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HomeMy WebLinkAbout1331 WaleskiIn Re: Arthur Waleski File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Daneen E. Reese Donald M. McCurdy Michael Healey Paul M. Henry Raquel K. Bergen 02- 053 -C2 Order No. 1331 6/8/04 6/16/04 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 Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending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. Waleski 02- 053 -C2 Page 2 I. ALLEGATION: That Arthur Waleski, a public official /public employee, in his capacity as Assistant Principal for the Huntingdon School District, Huntingdon County, violated Sections 1103(a), 1103 (ff), 1104(a) and 1105(b)(5) of the State Ethics Act when he used the authority of his position for a private pecuniary gain of himself and /or a business with which he is associated, including but not limited to participating in actions of the school district to apply for grants and then subsequently recommended and /or directed the grant funds be utilized to purchase services from Kings Bridge, Inc., a company which employs him as a trainer; when the contracts between the school district and Kings Bridge, Inc., were entered into upon the recommendation of Waleski without an open and public process; and when he failed to disclose on Statements of Financial Interests income received from Kings Bridge, Inc., and the Huntingdon Area School District for the calendar years 1997 through 2001, inclusive; and when he failed to disclose his employment as a trainer for Kings Bridge, Inc., on Statements of Financial Interests filed for the 2000 calendar year. II. FINDINGS: 1. Arthur Waleski has been employed by the Huntingdon Area School District as the Assistant High School Principal since November 3, 1993. 2. Prior to being employed by the Huntingdon Area School District, Waleski held various educational positions in the Commonwealth of Virginia, including: a. Teacher /Coach, Henry County, VA — 1970 to 1984 b. Teacher /Coach, Augusta County, VA — 1984 to 1990 c. Administrator, Staunton City Schools, Staunton, VA — 1990 to 1993 3. Waleski's general job duties as Assistant High School Principal included but were not limited to: a. Curriculum: Attend the curriculum council and curriculum meetings as directed by the high school principal; work closely with staff, principal and superintendent in regard to curriculum; help in the formulation of policies paramount to the functioning of the high school building. Public Relations: Relate school programs and school picture to the public through planned public relations, use of local newspapers, interviews on radio stations, speak to local interest groups, keep the student body informed concerning athletic and social functions. District Office: Serve as a member of the administrative council. Serve as a member of the district curriculum steering committee and whatever committees or task forces as directed by the principal, the superintendent or the board; carry out curriculum assign- ments developed by the district in cooperation with the principal. 4. While employed by the Staunton City Schools, Waleski became familiar with a program known as PULSE. a. The PULSE concept is a program targeted for at -risk students. Waleski 02- 053 -C2 Page 3 b. Waleski was introduced to the PULSE program by Charles Rembold. 5. Waleski met Charles Rembold in 1990 as a result of Waleski's employment with the Staunton City Schools, Staunton, VA. a. Rembold was the principal at Staunton's Robert E. Lee High School at the time and Waleski's supervisor. 6. Rembold introduced Waleski to the PULSE program concept during 1990 or 1991 in conjunction with Waleski's employment at Robert E. Lee High School. a. Waleski participated in PULSAR training retreats for students while employed by and as a representative of Robert E. Lee High School. 7. Kings Bridge, Inc., is a Virginia corporation which filed articles of incorporation with the Virginia State Corporation Commission on July 28, 1983. a. Charles Rembold and R. Edgar Thacker were the two original shareholders and directors. b. Michael Steven Wilcox was named as a Kings Bridge Inc. Director in March 1993. c. Waleski was never a principal, incorporator, member, director, officer or employee of Kings Bridge Inc. d. In July 1993, Rembold was appointed as the Superintendent of the West Greene School District. e. In July 1998, Wilcox was appointed as the Superintendent of the Southern Columbia Area School District in Pennsylvania. 8. King's Bridge, Inc., offers training programs for schools and police. a. The PULSE program is the cornerstone of the training programs offered by Kings Bridge and focuses on at risk students. b. PULSE is an acronym for "People Utilizing Leadership Skills Effectively." c. The PULSE concept was developed by Rembold, Thacker, and Steven Wilcox while all three were employed in the Fairfax County, Virginia, school system during the early 1980's. d. Kings Bridge Inc. holds the copyright to the PULSE Program. 9. In or about 1991, Rembold proposed the PULSE training program concept to G. L. "Butch" Wells, Chief of Police, Staunton, VA. a. The program proposed by Rembold was actually titled PULSAR, which was similar conceptually to the PULSE program developed by Kings Bridge. 10. PULSAR was incorporated with the Virginia State Corporation Commission on April 15, 1991. a. Original incorporators were Police Chief G. L. Wells, Charles Rembold, and Edgar Thacker, both of Kings Bridge. Waleski 02- 053 -C2 Page 4 b. Waleski was not a L rincipal incorporator, shareholder, member, director, officer, or employee of PULSAR Incorporated. c. 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. 11. In or about 1994, philosophical differences occurred among the PULSAR directors. a. Thacker and Wilcox thereafter severed ties with PULSAR Inc. 12. Following the split from the PULSAR group, Kings Bridge continued to operate and provide the PULSE program. 13. Waleski first expressed interest in setting up a PULSE program in the HASD in or about June 27, 1994, because he believed that it was effective while at Staunton, Virginia. a. Waleski appeared before the Huntingdon Area School Board during their [sic] June 27, 1994, board meeting to discuss and inform the board of proposed curriculum changes at the high school. 14. Minutes from the HASB June 27, 1994, meeting include the following comments from Waleski on proposed changes at the high school: "Mr. Waleski noted that instead of a hard line approach to discipline they are trying for long term behavior modification. Programs such as Community Visions which uses the philosophy that it takes a whole community to work with discipline, Choice and PULSE which targeted kids to help solve their problems and keep them from being hurt are going to be used." 15. Waleski arranged for a meeting to be held at the HASD administration building during the summer of 1994 to explore the implementation of a PULSE program at the district. a. In attendance were police and other community officials, Waleski, Lonnie Woomer of Mainstream Counseling and Raymond Dodson, Executive Director of the Juniata Valley, Tri- County Drug and Alcohol Commission. b. Charles Rembold was present to explain the PULSE program. 1. Waleski was responsible for Rembold's presence. 2. By this time, Rembold had been appointed as the Superintendent of the West Greene School District in Pennsylvania. 3. Waleski utilized Rembold due to his familiarity with Rembold and PULSE from his prior employment in Staunton, Virginia. c. Raymond Dodson, the Executive Director of the Juniata Valley, Tri- County Drug and Alcohol Commission, was present as the possible funding agent for the program. 16. Dodson agreed to partially fund the expenses for the PULSE retreat. a. Additional funds came from the police drug task force and donations from Waleski 02- 053 -C2 Page 5 Huntingdon area businesses. 