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Home My WebLink About1195 BartholomewIn Re: Linda Bartholomew File Docket: X -ref: Date Decided: Date Mailed: Before: Daneen E. Reese, Chair Louis W. Fryman, Vice Chair John J. Bolger Frank M. Brown Susan Mosites Bicket Donald M. McCurdy 99- 018 -C2 Order No. 1195 5/15/01 5/30/01 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 filed and a hearing was held. 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 Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11, Act 93 of 1998, which essentially repeats Act 9 of 1989 and provides for the completion of pending matters under Act 93 of 1998.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. Bartholomew, 99- 018 -C2 Page 2 I. ALLEGATION: That Linda Bartholomew, a public official in her capacity as a Director of the Forest - Warren Counties Department of Human Services, violated the following provisions of the State Ethics Act (Act 93 of 1998) when she used the authority of her office for the private pecuniary benefit of a member of her immediate family and /or businesses with which a member of her immediate family is associated by directing and approving that computer and computer related purchases be made from computer companies employing her daughter as a sales representative; and when she selected her daughter for a consultant position for the Department of Human Services; and when she failed to file Statements of Financial Interests for the calendar years 1995, 1996, and 1998. Section 3. Restricted Activities (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. §1103(a). Section 2. 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 1104. Statement of financial interests required to be filed. (a) Public official or public employee. - -Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Each public employee and public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a Bartholomew, 99- 018 -C2 Page 3 position. Persons who are full -time or part -time solicitors for political subdivisions are required to file under this section. 65 Pa. C. S. §1104(a). II. FINDINGS: A. Pleadings 1 The Investigative Division of the State Ethics Commission received information alleging that Linda Bartholomew violated provisions of the State Ethics Act (Act 9 of 1989). 2. Upon review of the information the Investigative Division initiated a preliminary inquiry on March 26, 1999. 3. The preliminary inquiry was completed within sixty days. 4. On May 20, 1999, a letter was forwarded to Linda Bartholomew by the Investigative Division of the State Ethics Commission informing her that a complaint against her was received by the Investigative Division and that full investigation was being commenced. a. Said letter was forwarded by certified mail, no. Z 377 194 601. b. The domestic return receipt bore the signature of Alvan R. Bartholomew, with a delivery date of May 22, 1999. 5. On August 12, 1999, the Executive Director of the State Ethics Commission filed an application for a ninety day extension of time to complete the investigation. 6. The Commission issued an order on August 30, 1999, granting the ninety day extension. 7. On October 22, 1999, the Executive Director of the State Ethics Commission filed an application for a ninety day extension of time to complete the investigation. 8. The Commission issued an order on November 22, 1999, granting the ninety day extension. 9. Periodic notice letters were forwarded to Linda Bartholomew in accordance with the provisions of the Ethics Law advising her of the general status of the investigation. 10. The Investigative Complaint was mailed to the Respondent on May 12, 2000. 11. Linda J. Bartholomew was employed as the Director of the Forest - Warren County Department of Human Services (DHS) from December 23, 1991, until February 16, 1999. a. Bartholomew was the Acting DHS Director from October 1, 1991, until December 23, 1991. 12. Bartholomew was previously employed with Children's Services of Warren County until the early summer of 1979. Bartholomew, 99- 018 -C2 Page 4 13. Bartholomew held various positions during her tenure with Children's Services and the Department of Human Services which included the following: a. Caseworker. b. Director of Day Care /Associate Director of Day Care. c. Residential Program Director. 14. In 1979 the counties of Forest and Warren combined human services of each county into one department known as the Forest - Warren Department of Human Services (DHS). 15. The Department of Human Services is a governmental body formed to include all branches of Human Services for both Forest and Warren Counties. a. One director oversees associate directors of several programs. 16. A Governing Board composed of the three commissioners of both Forest and Warren Counties oversees the Department of Human Services. a. The Governing Board typically holds monthly meetings. 1. The DHS director typically attends Governing Board meetings. b. The DHS director is to direct the preparation of and interpret budgets, expenditure reports, and statistical information for monthly Governing Board meetings. c. The DHS director is to prepare a monthly director's report to the Governing Board relating the activities of the agency. 17. Bartholomew's job description as Human Services Director included, in part, the following duties: a. Planning, organization, management, direction and administration of work of the Department of Human Services. 1. Work is performed under the general direction of the six County Commissioners of Forest and Warren Counties and reviewed for adherence to established departmental, state, and federal policies and procedures through conferences, written reports, and evaluation of results obtained. b. Direction of the preparation of annual service plans, budget estimates, budgetary control, needs assessment, service coordination, and evaluation efforts related to all programs via statistical analysis and other available means. c. Development of procedures and overall responsibility of all the funds coming into the Department of Human Services from private, state, and federal sources. d. Direct work with the department lawyer in developing contracts for all programs. Bartholomew, 99- 018 -C2 Page 5 18. The Governing Board does not typically approve purchases by the Department of Human Services less than $10,000. 19. Purchases made for DHS are regulated by provisions of the county code for sixth (Warren) and eighth (Forest) class counties. a. Section 1801 of the County Code requires the county commissioners contract for all services and personal property. b. Section 1802 requires contracts or purchases in excess of $10,000 be made from the lowest responsible bidder after due notice in a newspaper of general circulation. c. Section 1801(b) of the County Code provides that written or telephone price quotations from at least three qualified and responsible contractors are to be requested for all contracts that exceed four thousand ($4,000.00) but are less than the amount requiring advertisement and competitive bidding, or in lieu of price quotations, a memorandum is to be kept on file showing that fewer than three qualified contractors exist in a market area within which it is practicable to obtain quotations. 1. Written price quotations, written records of telephonic price quotations and memoranda are to be maintained for a period of three years. 20. DHS purchases must also be made within Department of Public Welfare regulations which define allowable costs for reimbursement by DPW for fixed assets and equipment. 21. County Code regulations need not be adhered to if the vendor from which purchases are made is on the State Vendor Contract listing. a. The State Vendor Contract is a listing of approved vendors who have previously submitted bids to the state regarding purchases of items or services and have been approved as vendors by the Pennsylvania Department of General Services. 22. In the early 1990's, the Department of Human Services expanded computer operations and began purchasing equipment in an effort to comply with state mandates. 23. Computer equipment purchases increased in the mid- 1990's to enable the Department of Human Services to participate in the AFCARS (Adoption and Foster Care Analysis and Reporting System) program mandated by the state. a. AFCARS was an interim program to be utilized until the state could implement PACWIS (Pennsylvania Automated Child Welfare Information System) in July 1999. 24. Purchasing guidelines, in regard to computers and related equipment, utilized by the Department of Human Services included the following: a. Conduction of a "needs assessment" based on state specifications, age of existing equipment, new positions, etc., by the Management Information Systems (MIS) staff. Bartholomew, 99- 018 -C2 Page 6 b. Completion of a purchase request or a Fixed Asset Purchase Request (FAPR) by the Information Systems manager or a program assistant director. 1. Assets are considered Fixed Assets if they cost more than $300.00 to $500.00 (depending on the program) and have a life expectancy of more than one year. c. Procurement of price quotes for said purchase(s) by the MIS staff. d. Submittal to the DHS director for approval or denial. e. Placement of the order by MIS staff after approval is given. 25. The Management Information Systems (MIS) staff is responsible for assessing the computer and related equipment needs of the Department of Human Services. a. Marlene Leidecker is the manager of the Information Systems staff. 1. Bartholomew is Leidecker's immediate supervisor. b. Mark Irons is a Computer Operator I. 1. Leidecker is Irons' immediate supervisor. c. The MIS staff is supervised by Linda Bartholomew. 26. Leidecker completes needs assessments regarding state mandated requirements for the Department of Human Services. 27. Irons has completed needs assessments regarding repair and /or upgrading of equipment for the Department of Human Services since his employment in 1994. a. Leidecker completed this duty prior to Irons' employment. 28. Sherrie Flannery is the daughter of Linda Bartholomew. a. Flannery married Michael S. Flannery (A.K.A. Shane Flannery) in December, 1996. 29. The Department of Human Services utilized a company known as Computerland, 5130 Peach Street, Erie, Pa, for computer and related equipment until 1997. 30. Flannery obtained a position as sales representative for Computerland on July 8, 1991. a. Flannery's sales area included Warren, PA. b. Flannery's starting salary was $1,500.00 per month plus "bonus commission of 15% of gross margin less salary." 1. Computerland sales representatives do not receive commissions on service calls performed. c. Flannery's guaranteed salary increased to $1,750.00 per month on July 1, 1992, due to past performance. Bartholomew, 99- 018 -C2 Page 7 31. Sherrie Flannery was Mark Irons' contact at Computerland regarding sales. a. Leidecker was the contact before Irons. 32. Irons placed one order with Computerland in which Flannery was not the sales representative. 33. Leidecker was not satisfied with Computerland. a. Leidecker expressed her displeasure with Computerland service to Bartholomew on several occasions. 34. Flannery voluntarily resigned her employment with Computerland effective November 7, 1997. 35. From July 1, 1994, through November 24, 1997, the Department of Human Services purchased computers, related equipment, and services from Computerland totaling $353,901.94 as indicated by individual program below: Children and Youth Services of Warren County $ 55,371.50 Children and Youth Services of Forest County 34,197.50 Drug and Alcohol Program 3,308.50 Mental Health Program 32,275.00 Mental Retardation Program 60,892.57 Mega Waiver Program 15,549.88 Early Intervention Program 8,311.00 General Account 119,893.99 Family Preservation Program 11,537.00 FSSR 2,526.00 Total Expenditures $353,901.94 36. Sherrie Flannery was the sales representative on 85% of invoices issued (326 out of 384) to the Department of Human Services for the purchase of computers and related equipment. a. Flannery was not the sales representative associated with invoices regarding services calls. 37. From July 1994 through September 1997 the time period that Sherrie Flannery was employed by Computerland, DHS made 79 computer related fixed assets purchases from Computerland. a. Seventy -two of the 79 Fixed Assets Purchase Orders through Computerland. 38. Ninety -two (92) of the FAPR's placed through Computerland with no other quotes being obtained. Invoice No. 204 31331 31333 31334 Invoice Amount $ 149.00 $ 179.00 $ 405.00 $2,419.00 Invoice Date 08/30/95 06/30/94 06/30/94 06/30/94 (91%) were placed by DHS were done Sales Rep. SB* SB SB SB Bartholomew, 99- 018 -C2 Page 8 31335 $2,340.00 06/30/94 SB 31336 $2,240.00 06/30/94 SB 31340 $ 96.00 06/30/94 SB 31342 $2,799.00 06/30/94 SB 31337 $11,691.00 06/30/94 SB 31351 $2,036.00 06/30/94 SB 31493 $2,799.00 07/25/94 SB 31338 $ 410.00 06/30/94 SB 31341 $ 229.00 06/30/94 SB 31343 $ 149.00 06/30/94 SB Invoice No. Invoice Amount Invoice Date Sales Rep. 31344 $ 149.00 06/30/94 SB 31567 $2,146.00 06/23/94 SB 31680 $2,686.00 06/23/94 SB 31599 $3,762.00 06/23/94 SB 31595 $ 295.00 06/30/94 SB 32039 $1,785.00 09/13/94 SB 32040 $2,756.00 09/13/94 SB 32041 $2,808.00 09/13/94 SB 32224 $2,805.00 09/28/94 SB 32288 $1,960.00 09/30/94 SB 32559 $ 275.00 10/25/94 SB 33204 $ 395.00 12/20/94 SB 34358 $ 211.00 03/21/95 SB 35383 $ 185.00 06/21/95 SB 35316 $ 410.00 06/14/95 SB 35314 $2,471.00 06/14/95 SB 36321 $2,605.00 09/29/95 SB 32560 $ 221.00 10/25/94 SB 32561 $ 149.00 10/25/94 SB 32709 $2,200.00 11/08/94 SB 32859 $ 378.00 11/21/94 SB 32814 $ 395.00 11/16/94 SB 33754 $1,596.00 01/31/95 SB 33756 $ 385.00 01/31/95 SB 33806 $1,170.00 02/03/95 SB 33940 $ 149.00 02/15/95 SB 34058 $1,470.00 02/27/95 SB 34435 $ 124.00 03/29/95 SB 34540 $ 170.00 04/05/95 SB 34812 $ 103.00 04/28/95 SB 35228 $ 325.00 06/06/95 SB 35142 $ 196.00 05/30/95 SB 35314 $2,471.00 06/14/95 SB 35393 $ 400.00 06/32/95 SB Bartholomew, 99- 018 -C2 Page 9 35729 $1,300.00 06/28/95 SB 35730 $1,496.00 06/28/95 SB 36261 $ 149.00 09/26/95 SB 36446 $ 149.00 10/11/95 36522 $2,306.00 10/17/95 SB 36944 $ 724.00 12/08/95 SB 37431 $ 560.00 01/10/96 SB 38206 $1,330.00 03/19/96 SB 38375 $ 110.00 04/03/96 SB 38558 $4,178.00 04/23/96 SB 39024 $ 411.00 06/18/96 SB Invoice No. Invoice Amount Invoice Date Sales Rep. 39075 $1,180.00 06/11/96 SB 39137 $3,380.00 06/18/96 SB 39138 $4,806.00 06/18/96 SB 39139 $ 970.00 06/18/96 SB 39177 $4,620.00 06/21/96 SB 39267 $2,746.00 06/28/96 SB 39303 $1,452.00 06/27/96 LS 39386 $ 434.00 06/27/96 LS 40692 $ 135.00 11/11/96 SB 41000 $ 168.00 12/11/96 SB 41919 $6,761.00 03/12/97 SB 42947 $ 258.00 06/19/97 SB 42948 $ 258.00 06/19/97 SB 42949 $ 258.00 06/19/97 SB 42950 $2,580.00 06/19/97 SB 42994 $ 278.00 06/23/97 SB 42995 $ 556.00 06/23/97 SB 42996 $ 278.00 06/23/97 SB 42997 $ 278.00 06/23/97 SB 42998 $ 556.00 06/23/97 SB 42999 $ 278.00 06/23/97 SB 43000 $ 556.00 06/23/97 SB 43001 $ 834.00 06/23/97 SB 43002 $ 278.00 06/23/97 SB 43003 $1,668.00 06/23/97 SB 43007 $ 278.00 06/23/97 SB 43008 $ 278.00 06/23/97 SB 43009 $ 278.00 06/23/97 SB 43025 $2,180.00 06/23/97 SB 43078 $2,422.00 06/27/97 SF ** 43107 $2,425.00 06/30/97 SF 43234 $ 623.00 06/30/97 SF 43235 $ 623.00 06/30/97 SF Bartholomew, 99- 018 -C2 Page 10 43238 $1,023.00 06/30/97 SF 43336 $ 280.00 06/27/97 SF 43983 $ 618.00 09/30/97 SF Total $125,939.00 *Indicates Sherrie Bartholomew * *Indicates Sherrie Flannery a. Mark Irons did not always obtain or write quotes on the FAPR. 39. Sherrie Flannery was the sales representative on all but two of the FAPR's placed with Computerland without quotes. Invoice No. Amount 39303 $1,452.00 39386 $ 434.00 Total $1,886.00 40. Linda Bartholomew approved purchase orders, invoices and FAPR's related to all these purchases from Computerland. 