ALLEN – A money trail following former Allen High School Principal Steve Payne’s travel expenses appears to have been the focus of an investigation that led to Payne’s resignation, News 8 has learned.
Records released as part of a public information request by News 8 show Allen ISD officials wanted to know whether Payne received reimbursements from the Texas Association of Secondary School Principals, of which Payne was a member, for two years’ worth of travel expenses he billed to the district.
The investigation ended the following month when Payne, an 11-year veteran of the district, decided to retire after being placed on administrative leave.
Financial records released by Allen ISD show Payne billed $21,295.48 to the district for travel to TASSP-related meetings from November 2013 to July 2015.
The district found that some of those expenses should have been paid for by the TASSP.
When asked about those expenses, records show Payne sent the district a personal check for $1,582.81 “which reimburses AISD in full for any fees or expenses that were charged to my District purchase card for TASSP-related travels,” according to a memo signed “Steve Payne.”
That did not, however, satisfy the district’s inquiry into Payne’s expense billing.
According to a letter sent to Payne on September 28, 2015, Allen ISD Superintendent Dr. Lance Hindt asked the principal for a list of reimbursements he received from the TASSP for his attendance at board meetings from June 1, 2013 to August 21, 2015.
Dr. Hindt accused Payne of “possibly being less than forthright” with him about the financial records from the TASSP, which, at the time, were not released to the district.
Throughout the investigation, emails and letters from Dr. Hindt accused Payne of being uncooperative and “suspicious.”
Payne, though, alleged Dr. Hindt of using the investigation as a motive to force him out, according to a letter written by “Steve Payne” that was released as part of the public information request.
“For the past year, you have made it clear that you are trying to remove me as principal at Allen High School,” Payne allegedly wrote in an email on September 29, 2015.
“I am NOT being reimbursed by TASSP for any travel fees,” the email said. “I do not possess any records related to reimbursements from TASSP … because I am NOT being reimbursed or seeking reimbursement from them,” the email said.”
A letter released by the district shows Dr. Hindt questioned Payne in person about his use of a district-issued purchase card and his approval of p-card use by his subordinates during a meeting on October 9, 2015.
In the letter issued after the meeting, Dr. Hindt wrote the district had documentation that Payne made unauthorized purchases for five plane tickets for a trip to Florida in March 2013.
Dr. Hindt noted in the letter that two months after the purchase, Payne wrote a personal check to the district for $1,455.20, which covered four of the five tickets.
Payne is also accused of having a voucher for an unused plane ticket reimbursed to his personal rewards account, the letter shows.
“L.H.: Did you attend the 2015 Naviance conference?”
“S.P.: No.”
“L.H.: Since you did not go on the trip to the Naviance conference, do you have a plane fare voucher credit in your name with Southwest (Airlines?)”
“S.P.: No, I do not.”
Records show the district confirmed that Payne had a voucher for $388 issued in his name and “linked directly to [his] Southwest Airlines account.”
“You did not disclose your airfare voucher to the district,” Dr. Hindt wrote.
Also made available in the public document request was an email from someone who appears to be Steve Payne to Superintendent Lance Hindt dated October 12, 2015. The subject line reads, "Response to Friday, Oct. 9, 2015 meeting."
In one paragraph, Payne allegedly writes:
"The use of a purchase card to secure air fare for [redacted] was approved by my supervisor and the finance department at the time."
The writer contends he received "approval" to secure charter flight seats for himself saying:
"...using the p-card in this manner was not a misuse of the p-card."
It is unclear by the email what or where the trip was. However, at the bottom of the paragraph it reads:
"...especially for this trip to the 2007 Rose Bowl Parade and with an understanding to reimburse the district in a timely manner and in full."
In a second paragraph, Payne allegedly canceled an American Airlines flight to the Naviance Conference, where he was scheduled to present, because of an evaluation detailing "excessive absences during the 2014/2015 school year."
In the letter from September 28, 2015, Dr. Hindt told Payne, “I had to … reprimand you because you were failing to enter your absences for the 2014-2015 school year – 26 full or half day absences in total.”
Dr. Hindt alleged that Payne accepted “pay from [his] employer for time that [he] did not actually put into work.”
Records show Payne hired attorney Karl “Tiger” Hanner to represent him during the investigation.
On September 28, 2015, Hanner wrote to the district, “Mr. Payne has reimbursed Allen ISD for any and incurred expense related to Mr. Payne’s attendance at TASSP conferences and meetings.”
On October 8, 2015, Hanner sent attorneys for Allen ISD a proposed settlement agreement.
It revealed that Payne would remain on paid leave with benefits through January 31, 2016.
Another offer made by Payne's attorney in the offer asked that "any and all negative documentation would be removed from Mr. Payne's personnel files and sealed to the extent permitted by law."
Ultimately, the notarized retirement agreement signed on October 16, 2015, by Payne and Dr. Hindt stated Payne’s resignation would be effective on December 31, 2015. Payne was able to use any available leave through that period, as well.
As part of the settlement, Allen ISD agreed it did not have the information required for the investigation to be reported to the state.
Payne also agreed not to reapply for employment with Allen ISD, the settlement showed. Both Steve Payne and Allen ISD agreed to a non-disparagement agreement.
It is unclear from this release of public documents what triggered Mr. Payne's placement on administrative leave. It is also unclear what role, if any, the released documents had in his retirement from the school.
Allen ISD now considers the investigation closed.
View the documents obtained by News 8 below or here.
