HomeMy WebLinkAbout1177 ReedIn Re: Paul Reed
File Docket:
X -ref:
Date Decided:
Date Mailed:
Before: Louis W. Fryman, Vice Chair
Julius Uehlein
John J. Bolger
Frank M. Brown
00- 020 -C2
Order No. 1177
1/22/01
1/29/01
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding a possible violation of the Public Official and Employee Ethics
Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 et seq., by the above -named Respondent. At the
commencement of its investigation, the Investigative Division served upon Respondent
written notice of the specific allegation(s). Upon completion of its investigation, the
Investigative Division issued and served upon Respondent a Findings Report identified as
an "Investigative Complaint." An Answer was not filed and a hearing was waived. The
record is complete.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter
11, Act 93 of 1998, which essentially repeats Act 9 of 1989 and provides for the completion
of pending matters under Act 93 of 1998.
This adjudication of the State Ethics Commission is issued under Act 93 of 1998
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 Chapter 11 of Act
93 of 1998. Any person who violates confidentiality of the Ethics Law is guilty of a
misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than
one year. Confidentiality does not preclude discussing this case with an attorney at law.
Reed, 00- 020 -C2
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I. ALLEGATION:
That Paul Reed, a public official, in his capacity as a Supervisor for Hempfield
Township, Westmoreland County, violated Section 1103(a) of the State Ethics Act (Act 93
of 1998) when he received compensation in the form of the compensatory time not
approved by the board of auditors.
II. FINDINGS:
1. The Investigative Division of the State Ethics Commission received a signed, sworn
complaint alleging that Paul Reed violated provisions of the State Ethics Act (Act 93
of 1998).
2. Upon review of the complaint the Investigative Division initiated a preliminary
inquiry on April 11, 2000.
3. The preliminary inquiry was completed within sixty days.
4. On June 5, 2000, a letter was forwarded to Paul Reed, by the Executive Director of
the State Ethics Commission informing him that a complaint against him was
received by the Investigative Division and that a full investigation was being
commenced.
a. Said letter was forwarded by certified mail, no. 7099 3400 0012 4638 3964.
b. The domestic return receipt bore the signature of Kenton J. Kunkle, with a
delivery date of June 7, 2000.
5. Periodic notice letters were forwarded to Paul Reed in accordance with the
provisions of the Ethics Law advising him of the general status of the investigation.
6. The Investigative Complaint was mailed to the Respondent on November 30, 2000.
7 Paul Reed has served as a supervisor for Hempfield Township, Westmoreland
County, since January 5, 1998.
a. Hempfield Township is a Second Class Township governed by a five
member board of supervisors.
8. Reed has been employed by Hempfield Township as secretary /treasurer and /or
roadmaster since taking office.
a. Reed was the township secretary /treasurer in 1998.
b. Reed has been one of three township roadmasters since January 1999.
9. Reed was appointed secretary /treasurer of the township at the January 6, 1998
reorganization of the Board of Supervisors.
a. Reed was elected by a vote of 4 -0 -1.
b. Reed abstained from voting.
10. Reed was appointed Roadmaster /Assistant Secretary at the January 4, 1999,
reorganization meeting of the Board of Supervisors.
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a. Reed was elected by a vote of 4 -0 -1.
b. Reed abstained from voting.
11. The Hempfield Township Board of Auditors annually have [sic] set compensation
and benefits for supervisors employed by the township.
12. Reed's salary as the secretary /treasurer was set at $33,000.00 per year by the
township auditors at the January 6, 1998, auditors reorganization meeting.
a. Reed's hourly wage was approximately $15.87 per hour based on a 40 hour
work week.
13. Benefits for supervisors employed by Hempfield Township set at the January 6,
1998, reorganization of the Board of Auditors included the following:
a. If called for jury duty, the supervisor /employee be paid his regular wage and
that the supervisor /employee refund the township the per diem
compensation from the county.
b. A township vehicle used to commute from home to work is to be considered
a taxable fringe benefit as required under IRS regulations.
c. Paid holidays for supervisor /employees are to be the same as union
employees, excluding the supervisor /employee's birthday.
d. Supervisor /employees receive one personal day.
e. Supervisor /employees be granted a maximum of three days bereavement
pay in the event of a death in the immediate family.
f. Supervisor /employees with 6 months to 1 year of service receive five
vacation days per year.
