Elco board violated Sunshine Law in hiring special counsel
By STEVE SNYDER | Lebanon Daily News Staff Writer
Elco School Board committed an apparent violation of the state Sunshine Act when it hired special counsel to handle an investigation into the district's alleged overpayment by the Lebanon County Earned Income Tax Bureau.
The board engaged the services of Stock and Leader of York in March, but a vote in public session, as required by state law, was not taken. The board eventually unanimously approved Stock and Leader's hiring, but not until the Oct. 18 board meeting. In the interim, the board approved payment of invoices to Stock and Leader during meetings on June 14, July 12, Aug. 9 and Sept. 13.
Board president Ed Gardener could not be reached for comment.
A March 12 letter of agreement sent to Elco School District business manager Gwen Boltz by Stephen Russell of Stock and Leader spelled out his firm's terms: $175 per hour for his services or that of any other firm partner, and $145 an hour for an associate's time, if necessary.
Stock and Leader was hired because the district's solicitor, Hartman, Underhill and Brubaker of Lancaster, had a conflict of interest; Hartman, Underhill and Brubaker represents other entities in Lebanon County.
According to a report by Camp Hill auditing firm McKonly & Asbury, Elco School District received $1,171,005 more than it should have from the Lebanon County EIT Bureau between 2004 and 2007.
Stock and Leader hired Pittsburgh accounting firm ParenteBeard to investigate McKonly & Asbury's report.
Last week, the district released the ParenteBeard report, which disputed the methodology McKonly & Asbury used. ParenteBeard's 18-page report did not say what it believes the district should have received during those years.
Elco paid $10,000 for the ParenteBeard report.
Citing the ParenteBeard report, the board did not take action at its meeting last week on a resolution under which overpaid entities, including Elco, would pay back the funds they received in error over a 10-year period (three would be allowed additional time due to the relative size of their overpayments). The deadline attached to the resolution was Nov. 30; any overpaid entity not approving the resolution by that date could be subject to legal action by the underpaids.
The Elco board does not meet again until Dec. 6.
The Lebanon County EIT Bureau executive committee meets at the Cornwall-Lebanon administration building at 6:30 p.m. Wednesday and is scheduled to hear an update on the resolution from its solicitor, Howard Kelin.
Elco School Board committed an apparent violation of the state Sunshine Act when it hired special counsel to handle an investigation into the district's alleged overpayment by the Lebanon County Earned Income Tax Bureau.
The board engaged the services of Stock and Leader of York in March, but a vote in public session, as required by state law, was not taken. The board eventually unanimously approved Stock and Leader's hiring, but not until the Oct. 18 board meeting. In the interim, the board approved payment of invoices to Stock and Leader during meetings on June 14, July 12, Aug. 9 and Sept. 13.
Board president Ed Gardener could not be reached for comment.
A March 12 letter of agreement sent to Elco School District business manager Gwen Boltz by Stephen Russell of Stock and Leader spelled out his firm's terms: $175 per hour for his services or that of any other firm partner, and $145 an hour for an associate's time, if necessary.
Stock and Leader was hired because the district's solicitor, Hartman, Underhill and Brubaker of Lancaster, had a conflict of interest; Hartman, Underhill and Brubaker represents other entities in Lebanon County.
According to a report by Camp Hill auditing firm McKonly & Asbury, Elco School District received $1,171,005 more than it should have from the Lebanon County EIT Bureau between 2004 and 2007.
Stock and Leader hired Pittsburgh accounting firm ParenteBeard to investigate McKonly & Asbury's report.
Last week, the district released the ParenteBeard report, which disputed the methodology McKonly & Asbury used. ParenteBeard's 18-page report did not say what it believes the district should have received during those years.
Elco paid $10,000 for the ParenteBeard report.
Citing the ParenteBeard report, the board did not take action at its meeting last week on a resolution under which overpaid entities, including Elco, would pay back the funds they received in error over a 10-year period (three would be allowed additional time due to the relative size of their overpayments). The deadline attached to the resolution was Nov. 30; any overpaid entity not approving the resolution by that date could be subject to legal action by the underpaids.
The Elco board does not meet again until Dec. 6.
The Lebanon County EIT Bureau executive committee meets at the Cornwall-Lebanon administration building at 6:30 p.m. Wednesday and is scheduled to hear an update on the resolution from its solicitor, Howard Kelin.