17. Waleski appeared before the HASB seeking approval to implement a PULSE program at their August 22, 1994, meeting. Minutes from that meeting included the following discussion and board approval. a. Mr. Waleski explained that the first step would be a PULSE Club which would identify students for the first training to be peer facilitators. A retreat is planned for approximately 80 students and facilitators at Camp Harmony. Funding has been secured for this activity. Facilitators will be trained to help students deal with the life's problems that affect them at school. This would be a community effort working with the police and children's services. Students would be referred to this program for help instead of fines or sentencing. Board Member Altmanshofer noted that this would be in place of the Scared Straight Program. On an Altmanshofer /Long motion, and by roll call vote, the Board granted permission to develop the concept of the PULSE program, begin a PULSE Club, and pursue acquisition of funds. Members voted as follows on this motion: Aye — Mitchell, Altmanshofer, Reilly, Metzgar, Long, Corbin, Shaffer, Fluke, and Miller; nay — none. Motion carried. 18. After the board approval of the PULSE program, Waleski's job duties were expanded to include serving as HASD's PULSE coordinator. a. In this capacity, Waleski was authorized to complete and /or submit grant applications to secure funding for the PULSE program. 19. Waleski scheduled teachers, students and himself to attend PULSE activities at Camp Harmony in 1995 and 1996. a. On March 20, 1995, the HASB granted approval for Arthur Waleski, Assistant High School Principal, eight teachers and approximately 60 students in PULSE club to go to Camp Harmony, April 5 -7, 1995, at no cost to the district. All costs are paid from donations received. 1. Funding for this retreat was secured by Waleski. b. On February 19, 1996, Waleski received board permission to take four teachers and approximately 70 students to Camp Harmony March 27- 29,1996, for leadership and self- esteem training, mediation and networking with costs to the District of $660 for four substitutes for three days. c. On October 21, 1996, the HASB acknowledged fifteen (15) field trips including Arthur Waleski, volunteers and approximately 42 students to Camp Harmony with no cost to the district on October 9 -11, 1996. 1. Waleski was responsible for securing the funding for this retreat. 20. Waleski reported on the April 5 -7, 1995, PULSE retreat during the HASB April 17, 1995, meeting. Minutes from that meeting included the following report. a. Arthur Waleski, Assistant High School Principal, and several students, Zachary Bayer, Thomas Reed, Audra Murray, Mandy Christine, and Christy Couch, reported on the PULSE Club Retreat, April 5 -7, at Camp Harmony. All were very enthusiastic about the experience, and felt it gave them the opportunity to Waleski 02- 053 -C2 Page 6 reach out to others and understand one another, thus building their own self - esteem. The club has many activities planned to continue to have students work together to help one another. 21. Waleski was responsible for securing funding used for the district's March 25- 27,1996 retreat held at Camp Harmony. a. Waleski requested and received $2,000.00 towards the cost of the retreat from the Juniata Valley Tri- County Drug and Alcohol Abuse Commission. b. Additional funding and /or donations for this retreat were received from other sources. 22. Waleski reported on the March 25 -27, 1996, PULSE retreat during the HASB May 20, 1996, meeting, as reported in the minutes of that meeting as follows: a. Mr. Art Waleski updated the board on the PULSE retreat which 78 students attended this year to learn how to deal with problems and complaints they experience day in and day out for which the school and community will benefit. The retreat is at no cost to the district. It was funded by the Police Department and other donations. Also, grants have been received. Two new ideas will be instituted as part of program, a Teen Hot Line from 4:00 to 11:00 p.m. where kids can call for someone to talk to. The second program, Safe Havens, would provide a place for children in trouble. If they run away, this would be a place to go. 23. Waleski contacted Rembold in order to initiate the PULSE training /retreats. a. Michael S. Wilcox, C. P. Rembold, Brian Jackson and Linda Jones were the trainers utilized at HASD from 1996 through 1999. b. Wilcox and Rembold were corporate directors and officers of Kings Bridge at the time. c. Brian Jackson and Linda Jones were subordinate employees to Rembold at the West Greene School District at the time. 24. Financial records of the HASD confirm the following payments made to Wilcox, Rembold, Jackson and Jones for training services provided between 1996 and 1999 by HASD. Date 11 /19/96 11 /19/96 11/19/96 12/17/96 04/22/97 04/22/97 04/22/97 04/22/97 05/15/98 05/15/98 05/15/98 05/18/98 05/18/98 Individual Amount C. P. Rembold $1,834.00 Brian Jackson $528.00 Michael S. Wilcox $878.00 Michael S. Wilcox $336.40 Steve Wilcox $493.00 Brian Jackson $484.00 Linda Jones $200.00 C. P. Rembold $1,834.00 Brian Jackson $800.00 C. P. Rembold $1,600.00 Steve Wilcox $600.00 Brian Jackson $1,251.20 C. P. Rembold $1,573.20 Reason PULSE Trainer Help Line Training Help Line Training Training /Mileage Drug Free Travel Secondary Drug Free Travel Secondary PULSE Training PULSE Training PULSE Camp Consultant PULSE Camp Consultant PULSE Camp Consultant 3 Days Training and Mileage 3 Days Training and Mileage 25. On February 4, 1997, Waleski requested funding in the amount of $2,500.00 from the Juniata Valley Tri- County Drug & Alcohol Commission to take 60 students and 15 Waleski 02- 053 -C2 Page 7 adults on a PULSE retreat to Camp Harmony March 25 -27, 1997. a. Waleski's request letter identifies total cost of trainers, transportation, lodging and meals as $7,235.00. b. Waleski's request letter further indicated that community donations and fundraisers would cover the monies in excess of the $2,500 request. 26. Waleski requested funding in the amount of $2,517.50 from the Juniata Valley Tri - County Drug and Alcohol Abuse Commission to hold a PULSE retreat at Camp Harmony April 1 -3, 1998. a. The Juniata Valley Tri- County Drug and Alcohol Commission paid the HASD the $2,517.50 balance needed for this retreat. 27. Waleski extended an invitation to all board members to attend the PULSE retreat to be held on April 1 -3, 1998, at Camp Harmony during the board meeting of March 16, 1998. 28. As a result of funding limitations, the Juniata Valley Tri- County Drug & Alcohol Commission ceased contributing funds towards HASD PULSE retreats after the April 1 -3, 1998, Camp Harmony Retreat. 29. Waleski was responsible to the HASD for finding additional funding sources to cover the funding void created by Tri- County's program funding cuts. a. Waleski relied on PULSE Club fundraisers and grant allocations to cover costs for the PULSE program. 30. In addition to fundraisers the HASD also obtained funding for PULSE through the Pennsylvania Department of Education's Safe and Drug Free Schools and Safe Schools Initiative grant programs. a. Waleski served as chairman of the HASD committee for the Safe School Initiative. b. Waleski participated in discussions of the HASD Safe Schools Initiative Committee regarding the application for and use of Safe and Drug Free Schools Grants. Applications for grants and awards of grants were not limited to the PULSE Program. 31. After Tri- County withdrew funding in 1998, the HASD Board continued to be provided with basic information by Waleski on the PULSE program. a. The board permitted Waleski and /or district staff to apply for grants. b. The board played no role in identifying or applying for grant funding. c. The board informally accepted grant funding obtained by Waleski by final approval of grant expenditures. 