41. Computerland's profit percentage regarding sales to DHS totaled 14 %. 42. Flannery received $7,486.00 in commissions from Computerland as a direct result of purchases made by DHS from July 1, 1994, through September 30, 1997, as indicated below: Computerland Year Commission 1994 $1,600.00 1995 768.00 1996 2,287.00 1997 2,831.00 Total: $7,486.00 43. Flannery received no commission on sales occurring after September 30, 1997. a. Flannery forfeited all commissions after September 30, 1997, upon resigning from Computerland. 44. In her capacity as DHS Director, Bartholomew approved purchases and authorized payments by initialing invoices, purchase orders and fixed asset purchase requests. 45. Bartholomew approved 82% (315 of 384) of all purchases made by DHS from Computerland during the time that her daughter was employed as a sales representative for Computerland. a. This included purchases made through FAPR's. 46. Bartholomew's initials or signature approving Computerland invoices is present on at least one form of supporting documentation as shown below: Check # Inv. # Invoice Amount P.O. Date Inv. Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. *06859 31338 $410.00 06/27/94 06/30/94 08/09/94 LJB LJB LJB SB *06859 31341 $229.00 06/27/94 06/30/94 08/09/94 LJB LJB SB *06859 31343 $149.00 06/27/94 06/30/94 08/09/94 LJB LJB LJB SB *06859 31344 $149.00 06/27/94 06/30/94 08/09/94 LJB LJB LJB SB *06859 31350 $605.00 06/27/94 06/30/94 08/09/94 LJB LJB SB *06859 31332 $81.00 06/30/94 06/30/94 08/09/94 LJB LJB - SB *06859 31335 $2,340.00 06/30/94 06/30/94 08/09/94 LJB LJB LJB SB *07011 31597 $345.00 06/23/94 06/30/94 09/27/94 LJB LJB SB *07011 31598 $28.00 06/23/94 06/30/94 09/27/94 LJB LJB SB *07011 31595 $295.00 06/23/94 06/30/94 09/27/94 LJB SB 07011 32039 $1,785.00 09/01/94 09/13/94 09/27/94 LJB LJB SB 07011 32040 $2,756.00 09/01/94 09/13/94 09/27/94 LJB LJB SB 07115 32041 $2,808.00 06/20/94 09/13/94 10/25/94 LJB SB 07115 32224 $2,805.00 09/28/94 09/28/94 10/25/94 LJB LJB SB *07172 31601 $106.00 06/30/94 06/30/94 11/09/94 LJB SB 07172 32560 $221.00 10/25/94 10/25/94 11/09/94 LJB LJB SB 07172 32288 $1,960.00 09/30/94 09/30/94 11/09/94 LJB LJB LJB SB 07172 32255 $117.00 09/30/94 09/30/94 11/09/94 LJB LJB - SB 07265 32615 $4,210.00 10/31/94 10/31/94 12/09/94 LJB LJB LJB SB 07278 32709 $2,200.00 11/08/94 11/08/94 12/09/94 LJB LJB LJB SB 07492 32859 $378.00 11/21/94 11/21/94 01/25/95 LJB LJB SB 07492 33205 $958.00 12/20/94 12/20/94 01/25/95 LJB LJB SB 07492 33203 $72.00 12/20/94 12/20/94 01/25/95 LJB LJB SB 07492 32935 $27.00 11/29/94 11/29/94 01/25/95 LJB SB 07493 33208 $565.00 12/20/94 12/20/94 01/25/95 LJB LJB - MW 07493 33112 $77.50 12/12/94 12/12/94 01/25/95 LJB LJB - CS Bartholomew, 99- 018 -C2 Page 11 GENERAL ACCOUNT Check # Inv. # Invoice Amount P.O. Date Inv. Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 07586 33754 $1,596.00 01/31/95 01/31/95 02/23/95 LJB LJB SB 07586 33756 $385.00 01/31/95 01/31/95 02/23/95 LJB LJB LJB SB 07586 33753 $85.00 01/24/95 01/31/95 02/23/95 LJB SB 07586 33646 $22.95 01/24/95 01/24/95 02/23/95 LJB LJB CS 07617 33940 $149.00 02/15/95 02/15/95 02/23/95 LJB LJB SB 07617 33902 $27.50 02/13/95 02/13/95 02/23/95 LJB LJB - EN 07707 34058 $1,470.00 02/27/95 02/27/95 03/27/95 LJB LJB LJB SB 07707 34147 $846.00 03/06/95 03/06/95 03/27/95 LJB LJB SB 07821 34440 $10.00 03/29/95 03/29/95 04/25/95 LJB LJB SB 07821 34434 $9.00 03/29/95 03/29/95 04/25/95 LJB LJB SB 08067 35229 $99.00 06/06/95 06/06/95 07/11/95 LJB SB 08126 35228 $325.00 06/06/95 06/06/95 07/27/95 LJB LJB SB 08126 35142 $196.00 05/30/95 05/30/95 07/27/95 LJB LJB LJB SB 08126 35400 $82.00 06/22/95 06/22/95 07/27/95 LJB LJB SB 08126 35510 $195.00 06/30/95 06/30/95 07/27/95 LJB LJB LJB SB 08167 35745 $70.00 07/31/95 07/25/95 08/10/95 - CS 08211 35729 $1,300.00 06/28/95 06/28/95 08/25/95 LJB LJB SB 08211 35730 $1,496.00 06/28/95 06/28/95 08/25/95 LJB LJB LJB SB 08211 106989 $108.00 06/28/95 06/30/95 08/25/95 LJB LJB - SB 08211 35609 $220.00 06/30/95 07/12/95 08/25/95 LJB LJB - DO 08269 134 $82.00 08/11/95 08/15/95 09/12/95 LJB LJB SB 08350 199 $63.00 Illegible 08/30/95 10/10/95 LJB LJB SB 08350 35971 $27.50 - 08/25/95 10/10/95 - - CS 08414 36095 $110.00 09/29/95 09/08/95 10/24/95 LJB LJB - DO 08486 36522 $2,306.00 10/20/95 10/17/95 11/10/95 LJB LJB - SB 08486 36554 $100.00 10/18/95 10/19/95 11/10/95 LJB SB 08609 36878 $98.00 Illegible 11/16/95 12/12/95 LJB SB Bartholomew, 99- 018 -C2 Page 12 Check # Inv. # Invoice Amount P.O. Date Inv. Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 08609 36881 $263.00 Illegible 11/16/95 12/12/95 LJB SB 10422 36944 $724.00 12/08/95 11/27/95 01/09/96 LJB LJB LJB SB 10470 37091 $260.00 12/11/95 12/11/95 01/25/96 LJB LJB SB 10470 37050 $55.00 12/11/95 12/06/95 01/25/96 LJB LJB - EN 10470 37404 $90.00 12/15/95 01/08/96 01/25/96 LJB BA 10470 37439 $446.00 12/28/95 01/10/96 01/25/96 LJB SB 10470 37051 $130.00 12/11/95 12/06/95 01/25/96 LJB LJB - CA 10470 37052 $58.52 12/11/95 12/06/95 01/25/96 LJB LJB - EN 10470 37092 $70.00 12/11/95 12/11/95 01/25/96 LJB LJB SB 10470 37436 $196.00 01/09/96 01/10/96 01/25/96 LJB SB 10470 37431 $560.00 01/09/96 01/10/96 01/25/96 LJB LJB SB 10470 37367 $12.00 01/04/96 01/05/96 01/25/96 SB 10598 37620 $66.00 01/19/96 01/24/96 02/26/96 CS 10598 37742 $197.00 01/30/96 02/06/96 02/26/96 SB 10655 37973 $57.00 01/25/96 02/26/96 03/12/96 LJB SB 10706 36262 $20.00 - 09/26/96 03/26/96 LJB - SB 10751 38230 $220.00 03/05/96 03/20/96 04/09/96 LJB SB 10751 38206 $1,330.00 03/14/96 03/19/96 04/09/96 LJB LJB LJB SB 10751 38211 $67.00 03/14/96 03/19/96 04/09/96 LJB LJB SB 10751 38207 $57.00 02/22/96 03/19/96 04/09/96 LJB SB 10810 38375 $110.00 03/22/96 04/03/96 04/25/96 LJB SB 10866 38557 $244.00 04/10/96 04/23/96 05/10/96 LJB SB 10924 38558 $4,178.00 03/27/96 04/23/96 05/24/96 LJB LJB SB 10924 38613 $275.00 03/27/96 04/26/96 05/24/96 LJB LJB SB 10924 38612 $275.00 03/27/96 04/26/96 05/24/96 LJB LJB SB 10981 38830 $65.00 No Date 05/17/96 06/11/96 SB 11036 37829 $99.00 06/13/96 02/17/96 06/25/96 LJB LJB SB Bartholomew, 99- 018 -C2 Page 13 Check # Inv. # Invoice Amount P.O. Date Inv. Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 11036 38632 $110.00 04/29/96 04/29/96 06/25/96 LJB - SB 11036 38743 $10.00 - 05/09/96 06/25/96 LJB - SB 11036 38906 $235.00 06/04/96 05/20/96 06/25/96 LJB LJB - SB 11036 38955 $552.00 06/10/96 05/31/96 06/25/96 LJB SB 11036 39025 $49.00 06/13/96 06/07/96 06/25/96 SB 11036 39026 $105.00 05/24/96 06/07/96 06/25/96 LJB LJB SB 11036 39060 $72.30 06/10/96 06/10/96 06/25/96 LJB EN 11081 39010 $99.00 05/24/96 06/06/96 07/09/97 LJB SB 11081 39118 $140.00 - 06/17/96 07/09/96 - - BA 11168 39349 $65.00 06/27/96 06/27/96 07/26/96 LJB LJB LS 11168 39450 $641.00 06/14/96 06/27/96 07/26/96 LJB LS 11168 39109 $148.00 06/14/96 06/14/96 07/26/96 LJB SB 11168 39028 $98.00 06/14/96 06/07/96 07/26/96 LJB SB 11227 39514 $63.00 06/12/96 06/27/96 08/12/96 LJB - LS 11227 39515 $98.00 04/17/96 06/27/96 08/12/96 LJB LS 11260 39303 $1,452.00 06/27/96 06/27/96 08/26/96 LJB LJB LS 11260 39447 $291.00 06/27/96 06/27/96 08/26/96 LJB LJB LS 11260 39448 $298.00 06/27/96 06/27/96 08/26/96 LJB LJB LS 11260 39644 $20.00 08/19/96 Illegible 08/26/96 SB 11260 39722 $596.00 04/17/96 08/14/96 08/26/96 LJB SB 11318 39599A $1,988.00 06/27/96 06/27/96 09/09/96 LJB LJB LS 11318 39530 $3,924.00 07/01/96 07/25/96 09/09/96 LJB LJB SB 11318 39643 $138.00 07/29/96 08/06/96 09/09/96 LJB LJB SB 11349 40036 $252.00 09/09/96 09/10/96 09/25/96 LJB SB 11349 39264 $148.00 06/27/96 06/28/96 09/25/96 LJB LJB SB 11349 39448 $298.00 - 06/27/96 09/25/96 LJB - - LS 11507 40424 $138.00 10/09/96 10/15/96 11/13/96 SB Bartholomew, 99- 018 -C2 Page 14 Check # Inv. # Invoice Amount P.O. Date Inv. Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 11507 40456 $240.00 10/07/96 10/17/96 11/13/96 SB 11507 40535 $145.00 10/17/96 10/24/96 11/13/96 SB 11595 40692 $135.00 11/04/96 11/11/96 12/11/96 SB 11689 41000 $168.00 11/13/96 12/11/96 01/10/97 LJB LJB SB 11689 40999 $99.00 12/03/96 12/11/96 01/10/97 LJB SB 11689 40997 $398.00 12/03/96 12/11/96 01/10/97 SB 11689 41199 $190.00 11/06/96 12/31/96 01/10/97 LJB SB 11823 41371 $608.00 01/12/97 01/21/97 02/10/97 LJB SB 11823 41370 $214.00 01/12/97 01/21/97 02/10/97 SB 11853 41455 $410.22 01/06/97 01/27/97 02/25/97 LJB SB 11853 41483 $397.00 01/21/97 01/28/97 02/25/97 SB 11853 41546 $108.00 02/05/97 02/06/97 02/25/97 BA 11853 41566 $98.00 01/28/97 02/06/97 02/25/97 SB 11853 41568 $75.00 01/30/97 02/06/97 02/25/97 LJB SB 11853 41567 $135.00 01/30/97 02/06/97 02/25/97 LJB SB 11982 41716 $212.00 02/13/97 02/19/97 03/24/97 LJB LJB SB 11982 41657 $163.00 02/13/97 02/13/97 03/24/97 LJB LJB BA 11982 41917 $505.00 03/11/97 03/12/97 03/24/97 LJB LJB LJB SB 11982 41919 $6,761.00 03/11/97 03/12/97 03/24/97 LJB LJB LJB SB 12038 41966 $20.00 03/11/97 03/17/97 04/10/97 SB 12038 41983 $1,889.00 03/07/97 03/18/97 04/10/97 LJB LJB LJB SB 12038 41980 $218.00 03/07/97 03/18/97 04/10/97 LJB LJB LJB SB 12038 42038 $630.00 03/20/97 03/21/97 04/10/97 LJB LJB SB 12038 42077 $196.00 03/21/97 03/27/97 04/10/97 LJB LJB SB 12038 42078 $777.00 04/02/97 03/27/97 04/10/97 LJB LJB SB 12150 42298 $264.00 04/09/97 04/16/97 05/13/97 LJB LJB SB 12150 42216 $1,590.00 04/01/97 04/02/97 05/13/97 LJB LJB SB Bartholomew, 99- 018 -C2 Page 15 Check # Inv. # Invoice Amount P.O. Date Inv. Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 12225 42430 $540.00 04/29/97 04/29/97 05/27/97 LJB LJB SB 12225 42432 $159.00 04/11/97 04/29/97 05/27/97 LJB LJB SB 12225 42471 $188.00 04/29/97 05/05/97 05/27/97 LJB LJB SB 12274 42603 $132.00 05/09/97 05/16/97 06/10/97 LJB LJB SB 12355 42909 $20.00 06/16/97 06/16/97 06/24/97 SB 12488 43154 $130.00 - 07/08/97 07/28/97 - - - 12509 42513 $29.00 05/08/97 05/08/97 07/28/97 SB 12509 42734 $6,633.00 05/30/97 05/30/97 07/28/97 LJB LJB LJB SB 12509 42787 $390.00 05/30/97 06/05/97 07/28/97 LJB LJB SB 12509 42735 $4,240.00 05/30/97 05/30/97 07/28/97 LJB LJB LJB SB 12509 42783 $260.00 05/30/97 06/05/97 07/28/97 LJB LJB LJB SB 12509 42736 $4,240.00 05/30/97 05/30/97 07/28/97 LJB LJB LJB SB 12509 42788 $260.00 05/30/97 06/05/97 07/28/97 LJB LJB LJB SB 12509 42741 $4,786.00 Unknown 05/30/97 07/28/97 LJB LJB LJB SB 12509 42789 $260.00 Unknown 06/05/97 07/28/97 LJB LJB LJB SB 12509 42747 $628.00 05/30/97 05/30/97 07/28/97 LJB LJB LJB SB 12509 42752 $55.00 05/30/97 05/30/97 07/28/97 LJB LJB DW 12509 42753 $55.00 05/30/97 05/30/97 07/28/97 LJB LJB DW 12509 42912 $82.00 05/30/97 06/16/97 07/28/97 LJB LJB LJB SB 12509 42928 $164.00 06/16/97 06/17/97 07/28/97 LJB LJB LJB SB 12509 42959 $510.00 05/30/97 06/19/97 07/28/97 LJB LJB SB 12509 42995 $556.00 06/18/97 06/23/97 07/28/97 LJB LJB LJB SB 12509 43003 $1,668.00 06/18/97 06/23/97 07/28/97 LJB LJB LJB SB 12509 43008 $278.00 06/18/97 06/23/97 07/28/97 LJB LJB LJB SB 12509 43018 $608.00 05/30/97 06/23/97 07/28/97 LJB LJB LJB SF 12509 43019 $704.00 05/30/97 06/23/97 07/28/97 LJB LJB SF 12509 43021 $303.00 05/30/97 06/23/97 07/28/97 LJB LJB SF Bartholomew, 99- 018 -C2 Page 16 Check # Inv. # Invoice Amount P.O. Date Inv. Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 12509 43023 $48.00 05/30/97 06/23/97 07/28/97 LJB LJB LJB SF 12509 43024 $1,236.00 06/18/97 06/23/97 07/28/97 LJB LJB SF 12509 42998 $556.00 06/18/97 06/23/97 07/28/97 LJB LJB SB 12509 43074 $738.00 06/30/97 06/27/97 07/28/97 LJB LJB LJB SF 12509 43076 $1,604.00 06/30/97 06/27/97 07/28/97 LJB LJB LJB SF 12509 43107 $2,425.00 06/18/97 06/30/97 07/28/97 LJB SF 12509 43114 $2,586.00 06/30/97 06/30/97 07/28/97 LJB LJB LJB SF 12509 43115 $734.00 06/30/97 06/30/97 07/28/97 LJB LJB LJB SF 12509 42910 $492.00 06/16/97 06/16/97 07/28/97 LJB LJB LJB SB 12578 43077 $110.00 06/30/97 06/27/97 08/13/97 LJB LJB LJB SF 12578 43159 $279.00 06/20/97 06/30/97 08/13/97 LJB SF 12578 43155 $30.00 - 07/09/97 08/13/97 - LF 12621 43157 $1,122.00 06/30/97 06/30/97 08/26/97 LJB LJB SF 12621 43151 $370.00 06/30/97 07/07/97 08/26/97 LJB LJB LJB SF 12621 43332 $148.00 06/30/97 06/30/97 08/26/97 LJB LJB LJB SF 12621 43333 $118.00 06/30/97 06/30/97 08/26/97 LJB LJB SF 12621 43370 $628.00 08/04/97 08/04/97 08/26/97 LJB LJB SF 12899 44086 $126.00 10/03/97 10/08/97 10/28/97 LJB LJB SF 12899 44116 $27.50 10/09/97 10/10/97 10/28/97 DIN 12899 43909 $158.00 Unknown 09/24/97 10/28/97 - SF 12899 44078 $255.00 09/23/97 10/08/97 10/28/97 LJB LJB LJB SF 12899 43234 $623.00 06/30/97 06/30/97 10/28/97 LJB LJB LJB SF 12899 43236 $158.00 06/30/97 06/30/97 10/28/97 LJB LJB LJB SF 12899 43238 $1,023.00 06/30/97 06/30/97 10/28/97 LJB LJB LJB SF 12899 43237 $316.00 Unknown 06/30/97 10/28/97 LJB LJB LJB SF 12899 43116 $97.00 05/30/97 06/30/97 10/28/97 LJB LJB SF 12899 43583 $96.00 08/13/97 08/22/97 10/28/97 LJB LJB SF Bartholomew, 99- 018 -C2 Page 17 Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. *06901 31331 $179.00 06/27/94 06/30/94 08/10/94 LJB LJB PR SB *06915 31599 $3,762.00 06/23/94 06/23/94 08/25/94 LJB LJB Sign. SB 07008 31741 $27.50 08/16/94 08/16/94 09/27/94 LJB LJB - CS *07008 31600 $12.00 06/17/94 06/30/94 09/27/94 LJB LJB LJB SB 07211 32710 $144.00 11/08/94 11/08/94 12/01/94 LJB LJB SB 07841 34812 $103.00 04/28/95 04/28/95 06/26/95 LJB LJB SB 07946 35511 $200.00 06/30/95 06/30/95 07/25/95 LJB LJB SB 08068 35731 $275.00 06/28/95 06/28/95 08/25/95 LJB LJB SB 08068 35513 $27.50 08/11/95 07/07/95 08/25/95 LJB CS 08321 36294 $90.00 09/29/95 09/28/95 11/09/95 LJB LJB - SB 11050 37517 $90.00 01/05/96 01/16/96 01/26/96 LJB SB 11051 37196 $399.00 12/08/95 12/19/95 01/26/96 LJB SB 11052 37379 $95.00 12/28/95 01/05/96 01/26/96 LJB SB 11106 37517 $90.00 01/05/96 01/16/96 02/12/96 LJB SB 11322 38208 $130.00 02/27/96 03/19/96 04/10/96 LJB SB 11815 39800 $5.00 - 08/26/96 - SB 11884 39512 $2,348.00 06/27/96 06/27/96 09/10/96 LJB LJB LS 11911 40038 $50.00 09/09/96 09/10/96 09/24/96 SB 11911 40039 $283.00 09/13/96 09/10/96 09/24/96 LJB LJB SB 11988 40198 $50.00 09/09/96 09/24/96 10/25/96 SB 12047 40459 $57.00 10/15/96 10/17/96 11/12/96 SB Check Inv. Invoice P.O. Date Inv. Date Check Inv. P.O. FAPR/ Sales # # Amount Date Sign. Sign. PR Rep. Sign. 12899 43704 $894.00 08/19/97 09/05/97 10/28/97 LJB LJB SF 13073 44226 $110.00 10/07/97 10/24/97 12/09/97 LJB LJB SF Bartholomew, 99- 018 -C2 Page 18 MENTAL HEALTH Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 