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HomeMy WebLinkAbout1303 RemboldIn Re: Charles Rembold File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Daneen E. Reese Frank M. Brown Donald M. McCurdy Michael Healey Paul M. Henry 01- 079 -C2 Order No. 1303 12/1/03 12/15/03 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 Act, Act 9 of 1989, P.L. 26, 65 P.S. §§ 401 et seq., as codified by Act 93 of 1998, Chapter 11, 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the commencement of its investi9ation, the Investigative Division served upon Respondent written notice of the specific allegation(s). Upon completion of its investi9ation the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was filed and a hearing was waived. The record is complete. A Consent Agreement and Stipulation of Findings were submitted by the parties to the Commission for consideration. The Stipulation of Findings is quoted as the Findings in this Order. The Consent Agreement was subsequently approved. Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending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 Act 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. Rembold 01- 079 -C2 Page 2 I. ALLEGATION: That Charles Rembold, a public official /public employee, in his capacity as the Superintendent for the West Greene School District, Greene County, violated Sections 1103(a), 1103(f) and 1104(a) of the Public Official and Employee Ethics Law when he used the authority of his position for a private pecuniary benefit of himself and /or a business with which he is associated; when he participated in discussions and actions of the West Greene School District resulting in the district's implementation of the PULSE program (People Utilizing Leadership Skills Effectively), and the district's acquisition of grant funds to pay for the PULSE program at a time when he was employed by and serving as a director for King's Bridge Inc., the entity which developed and owned the copyright for the PULSE program and which entity would receive payment from the district for use of the PULSE program; when the contract with King's Bridge Inc., was entered into without an open and public process; when he participated in the administration of the district's contract /subcontract with King's Bridge Inc.; when he submitted and received duplicate expense reimbursements from the West Greene School District, Southern Columbia School District and King's Bridge Inc. for the same expenses related to King's Bridge business; when he conducted King's Bridge business on district time using school district facilities, equipment and supplies; when he secured grant funding for a technology coordinator position that he developed for his son and for which his son was ultimately hired to fill; and when he failed to file Statements of Financial Interests for the 1997, 1998, 1999 and 2000 calendar years. II. FINDINGS: 1. Charles P. Rembold was employed as the Superintendent of the West Greene School District (WGSD) from July 1, 1993, until August 20, 2001. a. Rembold resigned to accept a position as the superintendent of the Jefferson - Morgan School District. 1. Rembold is currently employed as Superintendent of the Jefferson - Morgan School District. 2. Rembold's duties and responsibilities as superintendent of WGSD include: a. Administration of the schools under the direction of the board of directors. The Superintendent shall be the Chief Executive Officer of the District; shall be responsible for: 1. recommending the employment of all employees and directing and assigning teachers and other employees of the schools under his supervision. 2. organizing, supervising and arranging the administrative and supervisory staff; 3. suggesting regulations, rules and procedures deemed necessary for the efficient and proper operation of the District; 4. performing all duties incident to the office of the Superintendent as set forth in the Public School Code; 5. such other duties as may be prescribed by the Board. b. The superintendent agrees to devote his full time, attention, energies, skills and labor to his employment as Superintendent of the District during the term of this Agreement provided however; that he may undertake consultative work, Rembold 01- 079 -C2 Page 3 speaking engagements, writing, lecturing or other professional duties provided the Board is informed and does not direct him not to discontinue such activities. c. Rembold's employment contract included compensation days as follows: 1. Vacation: Twenty (20) working days of vacation from July 1 through June 30. All vacation time shall fit in with school needs and may be taken intermittently. 2. Holidays: As stated in the school calendar. 3. Personal Days: Three (3) personal leave days per year. Personal leave days may accumulate to five (5) days. A payment of $50 may be made for each day not utilized or not taken. 4. Sick Leave: Twelve (12) sick leave days per year cumulative, with no limitation. An additional seventy -five (75) sick days will be allocated, subject to restrictions concerning severance payments. 3. Rembold received a superintendent's certificate from the Pennsylvania Department of Education, and his educational background includes degrees from: a. Ph.D., Education Administration, Walden University, 2002. b. Advanced Masters Program, Administration, Supervision, Curriculum, University of Virginia, 1972. c. M.Ed., Counseling, University of Virginia, 1970. d. B.S., Mathematics, California University of Pennsylvania, 1968. 4. Prior to being employed by Pennsylvania school districts, Rembold held various educational positions in the Commonwealth of Virginia. The following findings related to the development of the PULSE program, King's Bridge Inc., and their involvement with the PULSAR program in Virginia, and Mainstream Counseling, Inc., Huntingdon, PA 5. Rembold has been involved with King's Bridge Inc., a Virginia corporation since at least July 1983. a. Rembold served as an initial director of the corporation, was formally listed as a director on the corporation papers on file with the Virginia Corporations Commission until 2001 and served as a consultant/ contractor providing training programs, research and other services. 6. King's Bridge Inc., offers training programs for schools, businesses, government, and police. a. One of the programs developed by King's Bridge, Incorporated for school district focused on at -risk students. b. The PULSE program is the cornerstone of the training programs offered by King's Bridge. c. King's Bridge Inc. holds the copyright for the PULSE Program. Rembold 01- 079 -C2 Page 4 7. King's Bridge Inc., filed articles of incorporation with the Virginia State Corporation Commission on July 28, 1983, which identified Rembold as one of two shareholders. a. The other shareholder was identified as R. Edgar Thacker, 907 West Poplar Road, Fairfax, VA 22170. 8. Corporations registered in the Commonwealth of Virginia are required to file annual reports listing current corporate officers, directors and disclosing changes in officers and /or directors. a. R. Edgar Thacker, corporate secretary, has annually completed and submitted reports on behalf of King's Bridge Inc., since at least 1993. 9. On March 8, 1993, R. Edgar Thacker filed an annual report with the Virginia Corporation Commission that included corporate officers and directors as follows: a. Charles P. Rembold, President /Director R. E. Edgar Thacker, Secretary /Director Carla Watson, Director Steven Wilcox, Director 10. Rembold was formally listed as a president /corporate director in annual reports filed on March 28, 1994, March 14, 1995, March 20, 1996, March 19, 1997, August 7, 1998, July 15, 1999, and July 17, 2000. 11. By way of correspondence dated February 17, 1993, from Rembold to Thacker, Rembold resigned as president and stockholder in King's Bridge Inc., Rembold's letter noted the following: a. Rembold informed that he believes in the program; however, the Staunton "PULSAR" experience dampened his charges. b. Rembold is applying for a superintendent's position in Pennsylvania and will carry the PULSE concepts and beliefs there. c. Rembold asserts that he would be willing to assist King's Bridge with future trainings. 12. By way of correspondence dated August 5, 2000, from Rembold to Thacker, Rembold reiterated his desire to be removed as president and stockholder in King's Bridge Inc., as follows: "I appreciate the board not wanting me removed; however, I think it in the best interest just to continue my role as researcher and working for expenses. Please take care of the details. I was surprised after all of this time that I was still listed." 13. Two annual reports were filed in 2001 by Thacker on behalf of King's Bridge that noted changes in the directors for King's Bridge Inc. a. A report filed on June 1, 2001, lists the removal of Charles P. Rembold and Michael Stephen Wilcox as corporate officers and /or directors. b. A report filed on July 10, 2001, lists R.E. Thacker as President /Director and Brenda Spratt as Director. c. Prior to May 15, 2001, the only changes made to King's Bridge Inc.'s officers /directors was the addition of Brenda Spratt on March 28, 1994, and the Rembold 01- 079 -C2 Page 5 deletion of Carla Watson as a director on March 19, 1997. 14. Beginning in or about 1991, PULSAR, Inc. offered a training program package under the program name PULSAR to public entities in Virginia. a. The PULSE concept was developed by Rembold, Thacker, and Wilcox while all three were employed in the Fairfax County, Virginia, school system during the early 1980's. b. PULSE is an acronym for "People Utilizing Leadership Skills Effectively." 15. Rembold introduced the King's Bridge /PULSE concept to Robert E. Lee High School, Staunton, VA, in the late 1980's. a. Rembold was the principal at the Robert E. Lee High School at that time. 16. The PULSAR program was presented to the Staunton Cadre at an action planning session conducted in Wintergreen Resort in VA. a. Those attending the presentation from Staunton included Chief of Police G.L. "Butch" Wells, Judy Shuey, Eddie Dick, Charles Rembold, and others from the Staunton Drug Task Force. b. The program proposed by Rembold was actually titled PULSAR, which was similar conceptually to the PULSE program developed by King's Bridge. c. Grant money was obtained from the Commonwealth of Virginia during the fiscal years 1990 -91 and 1991 -92 to fund the program. 1. Expenditures were handled under the supervision of Wells. 17. Grant funding was awarded to the City of Staunton from the Governor's Signature Program, which encouraged Virginia communities to implement the PULSAR program. a. Funds were secured for the following purposes: 1. To hire an executive director and secretary for PULSAR, Inc.; 2. To develop a videotape of the PULSAR program; 3. To develop a professional PULSAR training manual; 4. To conduct an evaluation of the benefits of the PULSAR program; 5. To conduct and perform five presentations to various communities in the Commonwealth of Virginia. b. A $100,000 startup grant was received from the Virginia Governor's Commission on Drug & Alcohol Use for the 1990 -1991 and 1991 -1992 fiscal years. c. The purpose of the grant was to train communities, including schools, police departments, children and youth agencies, the Virginia Cadre, and any interested citizen in the PULSAR model, so that the model could be implemented by various community groups. d. Grant expenditures were handled through the Staunton Police Department with Wells, Rembold, and police corporal Eddie Dick conducting PULSAR facilitator trainings at locations selected by the state. e. As consultants /trainers, Rembold, Wells, and Dick received $200.00 per day Rembold 01- 079 -C2 Page 6 compensation plus travel and operating expenses. 18. PULSAR, Inc. was incorporated with the Virginia State Corporation Commission on April 15, 1991, after the initial grant was received. a. Original incorporators were Police Chief G.L. Wells, Charles Rembold, and Edgar Thacker, both of King's Bridge. b. The stated purpose of the corporation was to educate the public, students, educators and law enforcement officials and to increase their awareness respecting the causes of, the dangers and problems of, and the method of dealing with students at -risk, including but not limited to low self- esteem, students suffering from depression, truant students and juvenile offenders. 19. Annual reports filed with the Virginia State Corporation Commonwealth confirm Thacker and Brenda R. Spratt's involvement as corporate officers and directors of PULSAR until March 30, 1994. a. Thacker and Spratt resigned as corporate officers and directors of PULSAR effective March 30, 1994. 1. Thacker was replaced as chairman by Walter E. Brown, a Staunton Police Official. b. Rembold was not listed as a corporate officer or director on any annual reports filed by PULSAR. 20. In or about 1994, a philosophical difference occurred among the PULSAR directors. 21. One of the issues existing between the parties focused on the equitable pay to be made to trainers, specifically with respect to any lost per diem wages of that individual, including the loss of vacation /personal leave days that may have to be used in order to conduct the PULSAR training programs. a. According to Rembold, other issues included the independence of the PULSAR training staff, the employment of Claire Brown as a PULSAR trainer and the lack of understanding of the program by Walter Brown. 22. Additionally, Michael Steven Wilcox, one of the PULSE originators and a listed director of King's Bridge Inc. suggested to Walter Brown that PULSAR could serve as a "pass through" of funds for King's Bridge. a. Wilcox's idea of increasing revenues for King's Bridge was that PULSAR keep 10% of the consulting revenues generated while turning over or "passing through" the balance of the funds to King's Bridge. b. Brown objected to this arrangement. c. PULSAR continues to operate primarily in the Commonwealth of Virginia without the involvement of Rembold, Wilcox, Thacker, or Spratt. d. Rembold does not contest that Brown testified as to the foregoing. He does, however, assert that he was unaware of this conversation. 23. Following the split from the PULSAR group, King's Bridge continued to operate and provide the PULSE program. Rembold 01- 079 -C2 Page 7 24. In November of 1993, Arthur Waleski became employed as an Assistant High School Principal by the Huntingdon Area School District, Huntingdon, PA. a. Waleski was familiar with Rembold, Wilcox, and Thacker. 1. Rembold, Wilcox, and Thacker all had been previously employed in the Fairfax County, Virginia, school system. 2. Waleski was familiar with the PULSAR program as a result of serving as Assistant Principal at R.E. Lee High School in Staunton, VA. 3. Waleski worked under the supervision of Rembold at Robert E. Lee High School, Staunton, VA. 25. The Huntingdon Area School District, utilized the services of Mainstream Counseling to perform drug and alcohol counseling services while Waleski served as Assistant Principal. a. Mainstream Counseling is an entity based in Huntingdon, PA that provides substance abuse prevention services. 26. Lonnie Woomer is the owner of Mainstream Counseling, 1001 Washington Street, Huntingdon, PA 16652, (814) 643 -1114. 27. Waleski introduced Woomer to the PULSE program concept in 1994. a. Waleski was interested in setting up a PULSE program at Huntingdon Area School District. b. Waleski arranged for Woomer to attend a youth PULSE retreat sponsored by West Greene School District at Camp Harmony, P.O. Box 158, 1414 Plank Road, Hooversville, PA 15936, around the spring of 1995. c. At this training, Woomer was introduced to Rembold, Wilcox, and Thacker. d. From the spring of 1995 through 2001, the time period Woomer was associated with King's Bridge, Woomer testified and was under the impression that Rembold, Wilcox, and Thacker were the principals of King's Bridge. 28. After learning of Woomer's /Mainstream Counseling's drug and alcohol services, Rembold wanted Mainstream to be used for programs at the West Greene School District. 29. During 2000 and 2001, King's Bridge Inc. utilized Mainstream Counseling in relation to King's Bridge Inc.'s provision of services to WGSD. a. King's Bridge asked Mainstream Counseling if it would be listed at the top of the PULSE organizational chart. 1. The chart depicted Mainstream Counseling as receiving funding through grants and contracting with King's Bridge for program marketing, development, management, implementation, and evaluation. 2. King's Bridge, in turn, would contract with the PULSE core training staff, as independent contractors, which included Rembold, Wilcox, Thacker, Waleski, and Woomer, WGSD Principal, Brian Jackson, and WGSD employee, Linda Jones. Rembold 01- 079 -C2 Page 8 b. Mainstream would be used as the entity to contract with local entities and then contract with King's Bridge to provide services. 30. Woomer attended a PULSE retreat sponsored by King's Bridge for the Huntingdon Area and the West Greene School District held at Camp Harmony during October or November 1999. a. During this retreat, a meeting was held which was attended by Rembold, Thacker, and Wilcox, Waleski, and Woomer. b. The purpose of this meeting was to discuss Mainstream Counseling's affiliation with King's Bridge Inc. 1. Woomer was under the impression that Rembold, Wilcox, and Thacker were acting on behalf of King's Bridge Inc. 31. During the meeting, Rembold it was suggested that using the services of Mainstream Counseling be utilized at the Southern Columbia Area and West Greene School Districts. a. Rembold was superintendent at West Greene at the time. b. Wilcox was superintendent at Southern Columbia Area School District at the time. 32. Woomer informed Rembold, Wilcox, and Thacker that she was willing to enter into a business relationship with King's Bridge Inc., to officially provide these services, provided two (2) conditions were made. a. Woomer insisted on a signed contract between Mainstream Counseling and King's Bridge Inc. b. Woomer insisted that both Rembold and Wilcox not be on the board of directors and not have any ownership interest in or names on any paperwork for King's Bridge Inc. c. Woomer had reservations and concerns with Rembold and Wilcox being affiliated with King's Bridge and then contracting with school districts where they serve as superintendent. 33. Woomer reached an oral agreement relative to these conditions with Rembold, Wilcox, and Thacker during this meeting. a. Rembold neither denied nor admitted having ownership or directorship interest in King's Bridge Inc., during this meeting (fall of 1999). b. Both Rembold and Wilcox agreed to have their names removed as directors of King's Bridge. 34. On December 1, 1999, Woomer d /b /a Mainstream Counseling, Inc. entered into a one - year professional services contract with King's Bridge Inc. effective January 1, 2000. a. King's Bridge was identified as the consulting company for PULSE services. b. The agreement stated the terms and conditions which King's Bridge (consultant) would provide consulting services to Mainstream Counseling Rembold 01- 079 -C2 Page 9 Agency. 35. Contract terms between King's Bridge and Mainstream included the following: a. King's Bridge agrees to provide consulting services to Mainstream for program development specifically related to prevention and intervention programs as necessary. b. King's Bridge agreed to plan, organize, and conduct trainer of trainer adult PULSE seminars. c. King's Bridge agreed to provide organization and execution of the facilitation of PULSE student retreats. d. Supervision and control of the performance of King's Bridge services shall be under the direct control of Kings Bridge. e. The time, manner, and amounts of services shall be under the control of Mainstream, and Mainstream shall provide a suitable work environment for the performance of consulting services. f. The contract was signed by Edgar Thacker on behalf of King's Bridge Inc. and Lonnie Woomer as Mainstream Counseling. 36. Compensation to be provided to King's Bridge by Mainstream as part of this agreement was stated as follows: a. Compensation will be provided for consulting services according to individual services provided. 1. Due to varied fees and services involved, no pre- determined standard of reimbursement will be designated. b. King's Bridge would be compensated after submitting a detailed invoice for specific services to Mainstream but not before Mainstream Counseling received reimbursement for the services from their payor source. c. No set fees were ever set as part of King's Bridge and Mainstream's agreement. 37. The agreement between Mainstream and King's Bridge did not require Mainstream to provide any services, other than to compensate King's Bridge for services provided on behalf of Mainstream. a. Mainstream essentially served as a billing agent for services King's Bridge provided to school districts. b. Mainstream was paid a flat fee of five (5 %) percent of any billings made to school district's for services provided by King's Bridge. c. This arrangement was used primarily with the West Greene School District and on one occasion with the Southern Columbia Area. 1. The arrangement was only used at Southern Columbia School District after school board members began to question Wilcox's affiliation with King's Bridge Inc. 38. Woomer entered into a separate agreement with King's Bridge Inc., on December 9, 1999, to provide consulting services separate from the King's Bridge Inc. contract with Rembold 01- 079 -C2 Page 10 Mainstream Counseling. 