32. Since 1998, the district's PULSE program has continued training for teachers, administrators and staff, educational services and PULSE retreats for students. a. Program funding came from state grants and in -kind contributions by the district. b. As the PULSE coordinator for the school district, Waleski had oversight over all Waleski 02- 053 -C2 Page 8 aspects of the district's PULSE program. 33. Waleski, as a member of two HASD committees, participated in the HASD application for and receipt of grant funds from the Pennsylvania Department of Education Safe & Drug Free Schools and Safe Schools Initiative programs. a. Waleski's participation in applying for each of the grants received by the district included preparing grant applications, determining budgets and the inclusion of PULSE as a program to be implemented. b. Each grant applied for and received by the HASD consisted of state or federal funds which were distributed by the Pennsylvania Department of Education. 34. From 1998 to 2001, Waleski, in his official capacity as Assistant High School Principal of the HASD participated, as a member of two HASD committees, in securing a total of seven (7) separate grants from the Pennsylvania Department of Education, which included proposed funding for PULSE and /or Kings Bridge programs. a. Four (4) grants were through the Pennsylvania Department of Education (PDE) office of Safe & Drug Free Schools and Communities (SDFS). b. Three (3) 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 are provided by the Commonwealth of Pennsylvania. 35. Waleski's participation in securing grant funding for the district's PULSE program included but was not limited to: 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 the programs to be implemented and providers of goods and services and their costs. 36. 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. b. Applications are reviewed for approval by Department of Education staff. 37. The HASD applied for and received Safe and Drug Free Schools and Communities Grant funds for the 1998 -1999 through 2001 -2002 school years from the Pennsylvania Department of Education. a. The HASD annually submitted SDFS grant applications to the Department of Education. b. Applications were made as the result of discussions among the district's Waleski 02- 053 -C2 Page 9 administrators including Waleski and community agencies, parents and the Huntingdon Police Department. 38. The HASD was awarded the following annual amounts from the PA Department of Education's SDFS grant program for school years 1998 -1999 through 2001 -2002. a. 1998 -1999 $13,876.00 b. 1999 -2000 $11,826.00 c. 2000 -2001 $11,645.00 d. 2001 -2002 $11,168.00 39. SDFS Grants obtained by the HASD were used to help fund the district's PULSE program. a. PULSE was specified with each application as the program to be implemented or continued. b. Applications were signed by William Moore, Special Education Director and Hervey Hann, Superintendent. c. Waleski was not a listed contact person or signatory on SDFS grant documents. d. No SDFS grant applications listed Kings Bridge, Inc., as a specified contractor to provide PULSE services. e. Kings Bridge, Inc. was the only vendor of the PULSE program. f. Moore initially became familiar with PULSE through information provided by Waleski, but by 1998 he was familiar with the program because it had been used for several years in the HASD. 40. Grants applied for from 1998 to the present, during Waleski's tenure as Assistant High School Principal for the HASD included utilization of the PULSE program and /or Kings Bridge. a. Waleski was responsible for identifying and utilizing the PULSE program of Kings Bridge. b. No bids for PULSE, Kings Bridge or similar programs were sought. 41. The only contractor /consultant utilized by Waleski for PULSE training was Kings Bridge, Inc. a. No competitive bids for PULSE training sessions were sought, and competitive bids were not required by the Public School Code. 42. Waleski was responsible for writing PULSE /Kings Bridge Services into Safe Schools Initiative Grant applications. a. HASD did not have a PULSE program prior to Waleski recommending the program. b. Waleski identified the types of goods and services for which grant monies were Waleski 02- 053 -C2 Page 10 requested in accordance with the specifications in the grant application materials. c. Waleski participated in preparing, completing and approving the content of grant applications and /or amendments prior to their submission. d. Waleski was the lead educational administrator for all of the Safe School Initiative's grant applications, which involved matters in addition to the PULSE programs. e. Waleski determined actual costs of said goods and services for purposes of budgeting and grant application requirements. f. Waleski arranged for PULSE services to be provided and then authorized payment upon their completion. Waleski was the source of the raw data and budget figures for PULSE services needed to complete the grant applications. 43. The HASD issued a payment in the amount of $2,000 to Kings Bridge, Inc. for PULSE training services provided as part of the district's 1999 -2000 Safe and Drug Free School Grant. a. Kings Bridge, Inc., invoice no. 416114 in the amount of $2,000 was submitted to the HASD to Waleski's attention. g. b. Waleski's initials were contained on this invoice approving it for payment. c. This invoice was paid along with Kings Bridge invoice number 416117 as part of HASD check no. 63355 in the amount of $8,750 on June 20, 2000. 44. The $2,000 portion of the payment to Kings Bridge was for budgeted drug and alcohol prevention PULSE programming contained in the district's 1999 -2000 SDFS grant budget. a. The grant included reference to the direct training of 70+ students as positive role models. b. Kings Bridge, Inc. was the only vendor of the PULSE program. 45. Waleski, in his official capacity, participated in HASD actions in seeking and receiving grants through the PDE Safe Schools Initiatives program. 46. Waleski participated in the completion of HASD 1999 -2000 and 2000 -2001 Safe Schools Initiative grant applications which resulted in payments totaling $45,500 being made to Kings Bridge, Inc., during calendar years 2000 and 2001. a. The $45,500 figure does not include $2,000 paid to Kings Bridge, Inc., from SDFS grant funds on March 13, 2001. (But cf., Finding 85). 47. The HASD received three (3) separate Safe Schools Initiatives grant awards during the 1999 -2000 and 2000 -2001 award periods. a. Two awards made during 1999 -2000 totaled $65,974.00. Waleski 02- 053 -C2 Page 11 1. $20,000.00 2. $45,974.00 b. For school year 2000 -2001 $63,982 in grants were received. 48. On October 1, 1999, the PDE's Bureau of Community Student Services received the HASD application for 1999 -2000 Safe Schools Initiative Grant Funding. a. b. c. d. e. This application was submitted to the Department of Education under the signature of Superintendent Hervey Hann. Art Waleski is identified as the program director for this grant project. Grant funding was requested in the amount of $87,071.60 with matching district funds of $70,633.28. Waleski participated in the preparation of the project summary, budget and budget narrative for this grant. PULSE information was included with this application. 49. On November 15, 1999, the Department of Education informed HASD Superintendent Hervey Hann that the district was awarded a grant of $45,974 ($87,071.60 was requested) from the Department of Education's Safe Schools Initiative. 50. Waleski made a presentation before the HASB regarding the Safe Schools Initiative Grant during the board's January 17, 2000, meeting. a. Minutes reflect Waleski informed the board that the district's SSI grant was in the amount of $45,974. 