U.S. Financial Disclosure System in the Executive Branch: Preventing Conflicts of Interests

1. U.S. Financial Disclosure System in the Executive Branch: Preventing Conflicts of Interests Jane Ley Deputy Director US Office of Government Ethics

2. History • 1965 – Executive Branch Confidential Financial Disclosure • 1978 – Government-wide Public Financial Disclosure for Senior Officials Both systems designed to prevent and detect conflicts of interest NOTto detect illicit enrichment.

3. Jurisdictions CONSTITUTION Legislative Judicial Executive US Office of Government Ethics Judicial Conference House Committee on Ethics Senate Select Committee on Ethics

4. Decentralized Implementation Agency Ethics Official OGE Agency Agency Agency

5. Statistics ≈ 135 AGENCIES Office of Government Ethics • ≈ 350,000 filers • 99% filing rate • ≈ 5,000 Ethics Officials OGE Reviews Sample During Agency Program Review Confidential Report Public Report • ≈ 28,500 filers • 98% filing rate • Central Office Ethics Officials OGE Conducts 2nd Level Review For ≈ 1200 Presidential Appointees

6. When Are Forms Filed • Upon Nomination/Appointment • Annually • Upon Termination

7. What Information Is Required • Assets • Income – both earned and investment • Liabilities • Gifts and reimbursements • Purchases, sales, and exchanges of assets • Positions held outside of government • Continuing arrangements with former or current employers or agreement for future employment • Major clients (first time filers)

8. Review Technical Review Conflicts Review The information required to be reported is defined by law and regulation. A conflict of interest is defined by applying various criminal and civil statutes and the regulatory standards of conduct. It is not a subjective standard.

9. Managing Potential Conflicts • Sell/dispose of specific assets • Resign from specific positions • Recuse from specific matters • Seek a specifically-defined waiver • Reassignment to other duties • Voluntarily create a blind trust

10. Addressing Probable Violations of Law • Refer for further investigation • Employing Agency Inspector General • Department of Justice

11. Penalties Late Filing Fee Administratively Imposed by Employing Agency Discipline Monetary Fine Requires DOJ Prosecution Imprisonment

12. Process for Presidential Appointees • Begins before individual is nominated • Includes written ethics agreements/follow-up. See description of process translated into the six United Nations languages at http://www.oge.gov/About/International-Activities/Translated-Documents/

13. References • Statutory basis for the financial disclosure systems:  5 U.S.C. app section 101 et. seqhttp://www.gpo.gov/fdsys/pkg/USCODE-2009-title5/html/USCODE-2009-title5-app-ethicsing-titleI.htm • Implementing regulations for the Public system 5 C.F.R. Part 2634  http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=cbc7425f9cf4949f6e219b8737e5b2b2&rgn=div5&view=text&node=5:3.0.10.10.8&idno=5 • For the confidential system 5 C.F.R. Part 2634 Subpart I • http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=cbc7425f9cf4949f6e219b8737e5b2b2&rgn=div5&view=text&node=5:3.0.10.10.8&idno=5#5:3.0.10.10.8.9 • Public financial disclosure form OGE 278   • http://www.oge.gov/Forms-Library/OGE-Form-278--Public-Financial-Disclosure-Report/ • Confidential financial disclosure form OGE 450  • http://www.oge.gov/Forms-Library/OGE-Form-450--Confidential-Financial-Disclosure-Report/ • Nominee and New Entrant 278 Guide • http://www.oge.gov/Financial-Disclosure/Public-Financial-Disclosure-278/Nominee-and-New-Entrant-278-Guide/Nominee---New-Entrant-278-Guide/