39. On at least four (4) occasions between January 2000 and February 2001, Rembold advised Woomer that he and Wilcox resigned from King's Bridge records as agreed upon. a. Rembold and Wilcox remained listed as directors for King's Bridge until June 1, 2001. 40. Woomer had discussions with Rembold regarding the PULSE program and related drug and alcohol issues between January 2000 and January 2001. a. These contacts were related to the West Greene Area School District's PULSE program as well as other PULSE activities involving other drug and alcohol activities. b. Woomer had similar dealings with King's Bridge Director Wilcox regarding Southern Columbia. 41. King's Bridge was an inactive company between 1996 and 1999 when Rembold, Wilcox, and Thacker developed the PULSE program for use in Pennsylvania school districts where Rembold and Wilcox were employed. a. The PULSE program was actively marketed by Rembold and Wilcox after they became established as school district superintendents in West Greene and Southern Columbia. The following findings relate to allegations that Rembold used his position as Superintendent at West Greene Area School District to obtain grant money for PULSEIKing's Bridge programs 42. Rembold, as superintendent of the West Greene Area School District (WGSD), oversaw the day -to -day operation of the district's schools, teachers, and administrators; preparing board meeting topic and agenda items; and identifying, applying for and securing grant funding. a. Rembold utilized a variety of sources to identify grant resources including websites, grant writers, the PA Department of Education, and word of mouth. b. Rembold was not required to obtain board approval to seek grant funding on behalf of the district. 1. Rembold, as superintendent, would generally advise the board of grant funding received and its designated uses. 43. Beginning with his hiring as WGSD superintendent in July 1993, Rembold, in his capacity as superintendent participated in the development of PULSE program for the WGSD. a. As superintendent, Rembold oversaw the preparation and submission of grant applications which identified the PULSE program and providers/ contractors as King's Bridge and /or Mainstream Counseling. 44. WGSD did not have a PULSE program prior to Rembold's tenure as superintendent. 45. The WGSD Board was provided with information by Rembold on the PULSE program and grant funding for the program. Rembold 01- 079 -C2 Page 11 a. The board was supportive of the district's involvement in the PULSE program. b. The board permitted Rembold and /or district staff to apply for grants. c. The board played no role in identifying or applying for grant funding. d. The board informally accepted grant funding obtained by Rembold. 46. The district's PULSE program included training for teachers, administrators and staff, educational services and PULSE retreats for students. a. Program funding came from state and federal grants and in -kind contributions by the district. b. Rembold had oversight over all aspects of the district's PULSE program. 47. Minutes from the WGSD School Board of Directors include the following discussions encompassing information furnished to the board on the district's PULSE program and related funding: July 22 1993: The school board adopted the Student Services Module which included implementation of the PULSE program. November 17, 1994: Rembold reported on the PULSE retreat. December 9 1994: Rembold gave his time to Linda Jones who brought a student to give a presentation on the PULSE program and PULSE retreat. February 23, 1995: Rembold discussed receiving a Great Idea Grant in the amount of $300 for PULSE. June 27 1995: Rembold advised the board of the completion of four grant proposals and has two more to complete. September 28, 1995: Brian Jackson informed the board that a PULSE retreat is scheduled for November 7, 8, 9, 1995, and 29 students have been selected and are being urged to attend. October 26, 1995: Brian Jackson informed the board that 62 students will be attending the PULSE retreat in November. November 21, 1995: Rembold discussed the PULSE retreat. March 21, 1996: Brian Jackson reported that Linda Jones and Jim Handley will be presenting the PULSE program at the counselor's convention in Valley Forge. October 24, 1996: Rembold informed that Rosemary Fuetuter, Linda Jones, Brian Jackson, and himself attended the school board conference in Pittsburgh and that the PULSE program was presented. Rembold also reported that the district received two grants, one for $2.5 million and one for $337,000 to be used for technology. Brian Jackson reported that the PULSE program in the process of selecting students now for the retreat which will be at Camp Harmony on November 6, 7, and 8, 1996. November 21 1996: Rembold discussed that the PULSE retreat was excellent. Rembold 01- 079 -C2 Page 12 Brian Jackson also informed that the PULSE retreat on November 6, 7, and 8wasvery successful. February 27 1997: Brian Jackson discussed the PULSE Club. July 24 1997: Rembold discussed that the PULSE program is being used as an exemplary program in Harrisburg. Brian Jackson informed that the PULSE Club picnic was held at Linda Jones' house on July 19, 1997. August 21, 1997: Rembold discussed that the PULSE program will be presented to all of the staff on the Act 80 Day on Monday and Tuesday. October 23, 1997: Brian Jackson, High School Principal, informed the school board that a PULSE Retreat is scheduled for November 12, 13, and 14 at Camp Harmony. November 25, 1997: Charles Rembold, Superintendent, informed the school board that he just returned from Hershey, PA from a PASCD Conference and the PULSE Program may be a national finalist. Jackson discussed that 71 students attended the PULSE Retreat held on November 12, 13, and 14. May 21, 1998: Rembold informed the board of several grants that he was working on. June 25, 1998: Rembold discussed that he was working on several grants. July 23, 1998: Rembold discussed that he was working on several grants. November 19, 1998: Rembold informed the board that a PULSE Retreat was held at Camp Harmony with 60 students attending. Jackson also discussed the PULSE Retreat. February 25, 1999: The school board unanimously passed a motion for the West Greene School District to approve a partnership with the PULSE Program, West Greene Lions Club, and the Senior Citizens Center at Harvey's Grange in conjunction with the Appalachian Community Learning Project. A grant of $3,000.00 is awarded to promote inter - generational activities between youth and senior citizens. July 22, 1999: Rembold informed the board that he and Thelma Sz are going to Washington, D.C. on Monday and Tuesday for a conference on 21 S Century Grants; West Greene Administrators, Southern Columbia School District and IU 21 will be having an in- service meeting on August 1, 2, and 3 at Seven Springs with Dr. Rembold and Chuck presiding. September 23, 1999: Rembold informed the board that the West Greene School District received a School Violence Grant for $20,000.00, which will be used for PULSE and that he submitted a grant in the amount of $50,000.00, which will be used for the PULSE Program for Grades 4 through 12. December 7, 1999: The school board passed a motion for the school district to contract with Mainstream Counseling, Inc., of Huntington, PA to train a 10- person Middle School team for the Middle School PULSE Program (at -risk students). Program materials, training services, registration, rooms, and meals to be provided at a cost not to exceed $9,000.00 to be paid from the Safe /Drug Free School Grant (This is the first of two training sessions). The motion passed unanimously. It should be noted that Rembold is present for this meeting. Rembold 01- 079 -C2 Page 13 January 27, 2000: Mrs. Szarell discussed that she was in Elizabethtown with 9 staff members from the Middle School for PULSE training and additional training will be held in September and possibly a retreat will be held. March 23, 2000: The school board unanimously approved a motion for the school district to contract with Mainstream Counseling, Inc., of Huntington, PA, to train a 10- person Middle School team for the Middle School PULSE Program (at -risk students). Program materials, training services, registration, rooms, and meals to be provided at a cost not to exceed $9,000.00 to be paid for from the Safe /Drug Free School Grant (this is the second of two training sessions). The school board also passed a unanimous motion for the school district to contract with Mainstream Counseling, Inc. of Huntington, PA to train a 10- person Elementary School team for the Elementary PULSE Program (at -risk students). Program, materials, training services, registration, rooms, and meals to be provided at a cost not to exceed $9,000.00 to be paid for from the Crime and Delinquency Grant. (This is the first of two training sessions). Again, it should be noted that Rembold was present for this meeting. September 28 2000: Rembold informed the school board that the school district will be receiving two grants, each in the amount of $150,000.00. The grants will be partly used to coordinate the PULSE Program at all three levels. October 26 2000: Rembold informed the school board that he has put together several grants. Jackson reported to the school board that a PULSE Retreat will be held November 6, 7, and 8 with 60 students attending. The school board also passed, in unanimous motion, to create the position of Middle School Drug Prevention and School Safety Program Coordinator in accordance with the attached job description (to be funded by the Safe /Drug Free School Program Grant), on a trial basis, subject to elimination after a three -year trial period in the event the Middle School Drug Prevention and School Safety Program is determined by the board to be concluded, ineffective, or unsuccessful, and it is eliminated by the board. The school board also passed a unanimous motion to post and advertise for the above mentioned position. The school board also passed a unanimous motion for the school district to contract with Mainstream Counseling, Inc., of Huntington, PA, to train a second Middle School team for the Middle School PULSE Program. Program, materials, training services, registration, rooms, and meals to be provided at a cost not to exceed $9,000.00 to be paid for from the Safe and Drug Free Schools Program Grant. November 2, 2000: The school board passed unanimous motion to approve Linda Jones for the position of Middle School Drug Prevention and School Safety Program Coordinator, which was approved at the previous school board meeting. November 16, 2000: Rembold informed the board that the PULSE Retreat was held on November 6, 7, and 8. March 22, 2001: Rembold reported to the school board that he had been working on several grants. School Board Director p an Smith, asked the Solicitor if it is a violation of the Sunshine aw that on March 13 there was no motion passed by the board to authorize the 21 Century Grant. Mr. Rembold stated that the grant is federal monies. There was also lengthy discussions between citizens and members of the school board regarding several issues concerning grants and the information in the grant applications as well as the Greene County Vo -Tech hiring Brian Rembold (Rembold's son) to a position. There is no official action taken regarding these discussions. Rembold 01- 079 -C2 Page 14 April 26, 2001: A Mrs. Mancini discussed that the Middle School PULSE Retreat was received well. There is also a notation that the Vo -Tech Representative discussed an Administrative Management meeting that was held on March 29 , and that the Vo- Tech is now the Fiscal Agent for a county -wide federal grant program. The board of directors at the Vo -Tech voted to re- assign itself as the fiscal agent for the $2.6 million 21 st Century Community Learning Center Grant and accepted the resignation of Brian Rembold as West Greene Elementary Technology Coordinator and West Greene Community Technology Coordinator, but he will remain with the Vo -Tech four hours a day. The Vo -Tech dissolved the hiring of a Technology Coordinator for West Greene and approved a tentative budget in the amount of $2,182,327.00. Also noted in the meeting minutes is that a Student Council Representative noted that the Middle School PULSE Retreat was well received. School Board Director Valerie Mathason, stated that the recommendation of the superintendents to take over the grant is great, Vo -Tech does not like West Greene asking questions and she will not apologize to anyone for asking questions. School Board Director Smith also asked the board if the board wishes to negotiate the superintendent's contract, if it is necessary to notify him by July 1 S one year before the contract expires. Solicitor Rizzo said he must be notified by June 30, 2001. If not, the board approves a motion to retain for the same term as the present contract. Rizzo recommended several changes to the superintendent's contract. May 17, 2001: Rembold informed the school board that during a Personnel Committee meeting he informed the West Greene School Board that he would not be seeking another contract and that he has started an immediate job search as superintendent in the region. Mancini discussed that the PULSE Group will be having a pizza party and it has been a good first year for her and thanked Rembold, Szarell, and Jackson for all their help and support. August 23, 2001: A concerned citizen raises questions regarding King's Bridge Inc. No further discussion regarding the matter is noted. 48. At Rembold's direction, WGSD applied for and received grant funds from the Pennsylvania Department of Education Safe & Drug Free Schools program; Safe Schools Initiative; the PA State Commission on Crime & Delinquency; Drug Education /Law Enforcement Grant Program; and the US Department of Education, 21 S Century Community Learning Center Grant. Rembold participated in applying for each of the grants received by the district which participation included oversight of preparing grant applications, determining costs, and identifying the PULSE program to be used. Each grant applied for and received by the WGSD consisted of state or federal funds which were distributed by the Pennsylvania Department of Education and the Commission on Crime and Delinquency. 49. Numerous grants applied for during Rembold's tenure as superintendent (1993 -2001) for the WGSD included utilization of the PULSE program and Mainstream Counseling or King's Bridge. a. Rembold was instrumental in identifying and implementing the PULSE program. 1. At this same time, Rembold was formally listed as a director and served as an independent contractor for King's Bridge; receiving compensation a. b. Rembold 01- 079 -C2 Page 15 from that entity. 50. From 1998 to 2001, Rembold, in his official capacity as superintendent of the WGSD participated in securing a total of ten (10) separate grants from the Pennsylvania Department of Education, the Pennsylvania Commission on Crime and Delinquency, and theU. S.Department of Education which included proposed funding for PULSE. a. Four (4) grants were through the Pennsylvania Department of Education office of Safe & Drug Free Schools and Communities. b. Two (2) grants were through the Center for Schools and Communities, Safe Schools Initiative program overseen by the Pennsylvania Department of Education. 1. Safe Schools Initiative grant funds come from the Commonwealth of Pennsylvania. c. One grant was received from the Pennsylvania Commission on Crime and Delinquency Drug Education /Law Enforcement grant program. d. Three (3) grants were receivd from theU. S.Department of Education, including two (2) through its 21 Century Grant program. e. Safe & Drug Free Schools, Drug Education /Law Enforcement Grants, are federal funds administered by the state. f. 21 Century Grant funds are the federal monies administered by the state. 51. Rembold's participation in securing grant funding for the district's PULSE program included but was not limited to oversight of the grant application process and oversight of: a. Identifying potential funding sources at the federal, state, and local levels. b. Identifying contractors, consultants, and non - profit and other governmental bodies (i.e. intermediate units, police departments) to be used in connection with the grant. c. Identifying programs to be implemented and their costs. 52. The only contractor /consultant utilized by Rembold for PULSE training was Mainstream Counseling. 53. Rembold participated in writing PULSE /King's Bridge Services into grant applications. a. WGSD did not have a PULSE program prior to Rembold. b. Rembold participated in identifying the types of goods and services for which grant monies were requested. c. Rembold approved the content of grant applications and /or amendments prior to their submission. d. Rembold directed district teachers and administrators to assist in implementing the district's PULSE program. e. Rembold arranged for PULSE services to be provided. 1. Rembold verified the receipt of services relating to the PULSE programs Rembold 01- 079 -C2 Page 16 and such verification resulted in the processing of the payment of all Mainstream Counseling invoices. The school district board of directors subsequently would vote to pay these invoices. f. Rembold was the source of the raw data and budget figures needed to complete the grant applications. 54. Rembold advised WGSD administrators, that a PULSE program would be implemented in the district. 55. Rembold advised WGSD administrators that he created the PULSE program and that it would suit district needs. a. Other components were added to the program to provide a comprehensive student model. 56. The WGSD Board did not specifically vote on the initiation or implementation of the PULSE program in the school district. 57. The Pennsylvania Commission on Crime and Delinquency (PCCD) made federal grant money available through its Pennsylvania Drug Education /Law Enforcement Grant Program. a. School districts throughout the state were notified of available grant money through PCCD as part of the program. b. Interested districts were required to complete and submit a grant application to the PCCD outlining the amount requested and its intended use. 58. On August 16, 1999, the PCCD received a Pennsylvania Drug Education/Law Enforcement Grant Program application in the amount of $16,121.00 from the WGSD. a. The application was submitted by Rembold. b. The project title was listed as PULSE (People Utilizing Leadership Skills Effectively). c. Rembold was listed as the district's contact person. d. The grant period is identified as being from September 15, 1999, to June 30, 2000. e. Rembold signed the grant's law enforcement /school cooperative agreement in his official capacity as superintendent on August 16, 1999. f. Rembold signed a related consortium participation agreement in his official capacity as superintendent on August 16, 1999. 59. The program objectives included the implementation of a PULSE programfor60at -risk students in grades 7 -12, the training of 10 WGSD /community members as PULSE facilitators, a three -day student /adult retreat, and maintenance of a PULSE club. a. The objectives were approved by Rembold. 60. On January 27, 2000, the PCCD forwarded the grant to the WGSD for the district's approval. Rembold 01- 079 -C2 Page 17 a. Rembold, on behalf of the school district, signed the grant acceptance statement in the amount of $16,121.00 for the "PULSE Program" project. b. Rembold's signature represents that he on behalf of the district agrees to accept the grant "on the condition that you comply, in administering your program, with all representations contained in your application as amended and with the enclosed standard sub -grant conditions of the Commission." 61. The PCCD issued two (2) payments to the West Greene School District honoring its $16,121.00 grant obligation to the district. a. $8,091.00 was issued to the district on January 20, 2000. b. $8,030.00 was issued to the district on June 7, 2000. 62. The West Greene School District did not seek any competitive bids for the PULSE program portion of this grant. a. Rembold participated in the decision to utilize the King's Bridge's PULSE program as part of this grant. b. During this time period when Rembold took actions regarding this grant, Rembold was an independent contractor paid by King's Bridge Incorporated, and was formally listed as a director of King's Bridge Incorporated. 63. The WGSD Board of Directors did not take any official action approving the submission of the PCCD $16,121.00 grant application. 64. The Pennsylvania Department of Education makes federal grant mone y available to school districts through its Office of Safe Schools based on need and district enrollments. a. School districts submit grant applications to the Department of Education detailing intended program uses for the funding. 65. On December 5, 1997, the Pennsylvania Department of Education sent notification to Rembold at the WGSD of the availability of funds from the Safe & Drug Free Schools Program. a. On April 17, 1998, the WGSD received notification that it would be allocated $6,101.00 provided it submitted a completed application to the Department of Education by July 1, 1998. 66. The West Greene School District received the grant of $6,101.00 from the Pennsylvania Department of Education Safe and Drug Free Schools program for the 1998 -1999 allocation period. a. WGSD Director of Instructional Services, Frank Blout, was identified as the district contact person with Jeane Pulkownik being the fiscal contact. 