1) Supervisor /employees with more than one year to four years' service
(including all past service worked for the township) receive ten
vacation days per year.
2) Supervisor /employees with more than four to 15 years' service
(including all past service worked for the township) receive 15
vacation days per year.
3) Supervisor /employees with over 15 years' service (including all past
service worked for the township) receive 20 vacation days per year.
4) Supervisor /employees may carry over five vacation days per year up
to a maximum of 20 days.
Supervisor /employees receive 13 sick days per year up to a maximum
accumulation of 200 days regardless of years of service.
1) At the end of a supervisor /employee's term or his retirement from
service as an employee of the township, one - fourth of the
accumulated sick days may be bought back by the township at 50% of
the supervisor /employee's base rate of pay.
g.
h. Supervisor /employees are eligible for inclusion in the pension plan of the
Reed, 00- 020 -C2
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township.
14. Reed's salary as one of the three township roadmasters was set at $39,000.00 per
year by the township auditors at the January 26, 1999, meeting.
a. Reed's hourly wage was approximately $18.75 per hour based on a 40 -hour
work week.
15. Compensation and benefits set on January 26, 1999, by the board of auditors were
the same as set in 1998 (see Finding No. 13) with the following exceptions:
a. Paid holidays for the supervisor /employees were the same as union
employees, including the supervisor /employee's birthday.
b. Supervisor /employees with 6 months to 1 year of service receive ten
vacation days per year.
1) Supervisor /employees with more than one year to four years' service
(including all past service worked for the township) receive 15
vacation days per year.
2) Supervisor /employees with more than four years' service (including all
past service worked for the township) receive 20 vacation days per
year.
3) Supervisor /employees may carry over five vacation days per year.
4) Any excess days over the five permitted to be carried over may be
converted to sick days.
c. Supervisor /employees receive 13 sick days per year up to a maximum
accumulation of 200 days, regardless of years of service.
1) At the end of a supervisor /employee's term or his retirement from
service as an employee of the township, one - fourth of the
accumulated sick days may be bought back by the township at an
amount equal to the supervisor /employee's base rate of pay.
16. Overtime pay or compensatory time for working supervisors was not approved by
the board of auditors in 1998 or 1999.
a. During the 1999 reorganization meeting of the township auditors
compensatory time was mentioned while discussing the filing of notarized
timesheets.
b. Auditor James Marnell indicated that compensatory time was not associated
with filing notarized timesheets.
1. Marnell stated that compensatory time could be addressed later in the
meeting if the auditors wanted to do so.
c. No other mention of compensatory time was recorded on the audiotape.
d. No motion or vote regarding compensatory time was recorded at the
meeting.
17. In 1998, 1999, and 2000 wages for working supervisors were based on an average
Reed, 00- 020 -C2
Page 5
eight hour day, 40 hour workweek, as determined by the township auditors.
a. The 40 -hour workweek was to be worked at the discretion of the working
supervisor.
b. Days in excess of or less than eight hours can be worked in one week
provided hours worked total 40 hours in one week.
18. Working supervisors' hourly rates are determined by dividing their base salary by
2,080 hours (40 hours per week x 52 weeks).
19. Working supervisors are required by the township auditors to submit notarized
monthly time sheets to the township.
a. Although paid for only 40 hours, Supervisors Reese and Reed document
their actual number of hours worked beyond 40 hours by week on monthly
time sheets.
b. Working supervisors are required to certify that hours documented on time
sheets are true and complete by signing and dating monthly time sheets.
20. Working supervisors are to document hours claimed per day on monthly time
sheets along with an identifying symbol.
a. Letter identifiers indicate if the hours claimed are (W) worked, (V) vacation,
(H) holiday, (S) sick, (P) personal, or (B) bereavement.
b. Columns exist on the monthly time sheets to document the total number of
work, vacation, holiday, sick, and personal hours claimed per week.
c. Total hours claimed in all categories are documented in the bottom right -
hand section of the monthly time sheet.
