Auditor General Jack Wagner said today that his special investigation has concluded that the Chester County Intermediate Unit improperly circumvented state pension rules by paying a salary to its former executive director, John K. Baillie, for a period of six months after his retirement while he also collected $79,083 in payments from the state pension system.  

Wagner's Office of Special Investigations found that Baillie retired from CCIU on Friday, Jan. 5, 2007, and returned to work on the following Monday.  The state pension law permits a retiree collecting a pension to return to work only in an emergency in which no qualified replacement can be found to fill the retiree's vacant position.  However, investigators concluded that no real emergency existed and that the pension payments should be returned to the Public School Employees' Retirement System.

Acting on information received from Wagner's investigators, PSERS ordered Baillie to return the improper payments to the pension system.  Due to the litigation over the pension issues, issuance of Wagner's report was delayed pending final resolution of Baillie's appeal to the Commonwealth Court.  The court upheld PSERS' order on April 30, finding that Baillie's retirement was "phony" and was done for the purpose of increasing his payout from the pension system.  

Investigators also found that:

• CCIU improperly used $683,583 of federal Medicaid School Based Access Program funds to make capital improvements to the Downingtown Education Center.
• Employees used CCIU credit cards to make at least $12,750 in improper purchases, including $1,600 for a set of golf clubs and $1,700 for 20 cases of wine; and
• CCIU failed in 2006 and 2007 to properly report $12,000 per year that it paid to Baillie and failed to withhold taxes on the payments.

Wagner referred his findings to multiple state and federal government agencies, including PSERS, the Pennsylvania Department of Education, the Pennsylvania Department of Revenue, and the Internal Revenue Service, for whatever further action they deem appropriate.

"Public servants should never put their interests ahead of the taxpayers,'' Wagner said. "I strongly urge the Chester County Intermediate Unit to implement the recommendations made in my report so that it can regain the public's trust that it is handling state funds prudently and properly.  I will follow up at the appropriate time to determine whether our recommendations have been implemented."  

Wagner's report made 16 recommendations, including:

• CCIU should reconfigure its cabinet to provide for an assistant executive director, as is the practice at other intermediate units in the commonwealth.  This would enhance the CCIU's succession plan and render "emergency'' employment contracts unnecessary.
• CCIU should seek PSERS' approval before entering into any future emergency employment contracts.
• CCIU should amend its credit-card procedures to eliminate improper purchases and prohibit the use of intermediate unit funds for entertainment purposes and alcohol.
• CCIU should issue corrected Internal Revenue Service Forms W-2 for 2006 and 2007 to Baillie and file the corrected forms with the IRS and the state Department of Revenue.

In a response to the investigative report, CCIU agreed to implement most of the recommendations or to implement alternative measures to accomplish the same objectives.

Wagner commended PSERS for its finding that Baillie did not actually retire on Jan. 5, 2007 and for its decision to recoup pension payments made to him between January 8, 2007, and June 30, 2007, when his six-month emergency employment contract expired.

"Based on our interviews and a thorough review of all available records, we can only conclude that the Chester County Intermediate Unit board of directors' decision to extend an emergency employment contract was merely a means of accommodating the desire of its executive director to receive additional remuneration and to select his successor," Wagner said.  "We commend PSERS for taking action to recover the improper payments, and we are gratified that the Commonwealth Court has vindicated our position on the issue."

Investigators also found that CCIU violated state Department of Education guidelines when it failed to seek approval for spending federal ACCESS funds on capital improvements at the Downingtown Education Center.  The Department of Education said that program rules expressly prohibit spending ACCESS funds on capital projects like windows and heating-ventilation equipment.

In addition, investigators found that CCIU employees rang up $12,750 in improper credit-card purchases from June 21, 2006 through June 27, 2007.  Among the purchases:

• Twenty cases of wine, totaling $1,707.72, from an out-of-state liquor store.  An employee said that two bottles of wine were given to each participant in a charity golf tournament benefiting the CCIU's Children's Fund.
• Holiday lunches for 35 guests, totaling $704.25, on Dec. 21, 2006, at a golf-club restaurant.
• A new set of golf clubs, totaling $1,600, for a retiring CCIU maintenance employee.  The gift exceeded the amount permitted in an employee recognition policy promulgated by Baillie, who reimbursed $1,500 to CCIU after the Department of the Auditor General had initiated its investigation.