12102 40428 $143.00 10/09/96 10/15/96 11/22/96 LJB LJB SB 12285 41200 $49.00 - 12/31/96 01/27/97 - - - SB 12390 41521 $2,292.00 01/23/97 01/31/97 02/25/97 LJB LJB LJB SB 12711 42289 $98.00 04/07/97 04/15/97 05/27/97 LJB LJB LJB SB 12809 42641 $129.00 04/29/97 05/22/97 06/24/97 LJB LJB SB 12880 42745 $16,960.00 05/30/97 05/30/97 07/10/97 LJB LJB LJB SB 12880 42782 $1,040.00 05/30/97 06/05/97 07/10/97 LJB LJB LJB SB 12880 43000 $556.00 06/18/97 06/23/97 07/10/97 LJB LJB LJB SB 12880 42999 $278.00 06/18/97 06/23/97 07/10/97 LJB LJB LJB SB 12880 42751 $55.00 05/30/97 05/30/97 07/10/97 LJB LJB DIN 12880 42965 $255.00 05/30/97 06/19/97 07/10/97 LJB LJB SB 12880 42964 $255.00 05/30/97 06/19/97 07/10/97 LJB LJB SB 12880 42961 $255.00 05/30/97 06/19/97 07/10/97 LJB LJB SB 12880 42963 $510.00 05/30/97 06/19/97 07/10/97 LJB LJB SB 12880 42960 $765.00 05/30/97 06/19/97 07/10/97 LJB LJB SB 12881 43073 $492.00 06/30/97 06/27/97 07/10/97 LJB LJB LJB SF 12881 42969 $255.00 05/30/97 06/19/97 07/10/97 LJB LJB SB 13037 43160 $1,661.00 06/30/97 06/30/97 08/12/97 LJB SF 13066 43423 $10.00 08/04/97 08/07/97 08/26/97 SF Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 01457 32561 $149.00 09/26/94 10/25/94 11/09/94 LJB LJB SB 01471 32710 $144.00 11/08/94 11/08/94 12/08/94 LJB LJB - SB 01497 32814 $395.00 11/16/94 11/16/94 01/25/95 LJB LJB SB 01523 33942 $27.50 02/15/95 02/15/95 03/10/95 LJB LJB - CS Bartholomew, 99- 018 -C2 Page 19 DRUG & ALCOHOL Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 000411 36446 $149.00 09/29/95 10/11/95 10/24/95 LJB LJB LJB SB 001744 38209 $200.00 02/22/96 03/19/96 04/09/96 LJB LJB - SB 001798 38907 $5.00 05/28/96 05/28/96 06/11/96 LJB LJB SB 001835 39076 $335.00 05/22/96 06/11/96 07/09/96 LJB LJB LJB SB 001865 39394 $298.00 06/10/96 06/27/96 07/25/96 LJB LJB LS 001890 39348 $358.00 06/27/96 06/27/96 07/26/96 LJB LJB LS 001890 39219 $434.00 06/14/96 06/25/96 07/26/96 LJB LJB LJB SB 001890 39351 $45.00 06/14/96 06/27/96 07/26/96 LJB LJB LJB LS 001910 39513 $3,285.00 06/10/96 06/27/96 08/26/96 LJB LJB LS 001931 39676 $118.00 06/25/96 08/08/96 09/09/96 LJB LJB SB 002006 40695 $130.00 11/04/96 11/11/96 12/10/96 SB 002098 41918 $352.00 03/11/97 03/12/97 03/24/97 LJB LJB SB 002229 43336 $280.00 06/20/97 06/30/97 08/26/97 LJB LJB LJB SF 002229 43078 $2,422.00 06/20/97 06/27/97 08/26/97 LJB LJB LJB SF Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 01528 33806 $1,170.00 02/01/95 02/03/95 03/10/95 LJB LJB SB 01537 34059 $160.00 02/27/95 02/27/95 03/27/95 LJB LJB - SB 01561 34435 $124.00 03/29/95 03/29/95 04/25/95 LJB LJB SB 01686 36261 $149.00 09/29/95 09/26/95 10/24/95 LJB LJB SB 01723 36661 $221.00 10/30/95 10/30/95 12/12/95 LJB LJB SB 04189 39070 $149.00 03/22/96 06/11/96 07/09/96 LJB SB 04235 39675 $259.00 07/29/96 08/08/96 09/10/96 LJB LJB LJB SB 04247 39931 $374.00 09/17/96 08/30/96 09/24/96 LJB LJB LJB SB 04567 44498 $59.00 11/24/97 11/24/97 12/22/97 LJB - SF Bartholomew, 99- 018 -C2 Page 20 EARLY INTERVENTION Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. *03716 31337 $11,691.00 06/27/94 06/30/94 08/10/94 LJB LJB SB *03716 31334 $2,419.00 06/27/94 06/30/94 08/10/94 LJB LJB SB *03716 31351 $2,036.00 06/27/94 06/30/94 08/10/94 LJB LJB SB 04568 35485 $19.00 06/29/95 06/29/95 08/01/95 CS 08233 39137 $3,380.00 06/05/96 06/18/96 07/01/96 LJB SB 09185 42515 $98.00 04/16/97 05/08/97 05/27/97 LJB SB 09337 42770 $285.00 05/30/97 06/04/97 07/10/97 LJB LJB LJB SB 09337 42911 $2,250.00 05/30/97 06/16/97 07/10/97 LJB LJB SB 09337 42967 $255.00 05/30/97 06/19/97 07/10/97 LJB LJB SB 09337 43110 $677.00 05/30/97 06/30/97 07/10/97 LJB LJB SF Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 002271 43703 $49.00 09/05/97 09/05/97 10/27/97 LJB LJB SF Bartholomew, 99- 018 -C2 Page 21 MEGA WAIVER Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. *10564 31333 $405.00 06/27/94 06/30/94 08/09/94 LJB LJB LJB SB *10564 31336 $2,240.00 06/27/94 06/30/94 08/09/94 LJB LJB LJB SB *10564 31340 $96.00 06/27/94 06/30/94 08/09/94 LJB LJB SB *10564 31342 $2,799.00 06/27/94 06/30/94 08/09/94 LJB LJB SB *10564 31337 $11,691.00 06/27/94 06/30/94 08/09/94 LJB LJB SB *10564 31351 $2,036.00 06/27/94 06/30/94 08/09/94 LJB LJB SB 10596 31493 $2,799.00 06/30/94 07/25/94 08/11/94 LJB SB *10621 31567 $2,146.00 06/23/94 06/23/94 08/24/94 LJB LJB SB *10621 31680 $2,686.00 06/23/94 06/23/94 08/24/94 LJB SB *10654 31599 $3,762.00 06/23/94 06/23/94 08/25/94 LJB LJB - SB *10752 31594 $795.00 06/17/94 06/30/94 09/27/94 LJB LJB SB *10979 31596 $98.00 06/30/94 06/30/94 11/09/94 LJB - SB 11481 34357 $24.00 03/21/95 03/21/95 04/10/95 LJB LJB SB 11531 34540 $170.00 04/05/95 04/05/95 04/25/95 LJB LJB SB 11531 34541 $24.00 04/05/95 04/05/95 04/25/95 SB 11793 35393 $400.00 06/15/95 06/21/95 07/11/95 LJB SB 11869 35143 $178.00 05/30/95 05/30/95 07/26/95 LJB LJB SB 11869 35315 $368.00 06/14/95 06/14/95 07/26/95 LJB LJB SB 11869 35486 $89.00 06/29/95 06/29/95 07/26/95 LJB LJB SB Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 09401 43025 $2,180.00 06/10/97 06/23/97 07/28/97 LJB LJB LJB SF 09401 42950 $2,580.00 06/10/97 06/19/97 07/28/97 LJB LJB SB 09645 44117 $25.00 10/22/97 10/10/97 10/28/97 HM 09645 43983 $618.00 09/04/97 09/30/97 10/28/97 LJB LJB SF Bartholomew, 99- 018 -C2 Page 22 MENTAL RETARDATION Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 11984 35732 $49.00 06/28/95 06/28/95 08/25/95 LJB LJB SB 11984 060 $375.00 06/28/95 06/28/95 08/25/95 LJB SB 12040 088 $100.00 07/24/95 08/08/95 09/12/95 LJB SB 12188 204 $149.00 09/29/95 08/30/95 10/24/95 LJB LJB LJB SB 12188 36455 $27.50 - 10/12/95 10/24/95 - - MW 14837 37873 $200.00 02/08/96 02/16/96 03/12/96 LJB CS 14931 38230 $220.00 03/05/96 03/20/96 04/09/96 LJB LJB SB 14981 38373 $64.00 03/25/96 04/03/96 04/25/96 LJB SB 15203 39027 $58.00 06/13/96 06/07/96 06/25/96 LJB LJB SB 15203 39024 $411.00 06/03/96 06/07/96 06/25/96 LJB LJB SB 15252 39138 $4,806.00 06/04 -05/96 06/18/96 07/09/96 LJB LJB SB 15314 39267 $2,746.00 06/10/96 06/28/96 07/26/96 LJB SB 15314 39394 $298.00 06/10/96 06/27/96 07/26/96 LJB LS 15429 39697 $139.00 - 08/12/96 08/27/96 - - BA 15467 39642 $1,114.00 07/29/96 08/06/96 09/09/96 LJB LJB SB 15505 40037 $57.00 09/13/96 09/10/96 09/24/96 LJB SB 15732 40691 $283.00 11/13/96 11/11/96 12/10/96 SB 15902 41565 $275.00 01/28/97 02/06/97 02/25/97 SB 16085 42287 $556.00 01/20/97 04/15/97 04/25/97 LJB LJB SB 16085 42215 $50.00 03/21/97 04/08/97 04/25/97 LJB LJB SB 16293 42746 $12,720.00 05/30/97 05/30/97 07/11/97 LJB LJB LJB SB 16293 42785 $780.00 05/30/97 06/05/97 07/11/97 LJB LJB LJB SB 16293 43002 $278.00 06/18/97 06/23/97 07/11/97 LJB LJB LJB SB 16293 43001 $834.00 06/18/97 06/23/97 07/11/97 LJB LJB LJB SB 16293 42957 $255.00 05/30/97 06/19/97 07/11/97 LJB LJB SB 16293 42962 $765.00 05/30/97 06/19/97 07/11/97 LJB SB 16363 43025 $2,180.00 06/10/97 06/23/97 07/28/97 LJB LJB LJB SF Bartholomew, 99- 018 -C2 Page 23 Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 004014 39075 $1,180.00 06/03/96 06/11/96 07/09/96 LJB LJB LJB SB 004014 39139 $970.00 06/03/96 06/18/96 07/09/96 LJB LJB SB 004028 39177 $4,620.00 06/05/96 06/21/96 07/25/96 LJB LJB SB 004028 39386 $434.00 06/05/96 06/27/96 07/25/96 LJB LJB LS 004084 39599 $16,611.00 - 06/27/96 09/24/96 LJB - - LS 004106 40268 $55.00 10/31/97 09/30/96 10/25/96 - EN 004106 39798 $2,772.00 08/16/96 08/20/96 10/25/96 LJB SB 004122 40460 $148.00 10/09/96 10/17/96 11/12/96 SB 004130 40425 $98.00 09/17/96 10/15/96 11/22/96 LJB SB 004130 40539 $1,400.00 10/17/96 10/24/96 11/22/96 LJB LJB - SB 004143 40697 $373.00 11/11/96 12/10/96 SB 004143 40696 $168.00 11/11/96 12/10/96 SB 004337 42733 $4,240.00 05/30/97 05/30/97 07/11/97 LJB LJB LJB SB 004337 43108 $1,741.00 06/30/97 06/30/97 07/11/97 LJB LJB LJB SF 004337 42958 $510.00 05/30/97 06/19/97 07/11/97 LJB LJB SB 004337 43022 $48.00 05/30/97 06/23/97 07/11/97 LJB LJB LJB SF Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 16363 42950 $2,580.00 06/10/97 06/19/97 07/28/97 LJB LJB LJB SB 16427 42968 $255.00 05/30/97 06/19/97 08/13/97 LJB LJB SB 16445 43334 $280.00 06/30/97 06/30/97 08/26/97 LJB LJB SF 16445 43189 $3,047.00 06/30/97 06/30/97 08/26/97 LJB LJB SF 16604 44118 $444.00 10/09/97 10/10/97 10/28/97 LJB LJB DW 16679 44308 $24.95 10/31/97 10/31/97 11/20/97 DW Bartholomew, 99- 018 -C2 Page 24 FOREST COUNTY CHILDREN & YOUTH SERVICES Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign FAPR/ PR Sign. Sales Rep. 11198 32559 $275.00 10/25/94 10/25/94 11/09/94 Illegible LJB SB 11475 33204 $395.00 12/20/94 12/20/94 01/25/95 LJB LJB - SB 11844 34358 $211.00 03/21/95 03/21/95 04/10/95 LJB LJB - SB 12298 35383 $185.00 06/21/95 06/21/95 07/25/95 LJB LJB - SB 12298 35316 $410.00 06/14/95 06/14/95 07/25/95 LJB LJB SB 12298 35314 $2,471.00 06/14/95 06/14/95 07/25/95 LJB LJB SB 12798 36321 $2,605.00 09/29/95 09/29/95 11/09/95 LJB LJB SB 12829 36503 $1,677.00 09/28/95 09/28/95 11/27/95 LJB - SB 13714 37094 $260.00 12/08/95 12/11/95 01/09/96 LJB SB 014669 39449 $777.00 06/27/96 06/27/96 08/26/96 LJB LJB LJB LS 014738 39381 $6,139.00 06/27/96 06/27/96 09/10/96 LJB LJB LS 014738 39554 $50.00 07/29/96 07/29/96 09/10/96 LJB LJB SB 014783 39598 $12,722.00 - 06/27/96 09/24/96 LJB - - LS 014874 39798 $2,772.00 08/16/96 08/20/96 10/25/96 LJB LJB SB 014874 40268 $55.00 09/23/96 09/30/96 10/25/96 - EN 014874 40185 $439.00 09/19/96 09/23/96 10/25/96 LJB SB 014950 40460 $148.00 10/09/96 10/17/96 11/12/96 SB 014950 40425 $98.00 09/17/96 10/15/96 11/12/96 LJB SB 014998 40539 $1,400.00 10/17/96 10/24/96 11/22/96 LJB LJB SB Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 004337 42987 $576.00 06/19/97 06/20/97 07/11/97 LJB SB 003932 38210 $370.00 - 03/19/96 04/09/96 - - - SB 004373 42784 $260.00 - 06/05/97 08/12/97 - - - SF 004393 43117 $255.00 - 06/30/97 09/25/97 - - - SF Bartholomew, 99- 018 -C2 Page 25 WARREN COUNTY CHILDREN & YOUTH SERVICES Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign FAPR/ PR Sign. Sales Rep. 015087 40457 $365.00 10/11/96 10/17/96 12/10/96 SB Bartholomew, 99- 018 -C2 Page 26 Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 015087 40655 $98.00 10/11/96 11/07/96 12/10/96 SB 015087 40458 $100.00 09/25/96 09/27/96 12/10/96 SB 015087 40696 $168.00 11/06/96 11/11/96 12/10/96 SB 015571 40824 $118.00 11/20/96 11/21/96 04/09/97 LJB LJB SB 015833 42514 $410.00 04/16/97 05/08/97 06/10/97 LJB SB 015833 42642 $10.00 05/22/97 05/22/97 06/10/97 SB 015978 42786 $910.00 05/30/97 06/05/97 07/10/97 LJB LJB SB 015978 42744 $14,840.00 05/30/97 05/30/97 07/10/97 LJB LJB LJB SB 015978 42949 $258.00 05/30/97 06/19/97 07/10/97 LJB LJB LJB SB 015978 42948 $258.00 06/18/97 06/19/97 07/10/97 LJB LJB LJB SB 015978 42947 $258.00 06/18/97 06/19/97 07/10/97 LJB LJB LJB SB 015978 42970 $510.00 05/30/97 06/19/97 07/10/97 LJB LJB SB 015978 42987 $576.00 06/19/97 06/20/97 07/10/97 LJB SB 015978 43007 $278.00 06/18/97 06/23/97 07/10/97 LJB LJB LJB SB 015978 43022 $48.00 05/30/97 06/23/97 07/10/97 LJB LJB LJB SF 015978 42997 $278.00 06/18/97 06/23/97 07/10/97 LJB LJB SB 015978 42996 $278.00 06/18/97 06/23/97 07/10/97 LJB LJB LJB SB 015978 43009 $278.00 06/18/97 06/23/97 07/10/97 LJB LJB SB 015978 42994 $278.00 06/21/97 06/23/97 07/10/97 LJB LJB LJB SB 015978 43020 $1,882.00 05/30/97 06/23/97 07/10/97 LJB LJB LJB SF 016047 43049 $158.00 06/30/97 06/25/97 07/28/97 LJB LJB LJB SF 016047 43119 $629.00 05/30/97 06/30/97 07/28/97 LJB LJB SF 016155 43072 $188.00 05/30/97 06/27/97 08/12/97 LJB SF 016155 43158 $130.00 06/26/97 06/30/97 08/12/97 LJB SF 016278 43235 $623.00 06/30/97 06/30/97 09/25/97 LJB LJB LJB SF 016404 43908 $230.00 09/24/97 09/24/97 10/28/97 LJB LJB JM 016404 44022 $292.00 09/29/97 09/29/97 10/28/97 LJB LJB SF Bartholomew, 99- 018 -C2 Page 27 Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 849 41984 $ 2,259.00 - 03/18/97 04/10/97 - - - SB 886 43075 $ 2,512.00 - 06/27/97 08/26/97 - - - SF 886 43335 $ 280.00 - 07/30/97 08/26/97 - - - SF 879 42966 $ 255.00 - 06/19/97 07/11/97 - - - SF 879 43109 $ 431.00 - 06/30/97 07/11/97 - - - SF 879 43071 $ 4,978.00 - 06/27/97 07/11/97 - - - SF 879 42965 $ 255.00 - 06/19/97 07/11/97 LJB LJB - SB 879 42745 $ 16,960.00 - 05/30/97 07/11/97 LJB LJB - SB 879 42782 $ 1,040.00 - 06/05/97 07/11/97 LJB LJB - SB Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 237 41981 $ 2,000.00 - 03/18/97 04/10/97 - - - SB 266 42433 $ 430.00 - 04/29/97 05/27/97 - - - SB 314 43187 $ 96.00 - 07/14/97 09/25/97 - - - SF Check Inv. # Invoice P.O. Invoice Check Inv. P.O. FAPR/ Sales # Amount Date Date Date Sign. Sign. PR Rep. Sign. 016404 42987 $576.00 - 06/20/97 10/28/97 - - SB 016489 43910 $196.00 09/23/97 09/24/97 11/11/97 LJB SF 016489 44118 $444.00 10/09/97 10/10/97 11/11/97 LJB LJB DIN Bartholomew, 99- 018 -C2 Page 28 FAMILY PRESERVATION PROGRAM F.S.S.R. *Invoice dates indicate June as the month issued; however, Computerland sales summaries indicate said sales credited to Flannery in July. 47. Since Sherrie Flannery left the employment of Computerland, DHS did not make any additional purchases from Computerland up to at least the time that Bartholomew, 99- 018 -C2 Page 29 Bartholomew left DHS. 48. Since November 6, 1997, Sherrie Flannery has been employed as a sales representative with Western New York Computing Systems, Inc., (WNYC). a. WNYC is a computer and computer equipment company based out of New York state with an address of 1100 Pittsford - Victor Road, Pittsford, New York. b. Flannery's title is Corporate Account Representative. 1) Flannery's sales area includes Warren, PA. 49. WNYC employees are paid a guaranteed monthly salary. a. Flannery's $2,000.00 draw is deducted from monthly commissions over $2,000.00. b. Commission checks are issued monthly for the proceeding month's sales. c. WNYC employees do not receive commissions on sales with outstanding balances. 50. WNYC sales representatives receive commission on service calls performed in their sales area. 51. On or about November 14, 1997, Bartholomew met with Leidecker and informed her that Flannery was switching companies. 52. Following her meeting with Bartholomew Leidecker informed her subordinate, Irons, that future purchases were to be made from WNYC. a. Contacts with WNYC by Irons for computers and computer related purchases were with Sherrie Flannery. 53. On November 17, 1997, and November 18, 1997, eleven days after Flannery started working for WNYC, Bartholomew approved purchases from WNYC totaling $10,203.40. 54. Prior to November 1997, DHS had not made any purchases from WNYC. a. WNYC had no local sales representative until November of 1997. 55. From November 6, 1997, through August 27, 1998, the Department of Human Services purchased computers, related equipment, and services from WNYC totaling a[sic]$363,162.86 as indicated by individual program below: Children and Youth Services of Warren County Children and Youth Services of Forest County Drug and Alcohol Program Mental Health Program Mental Retardation Program Mega Waiver Program Early Intervention Program $ 91,311.54 27, 863.14 152.00 45,600.25 35, 070.93 28,474.77 2,282.00 Bartholomew, 99- 018 -C2 Page 30 General Account Total Expenditures $ 132,408.23 $ 363,162.86 a. DHS currently has an outstanding balance of $10,562.00 with WNYC. b. Shipping and handling charges of approximately $2,451.00 are accounted for in the total figure. 