51. Arthur Waleski advised the board of how all of the money would be spent and all of the programs for which the money would be used. 52. On April 12, 2000, Hann submitted a budget narrative based on a revised budget of $45,974. a. Waleski was responsible for revising the budget. b. Included in the revised budget was $18,700 for "contract with Kings Bridge Associates for adult training and retreat for 65 students at (Camp) Harmony for 3 days for training." c. The contract with Kings Bridge service remained unchanged on monthly expenditure reports submitted under Hann signature on May 18, 2000, June 5, 2000, and July 10, 2000. 53. HASD financial reports include the following payments of KBI invoices from the district's 1999 -2000 SSI grant awards. a. Date Check No. Amount Reason 01/13/00 03/21/00 06/20/00* *HASD check 61647 62243 63355 number 63355 $ 9,000.00 $ 12,000.00 $ 6,750.00 HS PULSE Training MS PULSE Training MS PULSE Training was in the amount of $8,750; $2,000 was Waleski 02- 053 -C2 Page 12 charged off to the district's 1999 -2000 SDFS grant. 54. Waleski in his official capacity as Assistant High School Principal approved for payment Kings Bridge invoices detailed in the previous finding related to high school and middle school PULSE training. a. Waleski's initials appeared on each of the following KBI invoices approving them for payment. Invoice No. Date Amount N/A 01/05/00 $ 9,000.00 416109 02/07/00 $ 12,000.00 416117 05/24/00 $ 6,750.00 Total $ 27,750.00 55. Waleski, in his official capacity as the PULSE coordinator, chair person of the Safe Schools Initiative Committee for the school district, and as Assistant High School Principal, completed the district's 2000 -2001 Safe Schools Initiative grant application submitted to the PDE. a. Waleski is listed as the program director on this grant. b. The HASD was seeking grant funding in the amount of $79,977 with district in kind services of $55,633.28. 56. Waleski completed a budget narrative for this grant which noted that $21,000 was budgeted for Kings Bridge, Inc. a. Itemized budgeted expenses for KBI included "consultants for PULSE training 10 teachers x 3 days x $300 = $9,000. Students retreat 3 facilitators x 3 days x $300 + $300 travel = 2 retreats (middle school and high school) = $6,000. b. Also budgeted was $12,600 for 2 retreats at Camp Harmony. 57. On September 18, 2000, Superintendent Hann received notification that the district's SSI 2000 -2001 grant award was $63,982 with an indication that a revised budget would need to be submitted. 58. Waleski completed a revised budget narrative which was submitted to the Department of Education on October 25, 2000. a. Budgeted amounts for Kings Bridge, Inc., were reduced by $2,000 to $19,000. b. Camp Harmony expenses were reduced by $600 to $12,000. c. The budget revision included SSI grant funds of $63,982 and a district match of $55,633.28. 59. Waleski submitted a budget revision request dated May 23, 2001, to the center for Safe Schools reducing the amount to be paid to Kings Bridge to $12,200. 60. The district's 2000 -2001 SSI grant award along with district matching funds were used to pay three (3) invoices from KBI totaling $17,750. a. Date Check No. Amount Reason 01/16/01 65917 $9,000.00 MS PULSE Waleski 02- 053 -C2 Page 13 03/13/01 66623 $6,750.00 MS PULSE 03/13/01 66623 $2,000.00 3 Days Training 61. Waleski, in his official capacity as the PULSE coordinator, chairman of the Safe Schools Initiative Committee, and as Assistant High School Principal, approved for payment Kings Bridge invoice no. 416180 in the amount of $9,000 on or about January 16, 2001. a. KBI invoice numbers 416110 ($2,000) and 416118 ($6,750) were paid without Waleski's signature. b. Waleski gave verbal approval to the business department for these payments to be made. 62. Waleski in his official capacity as the PULSE coordinator, chairman of the Safe Schools Initiative Committee and as assistant high school principal approved the following Kings Bridge, Inc., invoices for payment. Invoice No. Date Amount Grant N/A 01/05/00 $ 9,000.00 1999 -2000 SSI 416109 02/07/00 $ 12,000.00 1999 -2000 SSI 416114 05/22/00 $ 2,000.00 1999 -2000 SDFS 416117 05/24/00 $ 6,750.00 1999 -2000 SSI 416168 12/11/00 $ 9,000.00 2000 -2001 SSI Total $ 38,750.00 63. Beginning in January 2000, while Waleski was writing Kings Bridge Services into Safe Schools Initiative grants and approving payments to Kings Bridge, he simultaneously was being compensated by KBI as a trainer of trainers for school districts other than HASD as an independent contractor. 64. Records of Kings Bridge, Inc., reflect Waleski was compensated for providing training services for KBI on the following dates. Date Day of Work 01/11/00 Tuesday 01/12/00 Wednesday 01/13/00 Thursday 05/09/00 Tuesday 05/10/00 Wednesday 05/11/00 Thursday 02/06/01 Tuesday 02/07/01 Wednesday 02/08/01 Thursday 06/11/01 Monday 06/12/01 Tuesday 06/13/01 Wednesday 03/06/02 Wednesday 03/07/02 Thursday 03/08/02 Friday 65. Some of these training sessions were consolidated programs with participants from the HASD, the West Greene School District and the Southern Columbia Areas [sic] School District. Waleski 02- 053 -C2 Page 14 a. Waleski did not provide any training services for HASD participants during the consolidated programs. 66. Waleski used vacation or personal leave on days that he performed independent contractor services for Kings Bridge Inc., in accord with HASD policy. 67. Financial records of Kings Bridge, Inc. include the following payments made to Waleski for PULSE training services. Date Check No. Amount Reason 01/25/00 1616 $ 3,000.00 Southern Columbia Facilitator 05/10/00 1633 $ 4,250.00 West Greene Facilitator 02/07/01 1017 $ 3,000.00 Southern Fulton High School 07/06/01 1037 $ 3,000.00 Central Greene 04/12/02 1069 $ 2,500.00 Greene County High School $ 15,750.00 68. Waleski was first utilized as a paid trainer for Kings Bridge on January 11, 2000, six days after the approval of HASD's first payment to Kings Bridge in the amount of $9,000.00. a. Waleski approved the payment of the [sic] January 5, 2000. The payment was then issued by the HASD on January 13, 2000. 69. Sources of deposits for Kings Bridge bank accounts included payments from various school districts including HASD. 70. Kings Bridge Inc.'s other clients during this time were the West Greene School District and the Southern Columbia Area School District. 71. All of the funds received by Kings Bridge, Inc. from WGSD, SCSD and HASD were deposited into the same bank account. 72. Waleski had no knowledge of the banking, financial or accounting practices of Kings Bridge, Inc. 73. At the time that the first payment was made to Waleski, R. Edgar Thacker, a principal of Kings Bridge, Inc., represented to Waleski and others who were present, that the moneys being paid to them for services for the PULSE program presented to Southern Columbia Area School District were separate from those received by Kings Bridge for the PULSE services provided to the HASD. 74. M. Steven Wilcox, a Kings Bridge Incorporated Director and Superintendent of the Southern Columbia Area School District, was paid a total of $27,900 by Kings Bridge, Inc. during this same timeframe. a. Kings 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 Kings Bridge, Inc. was paid for with grant funding. c. Wilcox was one of the PULSE originators and a Kings Bridge, Inc. director. d. Wilcox had never received any funds from Kings Bridge, Inc. prior [sic] the time that Kings Bridge, Inc. did business with Wilcox's school district. Waleski 02- 053 -C2 Page 15 75. Waleski had no knowledge of the status of Wilcox with Kings Bridge, or of the source, amount or history of any payments to him for the PULSE program. 