21. Sick days, vacation days, and personal days remaining at the end of each month
are documented on individual supervisor /employee monthly time sheets.
22. Working supervisors' time sheets are not reviewed /approved by the board of
supervisors.
a. Working supervisors' time sheets are accepted as submitted.
23. Working supervisors and township employees receive weekly payroll checks.
a. Pay periods for Hempfield Township are from 12:01 a.m. Monday until
midnight Sunday.
24. Normal business hours for the Hempfield Township Municipal Building are 8:00
a.m. to 5:00 p.m., Monday through Friday.
a. Normal working hours for the township secretary /treasurer are 8:00 a.m. to
5:00 p.m., Monday through Friday.
b. In 1999, roadmaster hours were 7:00 a.m. to 3:00 p.m.
25. Job descriptions exist for the positions of secretary and treasurer in Hempfield
Township.
Reed, 00- 020 -C2
Page 6
a. Specifically noted in the secretary job description is, "Occasionally works
beyond normal work hours as meetings, reports, or work requires."
b. No documentation exists in the secretary or treasurer job description, which
permits the accrual or use of compensatory time.
26. Time sheets submitted by Reed for the year of 1998 document hours claimed as
follows for the position of secretary /treasurer:
Hours Claimed
Work Holiday Vacation Sick Personal Total
1998 2270 80 0 4 8 2362
27. Reed claimed hours worked in excess of 40 per week by month for 1998 as listed
below:
Month Hours
January 221/2
February 15
March 201/2
April 34
May 22
June 23
July 22
August 281/2
September 16
October 29
November 21
December 37 1/2
Total 291
28. Reed's time sheets indicate that Reed claimed to have worked 291 hours beyond
the 40 -hour weekly requirement set forth by the township auditors in 1998.
a. Reed viewed this time as "compensatory time."
b. Reed used no compensatory time in 1998.
29. Time sheets submitted by Reed for the time period of January 1, 1999, through
August 22, 1999, document hours claimed as follows for the position of roadmaster:
Hours Claimed
Work Holiday Vacation Sick Personal Total
1999 1347 48 32 16 8 1451'/4
30. Reed claimed hours worked in excess of 40 hours per week from January 1, 1999,
through August 22, 1999, on monthly time sheets as listed below:
Reed, 00- 020 -C2
Page 7
Month Hours
January 111/2
February 12'/4
March 171/2
April 11
May 191/2
June 161/2
July 261/2
August 161/2
Total 131'/4
31. The time sheets submitted by Reed for working 131 hours in excess of the
required 40 hours per week from January 1, 1999, through August 22, 1999, were
viewed as compensatory time by Reed.
a. Reed used no compensatory time in 1999 prior to August 23, 1999.
32. Reed continued to work and documented hours in excess of 40 hours per week
from August 23, 1999 through December 31, 1999 as listed below:
Month Hours
August 0
September 26 1/2
October 19 1/2
November 16'/
December 8 1/2
Total 71
33. Reed's timesheets for the time period of August 23, 1999 through December 31,
1999 document hours claimed as follows:
Hours Claimed
Work Holida Vacation Sick Personal Total
1999 679 56 88 0 8 831
34. On August 21, 1999, Pagey Fink, wife of Paul Reed, was injured in an accident at
her place of employment.
a. Pagey Reed was treated on an inpatient basis at UPMC Presbyterian
Hospital in Pittsburgh, Pennsylvania, from August 23, 1999, until September
20, 1999.
b. Pagey Reed returned to UPMC Presbyterian Hospital in October for inpatient
surgery.
35. During or about the week of August 23, 1999, Supervisor /Secretary- Treasurer
Reese spoke individually with Supervisors Samuel Testa and Jeffrey Yurt regarding
Pagey Reed's accident.