67. Fiscal records of the Department of Education confirm this grant was paid in three (3) installments to the district between March 16, 1999, and May 17, 1999 as follows: Allocation Period: 1999 Amount 03/16/1999 $ 1,626.92 04/16/1999 $ 406.73 05/17/1999 $ 4,067.35 Total $ 6,101.00 Rembold 01- 079 -C2 Page 18 68. Rembold signed the grant completion report for this project on June 23, 1999. 69. Rembold participated in or had oversight responsibilities for the following actions with respect to the $6,101.00 Safe & Drug Free Schools 1998 -1999 grant program: a. Completion and submission of a detailed grant contract that included PULSE, a program administered by King's Bridge; b. Selection of PULSE training for district employees; c. Approval of grant expenditures; d. Identification of district staff to be used; e. Signed letters of assurance with local law enforcement agencies; and f. Signed final grant completion report. 70. On November 18, 1998, the Department of Education's Bureau of Community and Student Services sent notification to Rembold as superintendent advising of funding available for the federal Safe and Drug Free Schools and Communities Act Fund for 1999/2000. a. On May 7, 1999, Rembold was sent correspondence from the Department of Education informing him that WGSD's allocation from the 1999/2000 federal Safe and Drug Free Schools and Communities program was $5,032.00. 71. On June 29, 1999, Rembold, in his official capacity of superintendent, signed the grant application for the 1999 -2000 PA Department of Education grant. a. Information in the application was physically prepared by the West Greene School District federal program staff. b. This application was reviewed and approved by Department of Education on January 20, 2000. c. The funding period is identified as July 1, 1999, through September 30, 2000. d. This application included the following program summary: Activity Cost Leadership training for at -risk students- $3,632.00 PULSE training. Post training survey on ATOD use and $1,400.00 structured interviews. Total: $5,032.00 e. Included with application was a reference to WGSD's intent to utilize the grant funds to support the district's PULSE program. f. Rembold received notification of approval of this grant from the Department of Education on February 17, 2000. g. Members of the West Greene School District Board of Directors signed the grant application as members of the Safe and Drug Free Schools and Community Advisory Council. 72. Rembold was the contact person and recipient of correspondence dated May 11, 2000, Rembold 01- 079 -C2 Page 19 and July 24, 2000, related to a rider amendment needed to extend the ending date of this grant. 73. Fiscal records of the Department of Education confirm the grant was aid in three (3) separate installments to the district between March 16, 2000, and May 16, 2000 as follows: Allocation Period: 1999 -2000 Total 03/16/2000 $ 1,341.88 04/17/2000 $ 335.47 05/16/2000 $ 3,354.65 Total $ 5,032.00 74. Rembold, as superintendent, participated in or had oversight responsibilities for the following actions with respect to the $5,032.00 Safe & Drug Free Schools 1999 -2000 grant program: a. Identification of the funding source; b. Served as the district's contact person; c. Completion of the grant application which identified use of the PULSE Program. d. Completion of progress reports adjusting budget figures; e. Approval of budget expenditures which include PULSE program fees; f. Identification of staff to be used to complete the grant. 75. On or about December 22, 1999, Rembold received notification of the Department of Education regarding funding from the federal Safe & Drug Free Schools and Communities Act funds for 2000/2001. 76. Rembold, as superintendent, signed the grant application seeking funds for the 2000- 2001 grant period. a. Rembold requested funding totaling $4,825.00. b. The funding period was identified as July 1, 2000, through September 30, 2001. c. This application included the following program summary. Activity Cost Leadership training for at -risk students $1,225.00 PULSE training. Leadership training for at -risk students $3,600.00 PULSE training. Total: $4,825.00 d. Included with the application is a program narrative detailing a PULSE survey and PULSE program, no mention of King's Bridge is included. e. School Board President Debra Crouse also signed the grant application acknowledging that she had been consulted and actively involved in the application. Rembold 01- 079 -C2 Page 20 77. Rembold received notification of the grant approval on or about May 10, 2000. 78. Fiscal records of the Department of Education confirm this grant was paid in four (4) separate installments to the district between July 19, 2001, and February 15, 2002 as follows: Allocation Period: 2001 -2002 Amount 07/19/2001 $1,286.68 08/16/2001* $ 321.67 09/17/2001* $ 321.67 02/15/2002* $2 894.98 Total: $4,825.00 *These payments were made after Rembold's resignation as superintendent. 79. Rembold participated in or had oversight responsibilities for the following actions with respect to the $4,825.00 Safe & Drug Free Schools and Communities 2000 -01 grant program. a. Identification of the funding source, completed the grant application and signed grant application; b. Served as the district contact person; c. Identification of staff to be used to complete this grant. 80. The Safe and Drug Free School and Communities 2000 -01 grant application was physically completed by the West Greene School District federal programs staff. a. School Board President Debra Crouse signed the application indicating that she had been actively consulted and involved in the development of the application. 81. Rembold sought grants while employed as WGSD Superintendent, from Department of Education's Safe Schools Initiative grant program. a. Department of Education grant money provided through the department's Safe Schools Initiative office that was administered by the Central Susquehanna Intermediate Unit under the auspices of its Center for Safe Schools. b. Funding for the Safe Schools Initiative grants is funding from the state that is administered through the Center for Safe Schools. 82. Rembold submitted a district grant application to the Pennsylvania Department of Education, Office of Safe Schools, Bureau of Community and Student Services, with his name as contact person on May 11, 1999, for the 1999/2000 safe schools initiative. a. This grant application was in the amount of $20,000.00 with the district contributing matching funds of $31,011.00 for total project costs of $51,011.00. b. Rembold completed this grant application for submission to the PA Department of Education. c. Rembold is listed as the contact person as superintendent with a contact e-mail address of rembold @alltel.net. Rembold 01- 079 -C2 Page 21 83. Rembold stated in the grant application that the purpose for obtaining the grant was to enable the WGSD to implement a PULSE (People Utilizing Leadership Skills Effectively) Program as a prevention/ intervention school -based community inclusive program designed to meet the needs of adolescents who are at high risk toward unhealthy behaviors. a. The application noted that the program period was to be July 1, 1999 to June 30, 2000 to target sixty (60) at -risk WGSD students from grades 7 -12 to be recruited through a school /interagency process. b. A PULSE "core training staff" will be contracted to provide: (1) school/ community planning team training; (2) facilitator training in PULSE techniques; (3) scheduling /management of a three -day student -adult experiential retreat; (4) PULSE Club implementation; and (5) program evaluation. c. The application noted that the overall goal of the program was to achieve safer learning environments for children and staff. d. The application results and objects were directed at utilizing the PULSE programming developed by Kings Bridge. Objective 1: Implement a PULSE Program for sixty (60) "at- risk" students in grades 7 -12 that will encourage appropriate decision - making through prevention and intervention program. Objective 2: Identify and refer sixty (60) WGSD students for PULSE Program participation. Objective 3: Train ten (10) WGSD /Community members as PULSE facilitators. Objective 4: Provide a three -day student /adult retreat focusing on relationship, building activities that promote positive social bonds between retreat facilitators (teachers, police, business persons) and "at- risk" students. Objective 5: Maintain a PULSE Club to: (1) provide alternative activities (social /community service) for at -risk youth; (2) promote positive relationship building; and, (3) develop an emotional support system. Objective 6: Execute formative and summative evaluation on PULSE Program components through quantitative and qualitative data collection procedures. e. Design and operation of the program was identified as the following: The West Greene School District will implement a PULSE (People Using Leadership Skills Effectively) Program for the program period of July 1, 1999, through June 30, 2000. The program will be a prevention/ intervention, school - based, community inclusive program designed to address the needs of adolescents who are at high -risk toward unhealthy behaviors. 84. The grant application submitted by Rembold specified that the WGSD would contract with King's Bridge Inc., to implement a PULSE Program. a. The PULSE core training staff was identified as follows: Attachment E. PULSE Program Management/Training Staff Name Position Charles Rembold Superintendent West Greene School District Edgar Thacker Assistant Superintendent on Nat'l. Alternative Schools Rembold 01- 079 -C2 Page 22 Steve Wilcox Art Waleski Lonnie A. Woomer Brian Jackson Linda Jones Lucille Aloisi d. e. f. Programs Assistant Superintendent, Camp Hill School District Assistant, Principal, Huntingdon Area School District Executive Director /Owner, Mainstream Counseling High School Principal, West Greene School District Teacher, West Greene School District Independent Consultant /Owner, Aloisi Consulting Services 85. Rembold p rovided background on the PULSE program with the grant application which described the PULSE Program as being developed over a twenty -year period with its roots firmly planted in substance abuse prevention, intervention, and community action planning. a. The research and development team composed of three (3) educators and a substance abuse professional designed, field tested and evaluated activities responsive to the needs from communities requesting services to address substance abuse and related issues in the early 1980s. b. In Virginia, these initial training services led to the formation of school - community teams. c. Rembold submitted with the application a PULSE organizational chart detailing involved business entities and individuals relative to the grant and its administration, including King's Bridge Inc. which was identified as program marketing, development management, implementation and evaluation. 86. The three educators Rembold referenced in his background description of the PULSE program included Wilcox, Thacker, and himself. 87. On October 25, 1999, Rembold signed a letter of agreement with the Central Susquehanna Intermediate Unit securing the $20,000.00 grant. a. This grant was paid to the West Greene School in two $10,000.00 installments. 1. An initial $10,000.00 payment was made to the district on or about November 5, 1999. 2. A second $10,000.00 payment was made to the district on or about August 21, 2000. 88. Rembold participated in or had oversight responsibility for the following actions with respect to the district's $20,000.00 Safe Schools Initiative Grant program for 1999- 2000. a. Identification of the funding source and prepared the application; b. Identification of the consultants and vendors to be used, including King's Bridge; c. Identification of the services to be provided, including King's Bridge's PULSE program; Fixing and approval of the grant budget; Identification of the district staff to be used; Served as the district contact person; Rembold 01- 079 -C2 Page 23 g. Completion of and submission of the grant application; h. Signed grant agreement letters with the Central Susquehanna Intermediate Unit; and Approved grant expenditures, including fees for King's Bridge and /or the PJLSE program. j. Monitored programs, including reviewing the PULSE program. 89. Rembold submitted a WGSD district grant application to the Pennsylvania Department of Education, Office of Safe Schools, Bureau of Community and Student Services, on September 23, 1999, for the 1999 -2000 Safe Schools Initiative grant program. a. The application identified Rembold as the program director. b. Rembold is listed under program director category with the title superintendent. c. This grant request was in the amount of $50,000.00 with the district contributing matching funds of $36,828.00 for total project costs of $86,828.00. 90. The grant application included a listing of contractors /consultants and specifically noted the WGSD will contract with King's Bridge Inc., to implement a PULSE program. a. Rembold, along with the PULSE training staff, are identified as having various responsibilities for the program. b. Rembold is specifically identified as being responsible for implementing a PULSE program for 120 "at- risk" students in grades 4 -8 to encourage appropriate decision making through prevention and intervention activities. 91. On December 7, 1999, Rembold was notified by the Department of Education that of the $50,000.00 requested, a $26,400.00 grant was awarded. a. Rembold was instructed to submit revised budget figures based on the reduced award. 92. On December 15, 1999, Rembold submitted a revised budget to the Department of Education to accommodate a reduction in grant funding to $26,400.00. 93. Rembold signed a letter of agreement with the Central Susquehanna Intermediate Unit accepting the $26,400.00 grant awarded on February 11, 2000. 94. Fiscal records of the Center for Safe Schools confirm that this grant was paid in two (2) separate installments as follows: a. Date Amount March 2000 $ 5,280.00 June 2000 $21,120.00 Total $ 26,400.00 95. Rembold participated in or had oversight responsibilities for the following actions with respect to the district's $26,400.00 Safe Schools Initiative grant program for 1999- 2000. a. Identification of the funding source; Rembold 01- 079 -C2 Page 24 b. Identification of consultants and vendors to be used, including King's Bridge; c. Identification of services to be provided, specifically the PULSE program; d. Inclusion of King's Bridge for PULSE training into the grant; e. Fixing and approval of the grant budget which included fees to be paid to King's Bridge and /or PULSE; f. Identified district staff to be used; g. Served as the district contact person; h. Completion and submission of the grant application and budget revisions; Signed grant agreement letters with the Central Susquehanna Intermediate Unit; and j. Approval of grant expenditures for King's Bridge. 96. Rembold oversaw the administration of this grant in his official capacity as WGSD superintendent. a. Rembold was simultaneously compensated by King's Bridge Inc. as a independent contractor during the time period when he used the authority of his position to ensure King's Bridge's /PULSE program was used. 97. In addition to grant funding requested from the state, Rembold, as superintendent of WGSD, applied for grant funding from theU. S.Department of Education. a. WGSD secured three (3) grants from the US Department of Education, including two (2) 21 Century Community Learning Center (CCLC) grants. 98. Rembold oversaw the submission of an application to theU. S.Department of Education for a CCLC grant for the WGSD Middle School. a. The application prepared by Rembold sought total federal funding of $268,297.00. b. The specified grant period was July 1, 1999, through June 30, 2002. c. Rembold signed the application as the authorized representative of the WGSD on February 24, 1999. d. The application's stated purpose of the 21 Century Grant was to establish a community learning center in the West Greene Middle School. 1. The community learning center is to positively influence development of youth using the PULSE (People Utilizing Leadership Skills Effectively) Youth Leadership model. e. The application was submitted by WGSD on behalf of a partnership between West Greene Middle School and district and the Vo -Tech High School, Waynesburg College, Greene County Commissioners, Washington Job Training Agency, Inc., Greene County Industrial Development, Inc., Greene County Library, and Greene County Memorial Hospital. Rembold 01- 079 -C2 Page 25 99. The grant application provides that PULSE would be utilized for youth development activities. a. Rembold is identified in the application as a creator of PULSE. 100. Rembold was formally listed as a director of King's Bridge Inc. at the time of this grant. 101. Rembold was receiving compensation from King's Bridge Inc. at the time of this grant. a. Rembold's first payment as an independent contractor for King's Bridge Incorporated was received on January 25, 2000. b. The grant application had been submitted prior to this payment. 102. The Greene County Educational Consortium of which Rembold was a member, oversaw the submission of a second application to the US Department of Education for a county -wide CCLC grant. a. The application sought total federal funding for the project of $2,650,917.00 for three (3) years. b. The specified grant period was July 1, 2000, through June 30, 2001. c. Rembold signed the application as the authorized representative of the WGSD on March 20, 2000. d. The application's stated purpose of the 21 Century Grant was to establish a countywide 21 Century Community Learning Center. 1. The community learning centers would utilize social development and juvenile crime diversion activities using the People Utilizing Leadership Skills Effectively (PULSE) model. 2. The CLC's will be coordinated by full or part -time professionals who will be trained as trainers in the PULSE model. e. The application was submitted by WGSD on behalf of a partnership between West Greene School District, Vo -Tech, Central Greene School District, Southeastern Greene School District, Carmichaels Area School District, and Jefferson - Morgan School District. f. Program Costs included specific PULSE expenses as follows: 1. Graysville and Aleppo Elementary Schools PULSE Training - $13,492.00. 2. Mapletown Jr. /Sr., Jefferson - Morgan Jr. /Sr., Carmichaels Jr. /Sr. High Schools and Miller Middle School PULSE training $28,440.00. 3. Vo -Tech School PULSE training - $7,082.00. 103. The WGSD was the original fiscal agent for this grant. a. The county Vo -Tech was appointed as the fiscal agent in May 2001 after concerns were raised by members of the WGSD board of directors and the superintendents from the other county school districts. 104. Rembold was formally listed as a director of King's Bridge Inc. at the time of this grant. Rembold 01- 079 -C2 Page 26 105. Rembold was receiving compensation from King's Bridge Inc. at the time of this grant. 106. Rembold oversaw the submission of another application to the US Department of Education for the hiring of a Middle School Drug Prevention and School Safety Program Coordinator. a. The application sought total federal funding for the project of $198,598.00 for three (3) years. b. The specified grant period was October 1, 2000, through February 28, 2003. c. Rembold signed the application as the authorized representative of the WGSD on May 10, 2000. d. The application's stated purpose of the grant was to hire a Middle School Drug Prevention and School Safety Program Coordinator. 1. The Middle School Drug Prevention and School Safety Program Coordinator was to support the district's PULSE activities. 107. This grant application was submitted to support PULSE activities. 108. Rembold was formally listed as a director of King's Bridge Inc. at the time of this grant. 109. Rembold was receiving compensation from King's Bridge Inc. at the time of this grant. 110. Mainstream Counseling was utilized by King's Bridge to contract with the WGSD for PULSE related services in relation to grants received by the WGSD, including Safe Schools Initiative, Safe & Drug Free Schools, andU. S.Department of Education. 111. Mainstream Counseling invoiced and was paid by the WGSD for PULSE related services associated with the Safe Schools Initiative, Safe and Drug -Free Schools, and US Department of Education Grants as follows: Date Invoice # Bill To Description Amount 12 -07 -99 7501 Rembold High School Pulse $ 8,550.00 (WGSD) Admin Fee 450.00 Total: $ 9,000.00 Date Invoice # Bill To Description Amount 03 -13 -00 7502 Rembold Middle School Team $ 8,550.00 (WGSD) May 9- 10 -11, 2000 Admin Fee 450.00 Total: $ 9,000.00 Date Invoice # Bill To Description Amount 03 -13 -00 7503 Rembold Elem. School Team $ 8,550.00 (WGSD) May 9- 10 -11, 2000 Admin Fee 450.00 Total: $ 9,000.00 Date Invoice # Bill To Description Amount 04 -25 -00 7504 Rembold Middle School $ 2,850.00 (WGSD) Curriculum Dev. Admin Fee 150.00 Total: $ 3,000.00 Date Invoice # Bill To Description Amount Rembold 01- 079 -C2 Page 27 04 -25 -00 7505 Rembold (WGSD) Date Invoice # Bill To 05 -22 -00 7506 Rembold (WGSD) Date Invoice # Bill To 11 -17 -00 7507 Rembold (WGSD) Date Invoice # 12 -0700 7508 Mainstream Date 12/17/1999 04/05/2000 04/24/2000 05/08/2000 06/01/2000 12/20/2000 01/10/2001 Counseling Check No. 20379 20897 20930 21050 21218 22426 22495 Bill To Rembold (WGSD) Curriculum (Prep.) Development /Manual Admin Fee Total: Description Curriculum Devel. Supplies Admin Fee Total: Description Support personnel for retreat on Nov. 6 -7 -8, 2000 Admin Fee Total: Description Middle School PULSE at Elizabethtown Admin Fee Total: Grand Total: Amount $ 9,000.00 $ 9,000.00 $ 9,000.00 $ 4,500.00 $ 3,533.13 $ 9,000.00 $ 2,000.00 $46,033.13 [sic] $ 1,425.00 750.00 $ 1,500.00 [sic] Amount $ 3,325.00 33.13 175.00 $ 3,533.13 Amount $ 1,900.00 100.00 $ 2,000.00 Amount $ 8,550.00 450.00 $ 9,000.00 $46,033.13 [sic] 112. Financial records of the West Greene School District confirm the following payments were made to Mainstream Counseling for PULSE program related services: a. Payments made directly to Mainstream Counseling were charged off to Safe Schools Initiative, Safe and Drug -Free Schools, and US Department of Education Grants. b. Payments made to Mainstream Counseling were the result of purchase invoices submitted to WGSD. 113. Rembold, as superintendent, authorized submission of all of the payments from Mainstream Counseling to the WGSD Board for approval. a. Rembold verbally authorized for submission to the board Invoice Nos. 7501, 7502, 7503, 7506, 7507 and 7508. 