56. During the period from November 6, 1997, through August 1998 DHS issued 61 fixed asset purchase orders for computer equipment and related fixed assets. a. Fifty -nine of the 61 Fixed Assets Purchase Orders (97 %) were placed through WNYC. b. Sherrie Flannery was the WNYC sales representative for these purchases. 57. Linda Bartholomew approved the 59 fixed asset purchase orders made through WNYC. 58. FAPR's were issued by DHS to make purchases from WNYC without soliciting quotes from other companies. Invoice No. Invoice Amount Invoice Date 104926 $ 9,849.60 11/24/97 104927 $16,655.40 11/24/97 8038 $ 2,519.00 02/27/98 8039 $ 4,380.00 02/27/98 8040 $ 2,295.00 02/27/98 13513 $ 643.00 04/21/98 21998 $ 9,044.00 07/27/98 22739 $10,914.00 06/30/98 Total $56,300.00 a. Mark Irons did not always obtain or write quotes on the FAPR. 59. DHS made purchases from WNYC using FAPR's where WNYC was permitted to amend quotes to make them the low bidder. Check Invoice Original Lowest Adjusted No. No. WNYC Quote Orig. Quote WNYC Quote 4635 22738 $2,494.00 $2,180.00 $2,146.00 4643 21522 $2,494.00 $2,378.00 $2,236.00 17670 22736 $8,966.00 $8,878.55 $8,601.00 14047 22034 $2,846.00 $1,866.26 $1,823.00 60. All of the FAPR's and amended FAPR's to WNYC were approved by Linda Bartholomew. 61. One FAPR was issued in which WNYC was utilized for the purchase of a battery backup for a server in the amount of $455.00 with check no. 13527. a. Flannery was employed by WNYC at this time. b. Computerland's quote on the FAPR was $175.00. Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 013212 104891 $353.80 11/17/97 11/24/97 01/13/98 LJB LJB LJB SF 013214 104926 $9,849.60 11/18/97 11/24/97 01/13/98 LJB LJB LJB SF 013281 107692 $1,965.00 12/03/97 12/23/97 01/27/98 LJB SF 013281 107440 $5,161.00 12/03/97 12/19/97 01/27/98 LJB SF 013281 108196 $390.00 12/03/97 12/30/97 01/27/98 LJB SF 013339 107772 $289.16 12/23/97 12/23/97 02/10/98 LJB LJB SF 013339 107003 $565.00 12/23/97 12/16/97 02/10/98 LJB LJB LJB SF 013397 5444 $1,425.00 - 12/12/98 02/24/98 - - SF 013397 4767 $1,772.00 01/27/98 01/30/98 02/24/98 LJB LJB LJB SF 013467 3238 $8,949.00 01/30/98 01/30/98 03/10/98 LJB LJB SF 013527 6309 $455.00 02/26/98 02/20/98 03/26/98 LJB LJB SF Bartholomew, 99- 018 -C2 Page 31 62. WNYC realized a profit in the amount of $64,143.00 from sales to DHS covering the time period of November 6, 1997, through August 27, 1998. a. WNYC's profit percentage regarding sales to DHS totaled 18 %. 63. WNYC did not do business with DHS prior to Sherrie Flannery's employment with WNYC. 64. Flannery received $11,283.00 in commissions from WNYC as a direct result of purchases made by DHS from November 6, 1997, through August 27, 1998, as indicated below: WNYC Year Commission 1997 $ 2,127.00 1998 9,156.00 Total: $11,283.00 a. Flannery has not received commissions from WNYC on the outstanding balance of $10,562.00 owed by DHS. 65. Bartholomew, as DHS Director, approved purchases and authorized payments to WYNC by initialing invoices, purchase orders and fixed asset purchase requests. 66. Bartholomew's initials or signature approving WNYC invoices are present on at least one form of supporting documentation for 96% of the contracts (107 of 112) DHS entered into with WNYC. GENERAL ACCOUNT Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 013527 6300 $1,776.00 02/12/98 02/20/98 03/26/98 LJB LJB SF 013530 7122 $98.00 03/12/98 02/26/98 04/01/98 LJB LJB SF 013530 7121 $98.00 03/12/98 02/26/98 04/01/98 LJB LJB SF Bartholomew, 99- 018 -C2 Page 32 Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 013530 7120 $865.00 03/12/98 02/26/98 04/01/98 LJB LJB SF 013530 7119 $447.00 02/16/98 02/26/98 04/01/98 LJB LJB LJB SF 013530 7123 $2,360.00 02/16/98 02/26/98 04/01/98 LJB LJB LJB SF 013576 9873 $173.00 03/23/98 03/23/98 04/19/98 LJB LJB SF 013576 7697 $2,393.00 02/12/98 02/27/98 04/19/98 LJB LJB SF 013576 9986 $441.00 03/23/98 03/23/98 04/19/98 LJB LJB SF 013736 14125 $706.00 04/24/98 04/24/98 05/12/98 LJB LJB LJB SF 013736 14122 $401.00 04/24/98 04/24/98 05/12/98 LJB LJB LJB SF 013736 13513 $643.00 04/21/98 04/21/98 05/12/98 LJB LJB LJB SF 013736 10976 $341.00 03/02/98 03/31/98 05/12/98 LJB LJB LJB SF 013736 10867 $201.00 03/02/98 03/31/98 05/12/98 LJB LJB LJB SF 013736 10977 $173.00 03/02/98 03/31/98 05/12/98 LJB LJB LJB SF 013736 12681 $127.00 04/14/98 04/14/98 05/12/98 LJB LJB LJB SF 013736 12875 $450.00 04/16/98 04/16/98 05/12/98 LJB LJB SF 013736 12933 $1,272.50 04/16/98 04/16/98 05/12/98 LJB LJB LJB SF 013736 14123 $5,210.00 04/24/98 04/24/98 05/12/98 LJB LJB SF 013736 10308 $1,065.00 03/25/98 03/25/98 05/12/98 LJB LJB LJB SF 013736 12692 $28,862.10 03/21/98 04/15/98 05/12/98 LJB LJB LJB SF 013941 14798 $1,601.00 04/29/98 04/29/98 06/25/98 LJB LJB LJB SF 013941 15033 $2,820.00 04/07/98 04/30/98 06/25/98 LJB SF 013941 15086 $397.50 04/30/98 04/30/98 06/25/98 LJB SF 013941 15260 $223.00 04/28/98 04/30/98 06/25/98 LJB LJB SF 013941 16255 $522.00 04/28/98 05/14/98 06/25/98 LJB LJB SF 013941 16269 $412.00 05/15/98 05/14/98 06/25/98 LJB LJB SF 013941 16483 $3,122.50 04/07/98 05/14/98 06/25/98 LJB SF 013941 17654 $2,694.00 05/22/98 05/22/98 06/25/98 LJB SF 013941 17759 $511.48 04/28/98 05/22/98 06/25/98 LJB LJB LJB SF Bartholomew, 99- 018 -C2 Page 33 Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 013941 18039 $5,724.73 05/15/98 05/27/98 06/25/98 LJB LJB PR SF 013941 19049 $301.00 05/21/98 05/31/98 06/25/98 LJB LJB LJB SF 014023 21048 $1,425.00 06/18/98 06/18/98 07/13/98 LJB LJB LJB SF 014023 20911 $1,487.00 06/18/98 06/18/98 07/13/98 LJB LJB LJB SF 014047 20803 $296.00 06/12/98 06/18/98 07/21/98 LJB LJB SF 014047 20912 $180.00 06/18/98 06/18/98 07/21/98 LJB LJB LJB SF 014047 21498 $2,258.00 06/15/98 06/25/98 07/21/98 LJB LJB LJB SF 014047 21499 $4,516.00 06/15/98 06/25/98 07/21/98 LJB LJB LJB SF 014047 21521 $1,435.00 06/15/98 06/25/98 07/21/98 LJB LJB LJB SF 014047 22032 $2,779.00 06/14/98 06/29/98 07/21/98 LJB LJB LJB SF 014047 22033 $92.00 06/19/98 06/29/98 07/21/98 LJB LJB LJB SF 014047 22034 $1,823.00 06/15/98 06/29/98 07/21/98 LJB LJB LJB SF 014047 22796 $304.00 06/15/98 06/30/98 07/21/98 LJB LJB LJB SF 014047 22031 $823.00 06/16/98 06/29/98 07/21/98 LJB LJB LJB SF 014047 23141 $2,560.00 - 07/03/98 07/21/98 - - SF 014075 21998 $9,044.00 06/17/98 06/29/98 07/27/98 LJB LJB LJB SF 014075 22053 $586.00 06/11/98 06/29/98 07/27/98 LJB LJB SF 014075 22739 $10,914.00 06/17/98 06/30/98 07/22/98 LJB LJB SF 014148 24603 $506.00 07/17/98 07/21/98 08/11/98 LJB LJB LJB SF 014148 22974 $1,907.00 06/29/98 06/30/98 08/11/98 LJB LJB LJB SF 014215 26590 $1,760.00 - 08/13/98 08/25/98 - - - SF Check # Inv. # Invoice P.O. Date Invoice Check Inv. P.O. FAPR/ Sales Amount Date Date Sign. Sign. PR Rep. Sign. 13549 108177 $1,384.00 12/30/97 12/30/97 01/12/98 LJB LJB LJB SF 13549 105796 $1,110.00 12/30/97 11/28/97 01/12/98 LJB LJB LJB SF Bartholomew, 99- 018 -C2 Page 34 MENTAL HEALTH Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 13703 4668 $2,292.00 01/30/98 01/30/98 02/24/98 LJB LJB LJB SF 13850 8041 $5,305.00 02/20/98 02/27/98 04/09/98 LJB LJB LJB SF 13861 10202 $2,076.00 03/25/98 03/25/98 04/09/98 LJB LJB LJB SF 13983 14124 $52.00 04/24/98 04/24/98 05/12/98 LJB LJB - SF 14154 17764 $2,257.00 05/08/98 05/22/98 06/25/98 LJB LJB SF 14154 19184 $2,851.00 05/26/98 05/31/98 06/25/98 LJB LJB LJB SF 14327 21523 $15,799.00 06/15/98 06/25/98 08/11/98 LJB LJB LJB SF 14327 21500 $11,281.00 06/15/98 06/25/98 08/11/98 LJB LJB LJB SF 14384 25201 $296.25 08/06/98 07/24/98 08/25/98 LJB LJB SF Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 010070 10528 $1,990.00 03/27/98 03/27/98 04/09/98 LJB LJB LJB SF 010408 22797 $7,234.00 06/15/98 06/30/98 07/27/98 LJB LJB LJB SF 010408 22802 $7,234.00 06/15/98 06/30/98 07/27/98 LJB LJB LJB SF Check # Inv. # Invoice P.O. Date Invoice Check Inv. P.O. FAPR/ Sales 004689 12844 Amount 04/16/98 Date Date Sign. Sign. PR Rep. Sign. 002403 11357 $173.00 - 03/31/98 04/28/98 - LJB SF 002477 21503 $2,109.00 06/15/98 06/25/98 08/11/98 LJB LJB LJB SF Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 004689 12844 $152.00 04/16/98 04/16/98 05/14/98 LJB LJB SF Bartholomew, 99- 018 -C2 Page 35 DRUG AND ALCOHOL EARLY INTERVENTION MEGA WAIVER Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 16764 104890 $402.84 11/24/97 11/24/97 12/23/97 LJB LJB LJB SF 17041 8038 $2,519.00 02/17/98 02/27/98 04/09/98 LJB LJB LJB SF 17041 8039 $4,380.00 02/17/98 02/27/98 04/09/98 LJB LJB LJB SF 17041 8040 $2,295.00 02/17/98 02/27/98 04/09/98 LJB LJB - SF 17041 9987 $223.00 03/23/98 03/23/98 04/09/98 LJB LJB LJB SF 17041 9988 $223.00 03/23/98 03/23/98 04/09/98 LJB LJB SF 17087 11485 $993.00 - 03/31/98 04/27/98 LJB - LJB SF 17128 13984 $9,391.00 02/20/98 04/24/98 05/12/98 LJB LJB LJB SF 17387 21502 $4,382.00 06/15/98 06/25/98 08/04/98 LJB LJB LJB SF 17387 22036 $2,651.00 06/16/98 06/29/98 08/04/98 LJB LJB LJB SF 17387 21505 $4,552.00 06/15/98 06/25/98 08/04/98 LJB LJB LJB SF 17453 22798 $5,065.00 06/15/98 06/30/98 08/25/98 LJB LJB LJB SF Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 004492 104926 $9,898.60 11/16/97 11/24/97 01/26/98 LJB LJB LJB SF 004511 4667 $2,360.00 01/30/98 01/30/98 02/23/98 LJB LJB SF 004523 3240 $14,388.00 01/30/98 01/30/98 03/10/98 LJB LJB LJB SF 004552 9922 $1,454.00 - 03/23/98 04/27/98 LJB - - SF 004635 22738 $2,167.00 06/15/98 06/30/98 08/11/98 LJB LJB LJB SF Check # Inv. # Invoice P.O. Invoice Check Inv. P.O. FAPR/ Sales Amount Date Date Date Sign. Sign. PR Rep. Sign. 010420 21502 $4,382.00 06/15/98 06/25/98 08/04/98 LJB LJB LJB SF 010420 22800 $7,234.00 06/30/98 06/30/98 08/04/98 LJB LJB LJB SF Bartholomew, 99- 018 -C2 Page 36 MENTAL RETARDATION FOREST COUNTY CHILDREN AND YOUTH Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 016769 104927 $16,655.40 11/18/97 11/24/97 01/13/98 LJB LJB LJB SF 016769 108178 $2,482.00 12/30/97 12/30/97 01/13/98 LJB LJB LJB SF 016795 107438 $15,510.00 12/03/97 12/19/97 01/27/98 LJB SF 016795 107691 $5,895.00 12/03/97 12/23/97 01/27/98 LJB SF 016795 108195 $1,170.00 12/03/97 12/30/97 01/27/98 LJB SF 017018 3239 $9,527.00 01/30/98 01/30/98 03/10/98 LJB LJB SF 017471 16171 $10.00 o PurNhase Order 05/14/98 06/25/98 - - SF 017633 22052 $1,476.00 06/16/98 06/29/98 07/27/98 LJB LJB LJB SF 017670 22736 $8,601.00 06/16/98 06/30/98 08/04/98 LJB LJB LJB SF 017670 22737 $2,411.00 06/15/98 06/30/98 08/04/98 LJB LJB LJB SF 017670 22035 $732.00 06/15/98 06/29/98 08/04/98 LJB LJB LJB SF 017670 21993 $3,645.00 06/15/98 06/29/98 08/04/98 LJB LJB LJB SF 017670 22799 $7,234.00 06/15/98 06/30/98 08/04/98 LJB LJB LJB SF 017796 21501 $6,775.00 06/18/98 06/25/98 08/25/98 LJB LJB LJB SF 017796 21522 $6,708.00 06/15/98 06/25/98 08/25/98 LJB LJB LJB SF 017796 24815 $1,455.00 07/17/98 07/21/98 08/25/98 LJB LJB SF Check # Inv. # Invoice Amount P.O. Date Invoice Date Check Date Inv. Sign. P.O. Sign. FAPR/ PR Sign. Sales Rep. 004643 21522 $6,708.00 06/15/98 06/25/98 08/25/98 LJB LJB LJB SF Bartholomew, 99- 018 -C2 Page 37 WARREN COUNTY CHILDREN AND YOUTH 67. Sherrie Flannery received a financial gain of $18,769.00 as a result of commissions paid from Computerland and WNYC regarding purchases made by DHS. a. Computerland $ 7,486.00 b. WNYC $11,283.00 Total $18,769.00 68. The DHS Governing Board was aware of the need to purchase equipment due to Bartholomew, 99- 018 -C2 Page 38 the upcoming managed care program and to make DHS Y2K compliant. a. The Governing Board had no specific knowledge of expenditures made by the Department of Human Services relating to computer and equipment purchases. 69. The Governing Board did not approve any computer or computer equipment purchases by the Department of Human Services. a. Governing Board meeting minutes from July 1, 1994, through April 27, 1999, confirm Bartholomew sought no approval from the Governing Board for computer purchases. 70. From July 1, 1994, through August 27, 1998, DHS expended funds in the amount of $717,065.00 for computers, related equipment, and services from companies employing Bartholomew's daughter, Sherrie Flannery. 71. DHS has utilized the services of contract employees to assist with the implementation of the computer operations. a. Filling of contractual positions is the responsibility of the DHS director. b. Sue Collins, DHS director prior to Bartholomew, removed the contractual responsibility from the Human Resource Department and placed it with the DHS director and the administrative assistant to the director. 1. This was done to ensure continuity among wages received by contract workers. 72. As DHS director, Bartholomew was responsible for contractual hiring during her tenure from December 23, 1991, through August 27, 1998. 73. The majority of positions filled in DHS are not contractual and are filled through Civil Service. a. Some positions are filled through the Personnel Department and are not associated with Civil Service including maintenance positions. 74. Flannery was never formally interviewed by Leidecker prior to her hiring with DHS. 75. Bartholomew approved the hiring of Flannery for a contractual position with the Department of Human Services on April 1, 1993, as a consultant with the Information Systems Department. a. The contract was effective from April 1, 1993, to June 30, 1993. b. Leidecker set Flannery's rate of pay at $15.00 per hour. 1. The salary was subject to Bartholomew's approval. 76. Bartholomew signed the contract in her capacity as the DHS director approving the hiring and salary. 77. Flannery began performing consulting /training activities on April 1, 1993. a. Flannery worked under the direction of Leidecker. Bartholomew, 99- 018 -C2 Page 39 b. Flannery served in the consultant capacity until June employed by Computerland and later WNYC. 78. Bartholomew, in her position as DHS director, renewed contract annually. Year July 1993 -June 1994 July 1994 -June 1995 July 1995 -June 1996 July 1996 -June 1997 July 1997 -June 1998 a. No official vote of the Board is recorded. Contract Signature Linda J. Bartholomew Linda J. Bartholomew Linda J. Bartholomew Linda J. Bartholomew Linda J. Bartholomew 1998, while also being Flannery's consultant a. No subsequent approvals were given by the Governing Board to renew Flannery's contract. b. Bartholomew signed all of Flannery's contracts in her capacity as the DHS director. 79. From July 1993 through June 1998, Flannery remained under the direction of Leidecker. a. Flannery's rate of pay remained constant at $15.00 per hour. 80. Averment 95 of the Investigative Complaint which was admitted by Bartholomew in her Answer states: The hiring of Flannery into a contract position, as consultant, was approved by the Governing Board in or around April 1994. b. Flannery had already served for approximately one year on a contractual basis with DHS prior to this approval." a. In that the above is inconsistent with other evidence of record which shows that the Governing Board never gave such an approval, the above averment has been excluded as a Fact Finding. 