Reed, 00- 020 -C2
Page 8
36. Reese, Testa, and Yurt informally agreed to let Reed take off whatever time was
necessary regarding his wife's accident.
a. Reese, Testa, and Yurt agreed that they would work something out
regarding Reed's time off upon Reed's return to work.
b. Reed was not instructed by Reese, Testa or Yurt to utilize compensatory
time for days not worked during his absence.
37. Reed was informed by Reese via telephone conversation during the week of August
23, 1999 to take off whatever time was necessary.
a. Reese did not advise Reed to utilize compensatory leave.
38. During the week of August 23, 1999, Reese also spoke to William Anderson, a
Hempfield Township Supervisor in 1999, regarding Reed's personal situation.
a. In conversation with Anderson, Reese referenced a past situation, which had
occurred with then Clerical /Ordinance Director Gerald Answine, when
Answine was permitted to accrue and utilize compensatory time.
b. Anderson understood his conversation with Reese to mean that Reed could
use compensatory time for any days Reed did not work.
39. Reese never informed Anderson that supervisors employed by the township were
not approved by the auditors to accrue and utilize compensatory time.
40. Anderson subsequently sent Reed a greeting card informally advising Reed that he
could utilize compensatory time per the township supervisors.
a. The four remaining supervisors were unaware of Anderson's actions and did
not approve Reed utilizing compensatory time.
41. Reed did not work in the capacity of a roadmaster for Hempfield Township for a
total of 14 days spanning the months of August, September, and October 1999 as
shown below:
August
Month
September
October
23rd 24th 25th 26th
30 31
1 st 2nd 3rd
4th 12th 25th 26th
Total:
Dates Not Worked Total Days Not Worked
27 7
3
4
14
a. Reed was present at the township building on at least one of the above
listed days for an unknown length of time.
b. Reed typically returned phone calls, received messages, etc. on these days.
42. Days not worked by Reed were normal workdays for Hempfield Township.
43. Hempfield Township payroll is approved at every regularly scheduled meeting of
the Board of Supervisors.
Reed, 00- 020 -C2
Page 9
a. At every supervisors meeting, a motion is passed for $200,000.00 to be
transferred from the township general fund to the payroll accounts for
payment of salaries and wages for all pay periods up to the next supervisors
meeting.
44. Reed participated in approving payroll, including his weekly salary, for pay periods
in which Reed did not work 40 hours as a roadmaster, as follows:
Meeting Reed Motion Second Final Reed's Time Periods
Date Present Vote Vote Covered
08/09/99 Yes Reese Testa 5 -0 Yes 08/09 -09/13
09/13/99 Yes Reese Reed 5 -0 Yes 09/13 -10/11
10/11/99 Yes Reese Anderson 5 -0 Yes 10/11-11/08
a. Reed was paid for 10 days not worked during the time period of 08/09 - 09/13.
b. Reed was paid for one day not worked during the time period of 08/13 [sic] -
10/11.
c. Reed was paid for three days not worked during the time period of 10/11-
11 /08.
45. Reed was paid his normal salary for workweeks, including dates not worked, as
shown below:
Check Check Date Check Workweek Days
Number Amount Worked
51824 09/02/99 570.23 08/23 -08/29 0
51924 09/09/99 570.22 08/30 -09/05 0
52365 10/14/99 570.22 10/04 -10/10 4
52467 10/21/99 570.23 10/11 -10/17 4
52674 11/04/99 570.23 10/25 -10/31 3
46. Reed did not utilize any sick, vacation, or personal time to account for days not
worked while his wife was in the hospital.
a. Reed claimed 112 hours (14 eight -hour days) of compensatory time.
47. Reed had 40'/ sick, vacation, and personal days available for use beginning on
August 23, 1999, as identified below:
Sick days available: 23'/
Vacation days available: 16
Personal days available: 1
Total days available: 40 1 /
48. Reed was paid a total of $2,100.00 (14 days x 8 hours /day x $18.75 /hour) by
Hempfield Township for 14 days not worked as roadmaster in August, September,
and October 1999.
Reed, 00- 020 -C2
Page 10
49. Reed did not submit time sheets on a monthly basis for the months of August,
September, and October 1999 until November 15, 1999.
a. Reed completed his monthly timesheets by referencing notes in his personal
day planner.
