I am really disappointed to see the Olympics interspersed with athletes touting Mitt Romney for President. Kind of Classless, if you ask me.
Our New State Democratic Chair?
5 hours ago
It has been reported to me that Pencader's new counsel is Adria Martinelli of Young, Stargatt, Conaway, and Taylor.Ms. Beukema-Scheinberg:We sent your complaint to the Pencater directors and their then-legal counsel and received no response. As you probably know, that counsel has withdrawn his representation and Pencater just yesterday retained new counsel. We are forwarding your complaint to her for Pencater’s response and are asking for the response in ten business days.Best regards,Kent Walker
Deputy Attorney General Delaware Department of Justice
820 French Street, 6th floor
Wilmington, Delaware 19801
Ph. 302-577-8306
Fax 302-577-6630
kent.walker@state.de.us
Confidentiality Notice: This electronic message and any attachment(s) are confidential and may be subject to the attorney/client privilege or work product immunity, or both. This e-mail is only for the use of the intended recipient(s). If you have received this e-mail in error, please notify the sender immediately by replying to this e-mail, then delete this message and any attachment(s) from your system. Any unintended transmission expressly shall not waive the attorney/client privilege or any other privilege.
A public servant is guilty of profiteering when, in contemplation of official action by the public servant or by a governmental entity with which the public servant is associated, or in reliance on information to which the public servant has access in an official capacity and which has not been made public:(1) The public servant acquires a pecuniary interest in any property, transaction or enterprise which may be affected by the official action or information; or(2) The public servant speculates or wagers on the basis of the official action or information; or(3) The public servant aids another person to do any of the foregoing acts, intending to gain thereby a personal benefit.Profiteering is a class A misdemeanor.11 Del. C. 1953, § 1212; 58 Del. Laws, c. 497, § 1; 67 Del. Laws, c. 130, § 8; 70 Del. Laws, c. 186, § 1.;
This organization's exempt status was automatically revoked by the IRS for failure to file a Form 990, 990-EZ, 990-N, or 990-PF for 3 consecutive years. Further investigation and due diligence is warranted.
Learn moreA more detailed report is available from Guidestar at http://www.guidestar.org/organizations/20-0388633/pencader-education-association.aspx. Be sure to note that the EIN Number on this report matches the EIN Number on the Pencader Annual Giving Media on the schools website, http://pencadercharter.net/busfin/sites/default/files/page/ajax/documents/Annual%20Fund%20at%20Pencader%20with%20Border%20%282%29.jpg
Visit the Automatic Revocation of Exemption List - http://apps.irs.gov/app/eos/pub78Search.do?searchChoice=revoked&dispatchMethod=selectSearchDonor FAQ
Do I need to be aware of the revocations?
You do if you take the charitable gift deduction on your income taxes. Before making a contribution, you will need to confirm that the nonprofit receiving it is still tax exempt. Otherwise, the IRS may disallow the deduction, and you may be required to pay a penalty. You should check on GuideStar or the Automatic Revocation of Exemption List on the IRS site to confirm the nonprofit's status.
Automatic Revocation of IRS Tax-Exempt Status for Nonprofits
On June 8, 2011, the Internal Revenue Service (IRS) released a list of more than 275,000 nonprofits that had their tax-exempt status automatically revoked due to failure to file annual returns. Read an overview by type and location of the organizations that lost their tax exempt status in June 2011. ...
What does it mean to have your tax exempt status revoked?
It means that your nonprofit is no longer exempt from federal income tax and will have to pay corporate income tax on annual revenue. The organization may also be subject to back taxes and penalties for failure to pay corporate income taxes as of the effective date of revocation. It may also mean that any state tax exemptions that your nonprofit received – such as exemptions for income tax, property tax, and sales/use tax -- that are dependent on federal tax-exempt status, may also be revoked now. And it means that your organization will not be listed in IRS Publication 78, Cumulative List of Organizations described in Section 170(c) of the Internal Revenue Code of 1986, which is the official list of organizations eligible to receive tax-deductible charitable contributions. Additionally, this means that donors will not be able to receive a tax deduction for their gifts to the organization after the revocation date. Finally, most private foundations are unlikely to give a grant directly to nonprofits that are not tax-exempt because their guidelines normally require grantees to be recognized as tax-exempt public charities, since federal tax law imposes an excise tax on the foundation for grants made to organizations that are not tax-exempt.
What Should you do now?
Governance: Convene the board of directors to determine what the organization will do. Staff: Make sure that all staff (and volunteers, as applicable) understand what has happened and the significance of the revocation of tax-exempt status. Messaging: Make sure that the nonprofit’s website, and all other communications, are transparent about the fact that the organization is not tax-exempt. For example, remove any messages that state that donations to the organization are tax-deductible to the donor, or that describe the organization as tax-exempt. Donor relations: Be proactive about communicating with your donors and transparent in explaining that while donations given before the effective date of revocation are still deductible, future gifts are not, until such time as the nonprofit receives recognition from the IRS that is it once again tax-exempt. If your donors need more information on the deductibility of their gifts, refer them to IRS Publication 557. Donors to section 501(c)(3) organizations may rely on the organization’s determination letter or listing in Publication 78 to deduct contributions until the IRS publishes a notice on IRS.gov that the organization’s 501(c)(3) exempt status has been revoked. Recordkeeping and tax compliance: Make sure records are kept on revenue sources so that the nonprofit will be well positioned to file the appropriate tax return and pay the income taxes for the period of time that the nonprofit is not tax-exempt. Research the options, which may include:
- Re-applying for tax-exemption (if regaining tax-exempt status is important.)
- Note that this will require a lot of time (the IRS estimates that it takes well over 100 hours to fill out the Form 1023 (or 1024), Application for Tax-Exemption), and
- Money for filing fees: While filing fees are generally $400 or $850, the IRS is offering special relief to eligible organizations (those with generally less than $50,000 in annual gross receipts) of $100, as long as the application is postmarked 12/31/2012. Other groups will have to pay an application fee of either $850 or $400 depending on their annual gross receipts during the preceding four years. Read about exempt organization user fees.
- Fees paid to a lawyer or accountant to help you file the forms.
- Patience and time: The review process at the IRS takes between 6-9 months on average. Nonprofits applying for reinstatement should write either "Automatically Revoked" or "Notice 2011-43" on the envelope with their forms to ensure that the application is routed to a specialist who can assist.
- Know the impact on state tax exemption: Your organization’s tax-exempt status at the state level is most likely dependent upon the IRS determination of tax-exemption. Consequently, once you learn that the organization is no longer recognized as tax-exempt by the IRS you should contact the state agency responsible for issuing determinations of tax-exemption for state taxes, such as sales/use tax and property tax (as applicable to your organization) and be transparent about the IRS revocation with that agency.
- Nonprofits that re-apply may request in a letter to the IRS that the reinstatement of their tax-exempt status be retroactive to the date of their original tax-exempt recognition, but the IRS will grant that request only if it determines that there was “reasonable cause” for the nonprofit to have missed the filing deadlines. Make sure to carefully follow the instructions on the IRS website for requesting “retroactive reinstatement” of your organization’s tax-exempt status.
Sometimes, reality is stranger – and funnier – than fiction.C&E 1st responds -
Pencader Charter’s leader, who got her doctorate from a notorious diploma mill, was told that three of her teachers were double-dipping (receiving state pensions and salaries).
She pretended to fire them, but actually retained them as “independent contractors.”
One of the teachers flouting the law this way was her husband, who got paid a whopping $6,450 a month (of taxpayer money) to teach one single class.
The subject?
“Morals and ethics”!
One can only laugh.
David Gertler
Wilmington
http://www.delawareonline.com/article/20120727/OPINION10/307270011/Charter-school-situation-funnier-than-fiction
The budget shows a very small amount of money allocated for lawyer fees in the 2012-2013 budget yet the lawyer fees for this year were many, many times more than that. How is this an accurate budget? There were several lawsuits left from the previous administration. These suits took a great deal of attorney input to end them in a way that benefited PCHS with no reprecussions; going forward, attorney’s fees should be minimal, but no 2012-2013 expected budget was presented. That process begins shortly, so we are not sure even where you think allocations for lawyer fees was presented. - email between Ann Lewis and Sarah Ster, June 29, 2012Then be sure to read the budget that Pencader presented to the state on May 30th, 2012 as required by DOE for failing to make the May 1 80% enrollment requirement for the upcoming school year - 2012-13. The school leader states that the "process begins shortly," a full 29 days after a "low enrollment" budget has been completed and submitted... And 2 days after Transparent Christina publishes the budget for the public view...
Check out the June 29th Ann Lewis email about UPCOMING budgets, then check this: http://transparentchristina.wordpress.com/2012/06/27/pencader-budget-submnission-based-on-missing-80-may-1-count/
“Today’s service is about healing and reconciliation and the institution of family,” said Rev. Christopher Bullock, pastor of Canaan Baptist Church. “The deep roots of the Jamaican culture will be on display here as it relates to the strong connection of family. The fact that they are so strong and anchored in family and faith it will serve as a great benefit for today and beyond today.”
Dorothy June Brown, 75, has been charged with defrauding three Philadelphia-area charter schools out of approximately $6.5 million.Brown, along with four current and former charter school executives were charged in a 62-count indictment. The four execs are charged with conspiring with Brown to obstruct justice.Brown allegedly used her private management companies, Cynwyd and AcademicQuest to defraud Agora Charter Cyber School and Planet Abacus Charter School. She is also charged with defrauding Laboratory Charter School of Communication and Languages. She founded Agora in 2005, Abacus is 2007 and Laboratory in 1997.According to the extensive indictment, fraudulent contract payments totaling more that $5.6 million dollars were made between Agora and Cynwyd. It goes on to say that Brown also allegedly made up documents, falsified board meeting minutes and fabricated contracts.She allegedly rewarded others to join in her conspiracy by rewarding them with prominent positions within the schools. She is also charged with wire fraud.The charges of wire fraud, obstruction of justice and witness tampering each carry a maximum possible sentence of 20 years in prison. The charges of conspiracy each carry a maximum possible sentence of 5 years in prison. http://www.myfoxphilly.com/story/19100615/founder-of-several-philadelphia-charter-schools-charged-in-6m-fraud-scheme
Money was not the driving factor for returning to work at Pencader, Bob Lewis said. He did it because he loves working with children.He missed them after retiring from the Appoqunimink School District in 2002. He cares so deeply that he donates money to the school, he said, and spends many hours volunteering on weekends and evenings.“Money has never been the object. That’s not why I went back into the game,” Lewis said. “I went back into the game to work with kids.”
Payments to Bob Lewis, made thought his company Educational Consulting, were for more than teaching services in 2011-2012, state records indicate.
His company was also paid several thousand dollars for supplies, records in the state checkbook show. Bob Lewis said he didn’t know anything about payments for supplies.
He suggested it was a coding error in the state checkbook system."And, like I said, if I had the opportunity to show you my actual invoices submitted, you’d see that there,” Lewis testified to the pension board July 11.
The News Journal asked to see those invoices in a July 5 public records request that also seeks cashed checks, the school’s conflict of interest policy and other documents. The school’s assistant leader, Amanda C. Fraser, said in a letter sent July 17 the school was reviewing the public records request. - The News Journal, 7/22/12
While Pencader teachers subsidized their school by buying their own supplies, and while volunteers (the unpaid kind) worked to established an Annual Giving Campaign and collected funds for that campaign, the school leader, empowered with her diploma mill degree, was giving sweetheart deals to her spouse and friends. Her husband collected more than $6,000 a month for teaching one class while another teacher was paid twice as much as her peers in the same department for less work.Troubled school
Pencader is a public school near New Castle with about 430 students. It has a taxpayer-funded annual budget of more than $5 million. In the last school year, teachers there bought their own supplies, collected donations and scrimped as the school struggled to survive financially. The school was nearly closed by the state Department of Education last year because of those financial difficulties. - News Journal, 7/22/12
“Due to the Office of Pension’s stance that you cannot work as a seasonal employee, your employment with Pencader Charter High School is terminated effective October 1, 2011,” states a one-sentence letter signed by “Ann E. Lewis Ph.D.” addressed to her husband, who was one of the three teachers, and copied to the state. - News Journal, 7/22/12
School leader Ann Lewis instructed those working under her to remove the teachers, including her husband, Bob Lewis, from the state’s payroll system in October. The three teachers were transformed into independent contractors. - News Journal, 7/22/12
Pension Administrator David Craik said the school told his office the teachers had been terminated. - News Journal, 7/22/12
“The misleading, at best, and arguably dishonest letter by the school leader and the email that was copied to Mr. Lewis is very troubling, to say the least, and should cast real doubt on the credibility of what he is about to say,” Ellis told the pension board.- News Journal, 7/22/12
The school’s initial solution to the pension office communication was to reclassify the teachers in the state payroll system as “casual/seasonal” in an attempt to allow the teachers to continue collecting a pension and a paycheck, according to testimony presented in the pension board hearing and public documents.
State pension officials rejected this, public records show. Craik, the pension office administrator, wrote a letter dated Oct. 17 to school leader Ann Lewis saying there was a lot at stake.
“Further, the IRS would probably view the method in which these retirees were rehired as a ‘sham transaction.’ Unfortunately, this is a serious violation for both the employee and the State.”
After this letter from Craik, the Pension Office was sent the “termination” communication and the teachers were hired as contractors. - News Journal, 7/22/12
During their hearings, Bob Lewis and Shirley Roccia both said they were told by school leaders that classification as an independent contractor allowed them to collect their pensions while also working at the school. - News Journal, 7/22/12
In an interview last month, Ann Lewis told The News Journal that her husband only worked part time at the school, and that’s why he could also collect a pension. - News Journal, 7/22/12
The independent contractor plan at Pencader was used to “save money,” according to testimony at the pension board hearing.
State pension office officials said it is not helpful or legal for schools to seek cost savings in this manner. - News Journal, 7/22/12
There was no intention to trick the pension office by creating the independent contractor plan at Pencader, said Mike Scanlon, a former contractor for Innovative Schools, a Wilmington nonprofit that provides support services to schools.
Innovative Schools has been assisting Pencader this year with its budgeting and human resources.
By keeping the teachers collecting pension benefits, the school saved money because it was not responsible for paying health benefits or contributions to the state pension plan, he said.
Before Pencader moved to the independent contractor plan for the teachers – which Scanlon said was not his idea – the school talked to some other people in the education community, including Department of Education retirees. - News Journal, 7/22/12
According to testimony at a recent pension hearing, Bob Lewis said he was responsible for teaching only one class, morals and ethics, in return for nearly $6,500 a month. The rest of his time at the school, he said, was volunteering. - The News Journal, 7/22/2012
He said under oath that beyond teaching one class, all his time at the school was as a volunteer. Lewis said he was paid with Title 1 funds earmarked by the federal government to support the academic achievement of disadvantaged children. - The News Journal, 7/22/2012
Bob Lewis and Roccia were paid more than many of their colleagues at Pencader, but the two teachers said they had fewer duties than other teachers.
At the pension board hearing, Bob Lewis said that in addition to having to teach only one class he also didn’t have to attend in-service days. The News Journal, 7/22/2012
There are no state rules that dictate what charter school teachers must be paid. Some may have their pay scales based on experience levels, but determining pay is left up to each school’s administration. The News Journal, 7/22/2012
In an interview last month, Ann Lewis told The News Journal that her husband only worked part time at the school, and that’s why he could also collect a pension. She said it was acceptable to set her husband’s pay at the same rate as a full-time teacher because she knew he’d be working a lot of volunteer hours. The News Journal, 7/22/2012
“Money has never been the object. That’s not why I went back into the game,” Lewis said. “I went back into the game to work with kids.” The News Journal, 7/22/2012
An MTA city bus driver says he was thinking of his own young daughter when he rushed to catch a 7-year-old girl plunging three stories from a Brooklyn building Monday.
"Please let me catch her, please let me catch her," Stephen St. Bernard, 52, recalled thinking. "That's all I could say. Let me catch the little baby..."
Police sources said the girl has autism. Her mother was inside the apartment watching her other child and did not see the girl standing outside on the A/C, the sources said.