81. Conditions were placed on the contract hiring of Flannery by the Governing Board. a. Leidecker was to negotiate the rate of pay. b. Leidecker was to supervise Flannery. c. Leidecker was to communicate any problems, disciplinary or otherwise, directly to the Governing Board. d. Any expansion or changing of the contract required Governing Board approval. 82. Flannery was issued a total of ten (10) checks by the Department of Human Services for work completed and classes attended from July 1, 1994, through September 11, 1997, in her capacity as a computer consultant, totaling $5,519.00 as detailed below: Check # Check Date Time Frame Hours Worked Check Amount 7687 03/27/95 01/06/95-02/23/95 67 $1,005.00 8670 12/20/95 07/05/95 - 12/13/95 75.5 $1,132.50 10979 06/11/96 01/04/96-05/31/96 62 $930.00 11316 09/09/96 06/01/96-08/28/96 45 $675.00 11751 01/27/97 02/02/97 - 02/05/97 $113.85 11900 03/11/97 02/02/97 - 02/04/97 * $137.08 11974 03/24/97 04/01/97 - 04/04/97 * $113.85 12105 04/25/97 09/11/96-04/04/97 79 $1,185.00 12106 04/25/97 04/02/97 - 04/04/97 * $143.20 12724 09/11/97 10/08/97- 10/10/97 * $83.95 Total: $5,519.43 Bartholomew, 99- 018 -C2 Page 40 *Indicates advance funds supplied for meals while attending classes /conferences. Also accounts for mileage paid to Flannery. a. Supporting documentation was submitted for hours charged and expenses claimed. b. Bartholomew approved payment of Check No. 12724 in the amount of $83.35 issued to Flannery by signing Flannery's reimbursement form. c. Leidecker approved payment of the remaining checks issued to Flannery by signing Flannery's time summaries or reimbursement forms. d. Checks issued to Flannery prior to January 1997 reference Flannery's maiden name of Bartholomew. 83. Flannery was issued eight (8) checks by the Department of Human Services for work completed and classes attended from April 1, 1993, through June 30, 1994, in her capacity as a computer consultant, totaling approximately $4,256.00 [sic]. Check # 5558 5593 5787 5824 6085 6204 6418 6895 Check Date 06/25/93 07/13/93 09/09/93 09/24/93 12/09/93 01/25/93 04/11/94 08/25/94 Total: Check Amount $ 450.00 $ 120.00 $ 705.00 $ 191.25 $ 487.50 $ 712.50 $ 652.50 $ 937.50 $ 4,256.25 Bartholomew, 99- 018 -C2 Page 41 84. Services performed by Flannery are documented on time sheets as "consulting" and "training." 85. Flannery is not currently employed on a contractual basis with DHS. a. Flannery's contract was not renewed in 1998. 86. During the period that she was simultaneously employed by Computerland as a sales representative and as a consultant to DHS, Flannery's supervisors were unaware of this dual employment. 87. In or about the spring of 1994 Leidecker wanted to create a new position in MIS due to the increased computer operations of the DHS. a. Bartholomew was aware of Leidecker's desire for a new position. b. Leidecker designed a job description and forwarded it to Civil Service for review and approval. c. The job description was returned by Civil Service with the title of Computer Operator, Level I. 88. Leidecker requested approval of the new position from the Governing Board at the next Governing Board meeting. a. Leidecker typically attended Governing Board meetings at that time. b. The Governing Board approved the new position. 89. The Governing Board did not approve hiring Flannery. 90. No qualified individuals appeared on the in county" Civil Service list. a. Mark Irons was on the "out -of- county" Civil Service list. b. Irons was interviewed by Leidecker. c. Irons was subsequently hired by DHS. 91. During the regularly scheduled audit of the Warren County Children and Youth Agency for fiscal year ending June 30, 1996, the Department of the Auditor General received information regarding the computer purchasing practices of DHS from Bartholomew's daughter without competitive bidding. 92. The Department of the Auditor General concluded that non - allowable expenditures for computer purchases were being charged to both state and federal programs for Forest and Warren County Children and Youth Agencies for fiscal year ending June 30, 1998. a. State and federal government will not participate in reimbursement for non - allowable expenditures. b. The county governments will have to fund 100% of the non - allowable expenses. Bartholomew, 99- 018 -C2 Page 42 93. At the time of the audits for fiscal year ending June 30, 1998, for Forest and Warren County Children and Youth Agencies, the audit report concluded that applicable adjustments would be made to reclassify the non - allowable expenditures to the appropriate line items on the cost reports (Schedule CY370A). a. The disallowance for the Forest County Children and Youth Agency was $25,627.14 plus the audited portion allocated from the $130,648.23 in the General Account. b. The disallowance for the Warren County Children and Youth Agency was $75,569.54 plus the audited portion allocated from the $130,648.23 in the General Account. 94. The Warren County commissioners were informed of possible violations of purchase procedure by DHS through correspondence from DHS Solicitor John Altomare. a. Said letter referenced possible violations of purchasing requirements by Bartholomew. 95. The county commissioners obtained the services of Mike Polombo from the law firm of Campbell, Durant, and Beatty as outside counsel. a. Polombo recommended Bartholomew be placed on paid administrative leave until an independent audit could be conducted. 96. Bartholomew was suspended with pay on August 27, 1998, as a result of this recommendation. 97. Deloitte and Touche, LLP, Suite 250, Key Bank Tower, 50 Fountain Plaza, Buffalo, New York 14202, completed an independent audit of purchases and purchasing procedures of DHS covering the dates of July 1, 1996, through August 31, 1998. a. Deloitte and Touche's audit revealed that purchasing requirements pursuant to the County Code had not been followed. 98. Bartholomew was terminated as DHS Director by the Governing Board on February 16, 1999. a. Bartholomew's Notice of Employee Separation documented the reason for separation as "Violation of Company Rules or Policies." 99. Bartholomew's termination letter is dated February 16, 1999, and states the following: "Dear Ms. Bartholomew: On February 16, 1999, the Forest /Warren Department of Human Services Governing Board voted to terminate your employment. You were discharged for irregularities involving the bidding and procurement of contracts. Please contact my office so that we may arrange a mutually convenient time for you to obtain your personal affects. Bartholomew, 99- 018 -C2 Page 43 Sincerely, Robert P. Williams Chairman Forest /Warren Department of Human Services" 100. As DHS Director, Bartholomew filed a Statement of Financial Interests for calendar year 1997 on May 5, 1998. B. Testimon 101. Marlene Leidecker is the Information Systems Director for the Department of Human Services for Forrest /Warren County (DHS). a. Leidecker's duties are to oversee an information system including statistics, billing, computer hardware and software, payroll, computer purchases, and supervision of other employees. b. Leidecker supervises Mark Irons, DHS's Webmaster, who does research on prices for computer systems and peripherals, and makes recommendations as to purchases of such equipment. c. DHS is subject to a Governing Board which is composed of the commissioners from the two counties. (1) The DHS Director reports directly to the Governing Board which oversees the operations of DHS. d. Bartholomew was the director of DHS from 1991 to 1997. (1) There are Associate Directors for sub - departments under the Director. e. Leidecker's division was responsible for the acquisition of computers and related equipment for DHS. f. There was a process at DHS for the purchase of computers /peripherals. (1) Need was determined based upon a review by Leidecker and Irons with Associate Directors and Bartholomew as DHS Director. (2) Bartholomew's approval was needed before purchases could be made. (3) A fixed asset purchase request (FAPR) begins the actual process for purchasing a fixed asset. (a) Associate Directors typically fill out the FAPR's. (b) Leidecker or Mark Irons filled out the FAPR's for computers. (c) The DHS Director must sign off in the FAPR in order to purchase an asset. Bartholomew, 99- 018 -C2 Page 44 g. (3) (d) Once an FAPR is approved by the DHS Director, a purchase order number is assigned which is a request to a vendor for an item. (f) (e) After an item would be ordered, it would be received with an invoice that the DHS Director would sign as an approval for payment. The Director's approval is not needed for the purchase of items under $100. Bartholomew as DHS Director had an authoritative management style. (1) Bartholomew did not like subordinates to question or challenge her directions. (2) After Bartholomew reprimanded Leidecker in front of staff, Leidecker typically did not challenge Bartholomew. There would be repercussions if Leidecker challenged Bartholomew. h. Sherrie Flannery (Flannery) is Bartholomew's daughter. (1) Flannery had an affiliation with a company selling computers and related products. Prior to 1990, very few computers were purchased by DHS. j. Leidecker bought IBM computers which were at a state contract price from Computerland. (1) The first purchase of computers from Computerland occurred before Flannery became affiliated with the company. k. Leidecker bought computers from companies other than Computerland. After the state required more automation in the `90's, DHS began to make substantial computer purchases. m. Leidecker was very dissatisfied with the service of Computerland which became the prime vendor of computer equipment for DHS. (1) The use of Computerland as the one computer vendor occurred after Flannery became the sales representative for that company. n. Mark Irons believed DHS could obtain equal computers for cheaper prices outside of Computerland. (1) When Leidecker asked Bartholomew about buying Dell Computers which were $1,000 less per unit, were on the state vendor list, and were rated number one, Bartholomew did not authorize the purchase. (a) The computers were purchased from Computerland. o. When a request was made by Leidecker to purchase software from a company other than Computerland, Bartholomew disapproved the request Bartholomew, 99- 018 -C2 Page 45 based upon their "understanding" which Leidecker considered as a direction from Bartholomew to buy from Computerland. (1) All software was purchased from Computerland after that discussion. p. DHS stopped buying from Computerland and began buying from Western New York Computing Systems, Incorporated (WNYCSI). (1) This occurred right after Flannery left Computerland and became affiliated with WNYCSI. q. (2) Bartholomew posed a rhetorical question to Leidecker if she (Leidecker) had a problem with the change of vendors, given the dissatisfaction with the service of Computerland. (a) The problem with Computerland service was ongoing for several years. (b) Bartholomew had not delved into the service of Computerland on prior occasions. (c) Leidecker believed that she (Leidecker) had no discretion and had to switch computer purchases to WNYCSI. DHS had not purchased from WNYCSI prior to the time that Flannery became affiliated with the company. r. DHS stopped purchasing from Computerland after Flannery left that company. s. No consideration was given to switching DHS purchases to WNYCSI prior to the time Flannery became associated with that company. t. When Flannery was affiliated with Computerland, Leidecker believed she had to buy DHS computers from that company. u. DHS had a policy that the hiring of relatives had to go before the Governing Board. (1) The DHS Director would take the matter to the Board. (2) Bartholomew was typically present at Governing Board meetings. (3) Leidecker, who attended some Governing Board meetings, believes that Bartholomew failed to mention that her daughter, Flannery, worked for Computerland and then WNYCSI. v. After Bartholomew had discussions with Leidecker about a new DHS position to assist Leidecker, Bartholomew asked Leidecker to consider Flannery for the position. (1) In filling the position, Leidecker intended to consider Flannery. (2) Leidecker believed that she had no discretion as to hiring Flannery. Bartholomew, 99- 018 -C2 Page 46 Bartholomew asked Leidecker to suggest Flannery for the position before the Governing Board. (4) This matter went to the Governing Board which advised Leidecker that she could hire Flannery only after she exhausted all other possibilities. (3) (5) Mark Irons was hired to the position. (a) At that time, a contractual relationship already existed between DHS and Flannery. w. In 1993, Bartholomew made a decision to enter a contractual relationship between DHS and Flannery for Flannery to provide computer training to DHS staff. x. All computers ordered by DHS from Computerland and WNYCSI were necessary purchases. y. When Leidecker needed to buy IBM computers on state contract, Computerland honored the pricing. (1) The relationship between DHS and Computerland began in 1986 or 1987. z. DHS made purchases from Computerland even before Flannery became affiliated with that company. aa. When DHS had a problem with Computerland's service, Flannery was supportive of DHS. bb. Flannery left Computerland to go to WNYCSI in late 1997. cc. Leidecker was pleased that she would not have to buy from Computerland after Flannery left the company to work for WNYCSI. dd. There were no purchases by DHS from WNYCSI after Bartholomew was terminated by DHS. ee. The DHS Director did not have to sign a FAPR if she were on extended leave. ff. The contract between DHS and Flannery was for staff training. gg. Leidecker knew that if Flannery left Computerland, DHS would follow where Flannery would go based upon conversations with Bartholomew. 102. Leidecker was required by Bartholomew to make computer and related purchases through Flannery when Flannery was employed at Computerland and then at WNYCSI. 