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Fifth Biennial Report to Congress April 1998
FifthBiennial Report
to Congress
April 1998
United StatesOffice of Government Ethics1201 New York Avenue, NW., Suite 500Washington, DC 20005-3917
April 30, 1998
I am pleased to submit to Congress this fifth biennial report by the Office of GovernmentEthics (OGE) covering activities from January 1996 through December 1997.
During the two-year period covered by this report, OGE has undertaken an analysis of itsmission and of the long-term strategic goals that will ensure accomplishment of its mission.To implement its overall goals, the Office reorganized some of its components to allow moreresources to be devoted to the education and training program. It also devoted more resourcesto obtaining and utilizing new technologies that more efficiently and effectively enable theOffice to provide information on ethics-related issues and activities. For example, OGE hascreated a comprehensive Web page that contains a substantial amount of information aboutexecutive branch ethics programs and policies, including OGE’s regulations and opinions,related regulations, statutes and Executive orders, and educational and training materials. Ournew Web page permits a vast number of people to have easy access to information that previ-ously was available only in a handful of libraries, or from Government bookstores, or by directrequest to this Office.
Of course, during 1996 and 1997, the Office continued to carry out the routine functions thatcomprise a large part of our daily activities. We reviewed and certified a large number of publicfinancial disclosure forms submitted by persons nominated by the President to positionsrequiring Senate confirmation. We issued several new regulations, including one that describesfinancial interests that are exempt from the criminal conflict of interest law at 18 U.S.C. § 208.We conducted a large number of ethics training courses and produced new training materialssuch as pamphlets and videotapes. And, as we have in prior years, we hosted two conferences,each attended by over 400 ethics officials. These highly popular conferences allow executivebranch ethics officials to receive training in technical areas and to share information they canuse to strengthen their ethics programs. We have also continued to work with agencies tohelp them improve their ethics programs, by identifying deficiencies where necessary and byproviding recommendations for improvements and hands-on assistance in training and financialdisclosure review.
This report describes more fully our activities during the past two years. We believe that atremendous amount has been accomplished during the period. By focusing on achieving ourlong term goals, we expect to continue to provide leadership in the executive branch ethicscommunity.
Respectfully submitted,
Stephen D. Potts Director
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Contents
Introduction ....................................................................................... 4
Organization ...................................................................................... 6
Executive Branch Ethics Program .................................................... 8 Role of the Office of Government Ethics ....................................... 8 Role of an Agency .......................................................................... 9 Major Program Elements ................................................................ 9
OGE Accomplishments ................................................................... 15 OGE and Presidential Appointments ............................................ 15 Regulations ................................................................................... 17 Implementation of 18 U.S.C. § 208 Concerning Financial Conflicts of Interest ................................................... 17 Agency Supplemental Standards of Ethical Conduct ................ 17 Significant Amendments to the Standards of Ethical Conduct for Executive Branch Employees................................ 17 Certificates of Divestiture.......................................................... 17 Training...................................................................................... 18 Certificate of No New Interests ................................................. 18 Assessment of Agency Ethics Programs ...................................... 18 New Ethics Education Products ................................................... 19 Web site ..................................................................................... 20 Conferences and Training .......................................................... 21 Outreach .................................................................................... 22 Strategic Planning ...................................................................... 23
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Public Document Service ................................................................ 24
Litigation ......................................................................................... 25
General Agency Management ......................................................... 28
Resources ......................................................................................... 29
Office of Government Ethics Program Offices ............................... 31 Office of General Counsel and Legal Policy ................................ 31 Office of Agency Programs .......................................................... 32 Education and Program Services Division ................................ 32 Financial Disclosure Division ................................................... 34 Program Review Division ......................................................... 34 Office of Information Resources Management ............................ 35
Appendix I - Program Review Division Reports Issued During Calendar Years 1996 and 1997.............................. 36
Appendix II - List of Education Materials ...................................... 42
Appendix III - References ............................................................... 46 Current and Past OGE Directors .................................................. 46 Key Legislative Dates.................................................................. 47 Citations to Statutes, Regulations and Executive Orders ............. 48 Fourteen Principles of Ethical Conduct for Executive Branch Employees ........................................................................ 50 Mission Statement, Goals and Objectives .................................... 51
4Introduction
The Office of Government Ethics (OGE)was established by the Ethics in Govern-ment Act in 1978. Originally part of the
Office of Personnel Management, OGE becamea separate agency on October 1, 1989. In 1988,as part of the legislation reauthorizing theOffice, Congress required the Director tosubmit a biennial report beginning in March1990, summarizing the action taken during theprevious two years and providing any otherinformation the Director considers appropriate.This is the fifth such biennial report. It coversthe activities of the Office from January 1, 1996through December 31, 1997.
During this period, the Office conducted anassessment of its overall mission and functions,and developed a strategic plan designed toimplement the goals and objectives that wereidentified as integral to effectuating that mis-sion. Four major goals were identified: (1)providing overall policy direction to the execu-tive branch ethics program; (2) assisting agen-cies in carrying out their own ethics programactivities; (3) providing effective educationaland training opportunities and materials; and(4) administering an outreach program. Tofacilitate implementation of these goals, OGEreorganized its Office of Education to create anew Office of Agency Programs with threeseparate divisions, including a new Educationand Program Services Division. This reorgani-zation permitted more resources to be devotedto OGE’s education and training functions.
Additionally, during the period covered by thisReport, the Office made more effective use oftechnological advances to carry out its pro-grams. For example, OGE developed a com-prehensive Web site, which provides access to
most of the policies, regulations, opinions,training materials, and similar other informationrelevant to the executive branch ethics program.The Office also scripted, and participated in theproduction of, a live satellite broadcast programviewed by thousands of executive branchofficials. The Office expects to make increasinguse of such technology resources to implementits programs.
OGE also refined its developing outreachprogram during the period. At the request ofDepartments and agencies such as the Depart-ment of State and the United States InformationAgency, the Office provided assistance indeveloping anti-corruption measures to emerg-ing democracies throughout the world. TheOffice provided information on the executivebranch ethics program to assist these countriesin developing requirements that governmentofficials adhere to appropriate ethical standards.
Of course, during 1996 and 1997, OGE contin-ued to devote a substantial amount of itsresources to carrying out its core functions,particularly in light of the fact that the periodincluded a Presidential election and accompany-ing personnel changes in some of the mostsenior positions in the executive branch. Ac-cordingly, the Office continued to review andcertify the financial disclosure forms filed byPresidential nominees requiring Senate confir-mation, and to serve as the primary source ofadvice and counseling on conduct and financialdisclosure issues. In addition, the Officecontinued to speak about ethics policy issueswithin the executive branch and to Congress,and to evaluate agency ethics programs.
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Significant activities of this periodincluded:
■ developing a strategic plan for implementingthe Office’s mission;
■ reviewing and certifying a substantial numberof financial disclosure reports filed by personsnominated by the President for positionsrequiring Senate confirmation;
■ issuing final regulations implementing theprovisions of 18 U.S.C. § 208 concerningfinancial conflicts of interest;
■ helping agencies develop, and concurring in,agency-specific regulations that supplement theuniform standards of ethical conduct for theexecutive branch;
■ amending the uniform standards of ethicalconduct for the executive branch to conformwith the Hatch Act Reform Amendments, and torevise the widely-attended gatherings exceptionin the rules regarding gifts from outsidesources;
■ issuing final regulations for the tax-deferralremedy afforded by the certificate of divestitureprogram;
■ issuing interim regulations regarding ethicstraining requirements for executive branchemployees;
■ issuing a final rule authorizing agencies tocollect Certificates of No New Interests under
certain circumstances in lieu of annual confi-dential financial disclosure reports;
■ conducting agency program reviews whichidentified significant improvements in someagencies’ ethics programs and deficiencies insome other agencies’ ethics programs;
■ conducting single issue reviews of issues thatare common to all agencies’ ethics programs;
■ expanding ethics training course offerings foragency ethics officials to include introductorylevel modules;
■ developing and releasing new educationproducts, including videotapes and pamphlets,for agencies to use in providing ethics trainingto their employees;
■ hosting two annual conferences for agencyethics officials;
■ consulting with other countries regarding thedesign and implementation of their ethicsprograms;
■ introducing a new Web site that providesinformation about all OGE program areas, aswell as reference materials and announcements;and
■ reorganizing several of its program offices inorder to provide more and better services foragency ethics programs.
6Organization
T he Office of the Director providesoverall direction to the executive branchethics program and is responsible for
ensuring that OGE fulfills its Congressional andPresidential mandates. The Office also has anoutreach program designed to inform the publicabout OGE’s statutory and regulatory responsi-bilities and to promote the integrity of publicemployees. This activity encompasses profes-sional and trade associations, local and stategovernments, as well as governments of foreigncountries. With regard to the latter, as personnelresources are available and at the request offoreign policy agencies and U.S. supportedorganizations, it also supports the United States’effort at promoting anti-corruption programsthroughout the world by providing technicalexpertise on the development of governmentalethics programs.
