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Learn essential tools for analyzing ethical dilemmas and promoting good government in your office and beyond. Discover the framework of ethics versus laws, and strategies for preventing missteps. Find resources to uphold public trust.
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Ethics in the Treasury Securing and Maintaining the Public Trust California Municipal Treasurers Association Presented By: Michael D. Martello Special Counsel, Ethics Project Institute for Local Government April 22, 2011 San Diego
ILG Mission: Promote good government • CMTA Code #2
Session Objectives • Provide tools for analyzing ethical dilemmas • Identify steps to take to promote good government in your office and beyond • Share resources (and get your input)
Ultimate Objectives Your success & happiness as a public servant Prevent missteps Public trust
What to Do? Sources of guidance CMTA Code Law Other examples Long-term versus short-term thinking
Thomas Jefferson • “Honesty is the first chapter in the book of wisdom”
Ethics Versus Ethics Laws • Ethics = what we ought to do • Laws = what we must do • Penalties—Sometimes severe • Minimum standards • Legal ≠ ethical
The Political Reform Act • Called You Out!! • All the Heavy-duty State officials. . .and then: “. . .city managers, city attorneys, city treasurers, city councils and other public officials who manage public investments “ . . . not the police chief or city clerk
Vacation accounting irregularities Agency credit card misuse Agency supplies & equipment Double-dipping on expenses Extravagant expenses What Would You Do?
What Would You Do? • Laundering Money • Shifting Expenses—indoor sports • Reimbursement for Losses – theft/damage • Gifts from Brokers • The question in the group meeting: “Does anyone see a problem with this?”
Thomas Jefferson • “In matters of style, swim with the current; in matters of principle, stand like a rock.”
Resources on Ethics Laws • No personal financial gain • No perks • Transparency • Fair process • Rest of Story: AB 1234
Short Term Strategies • Remind people about audits • Encourage colleagues to consult with your agency attorneys • Recognize that people often make decisions in their own self interest
Long Term Goals • Help create an ethical environment • Work on a code of conduct • Incorporate standards into your written investment policy • Keep track of the questionable gymnastics • Put together a presentation for the broader audience
Ethics in the Treasury: Hard Choices • Right versus right • Personal cost • Loss of job • Long-term thinking
The Three Strategies Promoting Public Service Ethics
The Three Strategies • Good Practices • Your Education • Educate Others
Good Practices • Checks and balances: Minimize likelihood wrongdoing goes undetected • Internal controls • Audits • Transparency • Hiring for ethics • CMTA Code #4: Observe profession’s technical (and legal) standards
Educate Yourself • CMTA Code #4: Continuous improvement • CMTA Code #2: Promote good government • AB 1234: Take the training • Understand and promote ethics
Educate Others • Decision-makers • Tool: Financial Management for Elected Officials • Oversight is a form of check and balance • The Public • Website/transparency • What does the public need to know to • Participate in democratic processes? • Prevent corruption? (Most important political office . . .) • Know that there’s “Ethics in the Treasury”
Resource to Help • Includes GFOA recommendations on financial transparency • Sent to finance directors in early January • Available online at www.ca-ilg.org/financialmanagement without charge
Thomas Jefferson • “I have the consolation of having added nothing to my private fortune during my public service, and of retiring with hands clean as they are empty.”