1. WGSD business manager would not have generated checks to pay these invoices absent Rembold's approval. b. Rembold authorized for submission to the board Invoice Nos. 7504 and 7505 Rembold 01- 079 -C2 Page 28 by initialing those invoices. 114. Mainstream Counseling invoiced and was paid by the GCVT for PULSE related services associated with the US Department of Education Grants as follows: a. Invoice No. 7509 from Mainstream dated 5/24/01 in the amount of $35,000.00 for the following: Date 06/20 -2001 03/20/2002 09/18/2002 June 11, 12, 13 and 14, 2001, training, materials, and food for 5 Greene County PULSE teams at Waynesburg College: 10- person team 10- person team 10- person team 10- person team 10- person team b. Invoice No. 8502 from Mainstream dated 2/01/02 in the amount of $28,000.00 for the following: March 6, 7, and 8, 2002, PULSE facilitator training by 6 trainers. Includes fees; registration materials; training manuals; documents, and supplies. Also to include pre and post site visits and planning time. 6- person team — 6-person team — 6-person team — 6-person team — 7- person team 7- person team 7- person team 7- person team 7- person team — Southeast Greene SD — Jefferson - Morgan SD — Central Greene SD — Carmichaels SD — West Greene SD Carmichaels SD Central Greene SD Jefferson - Morgan SD Southeast Greene SD — Carmichaels High School — Waynesburg High School — Jefferson- Morgan High School — Mapletown High School — West Greene High School Check No. 3228 4005 4578 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 c. Invoice No. 7520 from Mainstream dated 9/10/02 in the amount of $35,000.00 for the following: September 25, 26, and 27, 2002, PULSE facilitator training by 7 trainers. Includes fees; registration materials; training manuals; documents and supplies. Also to include pre and post site visits and planning time. 115. Financial records of the GCVT confirm the following payments Mainstream Counseling for PULSE program related services: Amount $35,000.00 $28,000.00 $35 000.00 $98,000.00 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 - $ 7,000.00 were made to a. Payments made directly to Mainstream Counseling were charged off to Safe Schools Initiative, Safe and Drug -Free Schools, and US Department of Education Grants. b. Payments made to Mainstream Counseling were the result of purchase invoices submitted to GCVT. Rembold 01- 079 -C2 Page 29 116. The WGSD and the GCVT paid Mainstream a total of $144,033.13 for services related to the PULSE program. 117. Mainstream invoiced the WGSD and GCVT as per the billing agreement between Mainstream Counseling and King's Bridge. a. As per this agreement, Mainstream Counseling billed WGSD and GCVT for services rendered by KBI for the PULSE related training. b. Mainstream Counseling kept 5% of the payment and transmitted the remaining funds to KBI. c. Rembold participated in negotiating the agreement as a representative of King's Bridge with the WGSD. d. Rembold had no involvement with Mainstream Counseling, Inc.'s services to GCVT. These particular services were negotiated by Linda McCracken, who was the Director of the 21 S Century Program for the Greene County Educational Consortium, and Lonnie Woomer, Executive Director of Mainstream Counseling, Inc. All expenditures for GCVT were approved by the Joint Operating Committee of the GCVT school. 118. Rembold was formally listed as a director of King's Bridge Inc., during the entire time (1993 -2001) he was administering grants and authorizing payments to Mainstream Counseling. a. Rembold was also compensated as an independent contractor to conduct King's Bridge training during this period and for developing the Middle School PULSE Model, the PULSE +3 Model for adjudicated youth, and the development of a rural economic development strategy for rural communities. 119. Mainstream issued payments totaling $136,900.00 to King's Bridge for PULSE related services provided to WGSD and GCVT associated with the Safe Schools Initiative, Safe and Drug -Free Schools, and US Department of Education Grants as follows: a. WGSD: Date P.O. # Description Amount 12 -07 -99 58014 Level 2 PULSE training on Jan. 11- $8,550.00 12 -13, 2000. 12 -07 -99 58014 Level 2 PULSE training on Jan. $8,550.00 11- 12 -13, 2000. 03 -31 -00 58023 Upper Elem. School PULSE $8,550.00 May 9- 10 -11, 2000 04 -24 -00 58034 Curriculum Development $2,850.00 Manual Preparation $1 425.00 Total: $4,275.00 05 -22 -00 58040 Curriculum Dev. For Middle $3,425.00 School 11 -17 -00 58008 Three trainers for retreat on Nov. $1,900.00 6 -7 -8, 2000 12 -11 -00 58037 Training for Middle School PULSE $8,550.00 on Feb. 7 -8 -9, 2001 Rembold 01- 079 -C2 Page 30 b. 1. GCVT: Sub - total: $43,800.00 Payment made to King's Bridge on 04/24/00 was derived from payment of two invoices submitted by Mainstream to the WGSC. King's Bridge Invoice No. 58039 King's Bridge Invoice No. 58031 King's Bridge Invoice No. 58046 Sub - total: $33,250.00 $26,600.00 $33 250.00 $93,100.00 120. Mainstream issued payment to King's Bridge as per the billing agreement between Mainstream Counseling and King's Bridge. a. Rembold was present when this agreement was negotiated. b. Rembold was formally listed as a director of King's Bridge Inc., and was employed by King's Bridge as an independent contractor during the entire time (1998-2001) he was administering grants and authorizing payments to King's Bridge and Mainstream Counseling. c. Mainstream Counseling charged a flat administrative fee of 5% for the submission of bills to the West Greene School District relating to the provision of PULSE programs to that district. 121. Rembold oversaw the inclusion of the services provided by King's Bridge and Mainstream Counseling into grant applications he submitted. a. During the time period when he was participating in the award of contracts to Mainstream Counseling, Rembold was being compensated by King's Bridge as an independent contractor and was also formally listed as a King's Bridge director. 122. Rembold's actions securing Safe Schools Initiative, Safe and Drug -Free Schools, and US Department of Education grants resulted in a private pecuniary gain to King's Bridge of $136,900.00. 123. Payments made to Mainstream Counseling from WGSD were made from the district's general fund account. a. This account was funded in part by the aforementioned grants. b. Rembold, in his position as superintendent of the WGSD, had participated in obtaining these grants as heretofore delineated. 124. Payments made to Mainstream Counseling from GCVT were made from the school's general fund account. a. This account was funded in part by the aforementioned grants. 125. During the period when Rembold was taking actions as WGSD Superintendent relating to the award of contracts to King's Bridge and /or Mainstream Counseling, and the obtaining grants relative to services rendered by these entities he received payments totaling at least $27,795.00 from January 2000 through July 10, 2001, from King's Bridge. Rembold 01- 079 -C2 Page 31 a. These payments were related to program development and trainer/ consultant services development of the PULSE +3 model, the middle school model and the rural economic development model provided by Rembold in relation to PULSE programs and King's Bridge activities with school districts. b. Payments to Rembold from King's Bridge's First Union account. Date Check No. Amount 01/25/00 1613 $ 3,500.00 05/08/00 1626 $ 412.00 05/10/00 1628 $ 65.00 05/10/00 1634 $ 4,000.00 06/15/00 1639 $ 2 000.00 Total $ 9,977.00 c. Payments to Rembold from King's Bridge's American Community Federal Credit Union account. Date Check No. Amount 07/25/00 1005 $ 2,000.00 02/13/01 1019 $ 4,000.00 04/12/01 1027 $ 2,000.00 05/02/01 1030 $ 318.00 05/18/01 1031 $ 4,000.00 07/10/01 1040 $ 5 500.00 Total $ 17,818.00 d. Fourteen thousand dollars ($14,000) in payments to Rembold from King's Bridge Incorporated represented expenses for writing a middle school PULSE manual, developing the PULSE +3 Model and creating a rural economic development model. 126. Rembold's first payment from King's Bridge Inc., on January 25, 2000, occurred approximately two weeks after the first training for WGSD was completed on January 11 -13, 2000. a. Rembold had never received any funds from King's Bridge Inc. prior to the time that King's Bridge Inc. did business with the WGSD. 127. M. Steven Wilcox was paid a total of $27,900 by King's Bridge Inc. during this same timeframe. a. King's Bridge Inc. was providing PULSE training in the Southern Columbia Area School District where Wilcox served as superintendent. b. The PULSE training provided at SCSD by King's Bridge Inc. was paid for with grant funding. c. Wilcox was one of the PULSE originators and a King's Bridge Inc. director. d. Wilcox had never received any funds from King's Bridge Inc. prior the time that King's Bridge Inc. did business with Wilcox's school district. 128. Rembold asserts that he was never compensated by King's Bridge Inc. for training performed for the WGSD. 129. All of the funds received by King's Bridge Inc. from WGSD, SCSD and HASD were deposited into the same bank account. Rembold 01- 079 -C2 Page 32 130. All payments to Rembold, Wilcox, Waleski and the other PULSE Core Training staff came from the sole King's Bridge Inc. bank account. 131. Because all of the funds received by King's Bridge Inc. were commingled specific funds emanating from a particular school district can not be traced as going to any specific member of the PULSE Core Training Team. 132. Payments issued to Rembold from King's Bridge did not begin until after King's Bridge received payments from the West Greene, Southern Columbia, and Huntingdon Area School Districts (HASD). 133. King's Bridge Inc., was a dormant company from January 1996 until January 2000 maintaining an account balance of approximately $3,117.59. a. The King's Bridge accounts showed increased deposits and withdrawals following the acquisition of contracts with the WGSD. b. Steven Wilcox, also a director of King's Bridge and then superintendent of Southern Columbia School District (SCSD), was actively participating in the acquisition of grant funds to implement the PULSE Program and hire King's Bridge Inc. at the SCSD. c. Funds received by King's Bridge from WGSD, SCSD, and HASD comprised the majority of the deposits into King's Bridge accounts. 134. King's Bridge Inc. did not show as a vendor at the WGSD because of its agreement with Mainstream Counseling. a. Mainstream Counseling submitted all bills relating to the provision of PULSE services to the West Greene School District on behalf of King's Bridge Incorporated. b. Mainstream Counseling was identified as the service provider on applications/ budgets when obtaining grants even though the actual provider would be King's Bridge. c. Mainstream Counseling provided no services to WGSD in relation to the Pennsylvania Department of Education, Pennsylvania Commission on Crime and Delinquency, andU. S.Department of Education Grants. d. Mainstream Counseling's only service was to submit invoices to the WGSD. e. Mainstream deducted 5% of the total as administrative costs and forwarded the balance to King's Bridge. The following findings relate to allegations that Rembold secured grant funding for technology coordinator positions that he developed for his son and for which his son was ultimately hired 135. The Greene County Vo -Tech (GCVT) is funded by and provides services for the five school districts in Greene County. a. Rembold is not employed by the Vo -Tech. b. The Vo -Tech is a separate entity from the WGSD. c. The WGSD is one of the school districts covered by the GCVT. Rembold 01- 079 -C2 Page 33 136. The vo -tech is governed by a five - member Joint Operating Committee (JOC) comprised of one school board member from each of the five school districts. a. The JOC has meetings once per month and makes decisions regarding fiscal and employee matters. b. A director supervises the day -to -day activities of the vo -tech. 137. The vo -tech also has a superintendent of record who is a superintendent from one of the five county school districts. a. The term for the superintendent of record is two - years. 138. The superintendent of record serves as the superintendent of the vo -tech, chairs the JOC meetings, and acts as the director in the director's absence. 139. Bryan Rembold, Rembold's son, has been employed by the Greene County Vo -tech School as a technology coordinator since July 1, 2000. a. Bryan Rembold served as an intern for the vo -tech during the summer months in 1999 and 2000 prior to being hired as a regular employee of the vo -tech. 140. From July 2000 through February 2001, Bryan Rembold worked eight hours per day strictly for the vo -tech that was funded solely by the vo -tech. a. Bryan Rembold's salary was $45,000 per year plus benefits. 141. Beginning on March 1, 2001, Bryan Rembold's twelve hour work day was split between the vo -tech (four hours) and the WGSD (four hours) and the West Greene Community (four hours). a. Brian Rembold's salary was funded fifty- percent by the vo -tech and fifty- percent from the (2001) Greene County 21 S Century Community Learning Center Grant. b. Bryan Rembold's salary was to be $60,000.00 per year (including benefits). 142. Rembold, as the WGSD superintendent, participated in securing the West Greene Middle School 21 Century Community Learning Center Grant. (See Findings 130 through 135) 143. At Rembold's request, the WGSD board of directors approved funding from the 2001 Greene Education Noll Consortium 21 st Century Community Center Learning Grant for the services of a technology coordinator to include four hours of work daily as technical coordinator for the West Greene Elementary Schools and four hours as technology coordinator for the West Greene School District Community. 144. By letter dated January 26, 2001, Rembold informed the Joint Operating Committee of the Vo -Tech that the WGSD board approved funding for the technology coordinator, and he requested that his son be hired for this position. 145. The JOC reassigned Bryan Rembold to this position effective March 1, 2001. 146. At the time, the JOC reassigned Bryan Rembold it was comprised of the following members: Rembold 01- 079 -C2 Page 34 Member John Walters Ron Jesso Central Greene Remo Bertugli Jefferson - Morgan Mike Conte Carmichaels School Board Note West Greene Retired Weste Teacher Current West Greene Teacher Current West Greene Teacher Jefferson - Morgan Business Administrator George Billitz Southeastern Greene None 147. At the time of Rembold recommended the JOC utilize his son for the position, he was the immediate supervisor of two of the members of the JOC in their capacity as teachers at the WGSD 148. Bryan Rembold resigned as the technology coordinator for the West Greene Middle School on April 18, 2001. 149. Bryan Rembold was compensated $3,786.92 by the vo -tech from the Greene County Educational Consortium of which Rembold is a member and the financing of which was obtained from a grant secured by Rembold. 150. From April 18, 2001 until June 10, 2001, Bryan Rembold remained an employee of the vo -tech as a technology coordinator for four hours per day funded solely by the vo- tech. 151. Effective June 11, 2001, the JOC reassigned Bryan Rembold to work eight hours per day for the vo -tech and for four (4) schoof districts in the county (except West Greene that was funded fifty - percent by the vo -tech and fifty - percent from the county -wide 21 Century Community Learning Center Grant. a. Bryan Rembold's salary was to be $60,000.00 per year (including benefits). 152. Rembold, as the WGSD superintendent, participated in securing the countywide 21 Century Community Learning Center Grant. 153. Effective September 19, 2001, Bryan Rembold's entire salary was funded by the countywide 21 st Century Community Learning Center grant funds. 154. Bryan Rembold was compensated $56,146.14 by the vo -tech from the Greene County Educational Consortium of which Rembold is a member and the financing of which was obtained from a grant secured by Rembold. The following findings relate to allegations that Rembold conducted private business on school district time, using district equipment, district facilities, and district materials Work for King's Bridge, Incorporated: 155. Rembold submitted invoices to King's Bridge at various times detailing days, amount of time, and rate of compensation for conducting research, writing, and data collection relative to the PULSE program. 156. Rembold's invoices to King's Bridge Inc. were not date or time stamped indicating the actual receipt by King's Bridge. Rembold 01- 079 -C2 Page 35 157. Rembold performed services for King's Bridge on the same dates he was listed as working as superintendent for WGSD. 158. Leave records from WGSD for Rembold and invoices submitted to King's Bridge Inc. by Rembold confirm dates that when he was performing work for King's Bridge Inc. he simultaneously was receiving compensation for working at the district and had no recorded leave as follows: a. 04 -09 -98 09 -07 -98 04 -10 -98 01 -14 -99 06 -03 -98 01 -15 -99 06 -15 -98 03 -18 -99 06 -16 -98 04 -02 -99 06 -17 -98 06 -12 -01 06 -18 -98 06 -13 -01 06 -19 -98 159. With regard to April 9th and 10 of 1998, Rembold avers that these dates represent the Easter Holiday, per the West Greene School Calendar of 1997 -98. 160. With regard to the dates of June 15 through June 19 1998, these represented vacation days. 161. September 7, 1998, represented the Labor Day Holiday as per the West Greene School Calendar 1998 -99. 162. January 14 and 15 1999, were inclement weather /snow days, as confirmed by the West Greene School Calendar 1998 -99. 163. March 18, 1999, represented a sick day as per leave records submitted to the Ethics Commission in May, 2002. 164. April 2, 1999, represented the Easter Holiday as per the West Greene School Calendar for 1998 -99. Please see Rembold's Exhibit "23" which is attached hereto and made a part hereof. 165. On June 12 and 13 2001, Rembold worked during the school day with the West Greene School District faculty and then worked during the evening hours, from 4:00 p.m. until midnight on the PULSE +3 Model. See Rembold's Exhibit "23" 166. Rembold did not utilize annual or personal leave from WGSD on June 3, 1998. Work for Cabell County Board of Education: 167. Rembold assisted Steven Wilcox, Rembold's associate in King's Bridge, in presenting peer counseling training for the Cabell County Board of Education at Camp Virgil Tate, Route 4, Box 141 B, Charleston, WV 25312. a. Wilcox presented the counseling training on the following dates: Thursday, November 6, 1997, through Saturday, November 8, 1997. Thursday, March 4, 1999, through Saturday, March 6, 1999. Thursday, March 23, 2000, through Saturday, March 25, 2000. Friday, March 9, 2001, through Sunday, March 11, 2001. Rembold 01- 079 -C2 Page 36 168. Rembold assisted Wilcox during the 1999 and 2001 training sessions on the following dates: Thursday, March 4, 1998 Friday, March 9, 2001 Friday, March 5, 1999 169. Rembold did not utilize annual or personal leave from WGSD on Thursday, March 4, 1999; Friday, March 5, 1999; or Friday, March 9, 2001. 170. No leave was required to be taken by Rembold: March 4, 1998, represented a inclement weather day as per the West Greene School Calendar 1997 -98. 171. March 5, 1999, was a vacation day as per the leave records. 172. March 9, 2001, Rembold worked a full day as Superintendent at the West Greene School District. Rembold then traveled to CabeII County, West Virginia, and conducted training activities beginning at 7:00 p.m. and worked on March la and 11' 2001, in Cabell County. Work for Huntingdon Area School District: 173. Rembold has provided counseling /consultant services for the Huntingdon Area School District, Huntingdon, Pennsylvania, since at least 1996. a. Rembold was hired at the discretion of Huntingdon Area School District (HASD) PULSE coordinator Arthur Waleski. 1. Waleski is employed as the assistant high school principal and PULSE coordinator by HASD. 2. Waleski is also a compensated trainer for King's Bridge Inc. 174. Business records of the Huntingdon Area School District reflect Rembold received the following compensation from that district during calendar years 1996, 1997, 1998, and 1999: Transaction Check Date No. Payee Amount Detail 11719796 0467$6 CP Rembold $1,629.30 Help -lin fining/ conference 04/22/97 048212 CP Rembold $1,834.40 Pulse Training Coordinator 05/15/98 053107 CP Rembold $1,600.00 PULSE Camp Consultant 05/18/99 057566 CP Rembold $1,573.20 3 Days Training and Mileage 175. Rembold served as a trainer for a HASD PULSE retreat on April 7, 1999 through April 9, 1999. 