103. Mark Irons is a distributor network specialist for DHS. a. Irons was initially hired as a Computer Operator I in 1994. Bartholomew, 99- 018 -C2 Page 47 (1) The duties for the position entailed monitoring the computers and networks and purchasing computer equipment. (2) Irons is still responsible for computer purchases. (3) Leidecker was Irons' supervisor. b. The process of purchasing computers for DHS would begin after Leidecker informed Irons of a need for new computers. c. Due to state mandates, DHS had to increase its proficiency which necessitated an increase in computer purchases. d. When there was a need to purchase computers at DHS, Irons would obtain pricing from vendors. (1) An FAPR would be completed by Irons or Leidecker. (a) An FAPR for over $300 would have to be approved by the DHS Director, Bartholomew. A purchase could not be made unless the Director approved the FAPR. ii. On occasion, Director Bartholomew gave verbal approvals followed by her signing at a later time. (b) Irons would then buy the asset with a purchase order. (c) When the asset is received, the accompanying invoice is given to the DHS Director for signature. (2) Irons never made a computer purchase that was not authorized by the DHS Director. e. For an item under $300 or software, a request for supplies would be used. (1) Any such request for an item over $100 would need to have the signature of the Director. (a) An item between $50 and $100 would need the approval of an associate director. f. In June of 1994, Irons questioned purchasing computers from Computerland due to better pricing through mail order from Dell or Gateway. g. (1) Irons was told by Leidecker to stay with Computerland. (a) Flannery was the sales agent for Computerland. (b) Purchases from Computerland had the Director's approval. Irons happened to place an order with Computerland in late 1996 or early 1997 when Flannery was on vacation. Bartholomew, 99- 018 -C2 Page 48 (a) Bartholomew told Irons that he was to purchase only from Flannery. (b) Irons informed Bartholomew that the purchase was from Computerland which was approved on the FAPR. Bartholomew indicated that Irons should buy from Flannery. (c) The atmosphere in Bartholomew's office was stern. (d) Irons knew that he was instructed by Bartholomew to buy only from Flannery at Computerland. h. Irons brought up the issue of computer pricing on more than one occasion. (a) It was clear to Irons that Bartholomew meant Computerland when she referred to standardizing with one vendor. Irons prepared a FAPR for purchasing word processing software, WordPerfect. J. (1) Sometime after the purchase was made, Irons was called to Bartholomew's office. (1) In meetings with Bartholomew, she would respond that they would continue to standardize with one vendor. (1) Irons did not include Computerland because he could buy WordPerfect cheaper elsewhere. (a) Even though Irons told Bartholomew that he could get WordPerfect cheaper from another vendor, Bartholomew told Irons that they were to standardize under one vendor. Irons bought WordPerfect from Computerland. (2) When Irons prepared a FAPR for other software, Bartholomew asked him why the purchase could not be from Computerland. (a) Irons informed Bartholomew that those items were not available from Computerland. Bartholomew was satisfied that Irons attempted to comply. When DHS needed to purchase 23 computers, Irons went to Computerland. (1) Irons was not satisfied with the performance of the computers at Computerland. (2) Irons obtained a quote from Dell which was about $500 less per computer. (a) Bartholomew's response was that they were standardizing with one vendor, Computerland. Bartholomew, 99- 018 -C2 Page 49 (b) Irons was told by Bartholomew to stop rocking the boat" about pricing. k. DHS stopped buying computers from Computerland right at the time that Flannery changed her employment to WNYCSI. (1) DHS never purchased computer products from WNYCSI prior to Flannery working for that company. Irons believed that he had to buy computers from wherever Flannery was working. m. After Bartholomew left DHS, Irons has not purchased computers from WNYCSI n. Computerland was the only local vendor in the area. o. If DHS had a problem with computers, Flannery would try to take care of it, whether she was at Computerland or WNYCSI. p. DHS had dissatisfaction with Computerland prior to Sherrie leaving the company. q. The computer purchases made during the time when Bartholomew was Director were necessary. r. Irons was told by Bartholomew when he was in her office to buy computers from Sherrie. 104. Irons was required by Bartholomew to make computer and related purchases through Flannery when she was employed at Computerland and then at WNYCSI. 105. Bartholomew, for the relevant time period, engaged in a continuous course of conduct to compel Leidecker and Irons to make purchases of computers and related items from Computerland when Flannery was employed by that company and then from WNYCSI when Flannery switched employment to that company. 106. Jason Bricker is a special investigator for the State Ethics Commission. a. Bricker was the primary case agent as to the Bartholomew investigation. b. Flannery received a 15% commission on the gross profit of her sales for Computerland. c. From July of 1994 through September of 1997, Bricker determined that Flannery made $7,488 in commissions as to her sales from Computerland to DHS. d. From 1997 through 1998, Bricker determined that Flannery made $12, 829 in commissions on sales from WNYCSI to DHS. e. A review of the minutes of Forrest - Warren County does not reflect any approval of a consulting contract with DHS by Flannery in 1993. f. Some of the DHS FAPR's did not contain a signature of Bartholomew. Bartholomew, 99- 018 -C2 Page 50 g. A review of the Financial Interests Statements (FIS's) filings reflect that there were no filings for Bartholomew for the calendar years 1995, 1996, and 1998. 107. The Governing Board never received nor approved the engagement of Flannery to provide computer training services at DHS. 108. Bartholomew failed to timely file FIS's for the calendar years 1995, 1996 and 1998. 109. Flannery is the daughter of Bartholomew. a. While a college student, Flannery had summer jobs at DHS. b. Flannery began working at Computerland in July of 1991. (1) Shortly after Flannery began working, she contracted DHS which was within her Pennsylvania sales territory. (2) Flannery worked on commission which was 15% of the gross profit. c. From 1991 to 1994 or 1995, Flannery had a relationship with Leidecker at DHS regarding purchases of computer equipment. d. Computerland was the only local value -added (computer) reseller in the area of DHS. (1) Computerland provided service to DHS. e. Bartholomew knew that Flannery worked at Computerland and the two would see each other at DHS. f. Flannery was under contact to provide training to DHS personnel. g. In November of 1997, Flannery switched jobs from Computerland to WNYCSI. (1) WNYCSI had no presence in the Warren area before Flannery became employed by that company. (2) Flannery informed her accounts, including DHS, that she switched employments. (3) WNYCSI would service what it sold. (4) Flannery sold several hundred thousands of dollars of computer equipment to DHS. h. Flannery got the commissions on sales to DHS when her initials were on the invoices. Flannery was not privy to conversations between Bartholomew and Leidecker or Irons about computers. 110. Bartholomew was the Director of DHS from 1991 until termination. Bartholomew, 99- 018 -C2 Page 51 a. Bartholomew received excellent evaluations in her position as DHS Director. b. The Director of DHS plans, organizes, manages, directs, and administers the work of the department. c. The Director of DHS directs the operation of said service programs in the two counties, ensures the provision of client mandated services, and develops programs to meet the needs for treatment /quality of life for the area population. d. The Director is responsible for the preparation of annual service plans, budget, and service coordination. e. As DHS Director, Bartholomew reported to the Governing Board which was comprised of six commissioners from the two counties. f. Computerization became necessary at DHS due to the increase in state requirements in areas of statistics, fiscal requirements, and documentation. The contract between DHS and Flannery for training services was signed by Bartholomew on behalf of DHS. g. h. Bartholomew states that Leidecker was interested in Flannery for a new DHS position. (1) Bartholomew states that she told Leidecker that Leidecker herself would have to take the matter to the Governing Board. Bartholomew believed that it was not a problem for Flannery to work part - time for DHS. J. When Bartholomew first became Director, DHS bought its computers from Computerland. (1) Bartholomew testified that she told Leidecker to handle computer purchases because Bartholomew wanted to distance herself given Flannery's involvement in selling computers. k. Bartholomew states that she never forced Leidecker or Irons to buy computers from Computerland when Flannery was working there. Bartholomew knew that Flannery was going to WNYCSI right about the time that Flannery accepted the position. (1) Leidecker had been complaining to Bartholomew about Computerland for months before Flannery switched jobs. m. Bartholomew was suspended as DHS Director in August of 1998. n. Bartholomew testified that she believed she filed FIS's for every year in which she was required. o. The Governing Board delegated to Bartholomew as the Director of DHS the responsibility for all contracting except that which would involve extraordinary circumstances. Bartholomew, 99- 018 -C2 Page 52 p. q. It was the normal process to take matters of hiring relatives of DHS employees to the Governing Board of Commissioners. (1) The process included familial relationships such as parent and child. Bartholomew states that she did not have to take the hiring of Flannery to do the training of DHS employees to the Governing Board on the basis that it was a contract rather than an employment situation. r. On or about April 4, 1993, Governing Board Executive Session, the matter of MIS assistance for the computer network expert was considered. (1) Bartholomew did not mention Flannery's name relative to this position. (2) Flannery was hired for the timeframe of April 1, 1993, to June 30, 1993. (3) There was no approval by the Board but the contract with Flannery was executed by Bartholomew. s. Bartholomew concedes that her telling Irons to place an order with Flannery was not consistent with the statement that she distanced herself with computer purchases involving Flannery. t. As to the hiring of Flannery, Bartholomew admits her involvement and the failure to distance herself from the process. u. Bartholomew admits that when she signed FAPR's for Computerland and the WNYCSI, she knew Flannery was employed there on a sales commission basis. C. Documents 111. Exhibit ID -2, pp 3, 4, 6, and 10, are photocopies of some of the agreements between Flannery and DHS to provide computer consulting and training at the rate of $15 per hour. a. The term of each agreement is for a fiscal year. b. The agreement is signed by Bartholomew on behalf of DHS. c. An addendum, ID2, p 8 (and 9), provides for travel and meals for the period from January 1, 1997, to June 30, 1997. 112. Exhibit ID -3 are photocopies in part of DHS checks issued to Computerland, Computerland invoices to DHS, DHS order request forms, DHS FAPR forms, Computerland printout, and other miscellaneous documents. 113. Exhibit ID -4 are photocopies in part of DHS checks issued to WNYCSI, WNYCSI invoices to DHS, DHS order request forms, DHS FAPR forms and other miscellaneous forms. 114. Exhibit ID -6 are photocopies of W -2 statements prepared by WNYCSI for Flannery, payroll statement for Flannery, sales summary sheet for Flannery for 1997, "Attachment 1" reflecting Flannery's sales commission of 20% of gross profit from Fiscal Year Compensation for Training Services Performed in Fiscal Year 7/94 to 6/95 $1,005.00 7/95 to 6/96 2,062.50 7/96 to 6/97 1,860.00 7/97 forward None $4,927.50 Bartholomew, 99- 018 -C2 Page 53 sales. Sales listing to DHS for 1998 (pp 8 -19), sales history for services to DHS for 1998 (p 21), and balance due WNYCSI by DHS as of 10/31/98. a. The gross profit made by WNYCSI as to sales by Flannery to DHS in 1997 was $10,635.32 ($62,883 - $52,247.68) (p 3). (1) Flannery's 20% commission (p 7) for 1997 totaled $2,127.00. b. The gross profit made by WNYCSI as to sales by Flannery to DHS in 1998 was $48,123.09 (pp 8 -19) computed as follows: $283,508.00 - $234,977.05 = $48,530.95 (gross profit). $48,530.95 — (gross profit from 2 credit card purchases (p 10)) $43.80 — (gross profit as to two pending invoices, numbers 027130 and 027666 (pp 19, 20)) $364.06 = $48,123.09. (1) Flannery's 20% commission for 1998 as to sales of computers and related parts totaled $9,624.62. c. ID -6, p 21, is a photocopy of the sales of service by WNYCSI to DHS in 1998. (1) Excluding certain handwritten notation, there is no breakdown of gross profit for WNYCSI as to the service sales. 115. Exhibit ID -8 are photocopies of the following: a. An agenda for a 4/6/93 Executive Session of the Governing Board of DHS. b. Executive Session Minutes of the Governing Board of DHS for 4/4/93. 1. Bartholomew references Leidecker's need for additional help. 116. Exhibit ID -11 are photocopies in part of documents relating to the training services that Flannery provided to DHS. a. From July of 1994 forward, Flannery received $4,927.50 in compensation (excluding meals and mileage) from DHS for providing such training services: b. Flannery also received expenses relative to providing such training service. 117. Exhibit ID -13 are photocopies of an agenda and minutes of a Governing Board Meeting for 1/18/94. a. Item IV of the agenda was a "Request for New Position — Marlene Leidecker ". Bartholomew, 99- 018 -C2 Page 54 b. Bartholomew was present for the 1/19/94 meeting. c. Leidecker requested consideration of hiring Flannery to a DHS position. 1. A motion carried in a 2 to 1 vote as follows: that after local advertising, internal posting at DHS and completely following all Civil Service procedures, interviewing of all qualified candidates, Marlene could consider the hiring of Flannery if she were the best candidate for the position. 118. Exhibit ID -14 is a photocopy of a Resolution of the Governing Board of DHS for Bartholomew to execute on behalf of the Board "contracts for services as are necessary in the ordinary course of business." 119. Exhibit R -2 is a copy of an FIS of Bartholomew which contains a date of 4/30/99 for filing year 1998. a. The document does not contain a filing date stamp. 120. Exhibit R -4 and R -6 are photocopies of performance evaluation reports for Bartholomew. a. With the exception of one blank in one report, Bartholomew received "excellent" ratings. 121. Exhibit R -7 are photocopies in part of FIS's for Bartholomew. 