The Office of General Counsel and LegalPolicy is responsible for establishing andmaintaining a uniform legal framework ofGovernment ethics for executive branch em-ployees, developing executive branch ethicsprogram policies, interpreting laws and regula-tions, assisting agencies in legal and policyimplementation, and reviewing legislation andrecommending changes in conflicts of interestand ethics statutes. A more in-depth descriptionof this office begins on page 31.
The Office of Agency Programs has threedivisions that provide services to executivebranch ethics programs: the Education andProgram Services Division, the FinancialDisclosure Division, and the Program ReviewDivision. The three divisions coordinate theirservices in order to assist agencies in carrying
out their programs. They work closely withagencies to improve their ethics programs,provide educational materials and training, stayabreast of budgetary concerns, and identifyemerging programmatic issues to be addressedby OGE.
A more in depth description of this programoffice and its divisions begins on page 32.
■ Education and Programs Services DivisionSpecialists in the Education and ProgramServices Division work with department andagency ethics personnel to enhance the day-to-day functions of individual agency ethicsprograms. Additionally, staff in this divisiondevelop quality ethics education materials andtraining courses for use by all executive branchagencies for their employees.
■ Financial Disclosure DivisionPersonnel in the Financial Disclosure Division:(1) track all financial disclosure reports filedwith or transmitted to OGE and make availableupon request those reports that are public;(2) collect and review the annual and termina-tion reports of all Presidential appointees; and(3) work closely with agency ethics officials toensure that all such reports are complete andthat any questions of actual or potential con-flicts of interest (or concerns about appearancesof conflicts of interest) that are raised by theinformation contained on the reports have beenaddressed by the agencies. This division alsoensures compliance with agreements developedto help avoid conflicts of interest that wereentered into by Presidential nominees duringthe confirmation process.
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Financial DisclosureDivision
Education &Program Services
Division
Office of AgencyPrograms
Office ofAdministration
Office of General Counsel &
Legal Policy
Office ofInformation Resources
Management
Office of theDirector
Program ReviewDivision
■ Program Review DivisionAnalysts in the Program Review Divisionmonitor agency compliance with executivebranch ethics program requirements and withappropriate application of ethics program lawsand regulations. This monitoring is conductedthrough individual agency ethics programreviews scheduled according to an annualprogram plan. Analysts identify and reportstrengths and weaknesses of agency ethicsprograms and work with agency personnel toresolve any problems identified during thereview process.
The Office of Information ResourcesManagement promotes and provides informa-tion technology within OGE. The office
provides internal support in the areas of officeautomation, telecommunications, informationtechnology, graphics and records management.It also produces The Ethics CD-ROM, andoperates and maintains OGE’s Internet Website. It provided the support services for theelectronic bulletin board system (TEBBS) untilthe system was discontinued in late 1997. Amore in-depth description of this office beginson page 35.
The Office of Administration provides essen-tial support to all OGE operating programs inthe areas of personnel, payroll, fiscal resourcemanagement, facilities and property manage-ment, travel management, procurement, pub-lishing, distribution, and printing.
Office of Government Ethics
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Executive Branch Ethics Program
Role of the Office of GovernmentEthics
The Ethics in Government Act states thatthe Office of Government Ethics isresponsible for providing “overall
direction of executive branch policies related topreventing conflicts of interest on the part ofofficers and employees of any executiveagency.” Over time, the responsibilities of theOffice have expanded by statute and Executiveorder to include providing interpretive guidanceon, and administrative support for a number ofadditional requirements related to employeeconduct. These functions comprise the “ethicsin government” program of the executivebranch. Collectively, the responsibilities ofOGE fall into six general areas.
■ Regulatory AuthorityDevelop, recommend and review rules andregulations pertaining to conflicts of interest,post-employment restrictions, standards ofconduct, and public and confidential financialdisclosure in the executive branch;
■ Financial DisclosureReview executive branch public financialdisclosure reports of certain Presidential nomi-nees/appointees to assess potential violations ofapplicable laws or regulations, provide counsel-ing on the avoidance of conflicts, and, ifnecessary, recommend appropriate correctiveaction; administer executive branch blind trustand certificate of divestiture programs;
■ Education and TrainingImplement statutory responsibility of “provid-ing information on and promoting understand-ing of ethical standards in executive agencies,”primarily through assisting agencies with theirinternal education programs;
■ Guidance and InterpretationPrepare formal advisory opinions; provideinformal advice letters and policy memorandaand give oral advice on how to interpret andcomply with requirements on criminal conflictof interest, post-employment and civil “ethics”statutes, standards of conduct, and financialdisclosure requirements applicable to theexecutive branch; consult with agency ethicsofficials in individual cases;
■ EnforcementMonitor agency ethics programs and reviewcompliance, including financial disclosuresystems; refer possible violations of conflict ofinterest laws to the Department of Justice andserve as an advisor on prosecutions and appeals,and, in limited circumstances, investigatepossible ethics violations and order correctiveaction or recommend disciplinary action; and
■ EvaluationEvaluate the effectiveness of conflict of interestlaws, other related statutes, standards of con-duct, and Executive orders and recommendappropriate amendments.
These six areas of responsibility support thefour Goals of OGE’s strategic plan—policydevelopment, support of fair and consistentethics programs within the executive branch,promotion of quality ethics education andtraining, and an effective outreach program.A more detailed statement of these goalsbegins on page 51.
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Role of an Agency
At its heart, the purpose of the “ethics ingovernment” program is to ensure thatexecutive branch decisions are neither
tainted by nor appear to be tainted by anyquestion of conflicts of interest on the part ofthe employees involved in the decisions.Because the integrity of decision-making isfundamental to every Government program, thehead of each agency has primary responsibilityfor the day-to-day administration of the “ethicsin government” program for the employeeswho carry out the substantive programs of thatagency.
Each agency head, however, selects an indi-vidual employee of that agency to serve as thatagency’s Designated Agency Ethics Official(DAEO). For the most part, OGE interacts withthese individuals and the additional staff of eachagency tasked with supporting an agency’sethics program (collectively known as theexecutive branch “ethics community”).
The DAEOs and their staffs conduct the execu-tive branch ethics program on-site. Theyprovide advice and guidance on matters ofconflict of interest, financial disclosure, stan-dards of ethical conduct and post-employmentrestrictions. In addition, they develop andprovide educational programs for the employeesof their agencies about the statutes and stan-dards. They also assist with individual em-ployee disciplinary actions, when necessary,and they implement their agencies’ public andconfidential financial disclosure systems.Investigations of individual employee miscon-duct are generally conducted by an agency’sInspector General.
The services of OGE are primarily directed tothese individuals and to agency heads who areultimately responsible for the conduct of theiremployees. OGE’s outreach and educationprogram, does, however, have the additionaleffect of helping those who interact with theexecutive branch understand what restrictionsmight be placed upon their dealings withexecutive branch employees and appreciate theGovernment’s efforts at earning the public’sconfidence in the conduct of its programs.
Major Program Elements
Criminal Conflicts of Interest Statutes
One of the basic elements of the execu-tive branch ethics program is adherenceto, and counseling on, the criminal
conflict of interest statutes. These statutes arefound in 18 U.S.C. §§ 201-209. Most of therestrictions in these statutes are based uponsimilar restrictions in statutes enacted duringthe Civil War and the following few decades.In 1962, conflict of interest laws were recodi-fied into chapter 11 of title 18. While all havebeen modified since, only the post-employmentrestrictions of section 207 have been substan-tially amended. In 1989, the criminal penaltieswere increased and civil and injunctive rem-edies were added as enforcement tools.
The Office of Government Ethics, based upon a1980 Memorandum of Understanding (MOU)with the Department of Justice, can providebinding advice with regard to sections 202-209.Section 201, which sets forth bribery andgratuity restrictions, was not included in the
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MOU. In addition, Executive Order 12674 asamended, directed OGE to issue interpretiveregulations regarding sections 207, 208, and209. By statute, OGE has a role in issuinglimited waivers of and designating by regulationseparate agencies for purposes of the post-employment restrictions of section 207.