76. Charles Rembold, a Kings Bridge Incorporated Director and Superintendent of the West Greene School District, was paid a total of $27,795 by Kings Bridge, Inc. during this same timeframe. a. Kings Bridge, Inc. was providing PULSE training in the West Greene School District where Rembold served as superintendent. b. The PULSE training provided at WGSD by Kings Bridge, Inc. was paid for with grant funding. c. Rembold was one of the PULSE originators and a Kings Bridge, Inc. director. d. Rembold had never received any funds from Kings Bridge, Inc. prior [sic] the time that Kings Bridge, Inc. did business with Rembold's school district. 77. Waleski had no knowledge of the status of Rembold with Kings Bridge, or of the source, amount or history of any payments to him for the PULSE program. 78. All payments to Rembold, Wilcox, Waleski and the other PULSE Core Training staff came from the sole Kings Bridge, Inc. bank account. 79. Because all of the funds received by Kings 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. a. This was also so in relation to the consolidated training sessions which included participation from HASD, WGSD and SCASD. b. Waleski did not provide any training services for HASD participants during the consolidated programs. 80. Payments issued to Waleski from Kings Bridge did not begin until after Kings Bridge received payments from the West Greene, Southern Columbia, and Huntingdon Area School Districts (HASD). 81. Kings Bridge, Inc., was a dormant company from January 1996 until January 2000 maintaining an account balance of approximately $3,117.59. a. The Kings Bridge accounts showed increased deposits and withdrawals following the acquisition of contracts with the WGSD, SCASD and HASD. b. Steven Wilcox, also a director of Kings 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 Kings Bridge, Inc. at the SCSD. c. Charles Rembold, also a director of Kings Bridge and then superintendent of West Greene School District (WGSD), was actively participating in the acquisition of grant funds to implement the PULSE Program and hire Kings Bridge, Inc. at the WGSD. d. Funds received by Kings Bridge from WGSD, SCSD, and HASD comprised the majority of the deposits into Kings Bridge accounts. Waleski 02- 053 -C2 Page 16 82. Waleski had no knowledge of the banking, financial or accounting practices of Kings Bridge, Inc. 83. Waleski did not disclose to HASD officials that he was receiving compensation from King's Bridge for PULSE services to other school districts while simultaneously securing grant funds for the 2001 -2002 school year which were being used to pay for Kings Bridge services to HASD. 84. The HASD has not issued any payments to KBI or its associates since March 13, 2001. a. The HASD continues to have a PULSE program but no longer uses KBI training services. b. The HASD uses its own employees for PULSE training. c. The express purpose of the last program presented to the HASD was to train school district staff to present the program and to train other persons to present the program within the HASD. 85. Kings Bridge Incorporated received a total of $38,750 from HASD for services related to the PULSE Program. (But cf., Findings 43, 46, 53 -54, and 60 -62). 86. Waleski received payments totaling $15,750 from Kings Bridge since January 25, 2000. 87. Waleski believed that the funds that were paid to him by Kings Bridge for PULSE training services were from grants to the Southern Columbia and Greene County School District and not from HASD. The following findings relate to the allegation that Waleski failed to disclose his employment and income from Kings Bridge on Statements of Financial Interests. 88. Waleski, in his official capacity as assistant high school principal was annually required to file Statement of Financial Interests forms by May 1 st containing information for the prior calendar year. a. Waleski was annually provided with blank SFI forms for completion. 89. Waleski did not disclose Kings Bridge Incorporated as a direct or indirect sources [sic] of income on Statements of Financial Interests filed for the 2000 and 2001 calendar years. a. In 2000 and 2001 Waleski was receiving income in excess of $1,300.00 annually from Kings Bridge. 90. Financial records of Kings Bridge, Inc., reflect total annual payments to Waleski in excess of $1,300 as follows: a. 2000: $7,250.00 b. 2001: $6,000.00 c. 2002: $2,500.00 91. Waleski failed to disclose Kings Bridge, Inc. as a source of income in excess of $1,300 Waleski 02- 053 -C2 Page 17 on SFIs filed for calendar years 2000 and 2001. a. Waleski received income totaling $7,250 from Kings Bridge, Inc. during 2000. b. Waleski received income totaling $6,000 from Kings Bridge, Inc., during 2001. III. DISCUSSION: At all times relevant to this matter, Respondent Arthur Waleski (also referred to herein as "Respondent" or "Waleski ") has been a public official /public employee subject to the provisions of the Public Official and Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. § 401, et seq. as codified by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 seq., § 1101 et seq., which Acts are referred to herein as the "Ethics Act." The allegations are that Waleski, as Assistant Principal for the Huntingdon School District, Huntingdon County, violated Sections 1103(a), 1103(f), 1104(a) and 1105(b)(5) of the Ethics Act: (1) When he used the authority of his position for a private pecuniary gain of himself and /or a business with which he is associated, including but not limited to participating in actions of the school district to apply for grants and then subsequently recommended and /or directed the grant funds be utilized to purchase services from Kings Bridge, Inc., a company which employs him as a trainer; (2) When the contracts between the school district and Kings Bridge, Inc., were entered into upon the recommendation of Waleski without an open and public process; (3) When he failed to disclose on Statements of Financial Interests income received from Kings Bridge, Inc., and the Huntingdon Area School District for the calendar years 1997 through 2001, inclusive; and (4) When he failed to disclose his employment as a trainer for Kings Bridge, Inc., on Statements of Financial Interests filed for the 2000 calendar year. The pertinent provisions of the Ethics Act provide as follows: § 1103. Restricted activities (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public Waleski 02- 053 -C2 Page 18 official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. § 1103. Restricted activities (f) Contract. - -No public official or public employee or his spouse or child or any business in which the person or his spouse or 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 Pa.C.S. § 1103(f). § 1104. Statement of financial interests required to be filed (a) Public official or public employee. - -Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Each public employee and public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Persons who are full -time or part -time solicitors for political subdivisions are required to file under this section. 65 Pa.C.S. §1104(a). § 1105. Statement of financial interests (b) Required information. - -The statement shall include the following information for the prior calendar year with regard to the person required to file the statement: (5) The name and address of any direct or indirect Waleski 02- 053 -C2 Page 19 source of income totaling in the aggregate $1,300 or more. However, this provision shall not be construed to require the divulgence of confidential information protected by statute or existing professional codes of ethics or common law privileges. 65 Pa.C.S. §1105(b)(5). Pursuant to Section 1103(a) of the Ethics Act quoted above, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 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 1104(a) of the Ethics Act quoted above provides that each public official/ public employee must file a Statement of Financial Interests for the preceding calendar year, each year that he holds the position and the year after he leaves it. Section 1105(b)(5) of the Ethics Act requires the filer to list the name and address of any direct or indirect source of income totaling in the aggregate of $1,300 or more. 