During their review of Baillie's employment records, investigators discovered that he had received $1,000 per month for "expenses of the office" in 2006 and 2007.  CCIU failed to report those payments to the IRS as supplemental income on Baillie's annual W-2 form.  Instead, CCIU reported this income on a Form 1099, which is the form used to report payments to independent contractors.  CCIU also had failed to withhold appropriate federal, state, and local taxes on this additional income.

"The pattern of lax administrative and financial oversight uncovered by our investigators is deeply disturbing," Wagner said.  "CCIU can and must do better in fulfilling its fiduciary responsibilities to taxpayers."

Auditor General Jack Wagner is responsible for ensuring that all state money is spent legally and properly.  He is the commonwealth's elected independent fiscal watchdog, conducting financial audits, performance audits, and special investigations.  The Department of the Auditor General conducts approximately 5,000 audits per year.  To learn more about the Department of the Auditor General, taxpayers are encouraged to visit the department's website at www.auditorgen.state.pa.us.

SOURCE Pennsylvania Department of the Auditor General

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MediRegs, a leading provider of compliance and risk management, reimbursement and workflow solutions for the health care industry, announced today that it will incorporate the Health Information Trust Alliance (HITRUST) Common Security Framework (CSF) within its ComplyTrack Suite to offer clients a concise means of addressing privacy and security risks. MediRegs is part of Wolters Kluwer Law & Business (wolterskluwerlb.com).

"Health care organizations have been grappling with the management of the innumerable privacy and information-security regulations, standards and best practices, and the overlapping risks they define," said MediRegs General Manager Steve Lefar. "The combination of ComplyTrack and the HITRUST CSF allows health care organizations to assess, remediate, control and investigate breaches; conduct audits; and support CSF-assessment processes in a comprehensive yet streamlined fashion."

The ComplyTrack Suite, a Software as a Service (SaaS) solution for health care risk and compliance professionals, manages all facets of enterprise risk and compliance programs, including risk assessment; incident, issue and activity management; policies and procedures; contracts; and vendors and audits. The HITRUST CSF is the most widely adopted heath care security control framework and offers a practical, scalable and cost-effective way for health care organizations to implement security programs that safeguard patient information. With its inclusion of the HITRUST CSF, the ComplyTrack Suite enables clients to easily evaluate their compliance with business, government and industry standards and regulations, including the American Recovery and Reinvestment Act of 2009, HIPAA, ISO, NIST, PCI and COBIT.

"Having the HITRUST CSF embedded within the ComplyTrack Suite is yet another opportunity for HITRUST to aid the health care industry in simplifying and streamlining the assessment and compliance process," said Daniel Nutkis, Chief Executive Officer, HITRUST. "The HITRUST CSF Assurance program and tools such as ComplyTrack provide the industry with greater resources that enable organizations and their business partners to focus their attention on improving information security through assessments and remediation and not solely the compliance process itself."

For More Information

For more information on the ComplyTrack Suite, visit mediregs.com or call 1-800-808-6800.

About HITRUST

The Health Information Trust Alliance (HITRUST) was born out of the belief that information security should be a core pillar of, rather than an obstacle to, the broad adoption of health information systems and exchanges. HITRUST, in collaboration with health care, business, technology and information security leaders, has established the Common Security Framework (CSF), a certifiable framework that can be used by any and all organizations that create, access, store or exchange personal health or financial information. In addition to establishing the CSF, HITRUST is driving adoption of and widespread confidence in a framework and sound risk-management practices through education, advocacy and outreach activities. For more information, visit http://www.hitrustalliance.net/.

About Wolters Kluwer Law & Business

Wolters Kluwer Law & Business is a leading provider of research products and software solutions in key specialty areas for legal and business professionals, as well as casebooks and study aids for law students. Its major product lines include Aspen Publishers, CCH, Kluwer Law International and Loislaw. Its markets include law firms, law schools, corporate counsel, health care organizations, and professionals requiring legal and compliance information. Wolters Kluwer Law & Business, a unit of Wolters Kluwer, is based in New York City and Riverwoods, Ill. Wolters Kluwer is a market-leading global information services company.

SOURCE Wolters Kluwer Law & Business

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New York Appellate Court Justice Samuel Green today issued a stay regarding the August 30 State Supreme Court ruling in the "Day Wholesale v. State of New York" tobacco tax case.  The Green ruling temporarily enjoins the State from collecting tobacco taxes from all Native American tobacco sellers within state boundaries.

The ruling by the Rochester-based Fourth Department Appellate judge reinstates the injunction State Supreme Court Justice Donna M. Siwek lifted on August 30, until an Appellate Court panel hears arguments next week.