176. Rembold did not utilize annual or personal leave from WGSD on April 7, 1999, April 8, 1999, or April 9, 1999. 177. Rembold was compensated by HASD for conducting training for HASD while simultaneously receiving compensation from WGSD. Rembold 01- 079 -C2 Page 37 a. Rembold was paid $812.64 by the WGSD while he was simultaneously paid by HASD and did not utilize annual or personal leave. b. Compensation for Rembold based on three (3) eight hour days in 1999 at $33.86 per hour. c. This training did not relate to Rembold's duties as superintendent at WGSD. Use of WGSD Telephones: 178. WGSD Policy No. 710, Section: Property, Titled: Use of Facilities by Staff, was adopted on November 18, 1991 and governed the use of district equipment, including telephones and fax machines. a. The policy is as follows: 1. Purpose: School equipment and facilities may not be used by district staff for personal reasons, either on or off school property, without explicit authorization or administrative permission in accordance with these guidelines. 2. Authority: The facilities and equipment of the district are only available for staff use if such is clearly within the authorization granted in a policy of the Board or temporary approval has been granted by the Superintendent. The board specifically prohibits, except as authorized in the foregoing paragraph, personal use of district telephones, materials, tools, supplies, equipment, and district vehicles. b. This policy was in effect throughout Rembold's tenure as superintendent at WGSD. 179. Employees of the WGSD were not permitted to use district phones /fax equipment to conduct personal business. 180. Rembold had access to general phone lines of the district while serving as Superintendent of WGSD. a. Rembold did not have a direct phone line assigned to him. 181. Rembold made personal /personal business calls using WGSD telephones. a. Some of the calls and faxes were directly related to King's Bridge and /or PULSE activities. 182. Rembold identified and made reimbursement to WGSD for making personal/ personal business calls and faxes for the period of July 2000 through March 2001. a. Rembold made this reimbursement on July 16, 2001 with personal check no. 2596 in the amount of $90.60. 183. Rembold made another reimbursement to the district for making personal calls in the amount of $84.30 by personal check no. 2650 on September 18, 2001. a. Rembold made this reimbursement for the estimated amount of personal/ personal business calls made from district telephones for the period of April 2001 through June 2001. Rembold 01- 079 -C2 Page 38 184. The telephone numbers identified by Rembold as personal /personal business associated with King's Bridge and PULSE included the following: 717 - 264 -1299 Edgar Thacker /King's Bridge 717 - 356 -2331 SCSD 570 - 672 -3869 Steve Wilcox 814 - 643 -1080 HASD 814 - 643 -3800 HASD -Fax 814 - 643 -1114 Mainstream Counseling 814 - 643 -5344 Mainstream Counseling -Fax a. The other numbers on the list identified by Rembold as personal /personal business are private numbers. 185. For the period from December 1998 through December 2000 Rembold made personal /personal business telephone calls from WGSD telephones for which he made no reimbursement in the total amount of $97.33. 186. Long distance toll records for WGSD confirm Rembold placing calls and faxes to PULSE and King's Bridge associates and other personal calls /faxes on at least 271 occasions from May 1998 through December 2000. a. These calls, were made by Rembold to Edgar Thacker, Steve Wilcox and Arthur Waleski, and other PULSE and King's Bridge Associates. b. These calls are separate from those Rembold had made reimbursement payments to the district for. 187. Included with WGSD long distance toll records are toll charges to various locations throughout the Commonwealth of Virginia. 188. In addition to placing calls to his PULSE and King's Bridge associates, Rembold received calls at WGSD from Steve Wilcox, Edgar Thacker, Art Waleski, and Lonnie Woomer. a. All four (4) were connected to Rembold through PULSE and /or King's Bridge. 189. Approximately 300 calls were placed by Wilcox to Rembold at WGSD from October 1998 through May 2000 totaling 1,670.3 minutes and $149.30 a. These calls were placed during the same time Rembold was consulting with Wilcox on PULSE/King's Bridge business. 190. Phone records of the Huntingdon Area School District confirm calls were placed to Rembold at WGSD by Art Waleski from May 1995 through April 2001 at HASD totaling 266.9 minutes and $25.74. a. These calls were placed during the same time Rembold was consulting with Waleski on PULSE. 191. Telephone records of Mainstream Counseling indicate that calls were placed by Mainstream Counseling to WGSD while Rembold was employed as the district superintendent. a. These calls were placed at a time when Mainstream Counseling had a partnership agreement with King's Bridge and when Rembold was including Mainstream on grant applications. Rembold 01- 079 -C2 Page 39 b. Calls were placed from Mainstream Counseling from May 1998 to August 29 2001 totaling 822.07 minutes. 192. Rembold also received and had faxes sent to Steve Wilcox/Southern Columbia School District regarding Rembold's involvement with PULSE and /or King's Bridge on several occasions. 193. Rembold's use of the telephone in relation to PULSE and /or King's Bridge related activities, while on WGSD time, is as follows: a. Personal calls placed by Rembold: Time by school year: 2000 -2001 63.4 minutes (0.1 hours) [sic] 1999 -2000 568.3 minutes 9.5 hours 1998 -1999 364.1 minutes 6.1 hours TOTAL: 995.8 minutes (16.7 hours) Salary by school year: 2000 -2001 $ 40.68 1999 -2000 $ 336.21 1998 -1999 $ 206.55 TOTAL: $ 583.44 b. Personal calls received by Rembold from Southern Columbia School District: Time by school year: 2000 -2001 923.4 minutes (15.4 hours 1999 -2000 466.2 minutes (7.8 hours 1998 -1999 281.7 minutes (4.7 hours TOTAL: 1,671.3 minutes (27.9 hours) Salary by school year: 2000 -2001 $ 569.50 1999 -2000 $ 276.04 1998 -1999 $ 159.14 TOTAL: $ 1,004.68 c. Personal calls received by Rembold from Huntingdon Area School District: Time by school year: 2000 -2001 62.7 minutes 1.0 hours 1999 -2000 51.9 minutes 0.9 hours 1998 -1999 67.7 minutes 1.1 hours 1997 -1998 69.1 minutes 1.2 hours TOTAL: 251.4 minutes (4.2 hours) Rembold 01- 079 -C2 Page 40 Salary by school year: 2000 -2001 1999 -2000 1998 -1999 1997 -1998 TOTAL: d. Personal calls received by Rembold from Mainstream Counseling: Time by school year: 2000 -2001 115.7 minutes 1999 -2000 95.4 minutes 1998 -1999 292.5 minutes 1997 -1998 100.6 minutes TOTAL: 604.2 minutes Salary by school year: 2000 -2002 1999 -2000 1998 -1999 1997 -1998 TOTAL: a. 2000 -2001: ( Salar y Placing calls from Receiving calls from Receiving calls from Receiving calls from TOTAL: b. 1999 -2000: ( Salar y Placing calls from Receiving calls from Receiving calls from Receiving calls from TOTAL: c. 1998 -1999: ( Salar y Placing calls from Receiving calls from Receiving calls from Receiving calls from TOTAL: d. 1997 -1998: (Salar Receiving calls from Receiving calls from TOTAL: $ 36.98 $ 31.85 $ 37.25 $ 38.88 $ 144.96 $ 70.26 $ 56.62 $ 165.91 $ 55.08 $ 347.87 - $36.98 /hour WGSD: $ SCSD: $ HASD: $ MC: $ $ - $35.39 /hour WGSD: $ SCSD: $ HASD: $ MC: $ $ - $33.86 /hour WGSD: $ SCSD: $ HASD: $ MC: $ $ y - $32.40 /hour m HASD: $ MS: $ (1.9 hours 1.6 hours 4.9 hours 1.7 hours (10.1 hours) 194. Rembold received a private pecuniary gain of $2,080.95, as a result of transacting private business using WGSD's telephone, during his work hours as superintendent: 40.68 569.50 36.98 70.26 717.42 336.21 276.04 31.85 56.62 700.72 206.55 159.14 37.25 165.91 568.85 38.88 55.08 93.96 Rembold 01- 079 -C2 Page 41 GRAND TOTAL: $2,080.95 The following findings relate to the allegation that Rembold submitted and received duplicate expense reimbursements from West Greene School District and other sources 195. In his capacity as WGSD Superintendent, Rembold received mileage reimbursement for use of his vehicle while on official business. a. Reimbursements would be made for each mile traveled. b. Reimbursement rates were: 2000: .0325¢ 2001: .0345¢ 196. Expense reimbursement records on file with WGSD confirm Rembold received mileage reimbursement for his attendance at PULSE training held in Elizabethtown, PA on days that he was on leave from the district. a. Rembold was not entitled to receive expense reimbursement from the district for expenses incurred not related to official WGSD duties. b. Rembold received mileage reimbursement on days when he was not working for the school district. 197. Rembold's expense records submitted to WGSD included the following mileage reimbursements for his attendance at PULSE trainings while on leave from the district: a. Rembold received West Greene School District check number 22685 dated February 12, 2001, in the amount of $3,661.73 that included $177.33 for 514 miles to PULSE training in Elizabethtown, PA on February 5, 2001 to February 8, 2001. 1. Leave records confirm Rembold took vacation leave on February 6, 7, 8, 2001. 2. Rembold was compensated at the rate of $0.345 per mile for this travel. b. Rembold received WGSD check number 22959 in the amount of $403.95 that included $128.00 for 370 miles to Elizabethtown, PA on April 3, 2001 and April 4, 2001. 1. Rembold took personal leave on April 3, 2001 and April 4, 2001, but was also called back to West Greene School District for an emergency on that date. 2. Rembold was compensated at the rate of $0.345 per mile for this travel. c. Both reimbursements were for travel expenses related to King's Bridge and/ or PULSE. 198. Rembold received reimbursement from both the WGSD and Southern Columbia School District for travel expenses related to Rembold's independent consultant activities. Rembold 01- 079 -C2 Page 42 a. Rembold received WGSD check number 22095 in the amount of $202.33 that included $195.00 for 600 miles roundtrip to SCSD on October 29 -30, 2000. 1. Rembold was compensated at the rate of $0.325 per mile for this travel. b. Rembold received SCSD check number 22214 in the amount of $230.37 that included $211.25 for 650 miles roundtrip to SCSD on October 29 -30, 2000. 1. Rembold was compensated at the rate of $0.325 per mile for this travel. 2. This payment was approved by Steve Wilcox, SCSD Superintendent. 199. Rembold received duplicate expense reimbursement for mileage from WGSD and the Greene County Industrial Development Authority (GCIA), an entity which Rembold serves as president for expenses related to authority business. a. Rembold received West Green School District check number 22095 in the amount of $202.33 that included $14.30 for 44 miles incurred on October 25- 26, 2000. 1. Rembold was compensated at the rate of $0.325 per mile for this travel. b. Rembold was also compensated this amount from the GCIDA. 200. Rembold submitted mileage reimbursement and received payments for mileage unrelated to WGSD business as follows: Date Miles Amount 02/05/01 to 02/08/01 514 miles .345 /mile $177.33 04/03/01 to 04/04/01 370 miles .345/mile $128.00 10/29/00 to 10/30/00 600 miles .325 /mile $195.00 10/25/00 to 10/26/00 44 miles @ .325 /mile $ 14.30 Total $514.63 201. Rembold issued checks to the WGSD as reimbursement for mileage as follows: a. Rembold reimbursed WGSD by personal check no. 2651 in the amount of $653.31 for all mileage reimbursements made to him for travel to Southern Columbia School District. b. Rembold reimbursed the WGSD with personal check number 2655 in the amount of $14.30 for this mileage. The following findings relate to allegations regarding Rembold's failure to file Statements of Financial Interests 202. Rembold, in his capacity as superintendent of WGSD was annually required to file Statement of Financial Interests (SFI's) forms by May 1 of each year for the prior calendar year. 203. Rembold failed to file SFI's for calendar years 2000, 1999, 1998, and 1997 by May 1 of the following year. 204. Statements of Financial Interests forms were annually mailed to the West Greene School District in 1998, 1999, 2000, 2001, and 2002 by the Administrative Division of the State Ethics Commission. Rembold 01- 079 -C2 Page 43 a. In 1998, blank forms, SEC -1, Rev. 1/98 were mass mailed to all municipalities in the Commonwealth, including LIU, on January 26, 1998. b. In 1999 blank forms, SEC -1, Rev. 1/99, were mass mailed to all municipalities in the Commonwealth, including LIU, on February 9, 1999. c. The 2000 forms SEC -1, Rev. 1/00 were bulk mailed to all municipalities in the Commonwealth, including LIU, on January 21, 2000. d. The 2001 forms SEC -1, Rev. 1/01 were bulk mailed to all municipalities in the Commonwealth, including LIU, on or about December 29, 2000. e. The 2002 forms SEC -1, Rev. 1/2002 were bulk mailed to all municipalities in the Commonwealth, including LIU, on or about December 14, 2001. 205. In 2000, 2001 and 2002, blank Statement of Financial Interests forms were mailed by the State Ethics Commission to the West Greene School District addressed to Charles Rembold, Superintendent, 1367 Hargus Creek Road, Waynesburg, PA 15370. a. In 1999 and 1998 blank Statements of Financial Interests forms were mailed by the State Ethics Commission to the West Greene School District, addressed to Charles Rembold, Superintendent, R.D. #5, Box 36B, Waynesburg, PA 15370. b. Blank Statements of Financial Interests were forwarded directly by the State Ethics Commission to Rembold in his position as West Greene School District Superintendent since at least 1998. 206. The clerical staff channeled the mailed Statement of Financial Interests to the business manager. 207. The material that was forwarded to Rembold by the State Ethics Commission each year not only included the blank Statements of Financial Interests forms but also included a cover memo advising of the filing requirement procedures and deadlines. 208. Prior to late winter /early spring 2001, SFI's were only distributed to school board members and the solicitor by the district business administrator. 209. The business manager of the West Greene School District did not circulate the forms to any administrator, including Rembold. 210. No administrator in the history of the West Greene School District ever completed the Statement of Financial Interests prior to the Spring of 2001. 211. In or around March /April 2001, the business administrator learned that other personnel, including the superintendent, were required to file SFI's. a. The business administrator consulted the district solicitor who verified that administrators, including the superintendent, were required to file SFIs. 212. After consulting with the solicitor, the business administrator informed Rembold that he and other administrators were required to file SFIs. 213. Rembold did not file any SFIs with the WGSD prior to resigning in August 2001. 214. Rembold completed SFIs for calendar years 2001, 2000, 1999, 1998, and 1997 on February 6, 2002, and filed them at the WGSD on May 1, 2002. Rembold 01- 079 -C2 Page 44 215. Rembold had never been advised either by the solicitor or by the West Greene School District Business Manager as to the requirement of annually filing a statement of financial interest. 216. Rembold eventually filed SFIs at the WGSD disclose information as follows: a. 2001: b. 2000: c. 1999: d. 1998: Real Estate Interests: Creditors: Direct /Indirect sources of Income: Gifts: Transportation, Lodging, Hospitality: Office, Directorship, Employment in any Business: Financial Interest in any Business: Business Interests Transferred: Real Estate Interests: Creditors: Direct /Indirect sources of Income: Gifts: Transportation, Lodging, Hospitality: Office, Directorship, Employment in any Business: Financial Interest in any Business: Business Interests Transferred: Real Estate Interests: Creditors: Direct /Indirect sources of Income: Gifts: Transportation, Lodging, Hospitality: 1999 (continued) Office, Directorship, Employment in any Business: Financial Interest in any Business: Business Interests Transferred: Real Estate Interests: Creditors: None None West Greene SD Jefferson - Morgan SD King's Bridge Inc. None None Independent Contractor Kings Bridge Inc. Research Writer Facilitator None None None None West Greene SD King's Bridge Inc. None None Independent Contractor Kings Bridge Inc. Research Writer Facilitator None None None None West Greene SD Huntingdon SD King's Bridge Inc. None None Independent Contractor Kings Bridge Inc. Huntingdon SD Research Writer Facilitator None None None None Rembold 01- 079 -C2 Page 45 e. 1997: a. Direct /Indirect sources of Income: Gifts: Transportation, Lodging, Hospitality: Office, Directorship, Employment in any Business: Financial Interest in any Business: Business Interests Transferred: Real Estate Interests: Creditors: Direct /Indirect sources of Income: Gifts: Transportation, Lodging, Hospitality: Office, Directorship, Employment in any Business: Financial Interest in any Business: Business Interests Transferred: f. All of the forms filed by Rembold were dated February 6, 2002. 217. Rembold failed to disclose information on his Statements of Financial Interests as follows: 2001: Office, Directorship, Employment in any Business: b. 2000: Office, Directorship, Employment in any Business: c. 1999: Office, Directorship, Employment in any Business: West Greene SD Huntingdon SD King's Bridge Inc. Greene Co. Vo -Tech None None Independent Contractor Kings Bridge Inc. Huntingdon SD Research Writer Facilitator None None None None West Greene SD Huntingdon King's Bridge Inc. Greene Co. Vo -Tech None None Independent Contractor Kings Bridge Inc. Research Writer Facilitator None None - Greene County Industrial Development Corp. - Evergreene Technology Park, Inc. - A Community Agile Partners in Education. - Greene County Industrial Development Corp. - A Community Agile Partners in Education. - A Community Agile Partners in Education. 218. Rembold asserts that he was unaware that he was required to file information regarding his application with non - profit entities. III. DISCUSSION: Rembold 01- 079 -C2 Page 46 At all times relevant to this matter, the Respondent, Charles Rembold, hereinafter Rembold, has been a public official subject to the provisions of the Public Official and Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. § 401, et se as codified by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65Pa.C.S. § 1101 et seq., which Acts are referred to herein as the "Ethics Act." The allegations are that Rembold, as the Superintendent for the West Greene School District (WGSD), violated Sections 3(a)/1103(a), 3(f)/1103(f) and 4(a)/1104(a) of the Ethics Act when he participated in discussions and actions of WGSD resulting in its implementation of the PULSE program (People Utilizing Leadership Skills Effectively), and the acquisition of grant funds to pay for the PULSE program when he was an employee/ director of King's Bridge Inc. (King's Bridge), which developed and owned the copyright for the PULSE program and which received payments for use of the PULSE program; when the contract with King's Bridge, was entered into without an open and public process; when he participated in the administration of the district's contract /subcontract with King's Bridge; when he submitted and received duplicate expense reimbursements from WGSD, Southern Columbia School District (SCSD) and King's Bridge for the same expenses related to King's Bridge business; when he conducted King's Bridge business on district time using school district facilities, equipment and supplies; when he secured grant funding for a technology coordinator position that he developed for his son and for which his son was ultimately hired to fill; and when he failed to file Statements of Financial Interests (SFI's) for the 1997, 1998, 1999 and 2000 calendar years. 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. The term "conflict of interest" is defined under Act 9 of 1989/Act 93 of 1998 as follows: Section 2/1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public f of ce or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. "Conflict" or "conflict of interest" does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 P.S. § 402/65 Pa.C.S. § 1102. Section 3(a)/1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 3(f)/1103(f) of the Ethics Act provides: Section 3/1103. Restricted activities (f) No public official or public employee or his spouse or child or any business in which the person or his spouse or Rembold 01- 079 -C2 Page 47 child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. 65 P.S. § 403(f)/65 Pa.C.S. § 1103(f). Section 3(f)/1103(f) of the Ethics Act provides in part that no public official /public employee or spouse or child or business with which he or the spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more or any subcontract valued at five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official /public employee is associated unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure. Section 4(a)/1104(a) of the Ethics Act requires that each public official /public employee must file an SFI for the preceding calendar year, each year that he holds the position and the year after he leaves it. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are reproduced above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Rembold was employed as WGSD Superintendent from July 1, 1993, until August 20, 2001, when he resigned to accept a position as the superintendent of the Jefferson- Morgan School District where he is currently employed. In a private capacity, Rembold has been involved with King's Bridge, a Virginia corporation that offers training programs for schools, businesses, government ,and police, since at least July 1983. Rembold served as an initial director of the corporation, continued as a listed director on the corporation papers until 2001, and served as a consultant/ contractor providing training programs, research and other services. One of the programs developed by King's Bridge for school districts focused on at -risk students. King's Bridge holds the copyright for the PULSE Program which is the cornerstone of the training programs. King's Bridge filed articles of incorporation with the Virginia State Corporation f Commission on July 28, 1983, which identified Rembold as one of two shareholders. On March 8, 1993, R. Edgar Thacker filed an annual report with the Virginia Corporation Commission that included corporate officers and directors as follows: Charles P. Rembold, President /Director; R. E. Edgar Thacker, Secretary /Director; Carla Watson, Director; and Steven Wilcox, Director. Rembold was formally listed as a president /corporate director in annual reports for the years 1994 through 2000. By letter of February 17, 1993, Rembold resigned as president and stockholder in King's Bridge Inc. A report filed on June 1, 2001, lists the removal of Charles P. Rembold and Michael Stephen Wilcox as corporate officers and /or directors. Rembold 01- 079 -C2 Page 48 In about 1991, PULSAR, Inc. offered a training program package under the program name PULSAR to public entities in Virginia. The PULSE concept was developed by Rembold, Thacker, and Wilcox. PULSAR was similar conceptually to the PULSE program developed by King's Bridge. PULSAR, Inc. was incorporated with the Virginia State Corporation Commission on April 15, 1991. Original incorporators were G. L. Wells, Charles Rembold, and Edgar Thacker. The stated purpose of the corporation was to educate the public, students, educators, and law enforcement officials and to increase their awareness of the causes, the dangers and problems, and the method of dealing with students at -risk, including low self- esteem students suffering from depression, truant students and juvenile offenders. Rembold was not listed as a corporate officer or director on any annual reports filed by PULSAR. In about 1994, philosophical differences occurred among the PULSAR directors. Michael Steven Wilcox, one of the PULSE originators and a listed director of King's Bridge, suggested to Walter Brown, the chairman of PULSAR, that it could serve as a "pass through" of funds for King's Bridge. Wilcox's idea of increasing revenues for King's Bridge was that PULSAR keep 10% of the consulting revenues generated while turning over or "passing through" the balance of the funds to King's Bridge. Brown objected to this arrangement. PULSAR continues to operate primarily in the Commonwealth of Virginia without the involvement of Rembold, Wilcox, or Thacker. Rembold does not contest that Brown testified as to the foregoing. Rembold asserts that he was unaware of the conversation. Following the split from the PULSAR group, King's Bridge continued to operate and provide the PULSE program. In November of 1993, Arthur Waleski became employed as an Assistant High School Principal by the Huntingdon Area School District (HASD), Huntingdon, Pennsylvania. Waleski was familiar with Rembold, Wilcox, and Thacker, all of whom had been previously employed in the Fairfax County, Virginia, school system. Waleski knew of the PULSAR program as a result of serving as Assistant Principal at R. E. Lee High School in Staunton, Virginia where Waleski worked under the supervision of Rembold. HASD utilized the services of Mainstream Counseling, owned by Lonnie Woomer (Woomer), to perform drug and alcohol counseling services. Waleski was interested in setting up a PULSE program at HASD. Woomer was introduced to Rembold, Wilcox, and Thacker. From the spring of 1995 through 2001, the time period Woomer was associated with King's Bridge, she was under the impression that Rembold, Wilcox, and Thacker were the principals of King's Bridge. After learning of Woomer's /Mainstream Counseling's drug and alcohol services, Rembold wanted Mainstream to be used for programs at WGSD. During 2000 and 2001, King's Bridge utilized Mainstream Counseling in relation to the provision of services to WGSD. King's Bridge asked Woomer of Mainstream Counseling if it would be listed at the top of the PULSE organizational chart. The chart depicted Mainstream Counseling as receiving funding through grants and contracting with King's Bridge for program marketing, development, management, implementation, and evaluation. King's Bridge, in turn, would contract with the PULSE core training staff, as independent contractors, which included Rembold, Wilcox, Thacker, Waleski, Woomer, and others. Mainstream would be used as the entity to contract with local entities and then contract with King's Bridge to provide services. A meeting was held among Rembold, Thacker, Wilcox, Waleski, and Woomer, to discuss Mainstream Counseling's affiliation with King's Bridge. Woomer was under the impression that Rembold, Wilcox, and Thacker were acting on behalf of King's Bridge. During the meeting, Rembold suggested using the services of Mainstream Counseling at SCSD and WGSD. Rembold was superintendent at WGSD and Wilcox was superintendent at SCSD at the time. Woomer informed Rembold, Wilcox, and Thacker that she was willing to enter into a business relationship with King's Bridge to officially provide these services on two conditions: (1) a signed contract between Mainstream Counseling and King's Bridge and; (2) both Rembold and Wilcox not be on the board of directors and not have any ownership interest in or names on any paperwork for King's Bridge. Woomer had concerns with Rembold and Wilcox being affiliated with King's Bridge while contracting with their school districts. Both Rembold 01- 079 -C2 Page 49 Rembold and Wilcox agreed to have their names removed as directors of King's Bridge. On December 1, 1999, bloomer d /b /a Mainstream Counseling, Inc. entered into a one -year professional services contract with King's Bridge effective January 1, 2000. King's Bridge was identified as the consulting company for PULSE services. The terms and conditions of the agreement are delineated in Fact Finding 35. The above arrangement was used primarily with WGSD and on one occasion with SCSD where school board members began to question Wilcox's affiliation with King's Bridge. On at least four occasions between January 2000 and February 2001, Rembold advised Woomer that he and Wilcox resigned from King's Bridge but Rembold and Wilcox remained as listed directors for King's Bridge until June 1, 2001. King's Bridge had been an inactive company between 1996 and 1999 when Rembold, Wilcox, and Thacker developed the PULSE program for use in Pennsylvania school districts. The PULSE program was actively marketed by Rembold and Wilcox after they became established as school district superintendents in WGSD and SCSD. Rembold, as WGSD superintendent, oversaw the daily operation of the district's schools, teachers, and administrators; prepared board meeting topic and agenda items; and identified, applied for and secured grant funding. Rembold was not required to obtain board approval to seek grant funding. Beginning with his hiring as WGSD superintendent in July 1993, Rembold participated in the development of the PULSE program for WGSD. Rembold oversaw the preparation and submission of grant applications which identified the PULSE program and providers /contractors as King's Bridge and /or Mainstream Counseling. WGSD did not have a PULSE program prior to Rembold's tenure as superintendent. After the WGSD Board was provided with information by Rembold on the PULSE program and grant funding for the program, the board was supportive of the district's involvement in the program. The district's PULSE program included training for teachers, administrators and staff, educational services and PULSE retreats for students with funding from state and federal grants and in- kind contributions by the district. Rembold had oversight over all aspects of the district's PULSE program. Minutes from the WGSD School Board of Directors which include the discussions and information furnished to the board by Rembold and others on the district's PULSE program and related funding are delineated in Fact Finding 47. The WGSD Board passed a motion to contract with Mainstream Counseling, Inc. to train a 10- person Elementary School team for the Elementary PULSE Program. Program, materials, training services, registration, rooms, and meals could not exceed $9,000.00 to be paid from a Crime and Delinquency Grant. Rembold was present for this meeting. On September 28, 2000, Rembold informed the school board that the school district would receive two grants, each in the amount of $150,000.00, to be partly used to coordinate the PULSE Program at all three levels. The WGSD Board also passed a motion to create the position of Middle School Drug Prevention and School Safety Program Coordinator to be funded by the Safe /Drug Free School Program Grant on a trial basis, subject to elimination after a three -year trial period if the Middle School Drug Prevention and School Safety Program would be determined b the board to be ineffective. The school board also passed a motion to contract with Mainstream Counseling, Inc., to train a second Middle School team for the Middle School PULSE Program. Program, materials, training services, registration, rooms, and meals could not exceed $9,000.00 to be paid for from the Safe and Drug Free Schools Program Grant. On November 16, 2000, Rembold informed the board that a PULSE Retreat was held on November 6, 7, and 8. On May 17, 2001, Rembold informed the school board during a Personnel Committee meeting that he would not be seeking another contract and started ajob search for another superintendent position. At Rembold's direction, WGSD applied for and received grant funds from PDE Safe & Drug Free Schools program; Safe Schools Initiative; the PA State Commission on Crime & Delinquency (PCCD); 1Drug Education /Law Enforcement Grant Program; and the U. S. Rembold 01- 079 -C2 Page 50 Department of Education, 21 Century Community Learning Center Grant. Rembold participated in applying for each of the grants by overseeing the preparation of grant applications, determining costs, and identifying the PULSE program to be used. Each grant applied for and received by WGSD consisted of state or federal funds which were distributed by PDE and PCCD. Numerous grants applied for during Rembold's tenure as WGSD superintendent included utilization of the PULSE program and Mainstream Counseling or King's Bridge. Rembold was instrumental in identifying and implementing the PULSE program while formally listed as a director and acting as a compensated independent contractor for King's Bridge. From 1998 to 2001, Rembold, in his official capacity as WGSD superintendent, participated in securing a total of ten separate grants from PDE, the PCCD, and the U. S. Department of Education which included proposed funding for PULSE. Rembold's participation in securing grant funding for the district's PULSE program included oversight of the grant application process and identification of potential funding sources at the federal, state, and local levels; contractors, consultants, and non - profit and other governmental bodies to be used in connection with the grants; and programs to be implemented and their costs. The only contractor /consultant utilized by Rembold for PULSE training was Mainstream Counseling. Rembold participated in writing PULSE/ King's Bridge Services into grant applications. WGSD did not have a PULSE program prior to Rembold. Rembold participated in identifying the types of goods and services for which grant monies were requested. Rembold approved the content of grant applications. Rembold directed district teachers and administrators to assist in implementing the PULSE program and arranged for PULSE services to be provided. Rembold verified the receipt of services relating to the PULSE programs which resulted in the processing of the payment of all Mainstream Counseling invoices that the school district board of directors subsequently approved. Rembold was the source of the raw data and budget figures needed to complete the grant applications. On August 16, 1999, PCCD received a Pennsylvania Drug Education /Law Enforcement Grant Program application in the amount of $16,121.00 from WGSD. The application was submitted by Rembold. The project title was PULSE with Rembold listed as the district's contact person. Rembold signed the grant agreement in his official capacity as superintendent on August 16, 1999. Rembold signed a related consortium participation agreement in his official capacity as superintendent on the same date. The program objectives, as approved by Rembold, included the implementation of a PULSE programfor60 at -risk students in grades 7 -12, the training of 10 WGSD /community members as PULSE facilitators, a three -day student /adult retreat, and maintenance of a PULSE club. On January 27, 2000, PCCD forwarded the grant to WGSD for the district's approval. Rembold, on behalf of the school district, signed the grant acceptance statement in the amount of $16,121.00 for the "PULSE Program" project. Rembold's signature represented that he agreed to accept on behalf of the district the grant "on the condition that you comply, in administering your program, with all representations contained in your application as amended and with the enclosed standard sub -grant conditions of the Commission.' PCCD then issued payment to WGSD totaling $16,121.00. WGSD did not seek any competitive bids for the PULSE program portion of this grant. Rembold participated in the decision to utilize the King's Bridge's PULSE program as part of this grant. During this time period when Rembold took actions regarding this grant, Rembold was an independent contractor paid by King's Bridge, and was formally listed as a director of King's Bridge Incorporated. The WGSD Board of Directors did not take any official action approving the submission of the PCCD $16,121.00 grant application. On December 5, 1997, PDE sent notification to Rembold at WGSD of the availability of funds from the Safe & Drug Free Schools Program. On April 17, 1998, WGSD received notification that it would be allocated $6,101.00 provided it submitted a completed application to PDE by July 1, 1998. WGSD received the grant of $6,101 00 from PDE for the 1998 -1999 allocation period. Rembold participated and had oversight responsibilities for the following Rembold 01- 079 -C2 Page 51 actions with respect to the $6,101.00 Safe & Drug Free Schools 1998 -1999 grant program: completion and submission of a detailed grant contract that included PULSE, a program administered by King's Bridge; selection of PULSE training for district employees; approval of grant expenditures; identification of district staff to be used; signed letters of assurance with local law enforcement agencies; and signed the final grant completion report. On November 18, 1998, PDE's Bureau of Community and Student Services sent notification to Rembold as superintendent advising of funding available for the federal Safe and Drug Free Schools and Communities Act Fund for 1999/2000. On May 7, 1999, Rembold was advised that WGSD's allocation was $5,032.00. On June 29, 1999, Rembold, in his official capacity of superintendent, signed the grant application for the 1999 -2000 PDE grant. Included with the application was a reference to WGSD's intent to utilize the grant funds to support the district's PULSE program. Rembold received notification of approval of this grant from PDE on February 17, 2000. Members of the WGSD Board of Directors signed the grant application as members of the Safe and Drug Free Schools and Community Advisory Council. Rembold, as superintendent, participated in or had oversight responsibilities for the following actions with respect to the $5,032.00 Safe & Drug Free Schools 1999 -2000 grant program: identification of the funding source; the district's contact person; completion of the grant application which identified use of the PULSE Program; completion of progress reports adjusting budget figures; approval of budget expenditures which include PULSE program fees; and identification of staff to be used to complete the grant. In December 1999, Rembold received notification from PDE regarding funding from the federal Safe & Drug Free Schools and Communities Act funds for 2000/2001. Rembold, as superintendent, signed the grant application seeking funds for the 2000 -2001 grant period. Rembold requested funding totaling $4,825.00. Included with the application is a program narrative detailing a PULSE survey and PULSE program, with no mention of King's Bridge. Rembold received notification of the grant approval on or about May 10, 2000, and the grant was then paid to the district. Rembold participated in or had oversight responsibilities for the following actions with respect to the $4,825.00 Safe & Drug Free Schools and Communities 2000 -01 grant program: identification of the funding source, completion of the grant application and signature; the district contact person; and identification of staff to be used to complete this grant. Rembold submitted a district grant application to PDE, Office of Safe Schools, Bureau of Community and Student Services, with his name as contact person on May 11, 1999, for the 1999/2000 safe schools initiative. This grant application was in the amount of $20,000.00 with the district contributing matching funds of $31,011.00 for total project costs of $51,011.00. Rembold completed the grant application for submission to PDE with himself as superintendent as the contact person. Rembold stated in the grant application that the purpose for obtaining the grant was to enable WGSD to implement a PULSE Program as a prevention /intervention to meet the needs of adolescents who are at high risk toward unhealthy behaviors. The application sought to utilize the PULSE program developed by King's Bridge. Design and operation of the program was to implement a PULSE Program from July 1, 1999, through June 30, 2000, as a prevention /intervention, school- based, community inclusive program designed to address the needs of adolescents who are at high -risk toward unhealthy behaviors. The grant application submitted by Rembold specified that WGSD would contract with King's Bridge to implement a PULSE Program described as being developed over a twenty -year period with its roots firmly planted in substance abuse prevention, intervention, and community action planning. On October 25, 1999, Rembold signed a letter of agreement with the Central Susquehanna Intermediate Unit securing a $20,000.00 grant. Rembold participated in or had oversight responsibility for the following actions with respect to the district's $20,000.00 Safe Schools Initiative Grant program for 1999 -2000: identification of the funding source and preparation of the application; identification of the consultants, including King's Bridge; identification of the services to be provided, including King's Bridge's PULSE program; approval of the grant budget; identification of the district staff to be used; the district contact Rembold 01- 079 -C2 Page 52 person; completion of and submission of the grant application; and approval of grant expenditures, including fees for King's Bridge and /or the PULSE program. Rembold submitted a WGSD district grant application to PDE, Office of Safe Schools, Bureau of Community and Student Services, on September 23, 1999, for the 1999 -2000 Safe Schools Initiative grant program. This grant request was in the amount of $50,000.00 with the district contributing matching funds of $36,828.00 for total project costs of $86,828.00. The grant application listed contractors /consultants including King's Bridge to implement a PULSE program. Rembold was specifically identified as being responsible for implementing a PULSE program for 120 "at- risk" students in grades 4 -8 to encourage appropriate decision making through prevention and intervention activities. On December 7, 1999, Rembold was notified by PDE that only a $26,400.00 grant was awarded. On December 15, 1999, Rembold submitted a revised budget to PDE due to the reduction in grant funding. Rembold signed a letter of agreement with the Central Susquehanna Intermediate Unit accepting the $26,400.00 grant awarded on February 11, 2000, which was followed by the receipt of the grant funds. Rembold participated in or had oversight responsibilities for the following actions with respect to the district's $26,400.00 Safe Schools Initiative grant program for 1999 -2000: identification of the funding source; identification of consultants and vendors to be used, including King's Bridge; identification of services to be provided, specifically the PULSE program; inclusion of King's Bridge for PULSE training into the grant; fixing and approval of the grant budget which included fees to be paid to Kings Bridge and /or PULSE; identification of district staff to be used; the district contact person; completion and submission of the grant application and budget revisions; signature of grant agreement letters; and approval of grant expenditures for King's Bridge. Rembold oversaw the administration of this grant in his official capacity as WGSD superintendent while simultaneously receiving compensation by King's Bridge as an independent contractor during the time period when he used the authority of his position to ensure King's Bridge's /PULSE program was used. In addition to grant funding requested from Pennsylvania, Rembold, as