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 material facts as contained therein. Respondent has been employed by the Huntingdon Area School District ( "HASD ") as Assistant High School Principal since November 3, 1993. As Assistant High School Principal, Waleski's duties have included helping in the formulation of policies paramount to the functioning of the high school building, serving as a member of the administrative council, and serving on the district curriculum steering committee and other committees or task forces as directed by the principal, superintendent or school board. This case pertains to Waleski's activities at the HASD involving the "PULSE" Program. PULSE is an acronym for "People Utilizing Leadership Skills Effectively." The PULSE Program focuses on at -risk students. The PULSE concept was developed in the early 1980's by Charles Rembold ( "Rembold "), R. Edgar Thacker ( "Thacker "), and Steven Wilcox ("Wilcox "), while all three were employed in the Fairfax County, Virginia, school system. The copyright to the PULSE Program is held by a Virginia corporation named "Kings Bridge Inc." Kings Bridge "). Rembold and Thacker were the two original shareholders and directors of Kings Bridge. Wilcox was named as a Kings Bridge Director in March 1993. Rembold introduced Waleski to the PULSE Program in 1990 or 1991, while Waleski was employed as an administrator in the Staunton City Schools in Staunton, Virginia, under Rembold's supervision. In July 1993, Rembold was appointed Superintendent of the West Greene School Waleski 02- 053 -C2 Page 20 District in Pennsylvania. As noted above, Waleski also became employed by a Pennsylvania school district, the HASD, later that same year. While employed by the HASD, Waleski was instrumental in introducing and implementing a PULSE Program at the HASD. HASD did not have a PULSE program prior to Waleski recommending the program. In reviewing Waleski's activities regarding the PULSE Program at the HASD, it is important to keep in mind that Waleski was never a principal, incorporator, member, director, officer or employee of Kings Bridge. However, commencing in January 2000 Waleski was compensated by Kings Bridge as an independent contractor for PULSE training services that he provided for school districts other than HASD. Waleski first took action to introduce a PULSE Program at the HASD on or about June 27, 1994, when he appeared before the Huntingdon Area School Board ( "HASB ") to discuss and inform the board of proposed curriculum changes at the high school. The meeting minutes include the following comments from Waleski: Mr. Waleski noted that instead of a hard line approach to discipline they are trying for long term behavior modification. Programs such as Community Visions which uses the philosophy that it takes a whole community to work with discipline, Choice and PULSE which targeted kids to help solve their problems and keep them from being hurt are going to be used. Waleski arranged a meeting at the HASD administration building during the summer of 1994 to explore the implementation of a PULSE program at the district. Rembold attended the meeting to explain the PULSE Program. Waleski, police and other community officials, Lonnie Woomer of Mainstream Counseling, and Raymond Dodson, Executive Director of the Juniata Valley Tri- County Drug and Alcohol Commission, also attended the meeting. Waleski appeared before the HASB at its August 22, 1994, meeting seeking approval to implement a PJLSE program. The meeting minutes include the following discussion: Mr. Waleski explained that the first step would be a PULSE Club which would identify students for the first training to be peer facilitators. A retreat is planned for approximately 80 students and facilitators at Camp Harmony. Funding has been secured for this activity. Facilitators will be trained to help students deal with the life's problems that affect them at school. This would be a community effort working with the police and children's services. Students would be referred to this program for help instead of fines or sentencing. By unanimous vote, the HASB granted permission to develop the concept of the PULSE program, begin a PULSE Club, and pursue acquisition of funds. Following the HASB a� roval of the PULSE Program, Waleski's job duties were expanded to include serving as -IASD's "PULSE coordinator." As HASD PULSE coordinator, Waleski had oversight over all aspects of the district's PULSE program. In this capacity, Waleski was authorized to complete and /or submit grant applications to secure funding for the PULSE program. Waleski contacted Rembold in order to initiate the PULSE training /retreats. From 1995 through April 1998, HASD students attended five PULSE events at Camp Harmony, as detailed in Findings 19 -28. These events were funded almost entirely by donations from the Juniata Valley Tri- County Drug & Alcohol Commission and other outside sources, at little or no cost to the HASD. Waleski's activities as to these events as detailed in the Findings included scheduling attendees for the PULSE activities, reporting to the HASB, and requesting funding from the aforesaid outside sources. Waleski 02- 053 -C2 Page 21 From 1996 to May 1998 Wilcox, Rembold and others were paid directly by the HASD for providing training services at HASD PULSE events, as detailed in Finding 24. Following the April 1 -3, 1998, Camp Harmony Retreat, the Juniata Valley Tri- County Drug & Alcohol Commission no longer contributed funds toward HASD PULSE retreats. Waleski was responsible to HASD for finding additional funding sources to cover the costs of the PULSE Program. While Waleski and /or district staff was permitted to apply for grants, the HASB itself played no role in identifying or applying for grant funding. The HASB informally accepted grant funding that Waleski obtained through its final approval of grant expenditures. From 1998 to 2001, Waleski, in his capacity as HASD Assistant High School Principal, participated as a member of two HASD committees in securing a total of seven (7) separate grants from the Pennsylvania Department of Education that included proposed funding for PULSE and /or Kings Bridge programs. Four (4) grants were through the Safe & Drug Free Schools and Communities (SDFS) grant program. Three (3) grants were through the Center for Schools and Communities, Safe Schools Initiative (SSI) program. Waleski's participation in securing grant funding for the HASD PULSE Program included identifying potential funding sources, the programs to be implemented, and the contractors /providers to be used. For each of the SDFS and SSI grants received by the HASD, Waleski's participation included preparing the grant application, determining the budget, and including PULSE as a program to be implemented. With regard to SDFS grants, the HASD applied for SDFS grants as the result of discussions among HASD administrators including Waleski, community agencies, parents and the Huntingdon Police Department. Each application specified PULSE as the program to be implemented or continued. Waleski was responsible for identifying and utilizing the PULSE Program. None of the applications listed Kings Bridge as the contractor to provide PULSE services, but Kings Bridge was in fact the only vendor of the program. No bids for PULSE or similar programs were sought. SDFS grants were awarded to the HASD as detailed in Finding 38. The grants were used to help fund the HASD PULSE program. With regard to SSI grants, Waleski was the lead educational administrator for all of the HASD SSI grant applications. Waleski participated in preparing, completing and approving the content of the grant applications and /or amendments prior to submission. Waleski identified the types of goods and services for which grant monies were requested and determined their