/JK 11-7-08 1-2-09 11966 $510.54* EH/JK 1-9-09 2-4-09 12047 $500.00 EH/JK 2-5-09 3-4-09 12143 $500.00 EH/JK 3-6-09 Total: $2,010.54 EH = Supervisor Evelyn Hockenberry JK = Supervisor Jack Kaltenbaugh * Checks include reimbursement payments a. Hockenberry deposited $2,010.54 in payments from the Township into her Butler ARMCO Credit Union bank account. 1. Of the $2,010.54, $10.54 was not related to Hockenberry’s services to the Township and/or serving as Secretary/Treasurer, but related to reimbursements owed to her. 37. Hockenberry realized a private pecuniary gain of $10,000.00 by voting to appoint * herself as Secretary/Treasurer; participating in discussions and voting to have compensation paid to her at $500.00 a month without receiving Auditor approval; signing 18 of the 20 checks issued to her as an authorized Township signatory; and participating in the approval of bill lists including her $500.00 monthly payments. * [We note that pursuant to the Second Class Township Code, a supervisor serving on a three-member board is not excluded from voting on the issue of his own appointment/employment to a position that is authorized by law. 53 P.S. § 65602.] THE FOLLOWING FINDINGS ARE IN REGARDS TO HOCKENBERRY'S FAILURE TO FILE STATEMENT OF FINANCIAL INTERESTS FORMS FOR CALENDAR YEARS 2005 Hockenberry, 09-010 Page 10 AND 2006, AS WELL AS HOCKENBERRY'S FAILURE TO DISCLOSE [THE TOWNSHIP AS A DIRECT/INDIRECT SOURCE OF INCOME] FOR CALENDAR YEAR 2008. 38. Hockenberry in her official capacity as Supervisor of Connoquenessing Township was required to file a Statement of Financial Interests form by May 1 annually containing information for the prior calendar year. a. Filing requirements are documented under Section 1104 of the State Ethics Act. b. The Supervisors are annually provided with blank Statement of Financial Interests forms for completion. 39. On September 12, 2008, a Statement of Financial Interests (SFI) Compliance Review was conducted for Connoquenessing Township by the Investigative Division of the Pennsylvania State Ethics Commission. a. No Statement of Financial Interests forms for the 2005 and 2006 calendar years for Hockenberry were on file with the Township at the time the Compliance Review was completed. b. Hockenberry maintains that she did timely file Statement of Financial Interests forms for 2005 and 2006. 40. Hockenberry, as Supervisor, received compensation in the amount of $1,875.00 in 2006. 41. Hockenberry, as Supervisor, received compensation in the amount of $1,875.00 in 2007. 42. Hockenberry's SFI for calendar year 2008 was filed on or about January 8, 2009. a. Hockenberry failed to disclose the [Township as a direct/indirect source of income] on her SFI dated January 8, 2009. 43. On or about April 17, 2009, Hockenberry was sent a Notice of Investigation which detailed her failure to file Statements of Financial Interests and her deficient Statements of Financial Interests for the 2008 calendar year. a. Hockenberry received the Notice of Investigation letter on April 21, 2009. 44. On October 21, 2009, Hockenberry's amended SFI dated April 10, 2009, for calendar year 2008 was faxed to the Investigative Division's Pittsburgh Regional Office. a. Hockenberry's amended SFI for calendar year 2008 discloses [the Township as a direct/indirect source of income in excess of $1,300.00] in 2008. III.DISCUSSION: As a Supervisor of Connoquenessing Township (“Township”) since January 3, 2006, Township Secretary from April 24, 2008, to October 7, 2009, and Township Treasurer from April 24, 2008, to December 29, 2009, Respondent Evelyn Hockenberry, hereinafter also referred to as “Respondent,” “Respondent Hockenberry,” and “Hockenberry,” has been a public official/public employee subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. Hockenberry, 09-010 Page 11 The allegations are that Respondent Hockenberry violated Sections 1103(a), 1104(a), and 1105(b) of the Ethics Act: (1) when she participated in actions of the Township Board of Supervisors (“Board”) to set her compensation as Township Secretary/Treasurer without Auditor approval; (2) when she participated in actions as Secretary/Treasurer to issue payments to her; (3) when she failed to file Statements of Financial Interests (“SFIs”) for the 2005 and 2006 calendar years; and (4) when she failed to disclose all direct/indirect sources of income on the SFI filed for the 2008 calendar year. 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. Section 1104(a) of the Ethics Act provides that each public official/public employee must file an SFI for the preceding calendar year, each year that he holds the position and the year after he leaves it. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the SFI form must provide. Subject to certain statutory exceptions not applicable to this matter, Section 1105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. Hockenberry, 09-010 Page 12 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. Respondent Hockenberry has served as a Township Supervisor since January 3, 2006. Hockenberry served as Township Secretary from April 24, 2008, to October 7, 2009. Hockenberry served as Township Treasurer from April 24, 2008, to December 29, 2009. The Board consists of three Members. All three Supervisors and the Township Treasurer maintain signature authority over the Township’s financial accounts. Township checks require two signatures. The Board approves Township bill lists at its regular monthly meetings. The bill lists include payments to the Supervisors for services as elected Supervisors and as working Supervisors. Hockenberry was appointed Township Secretary/Treasurer on April 24, 2008. Pursuant to the Second Class Township Code, the Township Board of Auditors must determine the compensation of the Township Secretary and Treasurer when a Supervisor is appointed to said positions. See, 53 P.S. §§ 65606, 65703, 65803. However, the Township Board of Auditors did not set Hockenberry's compensation as Township Secretary/Treasurer. At an executive session of the Supervisors held on May 7, 2008, Hockenberry and Township Supervisor Jack Kaltenbaugh (“Kaltenbaugh”) approved a wage of $500.00 per month for Hockenberry. Hockenberry participated in both the discussions and decision to approve such wage for her. The decision was subsequently made public without a formal vote. Hockenberry’s duties as Township Secretary/Treasurer included, inter alia: (1) preparing meeting agendas and bills to be approved by the Board; (2) preparing checks for payment/issuance; and (3) having signature authority over all Township accounts. During the 2008 audit of the Township’s accounts, representatives of the CPA firm conducting the audit required documentation confirming the legitimacy of Hockenberry's compensation. Neither the Township nor Hockenberry were able to provide such documentation because the Township Board of Auditors had not established and/or approved any compensation/payments for Hockenberry in 2008 or 2009. On September 17, 2009, the Board appointed individuals other than Hockenberry to the positions of Township Secretary and Township Treasurer. At the October 7, 2009, Board meeting, Hockenberry resigned from the position of Township Secretary. Hockenberry did not resign from the position of Township Treasurer until December 29, 2009, after the new Treasurer had obtained a bond. During the time period of May 2008 to December 2009, Hockenberry received 20 checks issued from the Township's General Fund totaling $10,015.86, as shown in Fact Finding 31. Of the aforesaid total amount paid to Hockenberry, $15.86 was for reimbursements owed to Hockenberry for expenses incurred on behalf of the Township. The parties have stipulated that the remaining $10,000.00 constituted a private pecuniary gain to Hockenberry. Hockenberry participated in official actions of the Board, including making motions and/or voting to approve bill lists that documented the $500.00 monthly payments to her, as detailed in Fact Finding 32. Hockenberry motioned and/or voted for the approval of all 20 of the aforesaid Township payments issued to her except for one that was not listed on a bill list for approval. Hockenberry signed as an authorized Township signatory 18 of the Hockenberry, 09-010 Page 13 aforesaid 20 Township checks issued to her. Hockenberry deposited all 20 of the aforesaid Township payments into her personal bank accounts. As for Hockenberry’s SFIs, on September 12, 2008, an SFI Compliance Review was conducted for the Township by the Investigative Division of this Commission. At that time, no SFIs for calendar years 2005 and 2006 were on file with the Township for Hockenberry. Hockenberry maintains that she did timely file SFIs for 2005 and 2006. Hockenberry's SFI for calendar year 2008 dated January 8, 2009, did not disclose the Township as a direct/indirect source of income. On or about April 17, 2009, Hockenberry was sent a Notice of Investigation detailing her failure to file SFIs and her deficient SFI for the 2008 calendar year. Hockenberry received the Notice of Investigation letter on April 21, 2009. On October 21, 2009, Hockenberry's amended SFI for calendar year 2008, dated April 10, 2009, was faxed to the Investigative Division. Hockenberry's amended SFI for calendar year 2008 discloses the Township as a direct/indirect source of income in excess of $1,300.00. 