Section 208(b) permits waivers of and exemp-tions from its prohibitions in certain cases.Section 208(b)(1) authorizes agencies to waivein writing and on a case-by-case basis certainfinancial interests of individual employees sothat the employees can act on a particular matterwithout fear of violating section 208(a). Simi-larly, section 208(b)(3) permits agencies towaive, in certain cases, the disqualificationrequirement that would apply to special Gov-ernment employees serving on a FederalAdvisory Committee. OGE plays a consultativerole in both types of waivers. In addition,section 208(b)(2) authorizes OGE to exempt, onan executive branch wide basis, financialinterests that are too remote or inconsequentialto warrant disqualification under section 208(a).On December 18, 1996 OGE issued a finalregulation, effective January 17, 1997, thatdescribes these exempted financial interests.The regulation also provides guidance toagencies on factors to consider when issuingindividual waivers. A discussion of this regula-tion appears on page 17.
These criminal statutes, not only because oftheir complexity but also because a violationcan involve significant criminal penalties,require the substantial counseling and interpre-tive resources of both OGE and agency ethicsofficials. Ethics officials rely more heavilyupon OGE’s resources for their interpretationsof these statutes than for advice and counselingon other restrictions. In addition, in partbecause of OGE’s interpretive role in these
statutes, OGE has a close working relationshipwith the Office of Legal Counsel and the PublicIntegrity Section of the Criminal Division of theDepartment of Justice.
In order to facilitate this interpretive function,the Office surveys the Criminal Division andthe U.S. Attorneys offices each year for casesthey have prosecuted or charged under thesestatutes. The results of this survey are madeavailable to ethics officials so that they canunderstand more fully what types of cases arebeing pursued criminally and use those cases asexamples in their training efforts.
Uniform Standards of Conduct
I n August 1992, the Office of GovernmentEthics issued an historic set of standards ofethical conduct that apply to all executive
branch employees. Built on 14 basic principles,the standards set forth rules regarding giftsbetween employees and the acceptance of giftsfrom sources outside the executive branchagency, conflicting financial interests, impartial-ity in performing official duties, seeking otheremployment, misuse of position, and engagingin outside activities.
For 26 years, the ethical standards for executivebranch employees were based on ExecutiveOrder 11222 signed by President Lyndon B.Johnson on May 8, 1965. This order set forth“Standards of Conduct” and directed the CivilService Commission to issue model regulationsimplementing the order. Each agency wasdirected to issue its own regulations that wereconsistent with that model.
The Civil Service Commission, followed by itssuccessor agency, the Office of PersonnelManagement, was responsible for reviewing
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these regulations until the Office of Govern-ment Ethics was established. However, OGEfound that agency regulations were not alwaysconsistent with the model, or they were writtenconsistently but were interpreted differently byindividual agencies.
In 1989, the President’s Commission on FederalEthics Law Reform was established to evaluateexisting ethics rules and policies. One of itskey recommendations was
that the Office of Government Ethics bedirected by executive order to consolidateall executive branch standards of conductregulations into a single set of regulations.Individual agencies could supplement theseregulations with stricter standards with theapproval of the Office of GovernmentEthics.
This recommendation was implemented byExecutive Order 12674, issued on April 12,1989 (later amended slightly by ExecutiveOrder 12731). It directs OGE to “establish asingle, comprehensive, and clear set of execu-tive-branch standards of conduct that shall beobjective, reasonable, and enforceable.” Thesewere to be based upon the 14 basic principlesset forth on page 50.
OGE issued the Standards of Ethical Conductfor Executive Branch employees as final onAugust 7, 1992, and they became effective onFebruary 3, 1993. These Standards provide acentral source of written guidance for ethicsquestions that arise during executive branchservice. By providing what are, in effect,written interpretations of ethics principles, andby including extensive examples, the Standardsbring uniformity to the executive branch ethicsprogram.
Executive Order 12674, as amended, and theStandards of Conduct allow individual agenciesto issue supplemental regulations to cover ethicsmatters unique to their particular agencies orwhich were left optional under the uniform rule.OGE reviews all proposed agency supplementalregulations, which become effective only afterOGE concurrence. The executive branch-wideStandards of Conduct are found at 5 C.F.R. part2635. Agency supplementals are published atthe end of that same title beginning with part3202. A discussion of the agency supplementalregulations approved by OGE during the periodcovered by this report is found on page 17.
Financial Disclosure Systems
As a result of the 1978 Ethics in Govern-ment Act, certain high-level Federalemployees in all three branches of
Government are required to disclose, in a publicsystem, personal financial interests and affilia-tions for themselves, their spouses, and theirdependent children. Such disclosures are made,in part, to demonstrate to the public that theofficials are able to carry out their dutieswithout either actual or apparent conflicts ofinterest, and also to assist agencies in maintain-ing the integrity of their essential programs andcounseling employees on conflict avoidance.
Employees in the executive branch file publicreports with their respective agencies on astandard form developed by OGE (SF 278).Additionally, copies of disclosure reports filedby persons nominated to or holding PASappointments, (Presidential Appointment withSenate confirmation) are sent to the Office ofGovernment Ethics for final review and certifi-cation. Prior to report certification, filers maybe required to enter ethics agreements designedto eliminate conflicts through divestiture,waiver, recusal, or other similar remedies.
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These reports are made available to the publicthrough OGE or the agency upon specificwritten request. Requests are generally re-ceived from news organizations and publicinterest groups, and such written requests arethemselves available to the public.
Employees required to file public financialdisclosure reports in the executive branchinclude:
■ the President, the Vice President, and candi-dates for those offices;
■ each officer or employee in the executivebranch, including special Government employ-ees, whose position is classified above GS-15of the General Pay Schedule or the rate of basicpay for which is fixed at a rate equal to orgreater than 120% of the minimum rate of basicpay for GS-15;
■ uniformed service members whose pay gradeis at or above O-7 (Brigadier General or RearAdmiral and above);
■ administrative law judges;
■ Independent Counsels (reports are not madepublic if the appointment is under seal);
■ the Postmaster General and Deputy, thePostal Service Board of Governors, and em-ployees of the Postal Service and Postal RateCommission meeting the pay equivalenciesdescribed above;
■ any civilian employee not previously definedwho is employed in the Executive Office of thePresident and holds a commission of appoint-ment from the President;
■ certain “excepted service” positions of aconfidential or policy-making character (Sched-ule C); and
■ the Director of OGE and each agency’sprimary Designated Agency Ethics Official.
The statute establishing the system requiresreports from new entrants or nominees as wellas incumbents in covered positions. Reportsalso are required at the time a filer terminatesemployment in a covered position. The statu-tory requirements are implemented for theexecutive branch at 5 C.F.R. part 2634.
Provisions of the Ethics Reform Act of 1989made changes in the public financial disclosuresystem, and also authorized a uniform system ofconfidential financial disclosure in the execu-tive branch. That confidential system hadalready been formally reestablished by Execu-tive Order 12674 of April 12, 1989, and wassubsequently implemented at subpart I of 5C.F.R. part 2634.
Just as high-level officials are required to reportcertain financial interests publicly to helpensure confidence in the integrity of the FederalGovernment, the confidential filing systemrequires other less senior executive branchemployees, whose Government duties involvesignificant discretion in matters affecting non-Governmental entities, to report certain finan-cial holdings and outside affiliations to theiremploying agencies (for themselves, theirspouses and dependent children). This processfacilitates agency reviews of possible conflictsof interest, assists the agency in administeringits ethics program, and assists in counselingemployees to avoid conflicts of interest.
Those required to file confidential financialreports (OGE Form 450) include:
■ all special Government employees includingthose who serve on advisory committees (unlessthey are required to file public reports), and
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■ each officer or employee in the executivebranch, the U.S. Postal Service and Postal RateCommission, whose position is classified atGS-15 or below, or the rate of basic pay forwhich is less than 120% of the minimum ratefor GS-15, or at a pay grade less than 0-7 foruniformed service members, IF it is determinedby the agency that either:
(1) the duties and responsibilities of a positionrequire the employee to participate personallyand substantially (through decision or theexercise of significant judgment), in taking aGovernment action regarding contracting orprocurement, administering or monitoringgrants, subsidies, licenses or other Federallyconferred financial or operational benefits,regulating or auditing any non-Federal entity, ordecisions or actions having a direct and substan-tial economic effect on the interests of any non-Federal entity; OR
(2) that the duties and responsibilities of theposition otherwise require the employee to file areport in order to avoid involvement in a real orapparent conflict of interest and to carry out anyapplicable law, Executive order or regulation.
Some information required to be disclosed bypublic filers is not necessary in order to counselmiddle-grade employees regarding potentialconflicts of interest. Therefore, this informationis not required to be disclosed by confidentialfilers. The differences between the public andconfidential disclosure requirements reflects thephilosophy that the confidential system requiresless intrusion than the public system. Theconfidential system balances the need to reviewcertain information against the administrativereview burdens inherent in a broad-based filingprogram such as the public system.