50. Reed certified his August, September, and October 1999 time sheets as true and
correct records of days worked on November 15, 1999.
a. Reed's time sheets for August, September, and October 1999 were
notarized as being true and complete on November 16, 1999.
51. Reed did not utilize a corresponding letter code to identify hours claimed on his
August, September, and October 1999 time sheets.
a. Hours not specifically identified with a letter code are documented in the
"worked" column of the time sheets.
52. During the township audit for 1999, township auditors discussed Reed possibly
utilizing more vacation time than he was entitled.
a. Newly elected Auditor Gerald Answine received information that Reed had
allegedly taken approximately 3 weeks off between August and the
beginning of December 1999.
b. The township auditors then attempted to verify whether sick, vacation, or
personal days had been utilized by Reed.
53. Review of Reed's time sheets by the auditors revealed no use of sick or vacation
days during the months of August through November by Reed.
a. Reed utilized one eight -hour personal day on November 12, 1999.
1. November 12, 1999, was not one of the 14 days claimed by Reed
regarding his wife's accident.
b. Reed utilized 11 vacation days in December 1999.
1. Reed carried over five vacation days into the year 2000.
54. Time sheets prepared reflect that Reed was present and working on all regular
workdays of August, September, and October 1999, including the 14 days when
compensatory time was used by Reed.
55. Sometime after January 1, 2000, Township Auditor Answine met with Reed at the
municipal building regarding days not worked and the failure to report time off on
payroll sheets.
a. Reed informed Answine that he had utilized compensatory time for days not
worked.
b. Answine informed Reed that working supervisors could not accrue or use
compensatory time as compensatory time had not been approved by the
auditors.
56. The township auditors sent correspondence dated March 28, 2000, to the Board of
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Page 11
Supervisors recommending a surcharge against Reed for three weeks' wages in the
amount of $2,250.00.
a. The auditors also recommended a surcharge for three weeks' payment of
Social Security and Medicare totaling $172.13.
b. An additional surcharge of $222.95 was recommended for Reed's use of
road crew uniforms paid for by the township.
57. Correspondence dated April 16, 2000 from James E. De Pasquale, Reed's attorney,
to the Hempfield Board of Auditors claimed the following:
a. The compensatory policy was not defined in Hempfield Township.
b. Use of compensatory time was a "de facto" policy in Hempfield Township.
c. Other supervisors had utilized compensatory time.
58. Since 1995 only one documented use of compensatory time is present on
timesheets filed by working supervisors totaling more than 8 hours per specific
instance.
a. Supervisor Yurt claimed 24 hours compensatory time while attending a
PSATS convention in April 1997.
1. Yurt had been approved to attend the PSATS convention with pay at
the January 1997 reorganization meeting of the Board of Supervisors.
2. Said approval was revoked prior to Yurt's attendance upon advise of
the Township solicitor.
59. No documentation exists in the roadmaster job description, which permits the
accrual or use of compensatory time.
60. Working supervisors, other than Reed, have occasionally worked less than 8 hours
in one work day which resulted in less than 40 hours being worked in one week.
a. No other supervisors took more than one 8 -hour day off in this manner.
b. Other supervisors utilized sick, vacation, or personal time for any type of
extended absence.
61. Reed has not paid the surcharge recommended by the township auditors.
62. Reed's actions in claiming compensatory time for days not worked as a township
roadmaster and approving payroll as a township supervisor resulted in a private
pecuniary benefit to Reed in the amount of $2,100.00.
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Paul Reed, hereinafter Reed,
has been a public official subject to the provisions of the Public Official and Employee
Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401, et seq., as codified by the
Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S. §1101 et
seq., which Acts are referred to herein as the "Ethics Act."
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Page 12
The issue is whether Reed violated Section 1103(a) of the Ethics Act as to the
allegation that he used the authority of his office as a Township Supervisor for a private
pecuniary benefit for himself by receiving compensation in the form of compensatory time
that was not approved by the Township Board of Auditors.
Section 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).
facts.