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 Hockenberry’s actions to set her compensation as Township Secretary/Treasurer without Auditor approval. b. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. §1103(a) occurred when Hockenberry, as Secretary/Treasurer for Connoquenessing Township . . . issued payments to herself. c. That a technical violation of Section 1104(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. §1104(a) occurred when Statements of Financial Interests for Hockenberry for calendar years 2005 and 2006 were not on file with Connoquenessing Township. d. That a technical violation of Section 1104(a) [sic] of the Public Official and Employee Ethics Act, 65 Pa.C.S. §1104(a) [sic] occurred when Hockenberry failed to disclose all direct/indirect sources of income on the Statement of Financial Interests filed for the 2008 calendar year. 4. Hockenberry agrees to make payment in the amount of $15,000.00 in settlement of this matter as follows: Hockenberry, 09-010 Page 14 a. $10,000 payable by certified check or money order made payable to Connoquenessing Township and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. b. $5,000 in reimbursement representing a portion of the expenses and costs incurred by the State Ethics Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission. Said payment to be made upon the execution of this agreement by Hockenberry and submitted therewith. 5. Hockenberry agrees to file Statements of Financial Interests for calendar years 2005 and 2006, and to file an amended Statement of Financial Interests for calendar year 2008 disclosing all required information as appropriate with Connoquenessing Township within thirty (30) days of the issuance of the final adjudication in this matter. Copies of said forms shall be forwarded to the State Ethics Commission for compliance verification purposes. 6. 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 Hockenberry’s actions to set her compensation as Township Secretary/Treasurer without Auditor approval. Factually, at an executive session of the Supervisors held on May 7, 2008, Supervisors Hockenberry and Kaltenbaugh approved a wage of $500.00 per month for Hockenberry as Township Secretary/Treasurer. Hockenberry used the authority of her public office as a Township Supervisor when she participated in both the discussions and decision to approve such wage for her. The resulting private pecuniary benefit consisted of a total of $10,000.00 of compensation issued to Hockenberry, which had not been approved by the Township Board of Auditors as required by law. See, 53 P.S. §§ 65606, 65703, 65803. With each element of a violation of Section 1103(a) established, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Hockenberry’s actions to set her compensation as Township Secretary/Treasurer without Auditor approval. Cf., Calvert, Order 1514. Hockenberry, 09-010 Page 15 Additionally, a violation of Section 1103(a) of the Ethics Act occurred when Hockenberry, as Township Secretary/Treasurer, issued the aforesaid unauthorized payments to herself. Hockenberry’s duties as Township Secretary/Treasurer included, inter alia: (1) preparing meeting agendas and bills to be approved by the Board; (2) preparing checks for payment/issuance; and (3) having signature authority over all Township accounts. During the time period of May 2008 to December 2009, Hockenberry received 20 checks issued from the Township's General Fund totaling $10,015.86. Of the aforesaid total amount paid to Hockenberry, $10,000.00 was for unauthorized compensation as Township Secretary/Treasurer. Hockenberry signed as an authorized Township signatory 18 of the aforesaid 20 Township checks issued to her. Accordingly, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Hockenberry, as Secretary/Treasurer for the Township, issued unauthorized payments to herself. We hold that a technical violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred when SFIs for Hockenberry for calendar years 2005 and 2006 were not on file with the Township. We further hold that a technical violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred when Hockenberry failed to disclose all direct/indirect sources of income on her SFI(s) filed for the 2008 calendar year. As part of the Consent Agreement, Respondent has agreed to make payment in the amount of $15,000.00 in settlement of this matter as follows: (a) $10,000 payable by certified check or money order made payable to Connoquenessing Township and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter; and (b) $5,000 in reimbursement representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission, with said payment tendered upon the execution of the Consent Agreement by Hockenberry. Respondent has further agreed to file with the Township SFIs for calendar years 2005 and 2006 and an amended SFI for calendar year 2008, appropriately disclosing all required information, within thirty (30) days of the issuance of the final adjudication in this matter and to forward copies of all such filings to this Commission. 