"We are extremely relieved that now all Indian nations within New York are protected from the State's collection efforts, while efforts continue in both State and Federal Courts to continue our challenge of the State's misguided taxing scheme," said Seneca Nation of Indians President Barry E. Snyder Sr.

The Seneca Nation were granted intervener status in the 2006 "Day Wholesale" case late last month and had argued before Siwek August 30 that the court should consider procedural flaws in the State's implementation of the tax scheme that was scheduled to go into effort today.

On Tuesday, Federal Judge Richard J. Arcara issued a temporary restraining order in a lawsuit brought by the Seneca Nation, and joined by the Cayuga Nation.  The order, which is in effect though Sept. 13, protects only those plaintiffs.

Lawyers for the Senecas, Cayugas and State of New York are due back in federal court Thursday afternoon at 1 p.m. for pre-hearing motions ahead of full arguments on the Seneca case.

SOURCE Seneca Nation

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The Charlotte School of Law announces that its 2010 graduates who took the bar for the first time this summer passed at 86.79 percent, which is above the in-state average of 83.36 percent and places CharlotteLaw third highest among North Carolina's seven law schools.

"We are very proud of all our graduates who worked so hard to prepare for this difficult exam and to all of those at CharlotteLaw who assisted them in their efforts," said Dennis Stone, interim dean of Charlotte School of Law.  "A bar pass rate this high is a testament to the effectiveness of our program and to the high level of engagement among our faculty, students and academic support staff."

Charlotte School of Law opened in the fall of 2006 with a program of education focused on student success through professional preparation and a commitment to underserved communities.  CharlotteLaw offers a traditional full-time day program, and flexible part-time programs with day and evening options. The school received provisional American Bar Association approval in the summer of 2008 at the earliest possible point.  For more information about CharlotteLaw please visit the website at www.charlottelaw.edu or call 704.971.8500.

SOURCE Charlotte School of Law

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China Natural Gas, Inc. ("China Natural Gas" or the "Company") (Nasdaq: CHNG), a leading provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial, and residential use in Xi'an, China, today provided an update regarding the Company's senior notes with Abax Lotus Ltd. ("Abax").

As previously disclosed in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, the Company entered into a domestic bank loan on February 26, 2010 which violated certain terms of the Company's senior notes with Abax Lotus Ltd. ("Abax"). As a result, Abax has the right to declare a default and demand an immediate repayment with all accrued interest. If Abax declares a loan default, the Company has 30 days to correct the violation or must pay the entire loan amount. Abax has currently issued no notice of default on the debt instruments.

Mr. Qinan Ji, Chairman and CEO of China Natural Gas, stated, "Our senior management traveled to Hong Kong last week to meet with Abax and had a friendly discussion regarding the debt restructuring. A tentative restructuring agreement with Abax is currently in place, and we anticipate that the debt restructuring will be resolved very soon. We are also holding internal board meetings and engaging independent consultancy to take immediate remediation measures to strengthen our internal controls. We expect to provide our investors with a positive update on our progress again very soon."

About China Natural Gas, Inc.

China Natural Gas transports and sells natural gas to vehicular fueling terminals, as well as commercial, industrial and residential customers through its distribution networks in China's Shaanxi and Henan Provinces. The Company owns approximately 120 km of high-pressure pipelines and operates 25 CNG fueling stations in Shaanxi Province and 12 CNG fueling stations in Henan Province. China Natural Gas' four primary business lines include: (1) the distribution and sale of CNG through Company-owned CNG fueling stations for hybrid (natural gas/gasoline) powered vehicles; (2) the installation, distribution and sale of piped natural gas to residential, commercial and industrial customers through Company-owned pipelines; (3) the distribution and sale of gasoline through Company-owned CNG fueling stations for hybrid (natural gas/gasoline) powered vehicles; and (4) the conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles through its auto conversion division.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. For example, statements about the future plans and goals of the JV with CNPC and its prospects are forward looking and subject to risks. China Natural Gas, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statements on Forms S-1 and S-3, in each case as amended. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

    For more information, please contact:

     China Natural Gas Inc.
     Jackie Shi
     IR Director
     Tel:   +86-29-8832-3325 x922
     Cell:  +86-139-9287-9998
     Email: yjshi@naturalgaschina.com

    Investor Relations:

     Alexander Nachman
     RedChip Companies, Inc.
     Tel:   +1-800-733-2447 x118
     Email: alex@redchip.com
     Web:   http://www.RedChip.com

SOURCE China Natural Gas, Inc.

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