The purpose of ethics reviews of disclosurereports, both public and confidential, is toidentify potential conflicts between the interestsof an employee (including those of a spouse and
dependent children) and the employee’s officialposition and duties, to use the information tocounsel the employee with regard to potentialconflicts and to establish ethics agreements,where appropriate. If the report reveals that anemployee may not be in compliance with ethicslaws and regulations, the agency must deter-mine what remedial action is required to resolvethe situation and then notify the employee. Forexample, an employee may be asked to divestthe conflicting interest, submit a request for astatutory waiver, or submit a written disqualifi-cation (recusal). The agency may reassign theemployee to duties that do not conflict with hisinterests or, if necessary, may refer relevantinformation to enforcement officials for investi-gation of possible past misconduct.
Both public and confidential financial disclo-sure reports are kept for six years after the dateson which they were filed.
Training and Education
One of the major responsibilities of anethics program is ensuring that allexecutive branch employees are aware
of their responsibilities in conducting them-selves and the business of the Government in amanner that is consistent with the standards ofconduct expected of them as public servants.This includes not only informing employees,but also helping them understand in practicalterms how those statutes and regulations mightimpact their actions as individual employees.
Working with the Designated Agency EthicsOfficial in each agency, the Office of Govern-ment Ethics provides leadership and coordina-tion on a wide array of activities intended tosupport this function. In addition to developingand providing materials which can be incorpo-rated in an agency’s instructional programs,
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OGE provides skilled and knowledgeableinstructors to train those who, in turn, trainemployees. The Office also educates ethicstrainers in adult education skills and occasion-ally provides assistance to agencies in conduct-ing employee ethics training.
Since 1989, pursuant to Executive Order12674, each agency has been responsible fordeveloping a mandatory annual ethics trainingprogram for its employees. The trainingincludes mandatory one-hour briefings on thecriminal conflict of interest statutes and theStandards of Ethical Conduct for the followinggroups of employees:
■ all employees appointed by the President;■ all employees in the Executive Office of the
President;■ all officials required to file public or non-
public financial disclosure reports;■ all contracting officers; and■ any other employees designated by the
agency head.
As part of OGE’s ongoing process of reviewingregulations and agency ethics officials’ con-cerns that the annual verbal briefing for allcovered employees was preventing them fromdedicating resources to other desirable ethicstraining goals, OGE issued on March 12, 1997,an interim rule that significantly amended themandatory annual verbal briefing requirement.
The interim rule amendments were designedto enable agencies to allocate their trainingresources in a more flexible and efficientmanner, while still providing that all executivebranch employees receive sufficient training to
enable them to understand the ethical responsi-bilities concomitant with their Governmentposition. The interim rule accomplishes this byaltering the nature of the ethics briefings thatmost covered employees receive. Instead ofreceiving annual verbal briefings, agencies willbe able to meet the annual briefing requirementfor most covered employees by means of awritten briefing for up to two out of every threeyears. Those employees who file SF 278 PublicFinancial Disclosure Statements, however, willcontinue to receive verbal briefings every year.
In the years since the training requirement wasimplemented, agencies have utilized varioustraining formats, including videotapes, audio-tapes, satellite broadcasts, computer-based-training, classroom training, or combinationsof these formats. With the training regulationamendments, which went into effect on June 10,1997, OGE expects to see increased use ofprinted training materials and, possibly, e-maildissemination of ethics information. Regardlessof the format, the annual training must include,at a minimum, a brief reminder of the Standardsof Conduct and the conflict of interest statutes.
Agencies are still required to provide all newexecutive branch employees with either asummary or the actual text of the Standards ofConduct and any applicable agency supplemen-tal regulations within 90 days of the employees’entry on duty. At a minimum, agencies mustprovide new employees one hour of officialduty time to review the ethics materials andprovide the employee the name, address andphone number of the person in the agencywhom they may contact for ethics-relatedadvice.
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OGE Accomplishments
OGE and PresidentialAppointments
The first year of any Presidential termbrings with it a substantial number ofnew nominations by the President to
positions requiring Senate confirmation.1997 was not unusual in this regard. Individu-als nominated by the President for such posi-tions are required by law to file public financialdisclosure reports. These reports are reviewedby the White House Counsel’s Office, theagencies in which the nominees will serve, andOGE prior to the nominee’s confirmationhearings. While working with the White Houseand the agencies, OGE conducts the last reviewand certification of the reports before they aretransmitted to the appropriate confirmingcommittees of the U.S. Senate. Rarely will aSenate committee hold a confirmation hearing
without having received the financial disclosurereport with OGE’s certification and opinionletter. Thus, the first year of a Presidential termrequires increased use of OGE’s resources inorder to fulfill that responsibility withoutcausing any delay in the confirmation process.
The jump in nominations is evident between thelast year of a term and the first year of the nextterm. During 1996, the OGE staff reviewed,coordinated, certified, and forwarded to theSenate 138 public financial disclosure reportsfor Presidential nominees. For 1997, 323 suchreports were processed. On average, 85 to 115nominees draft reports were pending review andcoordination at OGE at any given time during1997. Chart II reflects the number of publicdisclosure statements certified by OGE duringthe period.
Chart II
415
249
138
323
600
500
400
300
200
100
01994 1995 1996 1997
Individual Public Financial ReportsCertified to U.S. Senate for Confirmation
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The review process for the forms is fairlyrigorous. The personal financial informationand fiduciary relationships required to bereported on the forms of individuals nominatedare thoroughly analyzed, problem areas arediscussed, and appropriate remedial steps arefashioned, or agreed to by the nominees, inorder to avoid conflicts between the nominees’financial interests or affiliations and theirprospective Government positions. Theseremedial steps may include agreements forrecusals, divestitures, resignations, statutorywaivers, and/or blind trusts. The blind trustsand divestitures, particularly, entail extensivecoordination by the staff of the Office of theGeneral Counsel. Blind trusts, which remedysome problems of conflicts of interest, arehighly technical instruments which mustclosely reflect statutory requirements andimplementing regulations.
Upon appointment, an individual seeking todivest assets to avoid an actual or apparentconflict may request a Certificate of Divesti-ture from OGE to alleviate the financialhardship which may occur through the recogni-tion of otherwise unplanned capital gains.(Executive branch employees, other than PASappointees, may also request a Certificate ofDivestiture should circumstances make divesti-ture an appropriate conflict avoidance step.)Section 1043 of the Internal Revenue Codeallows an eligible person to defer taxes oncapital gains from the sale of assets, when thatsale is made in order to avoid a conflict ofinterest or the appearance of a conflict. Thedetermination of qualifying assets and partiescovered by a Certificate of Divestiture isstrictly limited by statutory and regulatoryguidelines. Further, the Director of the Officeof Government Ethics will issue a Certificateof Divestiture only upon concurrence with theDesignated Agency Ethics Official’s determi-nation that the divestiture is reasonably neces-sary to comply with 18 U.S.C. § 208, or any
other Federal conflict of interest statute, regula-tion, rule, or Executive order, or if the sale isrequested by a Congressional committee as acondition of confirmation. OGE processed 97requests for Certificates Divestiture in 1996,and 129 during 1997. Most of these requestswere from individuals who had agreed todivesture during the confirmation process.
During 1996, OGE certified two blind trusts;during 1997, three trusts were certified. Be-cause blind trusts are not required, can beexpensive to maintain, and may not quicklysolve the conflicts problems arising out of theassets, they are not commonly used. At the endof 1997, there were a total of 19 trusts certifiedand operational for executive branch employ-ees. This number is well within the averagerange of the number of blind trusts outstandingat any one time since the full operation of theblind trust program in 1979.
After confirmation and appointment, OGE alsotracks a Presidential appointee’s compliancewith any ethics agreement the appointee madeduring the confirmation process. These agree-ments may concern the financial interests of anappointee, or others whose interests are attribut-able to him, in order to bring the appointee intocompliance with applicable ethics laws andregulations and to avoid conflicts of interestwith the appointee’s Government position. Anappointee is to certify, with documentation toOGE, that such agreements have been satisfiedwithin 90 days of confirmation.
In 1996, of the 138 nominees whose publicfinancial disclosure reports were approved byOGE and forwarded to the Senate, 42 enteredinto agreements affecting their financial inter-ests. In 1997, 157 of 323 nominee/appointeesentered into ethics agreements.
17
Regulations
Implementation of 18 U.S.C. § 208Concerning Financial Conflicts of Interest
On December 18, 1996, OGE publisheda final rule at 61 Fed. Reg. 66830-66851 implementing the provisions of
18 U.S.C. § 208 concerning financial conflictsof interest. The rule, which became effective onJanuary 17, 1997, generally describes the scopeof the prohibition in 18 U.S.C. § 208(a) as wellas the circumstances under which OGE hasdetermined that certain financial interests areexempt from coverage under the statute. OGEis authorized under section 208(b)(2) to exempt,by regulation, financial interests that it deter-mines are too remote or inconsequential toaffect the integrity of employee services. Theexemptions described in the regulation prima-rily concern interests in mutual funds and othersecurities, and interests in employee benefitplans such as pensions. The regulation alsocontains a number of miscellaneous exemptionsthat apply in limited circumstances or only toparticular groups of employees. Finally, therule provides guidance on the issuance ofindividual waivers of the prohibition of section208(a) as permitted under the authority ofsection 208(b)(1) and (b)(3).