the WGSD superintendent, applied for grant funding from the U. S. Department of Education WGSD secured three grants from the U. S. Department of Education, including two 21 Century Community Learning Center (CCLC) grants. Rembold oversaw the submission of an application to the U. S. Department of Education for a CCLC grant for the WGSD Middle School. The application prepared by Rembold sought total federal funding of $268,297.00. Rembold signed the application for WGSD on February 24, 1999. The grant application provides that PULSE would be utilized for youth development activities. Rembold was identified in the application as a creator of PULSE. Rembold was formally listed as a director of King's Bridge at the time of this grant and received compensation from King's Bridge. Rembold's first payment as an independent contractor for King's Bridge Incorporated was received on January 25, 2000. The grant application had been submitted prior to the payment. The Greene County Educational Consortium, of which Rembold was a member, submitted a second application to the U. S. Department of Education for a county -wide CCLC grant in the amount of $2,650,917.00 for three years. Rembold signed the application for WGSD on March 20, 2000. Program Costs included specific PULSE expenses. Rembold was formally listed as a director of King's Bridge at the time of this grant and was receiving compensation from King's Bridge. Rembold oversaw the submission of another application to theU. S.Department of Education for the hiring of a Middle School Drug Prevention and School Safety Program Coordinator. The application sought total federal funding of $198,598.00 for three years. Rembold signed the application for WGSD on May 10, 2000. This grant application was submitted to support PULSE activities. Rembold was formally listed as a director of King's Bridge at the time of this grant and was receiving compensation from King's Bridge. Mainstream Counseling was utilized by King's Bridge to contract with WGSD for PULSE related services in relation to grants received by WGSD, including Safe Schools Initiative, Rembold 01- 079 -C2 Page 53 Safe & Drug Free Schools, and U. S. Department of Education. Mainstream Counseling invoiced and received $46,033.13 [sic] from WGSD for PULSE related services associated with the Safe Schools Initiative, Safe and Drug -Free Schools, and U. S. Department of Education Grants as delineated in Fact Finding 111. Payments were made directly to Mainstream Counseling and charged to Safe Schools Initiative, Safe and Drug -Free Schools, and U. S. Department of Education Grants. Rembold, as superintendent, authorized submission of all of the payments from Mainstream Counseling to the WGSD Board for approval. Mainstream Counseling invoiced and received $98,000.00 by GCVT for PULSE related services associated with the U. S. Department of Education Grants as delineated in Fact Finding 115. Payments were made directly to Mainstream Counseling and charged to Safe Schools Initiative, Safe and Drug -Free Schools, and U. S. Department of Education Grants. WGSD and GCVT paid Mainstream a total of $144,033.13 for services related to the PULSE program. Rembold participated in negotiating the agreement as a representative of King's Bridge with WGSD. Rembold had no involvement with Mainstream Counseling, Inc.'s services to GCVT. Rembold was formally listed as a director of King's Bridge during the entire time he was administering grants and authorizing payments to Mainstream Counseling and receiving compensation as an independent contractor to conduct King's Bridge training during this period and for developing the Middle School PULSE Model, the PULSE +3 Model for adjudicated youth, and the development of a rural economic development strategy for rural communities. Mainstream issued payments totaling $136,900.00 to King's Bridge for PULSE related services provided to WGSD and GCVT in connection with the Safe Schools Initiative, Safe and Drug -Free Schools, and U. S. Department of Education Grants as delineated in Fact Finding 119. Rembold was formally listed as a director of King's Bridge and was employed by King's Bridge as an independent contractor during the entire time he was administering grants and authorizing payments to King's Bridge and Mainstream Counseling. Rembold oversaw the inclusion of the services provided by King's Bridge and Mainstream Counseling into grant applications he submitted. Rembold's actions securing Safe Schools Initiative, Safe and Drug -Free Schools, andU. S.Department of Education grants resulted in private pecuniary gains to King's Bridge of $136,900.00. During the period when Rembold was taking actions as WGSD Superintendent relating to the award of contracts to King's Bridge and /or Mainstream Counseling, and the obtaining grants relative to services rendered by these entities, he received payments totaling at least $27,795.00 from January 2000 through July 10, 2001, from Kings Bridge. These payments were related to program development and trainer /consultant services development of the PULSE +3 model, the middle school model and the rural economic development model provided by Rembold in relation to PULSE programs and King's Bridge activities with school districts. Rembold's first payment from King's Bridge Inc., on January 25, 2000, occurred approximately two weeks after the first training for WGSD was completed on January 11 -13, 2000. Rembold had never received any funds from King's Bridge prior to the time that King's Bridge did business with WGSD. All payments to Rembold, Wilcox, Waleski and the other PULSE Core Training staff came from the King's Bridge bank account. Payments issued to Rembold from King's Bridge did not begin until after King's Bridge received payments from WGSD, SCSD, and HASD. King's Bridge Inc., was a dormant company from January 1996 until January 2000 maintaining an account balance of approximately $3,117.59. The King's Bridge accounts showed increased deposits and withdrawals following the acquisition of contracts with WGSD. Funds received by King's Bridge from WGSD, SCSD, and HASD comprised the majority of the deposits into King's Bridge accounts. King's Bridge did not appear as a vendor of WGSD because of its agreement with Mainstream Counseling whereby it submitted all bills relating to the provision of PULSE services to WGSD on behalf of King's Bridge. Mainstream Counseling was identified as the service provider on applications/budgets when obtaining grants even though the actual provider would be King's Bridge. Mainstream Counseling provided no services to WGSD in relation to PDE, PCCD, and U. S. Department Rembold 01- 079 -C2 Page 54 of Education Grants. Mainstream Counseling's only service was to submit invoices to WGSD. Mainstream Counseling deducted 5% of the total as administrative costs and forwarded the balance to King's Bridge. Separate and apart from the above, GCVT receives funding and provides services for the five school districts in Greene County. Rembold is not employed by the Vo -Tech. The WGSD is one of the school districts covered by GCVT. The vo -tech is governed by a five - member Joint Operating Committee (JOC) comprised of one school board member from each of the five school districts. A director supervises the daily activities of the vo -tech. The vo- tech also has a superintendent of record who is a superintendent from one of the five county school districts. The superintendent of record serves as the superintendent of the vo -tech, chairs JOC meetings, and acts as the director in the director's absence. Bryan, Rembold's son, was employed by the GCVT as a technology coordinator since July 1, 2000. Bryan served as an intern for the vo -tech during the summer months in 1999 and 2000 prior to being hired as a regular employee of the vo -tech. By letter dated January 26, 2001, Rembold informed JOC of the Vo -Tech that the WGSD Board approved funding for the technology coordinator, and requested that his son be hired for this position. JOC reassigned Bryan to this position effective March 1, 2001. At the time JOC reassigned Bryan, Rembold was the immediate supervisor of two of the members of JOC in their capacity as teachers at WGSD. Bryan Rembold resigned as the technology coordinator for the West Greene Middle School on April 18, 2001. Bryan Rembold was compensated $3,786.92 by the vo -tech from the Greene County Educational Consortium, of which Rembold was a member, with financing from a grant secured by Rembold. From April 18, 2001 until June 10, 2001, Bryan remained an employee of the vo -tech as a technology coordinator for four hours per day funded solely by the vo -tech. Effective June 11, 2001, JOC reassigned Bryan to work eight hours per day for the vo -tech and for four school districts in the county (except West Greene) that was funded fifty - percent by the vo- tech and fifty - percent from the county -wide 21 Century Community Learning Center Grant. Bryan's salary was to be $60,000.00 per year (including benefits). Rembold, as WGSD superintendent, participated in securing the countywide 21 st Century Community Learning Center Grant. Effective September 19, 2001, Bryan's entire salary was funded by the countywide 21 st Century Community Learning Center grant funds. Bryan was compensated $56,146.14 by the vo -tech from the Greene County Educational Consortium, of which Rembold is a member, with financing from a grant secured by Rembold. Turning to the allegation concerning use of district facilities and materials, Rembold submitted invoices to Kings Bridge at various times detailing days, amount of time, and rate of compensation for conducting research, writing, and data collection relative to the PULSE program. Rembold performed services for King's Bridge on the same dates he was listed as working as WGSD superintendent. Leave records from WGSD for Rembold and invoices submitted to King's Bridge by Rembold confirm dates he was performing work for King's Bridge while simultaneously receiving compensation for working at the district. See, Fact Finding 158. Rembold avers that the various dates represent days off for holidays, snow days or leave days. Rembold assisted Steven Wilcox, a King's Bridge associate, in presenting peer counseling training for the Cabell County Board of Education at Camp Virgil Tate. Rembold assisted Wilcox during the 1999 and 2001 training sessions on the following dates: Thursday, March 4, 1998; Friday, March 9, 2001; and Friday, March 5, 1999. Rembold did not utilize leave from WGSD on Thursday, March 4, 1999; Friday, March 5, 1999; or Friday, March 9, 2001. No leave was required by Rembold on March 4, 1998, which was a WGSD snow day. March 5, 1999, was a vacation day as per the leave records. On March 9, 2001, Rembold worked a full gay as Superintendent at WGSD and then traveled to Cabell County and worked on March 10 and 11"', 2001. Rembold has provided counseling /consultant services for the HASD since at least Rembold 01- 079 -C2 Page 55 1996. Rembold was hired by the HASD PULSE coordinator Arthur Waleski, the assistant high school principal. Waleski is also a compensated trainer for King's Bridge. Business records of HASD reflect Rembold received compensation from that district during calendar years 1996, 1997, 1998, and 1999. See, Fact Finding 174. Rembold served as a trainer for a HASD PULSE retreat on April 7, 1999 through April 9, 1999. Rembold did not utilize leave from WGSD on April 7, 1999, April 8, 1999, or April 9, 1999. Rembold was compensated by HASD for conducting training for HASD while simultaneously receiving compensation from WGSD. Rembold received $812.64 from WGSD while he was simultaneously paid by HASD and did not utilize leave. This training did not relate to Rembold's duties as W GSD superintendent. WGSD has a policy governing the use of district equipment, including telephones and fax machines. The board specifically prohibits, unless authorized, personal use of district telephones, materials, tools, supplies, equipment, and district vehicles. This policy was in effect throughout Rembold's tenure as WGSD superintendent. Employees of WGSD were not permitted to use district phones /fax equipment to conduct personal business. Rembold had access to general phone lines of the district while serving as Superintendent of WGSD in that he did not have a direct phone line. Rembold made personal /personal business calls using WGSD telephones. Some of the calls and faxes were directly related to King's Bridge and /or PULSE activities. Rembold identified and made reimbursement to WGSD for making personal /personal business calls and faxes for the period of July 2000 through March 2001. Rembold made reimbursement on July 16, 2001, in the amount of $90.60. Rembold made another reimbursement to the district for personal calls in the amount of $84.30 on September 18, 2001. Rembold made this reimbursement for the estimated amount of personal /personal business calls made from district telephones for the period of April 2001 through June 2001. For the period from December 1998 through December 2000, Rembold made personal /personal business telephone calls from WGSD telephones in the total amount of $97.33 for which he made no reimbursement. Long distance toll records for WGSD confirm Rembold placing calls and faxes to PULSE and King's Bridge associates and other personal calls /faxes on at least 271 occasions from May 1998 through December 2000. These calls were made by Rembold to Edgar Thacker, Steve Wilcox and Arthur Waleski, and other PULSE and King's Bridge Associates. These calls were separate from those Rembold had made reimbursement payments to the district. In addition to placing calls to PULSE and King's Bridge associates, Rembold received calls at WGSD from Steve Wilcox, Edgar Thacker, Art Waleski, and Lonnie Woomer, all of whom were connected to Rembold through PULSE and /or King's Bridge. Approximately 300 calls were placed by Wilcox to Rembold at WGSD from October 1998 through May 2000 totaling 1,670.3 minutes and $149.30. These calls were placed during the same time Rembold was consulting with Wilcox on PULSE /King's Bridge business. Calls were placed to Rembold at WGSD by Art Waleski from May 1995 through April 2001 at HASD totaling 266.9 minutes and $25.74. These calls were placed during the same time Rembold was consulting with Waleski on PULSE. Calls were placed from May 1998 to August 29, 2001, totaling 822.07 minutes by Mainstream Counseling to WGSD while Rembold was employed as the district superintendent. These calls were placed at a time when Mainstream Counseling had a partnership agreement with King's Bridge and when Rembold was including Mainstream Counseling on grant applications. Rembold also received and had faxes sent to Steve Wilcox/SCSD regarding Rembold's involvement with PULSE and /or King's Bridge on several occasions. Rembold's use of the telephone in relation to PULSE and /or King's Bridge related activities while on WGSD time are delineated in Fact Finding 193. Rembold received a private pecuniary gain of $2,080.95 as a result of transacting private business using WGSD's telephone, during his work hours as superintendent. In his capacity as WGSD Superintendent, Rembold received mileage reimbursement for use of his vehicle while on official business. Expense reimbursement records on file with WGSD confirm Rembold received mileage reimbursement for his attendance at PULSE training held in Elizabethtown, Pennsylvania on days that he was on leave from the district. Rembold 01- 079 -C2 Page 56 Rembold was not entitled to receive expense reimbursement from the district for expenses not related to official WGSD duties. Rembold received mileage reimbursement on days when he was not working for the school district. Rembold's expense records submitted to WGSD included the mileage reimbursements for his attendance at PULSE trainings while on leave from the district. Rembold received reimbursement from both WGSD and SCSD for travel expenses related to Rembold's independent consultant activities. Rembold received duplicate expense reimbursement for mileage from WGSD and the Greene County Industrial Development Authority (GCIA), an entity on which Rembold serves as president, for expenses related to authority business. Rembold submitted mileage reimbursement and received payments for mileage unrelated to WGSD business which totaled $514.63. Rembold issued checks to the WGSD as reimbursement for mileage as follows: $653.31 for all mileage reimbursements made to him for travel to SCSD and $14.30 to WGSD. Rembold, as WGSD superintendent, was annually required to file SFI's. Rembold failed to file SFI's for calendar years 2000, 1999, 1998, and 1997 by May 1 of each following year. Prior to late winter /early spring 2001, SFI's were only distributed to school board members and the solicitor by the district business administrator. The business manager of the WGSD did not circulate the forms to any administrator, including Rembold. No administrator in the history of the WGSD ever completed SFI's until the spring of 2001 when the business administrator learned that other personnel, including the superintendent, were required to file SFI's. After consulting with the solicitor, the business administrator informed Rembold that he and other administrators were required to file SFI's. Rembold did not file any SFI's with WGSD prior to resigning in August 2001. Rembold completed SFI's for calendar years 2001, 2000, 1999, 1998, and 1997 on February 6, 2002, and filed them at WGSD on May 1, 2002. Rembold eventually filed SFI's at the WGSD and disclosed the information listed in Fact Finding 216. Under Office, Directorship, Employment in any Business on his SFI's Rembold failed to disclose A Community Agile Partners in Education for calendar years 1999 through 2001; Green County Industrial Development Corp for calendar years 2000 and 2001; and Evergreene Technology Park, Inc. for calendar year 2001. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations. The Consent Agreement proposes that this Commission find: a. That Rembold violated Section 1103(a) of the Ethics Act when he used the authority of his position as superintendent of the West Greene School District, to participate in the school district's request for various grant funds to implement a program for at -risk students, which grant fund requests identified, as one of the contractors to be utilized, for the program, as King's Bridge Incorporated, at a time when he was officially listed on corporate papers as one of the directors of that entity and when he had a reasonable expectation that he would receive compensation from King's Bridge Inc. in relation to the provision of services by Rembold relating to the At Risk Program, and when he participated in the school district's selection of and payments to King's Bridge Inc. to implement the program. b. That a technical violation of Section 1103(9 of the Ethics Act occurred when the West Greene School District selected King's Bridge Incorporated and contracted with that entity to provide consultation services regarding the school district's implementation of a program to deal with students at -risk, at a time when Rembold was officially listed on corporate papers as one of the corporate directors when such selection and contract was conducted without an open and public process. c. That a violation of Section 1103(f) of the Ethics Act occurred regarding his continued supervisory and overall responsibility for the implementation or administration of the Rembold 01- 079 -C2 Page 57 contract between West Greene School District and Mainstream Counseling, Incorporated at a time when Mainstream Counseling awarded a subcontract to King s Bridge, Incorporated to participate in the PULSE Training at the West Greene School District at a time when Rembold was formally listed on the corporate papers of King's Bridge as a Director. d. That an unintentional violation of Section 1103(a) of the Ethics Act occurred regarding Rembold's receipt of compensation from the West Greene School District for one day when he was also performing services for King's Bridge Incorporated on such days and being compensated therefor. e. That no violation of the Ethics Act occurred in relation to Rembold's receipt of compensation from the West Greene School District on days that he was also performing services for the Cabell County Board of Education, West Virginia, as the days on which such activities occurred were not official school days in West Greene School District. f. That an unintentional violation of Section 1103(a) of the Ethics Act occurred in relation to Rembold's performance of services for the Huntington Area School District, and the receipt of compensation therefor, while simultaneously being employed and compensated by the West Greene School District for the same days. That no violation of the Ethics Act occurred in relation to Rembold's use of West Greene School District facilities, equipment and personnel for the performance of duties relating to his private employment with King's Bridge Incorporated, and the Huntington Area School District, as such use was de minimis in nature. h. That an unintentional violation of Section 1103(a) of the Ethics Act occurred in relation to Rembold's receipt of compensation from the West Greene School District for time spent while at the West Greene School District office facilities working on matters relating to his work as an independent contractor for King's Bridge Incorporated and the Huntington Area School District. That no violation of the Ethics Act occurred in relation to Rembold's receipt of expenses from both the West Greene School District and the Southern Columbia School District for the same