The term "conflict of interest" is defined under Act 93 of 1998 as follows:
Section 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. "Conflict" or "conflict of interest" 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, a member of his immediate family, or a business with which he or a
member of his immediate family is associated.
Having noted the issues and applicable law, we shall now summarize the relevant
Reed has served as a member of the Hempfield Township Board of Supervisors
( "Board ") since January 5, 1998. The Board consists of five members.
Reed was appointed Roadmaster /Assistant Secretary in January 1999. The
Township Board of Auditors on January 26, 1999 set the annual salary for Roadmaster at
$39,000.00 or approximately $18.75 per hour based upon a forty -hour workweek. The
Auditors also established certain benefits for working supervisors such as paid holidays,
personal days, bereavement days, vacation days, sick days, and eligibility for inclusion in
the Township's pension plan. The benefits did not include overtime pay or compensatory
time.
In 1999, wages for working supervisors were based upon an average eight -hour
day, forty -hour workweek, as determined by the Township Board of Auditors. Working
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Page 13
supervisors were required to submit notarized monthly timesheets to the Township, which
were to include the following letter codes to indicate the nature of the hours claimed: (W)
worked, (V) vacation, (H) holiday, (S) sick, (P) personal, or (B) bereavement.
In 1998, Reed claimed 291 hours worked in excess of the standard forty -hour
workweek. Reed considered such hours as compensatory time which he did not use in
1998.
For the period of August 23, 1999 through December 31, 1999, Reed's timesheets
reflect that as Roadmaster, he had worked 71 hours in excess of the forty -hour workweek
requirement. The timesheets also reflect that during that time, Reed claimed 56 hours of
holiday time, 88 hours of vacation time, zero hours of sick time and eight hours of personal
time.
On August 21, 1999, Reed's wife was injured at work and was treated at a hospital
from August 23, 1999 to September 20, 1999. Reed's wife returned to the hospital in
October for inpatient surgery.
Supervisors Reese, Testa and Yurt informally agreed to allow Reed to take
whatever time was necessary to tend to his wife. Supervisor Anderson advised Reed that
he could use compensatory time per the township supervisors." However, Reese, Testa
and Yurt were unaware of Anderson's advice and did not approve of Reed utilizing
compensatory time.
As Roadmaster, Reed missed a total of fourteen workdays during the months of
August, September and October 1999, and failed to submit monthly timesheets during that
time. On November 15, 1999, when Reed finally submitted timesheets for the previous
three months, he neglected to use a corresponding letter code next to the hours claimed,
thereby indicating that he worked on each of the fourteen days in question.
At the Board of Supervisors' meetings on August 9, 1999, September 13, 1999 and
October 11, 1999, Reed participated in approving the Township's payroll, which included
his weekly salary for pay periods that included the fourteen missed days. Although Reed
did not utilize any accrued sick, vacation or personal time, he received his normal salary
by claiming 112 hours (fourteen eight -hour days) of compensatory time. The Township
paid Reed a total of $2,100.00 (fourteen days x eight hours /day x $18.75 /hour) for the
fourteen days he did not work as Roadmaster.
After receiving information that Reed had allegedly taken approximately three
weeks off between August and the beginning of December 1999, the Township Auditors
examined Reed's timesheets to determine whether he had used more vacation time than
he was entitled to use. Reed's timesheets indicated that he had not used any sick,
vacation or personal days and that he was present and working on all of the fourteen days
he missed in August, September and October.
Township Auditor Answine advised Reed that working supervisors were not
permitted to accrue or use compensatory time because compensatory time was not
approved by the Township Auditors. On March 28, 2000, the Township Auditors sent a
letter to the Board of Supervisors recommending that Reed be surcharged $2,250.00 for
three weeks wages, $172.13 for three weeks payment of Social Security and Medicare,
and $222.95 for Reed's use of road crew uniforms paid for by the Township.
Having summarized the above relevant facts, we must now determine whether the
actions of Reed violated Section 1103(a) of the Ethics Act.