Agency Supplemental Standardsof Ethical Conduct
Pursuant to Executive Order 12674, as modifiedby Executive Order 12731, executive branchagencies may issue agency specific regulationswith the concurrence of the Office of Govern-ment Ethics, that supplement the executivebranch-wide regulatory standards of ethicalconduct. During the 1996-1997 period, OGEconcurred in and co-signed 21 department andagency interim or final supplemental standardsof ethical conduct regulations. Agency supple-mental standards of ethical conduct are codifiedin title 5 of the Code of Federal Regulationsbeginning with part 3202.
Significant Amendments to the Standardsof Ethical Conduct for Executive BranchEmployees
■ The Hatch Act Reform Amendments of 1993(HARA) affected various sections of theStandards of Ethical Conduct for Employeesof the Executive Branch (Standards). Toconform with HARA, the Standards wereamended on September 27, 1996 (61 FederalRegister 50689-50691). Specifically, the giftexception at 5 C.F.R. § 2635.204(f) wasamended to reflect the redefined class ofexecutive branch employees who, pursuant toHARA, may take an active part in politicalmanagement or political campaigns and topermit those employees to accept meals,lodgings, transportation and other benefitsfrom a political organization. In addition,certain references to the Hatch Act withinthe Standards were replaced with referencesto HARA.
Widely Attended GatheringsGift Exception
■ On August 20, 1996, the Office of Govern-ment Ethics published a final rule to revise thewidely attended gatherings gift exception at5 C.F.R. § 2635.204(g) of the executive branchStandards of Ethical Conduct regulation. Therule, which became effective September 19,1996, allows agencies to authorize their em-ployees to accept unsolicited invitations tovarious widely attended gatherings from non-sponsors. The rule also clarifies the definitionof “widely attended gatherings” and permitsauthorization for a guest other than the spouseto accompany an employee free of charge incertain circumstances.
Certificates of Divestiture
The Office of Government Ethics publishedfinal regulations for the Certificate of Divesti-ture (CD) program on June 25, 1996. Theregulations, which became effective on July 25,1996, include information on when and how
18
CDs are available and they emphasize that theproposed qualifying divesture must be a timelydisposition under the normal ethics agreementmechanism. Additionally, certain rules havebeen included in the regulation to prevent unfairand unintended benefits from being conferredby the granting of a CD. The regulations are setforth in subpart J of part 2634 of Title 5, C.F.R.
Training
In response to a number of requests fromagencies and ethics practitioners, OGE pub-lished an interim rule amending subpart G of5 C.F.R. part 2638 the “Executive AgencyEthics Training Program” (62 Federal Register11307-11314) on March 12, 1997. This ruleallows agencies to better diversify their trainingprograms. The interim rule balances agencyneeds to be able to allocate their resources in amore flexible and efficient manner while stillproviding executive branch employees withsufficient training to understand the ethicalresponsibilities which accompany their Govern-ment positions.
Certificate of No New Interests
On June 24, 1997, OGE issued a final ruleamending the confidential financial disclosureregulation (5 C.F.R. § 2634.905(d)), whichauthorized all executive branch departmentsand agencies to adopt a standardized certificateof no new interests (OGE Optional Form 450-A). If adopted by an agency, this certificatemay be used in lieu of OGE Form 450 by itsregular employee annual confidential disclosurefilers who qualify. To be eligible, filers musthave no new reportable items for themselves,their spouses, and their dependent childrensince their last report, and no significant changein Government duties. This certificate firstbecame available for use during the October1997 annual filing cycle.
Assessment of Agency EthicsPrograms
During 1996 and 1997, OGE reviewedthe ethics programs of numerousDepartments and agencies and issued
84 reports to Designated Agency Ethics Offi-cials. Many of these reports made recommen-dations designed to strengthen agency ethicsprograms. These reports covered reviews ofapproximately 140 ethics programs located inDepartments and independent agencies andoffices. Approximately 80 of the 140 ethicsprograms reviewed were in the civilian sectorof the executive branch, while the remainingwere in the defense sector.
Relative consistency in PRD staffing permittedOGE to conduct a number of program reviewsin 1996 and 1997 consistent with the numberof reviews conducted during the 1994-1995period. Eighty-four reports were issued duringthe 1996-1997 period, and an additional 34follow-up reviews were conducted to verifyagencies’ progress on implementing recommen-dations resulting from ethics program reviews.
For a detailed listing of reports issued during1996 and 1997, see Appendix I.
During 1996 and 1997, OGE conducted first-time reviews of several agencies, includingcertain Department of Defense components(the U.S. Army Aviation Center at Fort Rucker,the U.S. Army Armor Center and the U.S. ArmyRecruiting Center at Fort Knox, and the Ameri-can Forces Information Service), the IndianHealth Service, and the Office of National DrugControl Policy.
Through these reviews, OGE confirmed thatmany agencies have sound ethics programs.The quality of these programs is primarily dueto experience and consistency of the agencystaff carrying out the program. OGE also foundthat many agencies have developed and areimplementing active and comprehensive ethics
19
education and training programs tailored totheir agencies’ needs. In addition, significantimprovements to agencies’ public and confiden-tial financial disclosure systems were noted.
While many reviews identified significantimprovements in some agencies’ ethics pro-grams, deficiencies were found in agencies’programs. The reports issued during 1996and 1997 contained 182 recommendations forimproving agencies’ ethics programs. Thisincluded issuing Notices of Deficiency to sixagencies when OGE found ethics programsthat were in need of significant improvementor programs that were highly problematic.
As we noted in our Fourth Biennial Report, themost frequent recommendations were thosefor improving agencies’ public or confidentialfinancial disclosure systems. These recommen-dations focused upon improving the timelinessof collecting and reviewing financial disclosurereports, ensuring that the reports are thoroughlyreviewed to eliminate technical deficiencies,and ensuring that employees who meet thecriteria for filing reports—especially thosewho are new entrant filers—are notified of thereporting requirements.
To determine whether agencies had taken actionto implement previous report recommendations,OGE conducted 34 follow-up reviews onreports issued during 1996 and 1997. As aresult of the follow-up reviews, OGE was ableto determine by December 31, 1997, thatagencies appropriately had responded to 100of the 182 recommendations, thus allowingthem to be “closed”. At agencies where follow-up reviews were conducted in the past twoyears, only 14 recommendations remainedopen. While in some cases the recommendationcould not be closed at the time of the follow-upreview, OGE staff observed that, in manyinstances, preliminary improvements hadbegun.
In addition to these on-site agency programreviews, the OGE desk officers of Education
and Program Services Division who are oftenin daily contact with ethics officials of theirassigned agencies, the attorneys in the GeneralCounsel’s office who assist agency ethicsofficials in applying statutory and regulatoryrequirements to specific factual situations, andreviewers in the Financial Disclosure Divisionwho can discern trends in the agency reviewsof its Presidential appointee annual disclosurereports can and do detect problems in agencyprograms which are not on the review calendarof Program Review Division for that year.These additional insights into a program cancause an early, out-of-cycle review of an agencyprogram and will result in closer, more focusedattention of OGE.
Finally, OGE also conducts reviews of singleissues that are common to all agency programsrather than of individual agency programs.During 1996-97, OGE conducted three of thesesingle issue reviews. They included an assess-ment of agency ethics training programs, thestructure of agency ethics offices (placementwithin agency, staff and resources), and thealternative and supplemental confidentialfinancial disclosure systems. An assessmentof ethics programs at field offices was begunduring 1997 and is still underway.
New Ethics EducationProducts
I n 1996, OGE released three new ethicstraining videotapes for agencies to use inmeeting their annual ethics training require-
ments. These tapes have been highly praised byethics officials as an effective means of con-ducting ethics training for employees at allgrade levels. The videotapes are summarizedbelow:
■ Ethics Inquiry is a 45-minute news maga-zine show. News anchors in Los Angeles andNew York host four reporters each providing anin-depth look at different ethics topics. Each
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reporter brings a unique approach to the topicsof their stories that are educational, interestingand a bit entertaining. Topics include: Giftsfrom Outside Sources, Gifts Between Employ-ees, Conflicting Financial Interests and Impar-tiality.