costs. Waleski was responsible for writing PULSE /Kings Bridge services into SSI Grant applications, and he was the source of the raw data and budget figures for those services. The HASD received three (3) separate SSI grant awards during the 1999 -2000 and 2000 -2001 award periods, as detailed in Finding 47. Waleski was listed as the program director on the grant applications submitted for both award periods. With respect to the HASD application for 1999 -2000, Waleski participated in the preparation of the project summary, budget and budget narrative. PULSE information was included with this application. When the HASD was awarded a grant in a lesser amount than was requested, Waleski informed the HASB of the amount of the grant and advised the board of how all of the money would be spent and all of the programs for which the money would be used. Waleski was also responsible for revising the budget based upon the amount of the grant award. The revised budget included $18,700 for a contract with Kings Bridge. Waleski completed the HASD 2000 -2001 SSI grant application. Waleski completed a budget narrative for this grant that noted that $21,000 was budgeted for Kings Bridge. When the HASD was awarded a grant in a lesser amount than was requested, Waleski completed Waleski 02- 053 -C2 Page 22 the requisite revised budget narrative, with budgeted amounts for Kings Bridge reduced by $2,000 to $19,000. Waleski subsequently submitted a budget revision request further reducing the amount to be paid to Kings Bridge to $12,200. In addition to arranging for Kings Bridge services to be provided to the HASD and taking actions to secure funding to pay for such services, Waleski also approved Kings Bridge invoices for payment by the HASD (see, Findings 43, 53 -54, and 60 -62). While the Stipulated Findings reflect various amounts as to payments from HASD to Kings Bridge, we accept the lowest figure, which is set forth in Finding 85. Kings Bridge received a total of $38,750 from HASD for services related to the PULSE Program. Meanwhile, beginning in January 2000, Waleski was being compensated by Kings Bridge for PULSE training services he provided as an independent contractor as to other school districts (see, Finding 64). From January 25, 2000, through April 12, 2002, Kings Bridge paid Waleski five payments totaling $15,750 for PULSE training services, as detailed in Finding 67. Waleski did not disclose to HASD officials that he was receiving compensation from King's Bridge for PULSE services to other school districts while simultaneously securing grant funds to pay for Kings Bridge services to HASD. We also note that Waleski was first utilized as a paid trainer for Kings Bridge on January 11, 2000, just six days after the approval of HASD's first payment to Kings Bridge. In fact, Kings Bridge was a dormant company from January 1996 until January 2000. The payments to Waleski from Kings Bridge did not begin until after Kings Bridge received payments from the West Greene, Southern Columbia, and Huntingdon Area School Districts (HASD). Funds received by Kings Bridge from these three school districts comprised the majority of the deposits into Kings Bridge account(s). The HASD has not issued any payments to Kings Bridge or its associates since March 13, 2001. The HASD continues to have a PULSE program but uses its own employees for PULSE training. Finally, with regard to the allegations pertaining to Waleski's Statements of Financial Interests, the parties have stipulated that in his official capacity as HASD Assistant High School Principal, Waleski was required to file Statements of Financial Interests pursuant to the Ethics Act. During 2000 Waleski received income totaling $7,250 from Kings Bridge. During 2001 Waleski received income totaling $6,000 from Kings Bridge. However, Waleski did not disclose Kings Bridge as a direct or indirect source of income on Statements of Financial Interests filed for the 2000 and 2001 calendar years. 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 as follows: a. Notwithstanding stipulated fact nos. 1 through 91, the State Ethics Commission concludes that Waleski violated Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) when he used the authority of his position as Assistant Principal for Huntingdon School District to participate in actions of the school district to obtain grant funds to implement a specific program for at risk students entitled PULSE, which program was required to be conducted by the PULSE copyright holder, Kings Bridge Inc., at a time when Waleski was serving as a paid trainer for Kings Bridge Incorporated and /or had a reasonable expectation that he would receive compensation from Kings Bridge Inc. in relation to the provision of services by Waleski, to other school districts and when he participated in the school district's selection of and Waleski 02- 053 -C2 Page 23 payments to Kings Bridge Inc. to implement the program, for the 2001- 2002 school year. b. That no violation of Section 1103(f) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(f) occurred when the Huntingdon School District selected Kings 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 without an open and public process as Kings Bridge Incorporated is not a business with which Waleski is associated. c. That Waleski unintentionally violated Section 1104(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1104(a) regarding his failure to disclose on Statements of Financial Interests income received from Kings Bridge, Inc., for the calendar years 2000 through 2001. d. That Waleski did not violate Section 1104(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. 1104(a) regarding his failure to disclose on Statements of Financial Interests income received from Kings Bridge, Inc., for calendar years 1997 - 1999 as Waleski was not compensated by Kings Bridge, Inc., in those years. e. That Waleski did not violate Section 1104(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1104(a), regarding his failure to disclose his employment with Kings Bridge Incorporated on his Statement of Financial Interests for calendar year 2000, as Waleski was not an employee of Kings Bridge Incorporated but rather served as an independent contractor. As part of the Consent Agreement, Waleski has agreed to make payment in the amount of $13,000.00 in settlement of this matter, with said amount to be payable to the Commonwealth of Pennsylvania, Department of Treasury and forwarded to this Commission by no later than the thirtieth (30 h ) day after the issuance of the final adjudication in this matter. In considering the Consent Agreement, it is clear that the elements for the recommended violation of Section 1103(a) have been established. Respondent repeatedly used the authority of his position as Assistant High School Principal for the HASD as to the implementation and funding, through government grants, of the PULSE Program at the HASD. The sole vendor for the PULSE Program was Kings Bridge. In addition to arranging for Kings Bridge services to be provided to the HASD and taking actions to secure grant funding to pay for such services, Waleski also approved Kings Bridge invoices for payment by the HASD. Meanwhile, commencing in January 2000, Respondent was in a business relationship with Kings Bridge, whereby Respondent provided services as an independent contractor for compensation. The finding of a violation of Section 1103(a) under the Stipulated Findings would be consistent with the prior precedent of this Commission. See, Wilcox, Order 1306; Rembold, Order 1303 (as to similar business relationships between school district administrators and Kings Bridge). See also, Kistler, Order 1087; Bassi, Opinion 86- 007 -R; Woodrinq, Opinion 90- 001 (as to conflicts based upon reciprocal relationships). Accordingly, notwithstanding stipulated facts nos. 1 through 91, this Commission concludes that Waleski violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he used the authority of his position as Assistant Principal for HASD to participate in actions of the school district to obtain grant funds to implement a specific program for at risk students entitled PULSE, which program was required to be conducted by the PULSE Waleski 02- 053 -C2 Page 24 copyright holder, Kings Bridge, at a time when Waleski was serving as a paid trainer for Kings Bridge and /or had a reasonable expectation that he would receive compensation from Kings Bridge in relation to the provision of services by Waleski to other school districts and when he participated in the school district's selection of and payments to Kings Bridge to implement the program for the 2001 -2002 school year. We agree with the parties that no violation of Section 1103(f) of the Ethics Act has been established. Given the stipulated Finding that "Waleski was never a principal, incorporator, member, director, officer or employee of Kings Bridge Inc." (Finding 7 c), as well as the lack of any factual basis for concluding that Respondent has a financial interest in the corporation, the necessary conclusion is that Kings Bridge is not a business with which Waleski is associated as that term is defined in the Ethics Act. 65 Pa.C.S. § 1102. We shall accept the parties' recommendation that Waleski unintentionally violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), regarding his failure to disclose income he received from Kings Bridge on his Statements of Financial Interests for calendar years 2000 through 2001. There is no question that such income was in excess of the $1,300 disclosure threshold and was required to be disclosed. 65 Pa.C.S. § 1105(b)(5). We hold that Waleski did not violate Section 1104(a) of the Ethics Act regarding his alleged failure to disclose income from Kings Bridge on his Statements of Financial Interests for calendar years 1997 — 1999. Waleski was not compensated by Kings Bridge in those years. The first payment that Waleski received from Kings Bridge was issued in January 2000. (Findings 67 -68). We hold that Waleski did not violate Section 1104(a) of the Ethics Act regarding his alleged failure to disclose his employment with Kings Bridge on his Statement of Financial Interests for calendar year 2000. Based upon the Stipulated Findings, Waleski was never an employee of Kings Bridge, but rather, served as an independent contractor. In settlement of this matter, Waleski has agreed to make payment in the amount of $13,000.00 to the Commonwealth of Pennsylvania, Department of Treasury. Such amount is $2,750.00 less than the total amount of compensation that Waleski received from Kings Bridge during the time period under review, but it has been agreed to by both parties in the context of a settlement. 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, Waleski is directed to make payment in the amount of $13,000.00 to the Commonwealth of Pennsylvania, Department of Treasury through this Commission by no later than the thirtieth (30) day after the mailing date of this Order. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. In his capacity as Assistant High School Principal for the Huntingdon Area School District (HASD) in Huntingdon County, Pennsylvania, Arthur Waleski ( "Waleski ") has been a public official /public employee subject to the Ethics Act since November 3, 1993. 2. Waleski violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he used the authority of his position as Assistant Principal for HA D to participate in actions of the school district to obtain grant funds to implement a specific program for at Waleski 02- 053 -C2 Page 25 risk students entitled PULSE, which program was required to be conducted by the PULSE copyright holder, Kings Bridge Inc. ( "Kings Bridge "), at a time when Waleski was serving as a paid trainer for Kings Bridge and /or had a reasonable expectation that he would receive compensation from Kings Bridge in relation to the provision of services by Waleski to other school districts and when he participated in the school district's selection of and payments to Kings Bridge to implement the program for the 2001 -2002 school year. 3. Waleski did not violate Section 1103(f) of the Ethics Act when the HASD selected Kings Bridge and contracted with that entity to provide consultation services regarding the school district's implementation of a program to deal with students at risk without an open and public process, as Kings Bridge is not a business with which Waleski is associated. 4. Waleski unintentionally violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), regarding his failure to disclose on Statements of Financial Interests income received from Kings Bridge for the calendar years 2000 through 2001. 5. Waleski did not violate Section 1104(a) of the Ethics Act regarding his alleged failure to disclose on Statements of Financial Interests income received from Kings Bridge for calendar years 1997 -1999 as Waleski was not compensated by Kings Bridge in those years. 6. Waleski did not violate Section 1104(a) of the Ethics Act regarding his alleged failure to disclose his employment with Kings Bridge on his Statement of Financial Interests for calendar year 2000, as Waleski was not an employee of Kings Bridge but rather served as an independent contractor. In Re: Arthur Waleski ORDER NO. 1331 File Docket: 02- 053 -C2 Date Decided: 6/8/04 Date Mailed: 6/16/04 1. Arthur Waleski ( "Waleski "), a public official /public employee in his capacity as Assistant High School Principal for the Huntingdon Area School District (HASD) in Huntingdon County, Pennsylvania, violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he used the authority of his position as Assistant Principal for HASD to participate in actions of the school district to obtain grant funds to implement a specific program for at risk students entitled PULSE, which pro ram was required to be conducted by the PULSE copyright holder, Kings Bridge Inc. ("Kings Bridge "), at a time when Waleski was serving as a paid trainer for Kings Bridge and /or had a reasonable expectation that he would receive compensation from Kings Bridge in relation to the provision of services by Waleski to other school districts and when he participated in the school district's selection of and payments to Kings Bridge to implement the program for the 2001 -2002 school year. 2. Waleski did not violate Section 1103(f) of the Ethics Act when the HASD selected Kings Bridge and contracted with that entity to provide consultation services regarding the school district's implementation of a program to deal with students at risk without an open and public process, as Kings Bridge is not a business with which Waleski is associated. 3. Waleski unintentionally violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), regarding his failure to disclose on Statements of Financial Interests income received from Kings Bridge for the calendar years 2000 through 2001. 4. Waleski did not violate Section 1104(a) of the Ethics Act regarding his alleged failure to disclose on Statements of Financial Interests income received from Kings Bridge for calendar years 1997 -1999 as Waleski was not compensated by Kings Bridge in those years. 5. Waleski did not violate Section 1104(a) of the Ethics Act regarding his alleged failure to disclose his employment with Kings Bridge on his Statement of Financial Interests for calendar year 2000, as Waleski was not an employee of Kings Bridge but rather served as an independent contractor. 6. Per the Consent Agreement of the parties, Waleski is directed to make payment in the amount of $13,000.00 to the Commonwealth of Pennsylvania, Department of Treasury through this Commission by no later than the thirtieth (30) day after the mailing date of this Order. 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, Waleski 02- 053 -C2 Page 27 Louis W. Fryman, Chair