On January 4, 2001, the Investigative Division filed a position paper advocating for
a violation of Section 1103(a) of the Ethics Act and the payment of restitution in the
Reed, 00- 020 -C2
Page 14
amount of $2,100.00. The Investigative Division argues that because the salary and
benefits for working supervisors as established by the Township Board of Auditors did not
include compensatory time, Reed's use of the authority of his office to receive payment for
compensatory time constitutes a violation of Section 1103(a) of the Ethics Act. By letter
dated January 5, 2001, Reed's attorney advised that Reed had refunded the funds that he
had received from the Township for the compensatory time to which he had believed he
was entitled.
As to Section 1103(a) of the Ethics Act, Reed submitted erroneous and misleading
timesheets in which he indicated that he was present and working on fourteen days that he
was off of work. Reed then participated in three separate Board actions to approve the
Township's payroll, which included his weekly salary for pay periods that included the
fourteen days in question. Such actions were uses of authority of office. See, Juliante,
Order 809. The uses of authority of office by Reed resulted in a private pecuniary benefit
to himself in the amount of $2,100.00. The pecuniary benefit was private because the
accrual of compensatory time and the payment therefore was not a benefit approved by
the Township Board of Auditors. Accordingly, Reed violated Section 1103(a) of the Ethics
Act when he used the authority of office to obtain a private pecuniary benefit for himself by
submitting erroneous and misleading timesheets and participating in Board action to
approve the Township's payroll, which included his weekly salary for pay periods that
included fourteen days that Reed did not work as Roadmaster.
However, as to the above, we do note that Reed claimed 291 hours worked in 1998
in excess of the standard workweek, which Reed considered as compensatory time that he
did not use. In addition, from January 1, 1999 through August 22, 1999, Reed claimed
131.25 hours worked in excess of the standard workweek, which he considered as
compensatory time. Reed used no compensatory time in 1999 prior to August 23, 1999.
Section 1107(13) of the Ethics Act specifically empowers this Commission to impose
restitution in those instances where a public official /employee has obtained a financial gain
in violation of the Ethics Act. In this case, we believe that restitution is appropriate given
the violation of Section 1103(a) of the Ethics Act. Accordingly, Reed is directed to pay
$2,100.00 through this Commission to Hempfield Township. Respondent's attorney has
advised that Reed has refunded the money without specifying the amount. Accordingly,
upon verification of the amount refunded by Reed, said amount shall be credited to
$2,100.00. If the amount refunded by Reed is less than the $2,100.00 ordered, Reed is
directed to pay the balance through this Commission to Hempfield Township within thirty
days of the date of mailing of this Order. Further, verification of any such refund must be
provided by Reed to the Investigative Division within 30 days of the issuance of this order.
Compliance with the foregoing will result in the closing of this case with no further action
by the Commission. Non - compliance will result in the institution of an order enforcement
action.
IV. CONCLUSIONS OF LAW:
1. Reed, as Supervisor for Hempfield Township, is a public official subject to the
provisions of Act 93 of 1998.
2. Reed violated Section 1103(a) of the Ethics Act when he submitted erroneous and
misleading timesheets to Hempfield Township and participated in Board action to
approve the Township's payroll, which included his weekly salary for pay periods
that included fourteen days that Reed did not work as Roadmaster.
In Re: Paul Reed
: File Docket: 00- 020 -C2
: Date Decided: 1/22/01
: Date Mailed: 1/29/01
ORDER NO. 1177
1 Reed, as a Supervisor for Hempfield Township, violated Section 1103(a) of the
Ethics Act when he submitted erroneous and misleading timesheets to Hempfield
Township and participated in Board action to approve the Township's payroll, which
included his weekly salary for pay periods that included fourteen days that Reed did
not work as Roadmaster.
2. Reed is directed to make restitution in the amount of $2,100.00. Reed is directed to
pay $2,100.00, less any refund already made, through this Commission to
Hempfield Township within thirty days of the date of issuance of this order.
a. Compliance with the foregoing will result in the closing of this case
with no further action by the Commission.
b. Non - compliance will result in the institution of an order enforcement
action.
BY THE COMMISSION,
LOUIS W. FRYMAN, VICE CHAIR