122. Exhibits R -8 are copies of FIS's for Bartholomew for the 1995 and 1996 calendar years containing dates of 11/16/01 for both forms. a. Neither FIS contains a time stamp date. III. DISCUSSION: At all times relevant to this matter, the Respondent, Linda Bartholomew, hereinafter Bartholomew, was a public employee 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." The allegations are that Bartholomew as Director of the Forest - Warren Counties Department of Human Services (DHS), violated Sections 3(a)/1103(a) and 4(a)/1104(a) of the Ethics Act when she directed and approved computer and related purchases from businesses employing her daughter as a sales representative; when she selected her daughter as a paid consultant for DHS; and when she failed to file Statements of Financial Interests (FIS's) for the calendar years 1995, 1996, and 1998. Pursuant to Section 3(a)/1103(a) of the Ethics Act, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest. Section 4(a)/1104(a) of the Ethics Act requires that each public official /public employee must file an FIS for the preceding calendar year by May 1 of each year that he holds the position and of the year after he leaves such a position. Bartholomew, 99- 018 -C2 Page 55 facts. Having noted the issues and applicable law, we shall now summarize the relevant Bartholomew was employed as the Director of DHS of Forrest - Warren Counties from 1991 until 1999. Prior to that time, Bartholomew held other positions with DHS. As Director of DHS, Bartholomew had the duty and responsibility, inter alia, to plan, organize, manage, direct, administer, hire, and contract for that agency. During the 1990's, the Commonwealth imposed greater requirements upon DHS which required the purchase of additional computers. Marlene Leidecker, as the Information Systems Director for DHS, and then Mark Irons, as the Distributor Network Specialist for DHS, purchased computers from various vendors including a local vendor, Computerland. Bartholomew, as DHS Director, was involved in the computer purchasing process. Typically, Leidecker, Irons, an associate director, and Bartholomew as DHS Director, determined whether there was a need to purchase a requested item. The ultimate arbiter for purchasing an item rested with Bartholomew. If the need were established, a Fixed Asset Purchase Request (FAPR) was prepared which Bartholomew as the DHS Director would sign. A purchase order was then sent to the vendor which supplied the item along with an invoice. The invoice was then signed by Bartholomew as an approval for payment. This was the process that was used for the purchase of items of $100 or more. In July of 1991, Sherrie Bartholomew - Flannery (Flannery), Bartholomew's daughter, became employed by Computerland on a sales commission basis. DHS, being in the sales territory of Flannery, became one of her customers. DHS had made purchases from Computerland as well as other vendors prior to Flannery's employment. Bartholomew had discussions with Leidecker or Irons about purchases of computers, peripherals, and related equipment. Bartholomew informed Leidecker and Irons that DHS would make all of its computer purchases from Computerland. Bartholomew took such action under the guise of having all purchases standardized under one local vendor which could service the computers and related equipment. On different occasions, either Leidecker or Irons met with Bartholomew to advise that computers or related equipment could be bought elsewhere at substantially lower prices. However, Bartholomew rebuffed their efforts and dismissed their concerns by typically responding that the decision to standardize under one local vendor had already been made. Both Leidecker and Irons, two credible and disinterested witnesses, testified that they had to purchase only from Computerland as per Bartholomew's direction. This directive from Bartholomew to Leidecker and Irons to buy from Computerland was continuous in nature. When Irons wanted to buy word processing software from another vendor, he was instructed by Bartholomew to buy from Computerland because of the standardization of purchases under one local vendor. On another occasion when Irons sought to purchase software from another company, he was called into Bartholomew's office and asked why he would not be purchasing from Computerland. After Irons informed Bartholomew that Computerland did not carry the software, Irons then received the approval from Bartholomew to purchase from the other company. The sales commissions that Bartholomew's daughter received from the sales from Computerland to DHS were of great concern to Bartholomew. Thus, when Irons made a purchase from Computerland and another sales person got the commission because Flannery was away, Irons was reprimanded by Bartholomew. Irons was told by Bartholomew that purchases from Computerland must be done so that Flannery would receive the commissions. Even though Leidecker and Irons knew that comparable Bartholomew, 99- 018 -C2 Page 56 equipment could be purchased at $500 to $1,000 less per unit, and even though Leidecker was very dissatisfied with the service at Computerland, DHS continued to purchase computers from Computerland and utilized Computerland to service the equipment until Flannery switched employment. From July 1, 1994, until Flannery left Computerland, DHS made purchases in excess of $350,000 from that business. When Flannery terminated employment with Computerland and became associated with Western New York Computer Systems, Incorporated (WNYCSI), Bartholomew had a discussion with Leidecker about whether Leidecker would have a problem with DHS now making its computer purchases from WNYCSI. Because Leidecker knew she had no choice in the matter, she did not pose any objection to Bartholomew. In the fall of 1997 after Flannery shifted employment from Computerland to WNYCSI, DHS no longer purchased from Computerland and began purchasing from WNYCSI. Flannery worked for WNYCSI on a sales commission basis and received 20% of the gross profit on all sales that she made for WNYCSI. While at WNYCSI, Flannery also received commissions on the sales of repair services by WNYCSI to its customers, including DHS. DHS began buying computers and related equipment from WNYCSI from the fall of 1997 until August 27, 1998, when Bartholomew was suspended as DHS Director by the Governing Board of Commissioners of Forrest and Warren Counties. Bartholomew was terminated on February 16, 1999. From November of 1997 through August of 1998, DHS made purchases from WNYCSI in excess of $360,000. Separate and apart from computer and related purchases by DHS from businesses that employed Bartholomew's daughter as a sales agent, there were two other matters concerning Flannery as a paid consultant or a full -time employee at DHS. The first matter regarding Flannery involved computer training services for DHS. At a meeting of the Governing Board on April 4, 1993, Bartholomew noted that Leidecker was in need of help. Bartholomew failed to mention to the Board that she entered into a consulting contract with her daughter several days earlier to provide training services. The term of the first contract was from April 1, 1993 to June 30, 1993. Thereafter, Bartholomew entered into contracts at the beginning of each fiscal year so that the contracts ran from July 1 to June 30 of the following year. Bartholomew ostensibly did not seek approval from the Board on the theory that it was not an employment position but rather a contract for the provision of services. Bartholomew entered into the yearly contracts with Flannery to provide computer training services at $15 per hour. In subsequent years, mileage and meal reimbursement provisions were added to the contracts. The second matter occurred in 1994 when Bartholomew determined that Leidecker needed an assistant. The matter was placed before the Governing Board in January of 1994 for the approval of a new position. Before the matter went before the Board, Bartholomew had a discussion with Leidecker and indicated to her that she (Bartholomew) would like Leidecker to give consideration to hiring Flannery as her assistant. Leidecker construed Bartholomew's statement to mean that she (Leidecker) had no choice but to hire Flannery. Bartholomew instructed Leidecker to present the matter to the Board because Flannery was her daughter. When Leidecker made her presentation to the Board, it approved the position but required Leidecker to locally advertise, internally post at DHS following all civil service procedures, interview all qualified applicants, and then hire Flannery only if she were the best candidate for the position. After following such procedures, Leidecker hired Irons for the position. Lastly, Bartholomew, as DHS Director, was required to file FIS's. However, a review of records at DHS reflected that no FIS's were on file for the calendar years 1995, 1996, and 1998. Bartholomew, 99- 018 -C2 Page 57 The parties have filed briefs. The Investigative Division seeks violations of the Ethics Act arguing that: Bartholomew used her position as DHS Director to direct Leidecker and Irons to purchase computers and related equipment and materials from two businesses that employed Bartholomew's daughter on a sales commission basis; Bartholomew used the authority of her office to sign FAPR's and invoices from those two businesses as to such purchases thereby generating sales commissions to Flannery; Bartholomew used public office to hire Flannery as a paid consultant to DHS; and Bartholomew failed to file FIS's for the calendar years 1995, 1996, and 1998 by May 1 of the following respective years. In addition, the Investigative Division asserts that Bartholomew is not credible and that restitution of $25,244.50 should be imposed as to the financial gain received by Flannery plus $94,964.18 as to the financial gain received by the two businesses with which Flannery was associated. Finally, the Investigative Division advocates for a referral of the case to law enforcement authorities for review as to the institution of a criminal prosecution. Bartholomew asserts that she did not violate the Ethics Act, arguing: the DHS computers were purchased from businesses that provided the best prices and service in the area; Computerland was a state approved vendor and purchases at WNYCSI were at federal government prices; the hiring of Flannery for providing the training services in April of 1994 was done prior to July of 1994 so as to be beyond the five year statute of limitations of the Ethics Act; and FIS's were filed timely by Bartholomew for all calendar years except 1995 and 1996. Bartholomew asserts that she did not knowingly violate the Ethics Act and that she obtained the finest computer systems from DHS at no loss to the state, so that only technical violations at most should be found with no penalty, given the loss of her job as Director and other hardships. Having summarized the above relevant facts and positions of the parties, we must now determine whether the actions of Bartholomew violated Sections 3(a)/1103(a) and 4(a)/1104(a) of the Ethics Act. There was an ongoing use of authority of office by Bartholomew as to directing computer purchases and related equipment by DHS to businesses that employed her daughter on a sales commission basis. Bartholomew was involved at DHS in the purchasing process as summarized above. The Governing Board did not know and consequently never approved of any computer or related purchases. Such involvement by Bartholomew was absolute as to computer purchases and related equipment. Bartholomew alone made the decision to purchase computers and related equipment from a local standardized vendor, Computerland. Despite the protestations of Leidecker and Irons on several occasions that better quality items could be purchased elsewhere at lower prices, Bartholomew directed them to purchase from Computerland where Bartholomew's daughter was employed as a sales agent. Bartholomew was definitive in her direction that such purchases must be made from Computerland. When Irons sought to purchase software at a better price from another vendor, Bartholomew dictated that the purchase had to be made from Computerland, ostensibly on the basis of the standardization under one vendor. When Irons informed Bartholomew that computers could be obtained elsewhere at savings of $500 per unit for a big multiple computer purchase, the response was standardization under one vendor. Bartholomew on one occasion told Irons not to rock the boat. When Irons was informed by Bartholomew that he could not buy software from another vendor, Bartholomew relented only after Irons told her that Computerland did not carry the software. The true reason behind Bartholomew's standardization for Computerland became quite evident when Irons made a purchase from Computerland at a time when Flannery Bartholomew, 99- 018 -C2 Page 58 was absent so that the commission was received by another sales person. Irons was called to task by Bartholomew, who informed him that he must ensure that his purchases from Computerland were done in a fashion so that her daughter would receive the sales commission. This conduct by Bartholomew continued until November of 1997 when Flannery changed jobs from Computerland to Western New York Computing Systems, Inc., (WNYCSI). At that time, Bartholomew finally acknowledged the very poor service by Computerland and then rhetorically asked Leidecker if Leidecker would have a problem if DHS would begin making purchases of computers and related products from WNYCSI. From that point, Leidecker and Irons, knowing that they were under Bartholomew's direction to do so, made purchases from WNYCSI until Bartholomew was suspended in August of 1998. The above conduct of Bartholomew establishes continuing and ongoing uses of office by her until the time of her suspension. Juliante, Order 809. The uses of authority of office by Bartholomew resulted in private pecuniary benefits consisting of the sales commissions that her daughter, Flannery, received both at Computerland and WNYCSI in selling computers and related products to DHS. Flannery, as the daughter of Bartholomew, is a member of her immediate family as that term is defined under the Ethics Act. See, Section 402/1102 of the Ethics Act. Private pecuniary benefits also inured to both Computerland and WNYCSI as to the profits they made on the sales of the computers and related products to DHS. Those two companies are businesses with which a member of Bartholomew's immediate family is associated in that Flannery was employed as a sales agent on a commission basis with those businesses. Accordingly, violations of Section 3(a)/1103(a) of the Ethics Act occurred when Bartholomew, as DHS Director, used the authority of office for the pecuniary benefit of her daughter and the businesses which employed her daughter by directing computer and computer related purchases from those businesses which generated sales commissions to her daughter and profits to the business which employed her daughter. As noted above, Bartholomew not only directed Leidecker and Irons to purchase from Computerland and then WNYCSI, but Bartholomew participated in the process leading up to the actual purchases. Bartholomew had to give her approval when any individual or department wanted to make purchases over $100. Bartholomew had to sign the FAPR's as DHS Director for such purchases. Bartholomew had to sign off on the invoices when purchases were made in order for the vendors to receive payment. All such actions by Bartholomew were uses of authority of office. Such approvals by Bartholomew were integral and necessary steps resulting in Computerland and WNYCSI receiving profits in the sales to DHS and Flannery receiving the sales commissions. Through such approvals, private pecuniary benefits