■ The Battle for Avery Mann is the story ofan average executive branch employee’sstruggles with the rules governing every dayconduct. Throughout the story, Avery is facedwith different dilemmas including using Gov-ernment equipment for personal documents,accepting a gift from a subordinate and workingon a project that involves his outside employer.Avery finds himself caught between what heknows is the right thing to do and what may notbe right but would be more convenient orbeneficial to him.
■ The Revolving Door is a news show thataddresses the issues surrounding the seekingemployment and post-employment restrictionson executive branch employees. Throughoutthe show, viewers are provided periodic updatesfrom a reporter covering a CongressionalHearing on Capitol Hill focused on oneemployee’s possible violation of the post-employment law.
Within six months of their release, severalthousand copies of the three new videotapes hadbeen sold. In fact, “The Battle for Avery Mann”has won awards at three industrial film festivals.
In April 1996, the Office of Government Ethicsjoined forces with the Government Alliance forTraining and Education (GATE) and withsupport from the Department of VeteransAffairs, produced and broadcast a one-hoursatellite training session on seeking employ-ment and post-employment issues. The broad-cast incorporated video clips of post-employ-ment scenarios followed by a discussion of theissues raised by an OGE attorney and an agencyethics official. In addition, employees who
were watching the broadcast had the opportu-nity to call into the studio with questions aboutthe seeking employment and post-employmentrules. The initial broadcast was watched byapproximately 30,000 executive branch em-ployees. Thousands of other employees wereable to view a videotape of the broadcast.
Throughout 1996 and 1997, the Education andProgram Services Division, in conjunction withthe Office of General Counsel, has been devel-oping easy-to-read trifold pamphlets to increaseemployee awareness of the ethics related rulesand regulations as well as provide additionalclarification to ethics officials who are respon-sible for counseling employees in these areas.
To date, OGE has produced pamphlets coveringthe post-employment rules, the new 18 U.S.C.§208 waiver regulations, gift acceptanceauthorities and gifts from outside sources. Inaddition, OGE revised and updated its brochuredescribing the functions of the Office. Over thenext two years, OGE expects to produceadditional pamphlets covering the remainingsections of the Standards of Ethical Conductand the Conflict of Interest Statutes.
Web site
OGE introduced its Web site at the 1996Government Ethics Conference. TheWeb site provides information about all
OGE program areas. It outlines the servicesthat OGE provides to other executive branchagencies and provides the complete texts ofapplicable Executive orders, statutes, regula-tions, advisory letters, DAEOgrams, OGEforms publications and reference materials. Italso includes issues of the Government EthicsNewsgram, written information on OGE’svideos, CD-ROMs and audio training materials.The OGE Web site averages about 34,000 “hits”or visits a month and can be accessed throughthe Internet at http://www.usoge.gov.
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Conferences and Training
During 1996 and 1997, OGE planned,organized and hosted the sixth andseventh annual government ethics
conferences. Over the years, these conferenceshave provided and continue to provide theseofficials with an opportunity to convene todiscuss common problems and concerns and toshare solutions at a site away from the immedi-ate demands of their offices. These conferences
are also designed as an opportunity for OGE tocommunicate directly with the entire ethicscommunity. Interest in these conferences hasremained high and OGE has had to limitparticipation because of the size of the facilitiesin which they were held. OGE tries, however,to ensure that all agencies have an opportunityto send at least one representative. As a result,at least 100 agencies have been represented ateach of the conferences.
These annual ethics conferences have occurred as follows:
1997 Williamsburg, VA 450 participants
1996 Philadelphia, PA 475 participants
1995 Williamsburg, VA 475 participants
1994 Baltimore, MD 450 participants
1993 Hershey, PA 400 participants
1992 Virginia Beach, VA 200 participants
1991 Virginia Beach, VA 200 participants
In 1996, OGE solicited ideas from agencyethics officials on the topics they were mostinterested in having included in the conferenceprogram. In 1997, OGE took the solicitation astep further by requesting agency ethics offi-cials to not only provide input on the topics butto develop proposals for the concurrent sessionportion of the conference. The proposals
included the type of session (i.e. panel, singlespeaker, debate, etc.), proposed moderator andpanelists, and a brief description of the session.This approach further engaged the ethicscommunity in developing the conferenceprogram and expanded opportunities for anyethics official to participate in the conference.
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These conferences continue to be a focalpoint in the ethics community for exchanginginformation, discussing difficult issues, andbrainstorming on how best to disseminateethics information to the employees of theexecutive branch.
In addition, in 1996, in response to a trainingneeds analysis, OGE expanded its ethicstraining course offerings to include introduc-tory level modules targeted at ethics officialswho had little or no experience in the ethicsarea. The first of these modules was intro-duced at the 1996 annual ethics conferenceand covered topics such as Gifts from OutsideSources, Gifts Between Employees, WidelyAttended Gatherings and SF 278 PublicFinancial Disclosure Report Review. Themodules were highly praised by conferenceattendees. Subsequent to their introduction,OGE has conducted these introductory-levelmodules 19 times in the Washington DC area.At the 1997 annual ethics conference, addi-tional introductory-level modules coveringpost-employment, misuse of position, andOGE Form 450 Confidential Financial Disclo-sure Review were introduced. These moduleswere also highly praised by conferenceattendees.
Throughout 1996 and 1997, OGE continuedto offer a four-hour overview course for moreexperienced ethics officials. During this time,OGE conducted a total of 26 sessions in 14different regional cities, and Washington, DC.In 1997, OGE began developing more ad-vanced single topic modules, one of whichwas beta tested at the 1997 annual governmentethics conference. These advanced modulesare expected to be completed in 1998.
Outreach
During this period, there was a markedincrease in interest in measures de-signed to thwart corruption in Govern-
ments around the world. In response torequests from the various foreign policy armsof the U.S. Government as well as requestsfrom foreign countries and multinationalorganizations for information on the U.S.Federal ethics programs, the Office of Govern-ment Ethics (OGE) developed a small out-reach program to deal with these demands.Many of these activities involved meetingwith delegations from individual countries ormultinational delegations sponsored by USIAor AID funded organizations. However, inseveral instances, OGE was requested toprovide consultation on design and implemen-tation of ethics programs abroad. Workingthrough various foreign policy programs(State, AID, USIA, Treasury, Commerce,OMB), and as personnel resources allowed,OGE provided such consultation to severalcountries.
During this biennial period, more than 400visitors from over 50 countries were briefed inour Offices. These briefings detailed the legalstructure, the design of the Office and theorganization of the ethics community in theexecutive branch of the United States.
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Additionally, OGE personnel participated inanti-corruption programs in South Africa,China, Russia, the Ukraine, the Republic ofGeorgia, Argentina, Chile, Phillippines, Jordanand Namibia. While OGE provided thepersonnel for these activities, all travel ex-penses were funded by the sponsoring agencyor entity.
At the request of other U.S. agencies, OGEstaff also participated in the drafting of theInter-American Convention Against Corrup-tion and the Ethics working group at theOrganization of Economic and CommunityDevelopment (OECD).
During the period, OGE also instituted adomestic outreach program designed tofacilitate communication on ethics issues withcompanies and organizations that interact with,have an interest in, or do business with theFederal Government. In addition to workingclosely with the Council on GovernmentEthics Laws (representing state and localethics officers in the U.S. and Canada), OGEworked with the Defense Industry Initiative,the Conference Board and the Ethics Officer’sAssociation (EOA). The EOA has a member-ship of more than 500 compliance and ethicsofficers from businesses and corporationsthroughout the United States.
OGE representatives provided presentationsfor, or consulted with, corporations such asUnited Technologies, Pitney-Bowes, andLockheed-Martin as well as organizationssuch as the Ethics Resource Center, theJosephson Institute, the National Academy ofPublic Administration, the American Societyof Public Administration, and the Council forExcellence in Government. Finally, OGErepresentatives provided lectures or briefingsat over a dozen colleges and universities,including the University of Virginia, Univer-sity of Missouri, Indiana University, Connecti-cut College, University of Miami, GeorgeMason University, George WashingtonUniversity, Emory and Henry College, andGeorgetown University.
Strategic Planning
During the years covered by this report,OGE as well as almost all agencieswithin the executive branch were
required by the Government Performance andResults Act to develop, in consultation withCongress, a five-year Strategic Plan beginningwith Fiscal Year 1999. The Mission Statementand the Goals and Objectives of that Plan arefound in Appendix III.
24Public Document Service
Agency Travel AcceptanceReports
The Ethics Reform Act of 1989 contains aprovision which permits executive branchagencies to accept travel and related expensesfrom non-Federal sources. This authorityallows organizations sponsoring certain typesof meetings and events to pay agencies for thetravel expenses of executive branch employ-ees who attend instead of the agencies expend-ing Government funds to send the employees.