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, Hockenberry is directed to make payment in the amount of $15,000.00 as follows: (a) $10,000 payable by certified check or money order made payable to Connoquenessing Township and forwarded to this th Commission by no later than the thirtieth (30) day after the mailing date of this adjudication and Order; and (b) $5,000 in reimbursement representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission, with said payment of $5,000 tendered upon the execution of the Consent Agreement by Hockenberry. To the extent she has not already done so, Hockenberry is directed to file with the Township SFIs for calendar years 2005 and 2006 and an amended SFI for calendar year Hockenberry, 09-010 Page 16 th 2008, appropriately disclosing all required information, by no later than the thirtieth (30) day after the mailing date of this adjudication and Order and to forward copies of all such filings to this Commission for compliance verification purposes. 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 Supervisor of Connoquenessing Township (“Township”) since January 3, 2006, Township Secretary from April 24, 2008, to October 7, 2009, and Township Treasurer from April 24, 2008, to December 29, 2009, Respondent Evelyn Hockenberry (“Hockenberry”) has been a public official/public employee subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. 2. Hockenberry violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to her actions to set her compensation as Township Secretary/Treasurer without Auditor approval. 3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Hockenberry, as Secretary/Treasurer for the Township, issued unauthorized payments to herself. 4. A technical violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred when Statements of Financial Interests (“SFIs”) for Hockenberry for calendar years 2005 and 2006 were not on file with the Township. 5. A technical violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred when Hockenberry failed to disclose all direct/indirect sources of income on her SFI(s) filed for the 2008 calendar year. In Re: Evelyn Hockenberry, : File Docket: 09-010 Respondent : Date Decided: 12/15/10 : Date Mailed: 12/20/10 ORDER NO. 1577 1. As a Supervisor of Connoquenessing Township (“Township”), Evelyn Hockenberry (“Hockenberry”) violated Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), in relation to her actions to set her compensation as Township Secretary/Treasurer without Auditor approval. 2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Hockenberry, as Secretary/Treasurer for the Township, issued unauthorized payments to herself. 3. A technical violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred when Statements of Financial Interests (“SFIs”) for Hockenberry for calendar years 2005 and 2006 were not on file with the Township. 4. A technical violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred when Hockenberry failed to disclose all direct/indirect sources of income on her SFI(s) filed for the 2008 calendar year. 5. Per the Consent Agreement of the parties, Hockenberry is directed to make payment in the amount of $15,000.00 as follows: (a) $10,000 payable by certified check or money order made payable to Connoquenessing Township and forwarded th to the Pennsylvania State Ethics Commission by no later than the thirtieth (30) day after the mailing date of this Order; and (b) $5,000 in reimbursement representing a portion of the expenses and costs incurred by the Pennsylvania State Ethics Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission, with said payment of $5,000 tendered upon the execution of the Consent Agreement by Hockenberry. 6. To the extent she has not already done so, Hockenberry is directed to file with the Township SFIs for calendar years 2005 and 2006 and an amended SFI for calendar year 2008, appropriately disclosing all required information, by no later than the th thirtieth (30) day after the mailing date of this Order and to forward copies of all such filings to the Pennsylvania State Ethics Commission for compliance verification purposes. 7. Compliance with Paragraphs 5 and 6 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, ___________________________ Name, Case # Page 18 Louis W. Fryman, Chair