inured to Computerland, WNYCSI, and to Flannery. Accordingly, Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of office by approving purchases or signing documents in order for DHS to buy computer and related equipment from Computerland and WNYCSI which generated profits to both businesses and sales commissions to her daughter who was employed by those businesses. The culpability of Bartholomew in this case is in reality conceded by the following statements in her brief: Bartholomew does not dispute that DHS purchased from companies that employed her daughter, nor does she dispute that she knew (and approved) of these purchases. Bartholomew, 99- 018 -C2 Page 59 However, Bartholomew did not know it was a violation of the Ethics laws to purchase from her daughter's companies. Thus, while she [Bartholomew] does not believe she unfairly (and illegally) pressured her employees to purchase only from Computerland and WNY, she acknowledges that they could have interpreted her actions as such pressure. (Bartholomew's Brief at 20, 21). Turning to the consulting services that Flannery performed for DHS on an annual basis, Bartholomew used the authority of her office to retain Flannery to provide such training services. Bartholomew did not seek approval of the Governing Board to retain Flannery. Although Bartholomew asserts that the Governing Board approved the hiring of Flannery in April of 1994, the Board did not give any such approval. To the contrary, Bartholomew entered into contracts, the first being for the period from April 1, 1993, until June 30, 1993, for Flannery to provide training services to DHS personnel at the rate of $15 per hour. Thereafter on a fiscal year basis, July 1 to June 30 ", Bartholomew entered into subsequent contracts with Flannery and signed on behalf of DHS as its Director. The execution of each annual contract by Bartholomew with Flannery was a use of authority of office. Bartholomew solely made the decision to retain Flannery and executed the contracts by signing as DHS Director. Such uses of authority of office each year by Bartholomew resulted in private pecuniary benefits consisting of the compensation that Flannery received for providing those services. That private pecuniary benefit inured to Flannery who is a member of Bartholomew's immediate family as noted above. Bartholomew violated Section 3(a)/1103(a) when she used the authority of office to retain her daughter on a yearly basis to provide training services for personnel at DHS for the fiscal years July 1, 1994, to June 30, 1995, and thereafter. Our decision conforms to prior Commission and judicial precedent. See, Holvey, Order 1039, affirmed Holvey v. SEC, 815 C.D. 1997 (Pa. Commw. 1998), wherein we found that a vo- technical school director violated the Ethics Act when he hired his spouse to teach courses at the school. The final allegation relates to the failure by Bartholomew to file FIS's for the calendar years 1995, 1996, and 1998 on or before May 1 of the respective following years. In that the record before us reflects that such filings were not made, we find that Bartholomew violated Section 4(a)/1104(a) of the Ethics Act when she failed to file FIS's for the calendar years 1995, 1996, and 1998 on or before May 1 of the respective following years. Bartholomew argues that she did not violate the Ethics Act because she acted reasonably and for the best interest of DHS under the circumstances, with her daughter incidentally benefiting as a result. This irrelevant argument of Bartholomew simply fails based upon the facts of record. First, the facts reflect that DHS could have purchased better computers at lower prices elsewhere, at a price reduction of $500 to $1,000 per unit. Bartholomew, however, chose to purchase exclusively from the companies that were employing Flannery at the time. The fact that Computerland was a state vendor and WNYCSI's prices were at federal government levels are immaterial. Factually, computers could have been purchased elsewhere at cheaper prices. Legally, buying through such companies could not negate Ethics Act violations. The assertion that a local vendor would give better service is not true. It is undisputed that the service by Computerland was very bad. This was conveyed to Bartholomew by Leidecker and Irons but Bartholomew was not concerned about the bad service until Flannery changed positions; only then was the bad service used in a conversation by Bartholomew to Leidecker as a basis for changing to Bartholomew, 99- 018 -C2 Page 60 WNYCSI. In short, Bartholomew's statement that her computer and related equipment purchases were the best for DHS and only incidentally benefited her daughter is totally erroneous. First, it was not best for DHS in that better computers at cheaper prices could have been purchased elsewhere. Second, it did not incidentally benefit her daughter; to the contrary, it directly benefited Flannery as a result of deliberative action by Bartholomew. Regarding the hiring of Flannery by Bartholomew to provide DHS training services, Bartholomew argues that no violation could occur because the Governing Board approved the hiring in April of 1994 which was beyond the five year statute of limitations. Bartholomew is in error both factually and legally. The investigation in this case commenced on May 20, 1999. Five years prior to that date was May 20, 1994. Flannery was retained to provide services by Bartholomew without any approval by the Board. With the exception of the first short period, the hiring was done each year by Bartholomew on a July 1 to June 30 fiscal year basis. The Investigative Division is pursuing the case only as to the contracts from July 1, 1994, forward, which are within the statute of limitations. Bartholomew used the authority of office on July 1, 1994, and thereafter by entering into contracts at those times and signing as DHS Director. Finally, as to the argument by Bartholomew that she did not intend to violate the Ethics Act, intent is not a prerequisite for finding a violation of the Ethics Act. See, McCutchen v. SEC, 466 A.2d 283 (Pa. Commw. 1982). Bartholomew's actions in this case and the consequences are indeed very unfortunate. There is no question that Bartholomew was a hard working, intelligent Director for DHS. Further, through Bartholomew's efforts, DHS was able to grow to meet the increased demands from its clientele as well as from the Commonwealth in terms of its additional requirements. Bartholomew's actions in running DHS were commendable as reflected in the excellent performance evaluations that she received. Unfortunately, Bartholomew as an adjunct to her position saw the opportunity to benefit her daughter through the use of the authority of her office. Unfortunately, such actions were not incidental to buying computers but were an integral part of her actions. Unfortunately, her directions to subordinates Leidecker and Irons were motivated for one purpose only, namely, that computer purchases and related equipment be made from companies that employed her daughter so that her daughter would receive sales commissions. Such actions by Bartholomew were violations of the Ethics Act and a violation of the public trust. Bartholomew made the public interest yield to a private interest, her daughter's business interests, which is contrary to both the letter and spirit of the Ethics Act. See, Crisci, Opinion 89 -013. Section 407(13)/1107(13) of the Ethics Act specifically empowers this Commission to impose restitution plus interest in those cases where a public official /employee has received a financial gain in violation of the Ethics Act. Except for the 1998 year, (Fact Finding 64.a.) the Investigative Division in its Investigative Complaint avers specified amounts for the compensation that Flannery received for providing training services to DHS and for commissions that she received on sales of computers and related equipment while an employee at Computerland as well as for the commissions on the sales of such equipment and services while an employee at WNYCSI. The sum proffered by the Investigative Division for 1998 was not finalized at the conclusion of the investigation due to an outstanding balance by DHS as to some purchases from WNYCSI which were not reflected in the total commissions that Flannery eventually received for that year. See, Fact Findings 64, 67. Bartholomew in her answer has admitted as to the accuracy of the amounts averred Bartholomew, 99- 018 -C2 Page 61 by the Investigative Division but has denied that she has violated the Ethics Act. With the exception of the 1998 year which will be discussed infra, the amounts of fees received by Flannery are as follows: $4,927.50 for providing training services to DHS employees; $7,486.00 in sales commissions for sales to DHS from Computerland; and $2,127.00 for sales to DHS from WNYCSI in 1997. The Investigative Division at hearing determined that Flannery received a total of $10,702.00 in both sales and service commissions from WNYCSI to DHS. In that the amount of commissions for 1998 has not been resolved through the pleadings of the parties, it is incumbent upon us to make that determination. WNYCSI has provided a computer printout of its sales to DHS in 1998. See Exhibit ID -6, pages 8 -19. In that Flannery's 20% commission at WNYCSI is computed upon gross profit, that figure is determined by subtracting the invoice price from the cost price as to every sale made by WNYCSI to DHS. For 1998, the total gross profit is $48,530.95 which we reduced by excluding two groups of entries: the sales identified by Invoice Numbers 27130 and 27666 which at the time were still not paid by DHS and two MasterCard purchases (Exhibit ID -6, page 10) which are questionable. After excluding those two groupings, the gross profit by WNYCSI on DHS sales by Flannery totaled $48,123.09. Applying the 20% commission to that amount, Flannery received sales commissions totaling $9,624.62 in 1998. Turning to the matter of the service commissions in 1998, Exhibit ID -6, page 21, reflects the total amount of services performed by WNYCSI for DHS in 1998. The invoice reflects a total charge of $22,889.50; however, we are unable to determine from the record before us the amount of commissions Flannery received on such services from WNYCSI to DHS. Although we are able to exclude the unpaid balance by DHS owing to WNYCSI from Exhibit ID -6, page 20, we do not know the amount of gross profit that WNYCSI received on the sale of such services to DHS. In this regard, we do note a handwritten notation on ID- 6, page 21, which contains a "65 %... cost..." which presumably indicates a gross profit of 35% on such sales of service. However, we believe that such notation does not provide a basis for us to make a determination, based upon clear and convincing proof, of gross profit as to the services and hence we make no finding as to Flannery's commission on such services. Accordingly, restitution will be based upon the sum of the above compensation received by Flannery, excluding the commissions on services sold by WNYCSI to DHS in 1998. That amount is $24,165.12, determined as follows: $4,927.50 in consulting fees received by Flannery in providing training at DHS; $7,486.00 in commissions Flannery received as to sales from Computerland to DHS; $2,127.00 in commissions received by Flannery as to sales by WNYCSI to DHS in 1997; and $9,624.62 in sales (but not services) commissions received by Flannery from WNYCSI to DHS in 1998. As noted, the parties agree to the accuracy of these figures (except WNYCSI in 1998) in their pleadings. Accordingly Bartholomew is directed within 30 days from the date of this order to make payment of $24,165.12 through this Commission to the Commonwealth of Pennsylvania. Noncompliance will result in an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Bartholomew, as Director of the Forest - Warren Counties Department of Human Services, was a public employee subject to the provisions of Act 9 of 1989, as now codified by Act 93 of 1998. Bartholomew, 99- 018 -C2 Page 62 2. Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to direct purchases by DHS from Computerland, a business with which Bartholomew's daughter was associated as the sales representative. 3. Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to approve or sign requisite documents as to purchases by DHS from Computerland, a business with which Bartholomew's daughter was associated as the sales representative. 4. Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to direct purchases by DHS from Western New York Computing Systems, Inc., a business with which Bartholomew's daughter was associated as the sales representative. 5. Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to approve or sign requisite documents as to purchases by DHS from Western New York Computing Systems, Inc., a business with which Bartholomew's daughter was associated as the sales representative. 6. Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to hire her daughter to provide computer training services to DHS personnel for the period from July 1, 1994, forward. 7 Bartholomew violated Section 4(a)/1104(a) of the Ethics Act when she failed to timely file Statements of Financial Interests for the calendar years 1995, 1996 and 1998 . In Re: Linda Bartholomew File Docket: 99- 018 -C2 Date Decided: 5/15/01 Date Mailed: 5/30/01 ORDER NO. 1195 1 Bartholomew, as Director of the Forest - Warren Counties Department of Human Services, violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to direct purchases by DHS from Computerland, a business with which Bartholomew's daughter was associated as the sales representative. 2. Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to approve or sign requisite documents as to purchases by DHS from Computerland, a business with which Bartholomew's daughter was associated as the sales representative. 3. Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to direct purchases by DHS from Western New York Computing Systems, Inc., a business with which Bartholomew's daughter was associated as the sales representative. 4. Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to approve or sign requisite documents as to purchases by DHS from Western New York Computing Systems, Inc., a business with which Bartholomew's daughter was associated as the sales representative. 5. Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the authority of her office to hire her daughter to provide computer training services to DHS personnel for the period from July 1, 1994, forward. 6. Bartholomew violated Section 4(a)/1104(a) of the Ethics Act when she failed to timely file Statements of Financial Interests for the calendar years 1995, 1996 and 1998. 7 Bartholomew is directed within 30 days of the date of mailing of this order to make payment of $24,165.12 through this Commission to the Commonwealth of Pennsylvania. Failure to comply will result in the institution of an order enforcement action. BY THE COMMISSION, DANEEN E. REESE, CHAIR