Each agency accepting travel payments over$250 for such purposes from a non-Federalsource must report that acceptance on asemiannual basis to the Office of GovernmentEthics. The agency must report the nature ofthe event to which the employee traveled, whopaid the travel expenses, how much was paid,which employee traveled, and when the eventoccurred. These reports are made public uponrequest.
In 1997, OGE received 5 requests from newsorganizations and public interest groups forcopies of these reports. In 1996, there were3 requests.
OGE serves as the primary source forthe general public for Public FinancialDisclosure Reports (SF 278) filed by
Presidential appointees. A copy of any of thesereports is provided to any person or organiza-tion who makes a request and who completesa statutorily mandated public request form(OGE Form 201). OGE also collects andreleases upon request, Agency Travel Accep-tance Reports filed by executive branchagencies.
Public Financial DisclosureReports
OGE is the repository of the public financialdisclosure reports filed by officials in highexecutive branch posts, including the Presidentand the Vice President and those holdingPresidential appointments requiring confirma-tion by the Senate. OGE releases publiclyavailable financial disclosure reports to mem-bers of the public who request them.
OGE receives letters or phone calls from newsorganizations, public interest groups, and thegeneral public asking for copies of reports onone or more individuals who are required to filewith OGE. In 1996, OGE received 162 requestsfor copies of 657 reports. In 1987, OGEreceived requests for 227 copies of 806 reports.
25Litigation
OGE has been a party to five cases duringthe reporting period. Three involveconstitutional challenges under the First
Amendment and two challenged OGE determi-nations made under the Freedom of InformationAct. One of the First Amendment cases in-volved a challenge to the statutory ban onreceipt of honoraria; a second involves achallenge to a provision in the Standards ofEthical Conduct relating to a ban on acceptanceof travel expenses for certain outside teaching,speaking, and writing activities; and the thirdconcerns a statutory prohibition on certaincommunications by Government employees tothe Government on behalf of others. Both ofthe non-constitutional cases upheld OGE’sdeterminations under FOIA.
A summary of each case follows:
United States v. National Treasury EmployeesUnion, 513 U.S. 454 (1995).
In November 1989, Congress enacted the EthicsReform Act of 1989, which included a provisionthat prohibited Members of Congress andofficers and employees of the Federal Govern-ment from accepting honoraria for an appear-ance, speech or article. In 1991, this provisionwas amended to exclude from the definition ofhonorarium any series of appearances, speechesor articles unrelated to the employee’s officialduties or status. The Office of GovernmentEthics issued regulations at 5 C.F.R. part 2636implementing the honoraria restriction withrespect to executive branch employees.
Subsequently, several employee unions as wellas a number of individual executive branchcareer employees sued to have the honorariumrestriction struck down as unconstitutional.The United States District Court for the Districtof Columbia certified a class consisting of allexecutive branch employees below GS-16 who,
but for the honoraria ban, would have receivedhonoraria. On March 19, 1992, the districtcourt held that the honoraria ban was an uncon-stitutional abridgement of First Amendmentrights as it applied to executive branch employ-ees. See National Treasury Employees Union v.United States, 789 F. Supp. 4 (D.D.C. 1992).The district court enjoined enforcement of thisprovision but stayed its judgment pendingappeal. The Government appealed from thejudgment and injunction and the plaintiffsappealed from the stay.
In a split decision, the United States Court ofAppeals for the District of Columbia Circuitaffirmed the decision of the district court. SeeNational Treasury Employees Union v. UnitedStates, 990 F.2d 1271 (D.C. Cir. 1993). TheGovernment appealed to the Supreme Court.
On February 22, 1995, the United StatesSupreme Court issued a decision that affirmedin part the decision of the appeals court. UnitedStates v. National Treasury Employees Union(NTEU), 513 U.S. 454 (1995). The five mem-ber majority upheld the decision of the appealscourt as it applied to the certified claim ofemployees that had challenged the honorariaban but reversed it insofar as it granted relief toa class of senior executive branch officials whowere not represented in the groups of employ-ees who had taken the case to court.
The Supreme Court remanded the case to thedistrict court. On February 26, 1996, while thecase was pending before the district court, theOffice of Legal Counsel issued a memorandumopinion concluding that the honoraria ban is notseverable and that, therefore, after NTEU, thereare no remaining applications of the honorariaban — for example, to employees of the legisla-tive or judicial branches or to high-level execu-tive branch officials. On remand, the partiescould not agree on the terms of a final order.
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Pursuant to the Government’s motion, however,the district court dismissed the case as moot.Thereafter, plaintiffs appealed the dismissal.
On January 2, 1997, the parties filed a jointstipulation under which the Government agreedthat the honoraria ban is unconstitutional insofaras it applies to all plaintiffs whose interestswere resolved in NTEU and further agreed notto enforce the honoraria ban against any suchplaintiffs. For their part, plaintiffs agreed todismiss their appeals. On January 2, 1997, thedistrict court issued an order which, incorporat-ing the joint stipulation, finally dismissed thecase.
OGE is in the process of amending its regula-tions to conform to NTEU.
Sanjour v. Environmental Protection Agency,56 F.3d 85 (D.C. Cir. 1995).
This case involves a First Amendment challengeby two EPA employees to 5 C.F.R. § 2635.807,and its prohibition on employee acceptance oftravel expense reimbursements from non-Government sources in connection with certainunofficial speech relating to agency programs.
On February 19, 1992, the United StatesDistrict Court for the District of Columbiaupheld the constitutionality of the regulations.See Sanjour v. Environmental ProtectionAgency, 786 F. Supp. 1033 (D.D.C. 1992). TheUnited States Court of Appeals for the Districtof Columbia Circuit in a split decision affirmedthe decision of the district court. Sanjour v.Environmental Protection Agency, 984 F.2d434 (D.C. Cir. 1993). Subsequently, the fullcourt granted rehearing en banc.
On May 30, 1995, the U.S. Court of Appealsfor the District of Columbia Circuit, in a 5-4en banc decision, reversed the district court’s
opinion and held invalid the prohibition ontravel expense reimbursement. The courtexplicitly reserved judgment, however, on theconstitutionality of the rule as applied to“senior” executive branch employees. Sanjourv. Environmental Protection Agency (Sanjour),56 F.3d 85 (D.C. Cir. 1995) (en banc).
After the court of appeals issued its decision,the Solicitor General decided not to petition forfurther review in the Supreme Court. The casewas remanded to the district court for entry of afinal order. In the district court, the parties wereunable to agree upon the relief to which theplaintiffs are entitled as a result of the court ofappeals decision. The parties have filed briefson the question of the appropriate relief and, atthe time of this report, await issuance of thecourt’s final order.
On May 21, 1997, while the case remainedpending in the district court, OGE issued amemorandum to Designated Agency EthicsOfficials recommending partial nonenforcementof section 2635.807(a) pending the districtcourt’s issuance of a final order on remand anduntil further notice. Specifically, the memoran-dum recommends that ethics officials notenforce against “non-senior” employees thatapplication of the travel expenses ban whichthe court of appeals, in OGE’s view, clearlyaddressed in its en banc opinion.
After the district court issues its order, OGEintends to amend its regulations to conform tothe appellate court’s ruling, as clarified by thedistrict court order.
Jeffrey van Ee v. U.S. Environmental ProtectionAgency and U.S. Office of Government Ethics,No.1:95CV02079 (NHJ) (D.D.C. filedNovember 11, 1995).
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Plaintiff, an employee of the EnvironmentalProtection Agency, filed suit against EPA andOGE in November 1995. He challenges, onFirst Amendment grounds, both 18 U.S.C.§ 205 — the prohibition on employees’ actingas “agent or attorney” for others before theGovernment in connection with certain particu-lar matters — and the appearance principle inthe Standards of Ethical Conduct insofar as thelatter would preclude an employee from appear-ing to engage in representational activityprecluded by 18 U.S.C. § 205. He also chal-lenges as improper defendants’ interpretationof some of the terms used in section 205,including the term “particular matter.” Hecontends that the statute prohibits only legal or“quasi-legal” representation in formaladversarial proceedings.
On February 10, 1997, the U.S. District Courtfor the District of Columbia denied plaintiff’smotion for preliminary injunction. The partiescompleted briefing on cross-motions for sum-mary judgment at the end of July and, at thetime of this report, await the court’s decision.
Judicial Watch, Inc. v. H.R. Clinton, 76 F.3d1232 (D.C. Cir. 1996), affirming 880 F. Supp. 1(D.D.C. 1995)
In the summer of 1994, two private organiza-tions, Judicial Watch, Inc. and the NationalLegal and Policy Center, brought a lawsuitalleging that the Presidential Legal ExpenseTrust, the President’s legal defense fund, shouldbe chartered under the Federal Advisory Com-mittee Act (FACA) and should respond to adocumentary request made under the Freedomof Information Act (FOIA). The plaintiffs alsocomplained of the withholding of certaindocuments by OGE under the FOIA.