expenses relating to his outside employment endeavors, as Rembold made reimbursement for the expenses for which he was overcompensated, by West Greene School District. That no violation Section 1103(a) of the Ethics Act occurred in relation to the hiring of Rembold's son for a position of employment with the West Greene School District Vo- Tech, as the decision to hire Rembold's son was made by the Joint Operating Committee of the Vo -Tech. g. k. That a violation of Section 1103(a) of the Ethics Act occurred in relation to Rembold's participation in the application for grant funds by West Greene School District which funds were to be utilized in part for the payment of the salary of his son for work performed at the West Greene Vo -Tech which had hired Rembold's son. That Rembold unintentionally violated Section 1104(a) of the Ethics Act regarding his failure to file Statements of Financial Interests for calendar years 1997 through 2000 inclusive, at a time when he served as superintendent for the West Greene School District as no administrators at the school district were filing Statements of Financial Interests. m. Rembold agrees to make payment in the amount of $26,397.50 in settlement of this matter, payable to the Commonwealth of Pennsylvania, Department of Treasury and forwarded to the Pennsylvania State Ethics Commission. Said payment to be made no Rembold 01- 079 -C2 Page 58 later than the 30 day after the issuance of the final adjudication in this matter. Rembold, as the WGSD Superintendent, used the authority of his office to obtain various grants, implement the students at -risk program, and participate as to contracts for services with funds to King's Bridge, a business with which he was associated in his position of director. Rembold, at a minimum, had a reasonable expectation that he would receive pecuniary benefits from funds that would be received by King's Bridge. Rembold was the linchpin of such financial scenarios. In his official capacity as superintendent, Rembold was instrumental in bringing the PULSE Program to the school district, obtaining grant funds, and orchestrating the usage of such grant funds for that program, resulting in compensation to King's Bridge and himself. Such compensation was a private pecuniary benefit to King's Bridge, a business with which Rembold was associated, and in particular to Rembold himself. Rembold's actions met the conditions for a violation of Section 1103(a) of the Ethics Act. There was no element of happenstance in this elaborate machination: Rembold manipulated the system to ensure that after a series of events concluded, a portion of the grant funds would be received by him. Despite Rembold's duty to act in the best interests of the school district and most importantly, the students, he disregarded that duty and used public office for personal financial gain in violation of both the letter and spirit of the Ethics Act. In short, Rembold's course of conduct for his own financial ain was a flagrant abuse of the public trust. Accordingly, Rembold violated Section 1103(a) of the Ethics Act when he, as NGSD Superintendent, participated in school district's requests for various grant funds to implement a program for at -risk students, which grant fund requests identified King's Bridge as one of the contractors, when the corporate papers listed Rembold as one of the directors, when he had a reasonable expectation that he would receive compensation from King's Bride in relation to the provision of services, and when he participated in the school district's selection of and payments to King's Bridge to implement the program. See, Shaner, Order 1163; Amato, Opinion 89 -002. As to the contracting between WGSD and King's Bridge, the business with which Rembold is associated, the Ethics Act provides for contracting between a public official or his business and his governmental body but if the contract is $500 or more, it must be awarded through an open and public process. See, Confidential Opinion, 97 -002. There was no advertising for bids or disclosure as to such contracting in this case. Such is not surprising: an open and public process would have invited competition, and competition would have lessened Rembold's control over the process and his ability to steer work directly to King's Bridge and indirectly to himself. Consistent with our prior precedent involving the contracting provision of the Ethics Act, we find a technical violation of Section 1103(f) of the Ethics Act when WGSD selected King's Bridge and contracted in excess of $500 without an open and public process with that entity to provide consultation services regarding the school district's implementation of a program to deal with students at -risk, when Rembold was officially listed on corporate papers as one of the corporate directors. See, Whetstone, Order 1040; Shetler, Order 951. Although Section 1103(f) of the Ethics Act does not prohibit contracting between a public official or his business and the governmental body, provided the requirements of the Ethics Act are satisfied, the section prohibits the public official from having any supervisory or overall responsibility regarding the administration or implementation of the contract. However, in this case, that is precisely what Rembold did. Rembold exercised the administrative implementation of the contract so that he would be the recipient of compensation as to the provision of services under the contract. Rembold's actions as to the implementation and administration of the contracting are prohibited by the Ethics Act. Accordingly, Rembold violated Section 1103(f) of the Ethics Act as to his continued supervisory and overall responsibility for the implementation or administration of the contract between WGSD and Mainstream Counseling, Incorporated when Mainstream Counseling awarded a subcontract to King's Bridge to participate in the PULSE Training at WGSD at the time Rembold was formally listed on the corporate papers as a King's Bridge Director. Rembold 01- 079 -C2 Page 59 As to the allegation of Rembold's receipt of compensation from WGSD while performing services for King's Bridge, no analysis is necessary. Fact Finding 157 states: "Rembold performed services for King's Bridge on the same dates he was listed as working as superintendent for WGSD." The foregoing factually establishes that Rembold was receiving compensation as a WGSD Superintendent while simultaneously providing services to King's Bridge. In a multitude of prior precedent, we have consistently held that a public official /public employee may not use government equipment, personnel, or facilities to conduct political, re- election, or private business activities. See, Friend, Order 800; Heck, Order 1251; Rockefeller, Order 1004; Cohen, Order 610 -R; Holt, Order 1153; Williams, Order 734 -R. Hence, Rembold unintentionally violated Section 1103(a) of the Ethics Act when he received compensation from WGSD for one day when he also performed services for King's Bridge. There were other instances when Rembold was performing services for the Cabell County Board of Education while WCSD Superintendent; however, in such cases, Rembold either turned in a leave slip, WGSD closed due to weather conditions, or Rembold performed the service after school district hours. In such circumstances, Rembold's outside activities did not occur during official school hours. Hence, Rembold did not violate Section 1103(a) Ethics Act when he received compensation from WGSD on days that he was also performing services for the Cabell County Board of Education, West Virginia, as the days on which such activities occurred were not official school days of WGSD. There is another allegation concerning Rembold performing compensated services for the HASD while the WGSD Superintendent. Fact Finding 177 provides in part: "Rembold was compensated by HASD for conducting training for HASD while simultaneously receiving compensation from WGSD." The specific details of Rembold's activities at HASD while he was simultaneously listed as present at WGSD are detailed in Fact Findings 173 -177. Based upon our analysis above and prior decisions on this issue, we find that Rembold unintentionally violated Section 1103(a) of the Ethics Act when he performed services for HASD and received compensation, while simultaneously being employed and compensated by the WGSD for the same days. These are similar type issues involving Rembold's use of school district facilities, equipment, and personnel relative to his private business interests. The fact findings reflect that Rembold used the school district facilities, equipment, and personnel in contravention of the Ethics Act. However, the amount of quantifiable personal financial gain was limited and small in amount. One of the two statutory exclusions to a conflict/ violation of Section 1103(a) of the Ethics Act relates to a private pecuniary benefit where the economic consequence has an insignificant effect. See, Schweinsburq, Order 900. On that basis, Rembold did not violate Section 1103(a) of the Ethics Act when he used WGSD facilities, equipment and personnel for the performance of duties relating to his private employment with King's Bridge and HASD on a de minimis basis. Another allegation is Rembold's use of school district facilities, equipment, and personnel at WGSD while working on matters for King's Bridge and HASD. Based upon the above precedent on this issue, a public official /public employee cannot receive compensation for his public position when he is simultaneously performing business activities in a private capacity. See, Holt; Williams, supra. Accordingly, Rembold unintentionally violated Section 1103(a) of the Ethics Act when he received compensation from the WGSD while working on matters as an independent contractor for King's Bridge and HASD. Turning to the issue of excessive expense reimbursements, there were uses of authority of office by Rembold as the WGSD Superintendent. But for the fact that Rembold was a superintendent he could not have submitted the duplicate expenses to both WGSD and SCSD. Further, the excess expense reimbursements constituted private pecuniary benefits to Rembold. Such definitive excess expenses were returned to the school district. Based upon the foregoing, the Investigative Division, through the exercise of prosecutorial discretion, has Rembold 01- 079 -C2 Page 60 determined that Rembold's actions did not constitute a violation of Section 1103(a). We will treat the above as a non pros by the Investigative Division as part of a comprehensive settlement in this case as to all of the allegations. Accordingly, Rembold did not violate Section 1103(a) of the Ethics Act in relation to his receipt of expenses from both WGSD and SCSD for the same expenses relating to his outside employment endeavors on the basis of a non pros by the Investigative Division. Regarding the allegation of the hiring of Rembold's son at the WGSD Vo -Tech, the record reflects that Rembold used his position as WGSD Superintendent to request that his son be hired by the Vo -Tech Joint Operating Committee. Although Rembold was not employed by the Vo -Tech, he was the immediate supervisor of two of its members. Such actions were uses of authority of office. A private pecuniary benefit resulted when Rembold's son was hired to a compensated position. Rembold's son is a member of his immediate family as that term is defined under the Ethics Act. However, this particular issue is not part of the allegations in the case. Accordingly, Rembold did not violate Section 1103(a) of the Ethics Act regarding his use of authority of office as to the hiring of his son to a compensated position at the Green County Vo -Tech in that such is not part of the allegation in this case. See, Pennsy v. Department of State, 594 A.2d 845 (1991). As to the grant funding which was sought by Rembold and which was used in part for the payment of the salary of Rembold's son, there were uses of authority of office by Rembold. Rembold requested that his son be employed in the position with the Vo -Tech board, where two of its members were subordinates of Rembold at WGSD. See, Fact Findings144, 147. The uses of authority of office resulted in a private pecuniary benefit consisting of the partial funding of the salary to Rembold's son, a member of Rembold's immediate family. Hence, Rembold violated Section 1103(a) of the Ethics Act when he participated in the application for grant funds by West Greene School District which funds were utilized in part for the payment of the salary of his son for work performed at the West Greene Vo -Tech. The final allegation concerns Rembold's failure to file SFI's for the 1997 -2000 calendar years. The WGSD's business manager never circulated the SFI forms to the administrators in the school district until the spring of 2001. Prior to that time, only the school board members and the solicitor received the SFI forms. Rembold never received forms nor filed SFI's. Rembold has now completed SFI's for the above years. Rembold failed to file because he did not know that he was so required. However, ignorance of this law is no excuse. The Ethics Act required Rembold to file SFI's but he failed to do so. We find that Rembold unintentionally violated Section 1104(a) of the Ethics Act when he failed to file SFI's for calendar years 1997 through 2000, at a time when he served as superintendent for WGSD and no administrators were filing SFIs. We determine that the Consent Agreement submitted by the parties sets forth the proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, Rembold is directed to make payment in the amount of $26,397.50 to the Commonwealth of Pennsylvania, Department of Treasury and forwarded to the Pennsylvania State Ethics Commission. Said payment to be made no later than the 30 day after the issuance of the final adjudication in this matter. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Rembold, as the Superintendent for the West Greene School District (WGSD), is a public official subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998. 2. Rembold violated Section 1103(a) of the Ethics Act when he, as WGSD Superintendent, participated in school district's requests for various grant funds to implement a program for at -risk students, which grant fund requests identified King's Rembold 01- 079 -C2 Page 61 Bridge as one of the contractors, when the corporate papers listed Rembold as one of the directors, when he had a reasonable expectation that he would receive compensation from King's Bridge in relation to the provision of services, and when he participated in the school district's selection of and payments to King's Bridge to implement the program. 3. Rembold technically violated Section 1103(f) of the Ethics Act when WGSD selected King's Bridge and contracted in excess of $500 without an open and public process with that entity to provide consultation services regarding the school district's implementation of a program to deal with students at -risk, when Rembold was officially listed on corporate papers as one of the corporate directors 4. Rembold violated Section 1103(f) of the Ethics Act as to his continued supervisory and overall responsibility for the implementation or administration of the contract between WGSD and Mainstream Counseling, Incorporated when Mainstream Counseling awarded a subcontract to King's Bridge to participate in the PULSE Training at WGSD at the time Rembold was formally listed on the corporate papers as a King's Bridge Director. 5. Rembold unintentionally violated Section 1103(a) of the Ethics Act when he received compensation from WGSD for one day when he also performed services for King's Bridge. 6. Rembold did not violate Section 1103(a) Ethics Act when he received compensation from WGSD on days that he was also performing services for the Cabell County Board of Education, West Virginia, as the days on which such activities occurred were not official school days of WGSD. 7. Rembold unintentionally violated Section 1103(a) of the Ethics Act when he performed services for HASD and received compensation, while simultaneously being employed and compensated by the WGSD for the same days. 8. Rembold did not violate Section 1103(a) of the Ethics Act when he used WGSD facilities, equipment and personnel for the performance of duties relating to his private employment with King's Bridge and HASD on a de minimis basis. 9. Rembold unintentionally violated Section 1103(a) of the Ethics Act when he received compensation from the WGSD while working on matters as an independent contractor for King's Bridge and HASD. 10. Rembold did not violate Section 1103(a) of the Ethics Act in relation to his receipt of expenses from both WGSD and SCSD for the same expenses relating to his outside employment endeavors on the basis of a non pros by the Investigative Division. 11. Rembold did not violate Section 1103(a) of the Ethics Act regarding his use of authority of office as to the hiring of his son to a compensated position at the Green County Vo- Tech in that such is not part of the allegation in this case. 12. Rembold violated Section 1103(a) of the Ethics Act when he participated in the application for grant funds by West Greene School District which funds were utilized in part for the payment of the salary of his son for work performed at the West Greene Vo -Tech. 13. Rembold unintentionally violated Section 1104(a) of the Ethics Act when he failed to file SFI's for calendar years 1997 through 2000, at a time when he served as superintendent for WGSD and no administrators were filing SFIs. Rembold 01- 079 -C2 Page 62 In Re: Charles Rembold ORDER NO. 1303 File Docket: 01- 079 -C2 Date Decided: 12/1/03 Date Mailed: 12/15/03 1. Rembold, as the Superintendent for the West Greene School District (WGSD), violated Section 1103(a) of the Ethics Act when he, as WGSD Superintendent, participated in school district's requests for various grant funds to implement a program for at -risk students, which grant fund requests identified King's Bridge as one of the contractors, when the corporate papers listed Rembold as one of the directors, when he had a reasonable expectation that he would receive compensation from King's Bridge in relation to the provision of services, and when he participated in the school district's selection of and payments to King's Bridge to implement the program. 2. Rembold technically violated Section 1103(f) of the Ethics Act when WGSD selected King's Bridge and contracted in excess of $500 without an open and public process with that entity to provide consultation services regarding the school district's implementation of a program to deal with students at -risk, when Rembold was officially listed on corporate papers as one of the corporate directors 3. Rembold violated Section 1103(f) of the Ethics Act as to his continued supervisory and overall responsibility for the implementation or administration of the contract between WGSD and Mainstream Counseling, Incorporated when Mainstream Counseling awarded a subcontract to King's Bridge to participate in the PULSE Training at WGSD at the time Rembold was formally listed on the corporate papers as a King's Bridge Director. 4. Rembold unintentionally violated Section 1103(a) of the Ethics Act when he received compensation from WGSD for one day when he also performed services for King's Bridge. 5. Rembold did not violate Section 1103(a) of the Ethics Act when he received compensation from WGSD on days that he was also performing services for the Cabell County Board of Education, West Virginia, as the days on which such activities occurred were not official school days of WGSD. 6. Rembold unintentionally violated Section 1103(a) of the Ethics Act when he performed services for HASD and received compensation, while simultaneously being employed and compensated by the WGSD for the same days. 7. Rembold did not violate Section 1103(a) of the Ethics Act when he used WGSD facilities, equipment and personnel for the performance of duties relating to his private employment with King's Bridge and HASD on a de minimis basis. 8. Rembold unintentionally violated Section 1103(a) of the Ethics Act when he received compensation from the WGSD while working on matters as an independent contractor for King's Bridge and HASD. 9. Rembold did not violate Section 1103(a) of the Ethics Act in relation to his receipt of expenses from both WGSD and SCSD for the same expenses relating to his outside employment endeavors on the basis of a non pros by the Investigative Division. Rembold 01- 079 -C2 Page 64 10. Rembold did not violate Section 1103(a) of the Ethics Act regarding his use of authority of office as to the hiring of his son to a compensated position at the Green County Vo- Tech in that such is not part of the allegation in this case. 11. Rembold violated Section 1103(a) of the Ethics Act when he participated in the application for grant funds by West Greene School District which funds were utilized in part for the payment of the salary of his son for work performed at the West Greene Vo -Tech. 12. Rembold unintentionally violated Section 1104(a) of the Ethics Act when he failed to file SFI's for calendar years 1997 through 2000, at a time when he served as superintendent for WGSD and no administrators were filing SFIs. 13. Per the Consent Agreement of the parties, Rembold is directed to make payment in the amount of $26,397.50 to the Commonwealth of Pennsylvania, Department of Treasury and forwarded to the Pennsylvania State Ethics Commission no later than the 30 day after the issuance of the final adjudication in this matter. a. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. b. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair