Duryea Borough School District's Audit

1 Pa. D. & C. 688
CourtPennsylvania Court of Common Pleas, Luzerne County
DecidedJuly 1, 1922
DocketNo. 625
StatusPublished

This text of 1 Pa. D. & C. 688 (Duryea Borough School District's Audit) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Luzerne County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duryea Borough School District's Audit, 1 Pa. D. & C. 688 (Pa. Super. Ct. 1922).

Opinion

Strauss, J.

This appeal presents four questions:

First. Whether the school treasurer was entitled to receive commissions on commissions for which orders were drawn and paid to him?

Second and third. Whether the expense of certain repairs in the Washington Building, and for certain heating and plumbing repairs upon this and [689]*689others buildings, were in violation of the School Code, which prohibits the board to incur expense beyond $300 without advertisement and contract after competitive bidding?

Fourth. Whether certain orders drawn to compensate directors for attending a directors’ convention were lawful?

The first question involves:

(a) A. commission of 85 cents allowed on $42.80, being the balance due the treasurer from the previous year.

(b) A commission of $20 allowed to James Donley, treasurer (between the first Monday of July and the first Monday of December, 1919), being 2 per cent, on $1000, commissions on orders lawfully paid by him to other persons.

(c) A commission of $17.03 allowed to Michael Swantkowski, treasurer (from the first Monday of December, 1919, to the end of the school year in 1920), being 2 per cent, on $851.50, commissions on orders lawfully paid by him to other persons.

(d) A commission of $710 allowed to James Donley, treasurer as aforesaid, on bonds and interest thereon and temporary loans for which orders had been drawn and were paid by said treasurer in October, 1919.

As to (a), the commission was improperly allowed, because the School Code, § 329, expressly forbids compensation to a school treasurer on account of any balance in his hands paid over to his successor. The balance on which this commission is charged was a balance in the hands of this same treasurer as per audit of the preceding year, and is, therefore, to be treated exactly as if another treasurer had been in office and had turned over the balance found to be due from him to the present accountant.

As to (b) and (c), we are of the opinion that the treasurer was lawfully entitled to receive commissions upon the orders drawn in his own favor for commissions, because, under the School Code of 1911, the treasurer was required to pay money out of the school funds, upon proper orders, signed by the president (sections 324 and 511), and the salary of the treasurer was directed to be such compensation as the school board may determine, not to exceed 2 per cent, of the amount of funds paid on school orders. It is admitted that the school board had fixed the salary at 2 per cent, on orders paid by him.

It is a fair construction of the School Code to require the treasurer’s compensation to be paid upon orders. In this respect the School Code differs from the Act of, May 8, 1854, P. L. 617, under which the schools were in the greater part of the State governed prior to the adoption of the School Code, in that under the latter act the treasurer was permitted “to retain not exceeding 2 per cent, on the moneys passing through his hands for his services.” Had this provision been re-enacted in the School Code, there can be no doubt of the fact that the treasurer would not have been entitled to the commissions upon his commissions. As, however, the requirements now are that all funds belonging to the district shall be deposited in a depository to be named by the board, and that the treasurer shall pay out the funds only on proper orders, it would seem to follow that he receives his own compensation only through payment of orders drawn by the board. The commission to which he is entitled being upon all orders paid by him, necessarily includes the orders in his own favor.

As to (d): On July 21, 1919, the legislature passed an act amending section 329 of the School Code, so that thereafter the treasurer should not be entitled to commissions on the repayment of any loan or redemption of bonds, whether upon order or otherwise. The fact that this amendatory legislation [690]*690was deemed proper or necessary justifies the conclusion that except for it commissions were allowed for payment of bonds.

James Donley had been elected treasurer before this act was passed, and his compensation was fixed at the time of his election at 2 per cent, on all orders drawn. The bonds that were redeemed in October, 1919, were paid in pursuance of orders issued directing the treasurer to pay them. The treasurer is a public officer and is protected by article III, § 13, of the Constitution, which provides that: “No law shall extend the term of any public officer or increase or diminish his salary or emoluments after his election or appointment.”

Therefore, all the commissions, except 85 cents, which the several treasurers paid and the auditors allowed, were lawfully allowed, but Donley is subject to a surcharge for 85 cents on this account.

2. Repairs to Washington Building. These are included in orders No. 9, Harold Donley, $61; No. 10, Peter Judala, $61; No. 11, George Judala, $61, and No. 38, Turon and Schwartz, 4000 feet of yellow pine flooring, at $70 per M and $5 cartage, less 3 per cent., net bill $276.45, a total of $459.45. Donley, Peter and George Judala were in employment of the district, at 50 cents per hour, to do sundry odd jobs of carpentry, painting, etc., at various buildings, their wages being materially less than usual for that class of work. Because the total is in excess of $300, it is contended that these orders should be disallowed as having been issued in violation of the Act of July 10, 1919, P. L. 889, and, therefore, charged against the several school directors.

If it clearly appeared that these bills were all incurred in connection with laying new floors in the Washington Building, we would be compelled to sustain that contention.

But such evidence as has been produced as to the total cost of laying these floors leads to the conclusion that-the floors cost less than $300. Of the 4000 feet of flooring, it has been testified, only about 3000 feet went into this job, the remaining lumber being used by the school district elsewhere. So, also, it has been testified that two or three days only were required to lay the floors. Though the evidence is somewhat indefinite and does not enable us to fix exactly the amount which was expended for this particular repair, it is sufficient to base the conclusion that it was well within the legal limit.

In our opinion, the Act of July 10, 1919, P. L. 889, by amending section 617 of the School Code and introducing into the statute limiting certain expenditures to $300 the words “where the entire costs, value or amount of such construction, reconstruction, repairs or work, including labor and material,” is so drastic that it is not likely to produce economy in ordinary repairs which school directors must from time to time undertake.

Responsible contractors do not bid closely on “patch jobs” that may in the course of performance develop unexpected defects and consequent unforeseen expense. Yet the act limiting the cost of repairs on any building to less than $300, except where there has been competitive bidding, would almost compel school directors (serving without pay and naturally desiring to avoid the danger of surcharge for an involuntary violation of law) to.cause repairs to be done in many instances by contract at higher figures than would be required if done in the manner adopted at the Washington Building.

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Bluebook (online)
1 Pa. D. & C. 688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duryea-borough-school-districts-audit-pactcomplluzern-1922.