In an opinion issued in February 1995, the U.S.District Court of the District of Columbia found
that the President’s legal defense fund did notconstitute a Federal advisory committee andwas not subject to the FOIA and, further, thatthe documents at issue before the Court wereproperly withheld by OGE. Judicial Watch, Inc.v. Clinton, 880 F. Supp. 1 (D.D.C. 1995).
Judicial Watch appealed the dismissal of itsclaim that the Presidential Legal Expense TrustFund must comply with the requirements ofFACA and must return all funds collected whileallegedly in violation of FACA. On February 23,1996, the U.S. Court of Appeals for the Districtof Columbia Circuit affirmed the district courtdecision. 76 F.3d 1232. The appellate court saidit was likely that the Trust was not primarilyadvisory in nature and that even if it were, itstill would not be an advisory committee underFACA because the advice called for is notdirected to Governmental policy.
Plaintiffs did not petition for rehearing or forcertiorari and the time within which to do sohas since expired.
Schwarz v. OGE, No. 96-0594 (D.C. Cir., percuriam order filed October 23, 1996), affirmingNo. 96CV00528 (D.D.C. Memorandum &Order filed March 18, 1996).
In February 1996, an individual plaintiff,appearing pro se, filed a complaint challengingOGE’s determination that it had no recordsresponsive to plaintiff ’s request. The U.S.District Court for the District of Columbiadismissed plaintiff’s complaint as without basisin law or fact, Schwarz v. OGE, No. 96CV00528(D.D.C. March 18, 1996), and the U.S. Courtof Appeals for the D.C. Circuit summarilyaffirmed, Schwarz v. OGE, No. 96-0594 (D.C.Cir. October 23, 1996) (per curiam).
28General Agency Management
Reorganization was a major theme in theOffice of Government Ethics early in1996, as the agency moved to put
increased emphasis on its education programand other services by expanding the full rangeof educational, technical, and managementassistance it provides to executive branchagencies. The merging of the former Officeof Education and the Program AssistanceDivision into a new Education and ProgramServices Division resulted in additionalresources being made available to allow theeducation program to expand and becomemore diverse. The creation of a new FinancialDisclosure Division, under the umbrella of anOffice of Agency Programs, has enabled OGEto place greater emphasis on its annual andtermination financial disclosure and Presiden-tial appointee ethics agreement systems.
OGE has continued its reimbursable cross-servicing agreement with the U.S. Departmentof Agriculture National Finance Center forsuch common administrative support servicesas payroll/personnel, billings and collections,administrative payments, and accounting.
After almost fours years in the review andclearance process, OGE’s Drug-Free Work-place Plan was certified in April 1996 by the
Department of Health and Human Services asmeeting the requirements of Executive Order12564 and applicable provisions of law. Thefirst random drug testing was carried out inthe summer of 1997 under an interagencyagreement OGE entered into with the Depart-ment of the Interior to provide drug/alcoholcollection and laboratory analysis services.
In showing its support to the Welfare to WorkFederal Hiring Initiative announced by thePresident in March 1997, OGE submitted tothe National Performance Review its plan foridentifying categories of work within theagency that could be targeted for having thebest success in bringing a welfare recipient into OGE and the Federal employment whileoffering a rewarding job opportunity to theindividual as well.
OGE has continued to foster increased use ofinformation technology by emphasizing theefficiencies afforded by the automatedEmployee Express system which allowsemployees to process a number of their owndiscretionary personnel and payroll transac-tions 24 hours a day, seven days a week,without using paper forms.
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27%General Counsel
&Legal Policy
34%Office of Agency
Programs
10%Executive Direction
15%Education
14%Administration
6% Executive Direction
22% Education and Program Services
24% General Counsel and Legal Policy
17% Administration
31% Office of Agency Programs
Resources
OGE’s program is heavily weightedtowards the provision of professionalservices. The Agency does not provide
grants, engage in construction projects, usesubstantial equipment, or engage in many ofthe types of programs for which other agenciesrequire funds. Therefore, OGE’s appropriatedresources (other than rent) are primarily devotedto the salaries and benefits of the staff whocarry out OGE’s programs—the assessment ofethics agency programs, the development ofeducational and training materials and pro-grams, the provision of advisory and interpreta-tive assistance, the development of policy andthe issuance of regulations. Charts III and IVindicate the general allocation of funds anddistribution of employees among the severalprogram areas of OGE.
In FY 1996, OGE had a ceiling of 84 FTEs andan appropriation of $7.8 million. In FY 1997,OGE had a funding level of $8.1 million and aFTE ceiling of 84. Its use of those resources isnoted in Chart V. As indicated, a focus of theOffice has been efficient enhancement of theprofessional services offered by the staff ofOGE as well the innovative use of technologyto assist in meeting the increasing needs ofagencies whose programs are receiving lessfunding. We believe we have been successful,but are not unaware that continually diminish-ing resources throughout the Government in thecoming years will increase the demands onOGE’s services and thus necessitate an increasein our inventiveness in meeting those demands.
Funding
Funding resources including reimbursableobligations obligated to realize agency pro-grams totaled $7.8 million in Fiscal Year 1996and $7.6 million in Fiscal Year 1997. ChartIV reflects how those resources were sharedwithin OGE.
Staff ing
Central to the successful achievement of thegoals and objectives established for OGE arethe staffing resources assigned to the programs.Staff equated to 80 full-time equivalent posi-tions (FTE) in 1996 and 77 in 1997. Chart IIIreflects the utilization of those staff resourcesduring this two-year period.
Chart III
Chart IV
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FY 1996 FY 1997Unit
Office of the Director
Office of Agency Programs
Office of General Counsel and Legal Policy
Education and Program Services
Office of Administration
Total
* Full-Time Equivalent Personnel** Includes Reimbursable Obligations
Chart V
Office of Government Ethics
Resources by Unit (dollars in thousands)
FTE*
$1,012
Actual
FTEAmount** Amount**
5 $ 747 5 $ 853
25 $2,978 24 $2,263
19 $2,097 19 $2,038
16 $1,325
13 $1,097
80 $7,807 77 $7,576
Actual
13
18
$ 973
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Office of Government Ethics Program Offices
Office of General Counsel andLegal Policy
The Office of General Counsel and LegalPolicy (OGC) at OGE is responsible forestablishing and maintaining a uniform
legal framework of Government ethics forexecutive branch employees, and for assistingagencies in its implementation. As such, OGCis the primary policy office within OGE. Toaccomplish this broad purpose, the GeneralCounsel staff’s major responsibilities are todevelop ethics regulations, provide interpretiveguidance and enforcement liaison, coordinatePresidential nominee financial disclosures,assist with ethics education, and provide adjunctservices for several other ethics-related statu-tory programs.
Specifically, OGC assists the Director incoordinating with the White House, the Depart-ment of Justice, the Office of Personnel Man-agement, the Office of Management andBudget, and Congress on all ethics policies andrequirements in the executive branch, includingliaison on pending legislation and regulations.Through such coordination, OGC develops andpublishes regulations and forms implementingexecutive branch ethics program requirementsestablished by Executive orders and statutes.
In order to promote a uniform application andunderstanding, OGC provides interpretiveguidance and information to agency ethicsofficials, employees, and the public on all ethicsregulations and statutes, including the standardsof conduct rules, the criminal conflict of intereststatutes, the civil ethics statutory restrictions,and public and confidential financial disclosurerequirements. This is accomplished by meansof written and oral legal opinions, as well as byassisting OGE’s Office of Education in thedevelopment of materials and providing officialspeakers and panelists at various forumsthroughout the country.
Further, OGC fulfills a consultative role ofassisting agency ethics officials with the appli-cation of these statutes and regulations tospecific factual situations, and it coordinateswith the Department of Justice in enforcementof the criminal conflict statutes and the civilethics-related statutes.
One of the primary responsibilities of OGC is toreview public financial disclosure reports ofPresidential nominees, as part of the Senateconfirmation process, including the develop-ment of ethics agreements for divestitures,recusals, and other remedial actions wherenecessary to avoid conflicts. Matters involvingfinancial disclosure also include administeringthe qualified blind trust program for the entireexecutive branch, as well as the issuance ofcertificates of divestiture to permit deferral oftax on certain capital gains realized through thesale of assets to avoid conflicts with executivebranch service.
Finally, OGC provides in-house counsel ser-vices for OGE in carrying out its own Agencyfunctions, and it provides adjunct services forseveral other statutory programs. These includeadvisory services to Independent Counsels;coordination with the General Services Admin-istration on the issuance of regulations pertain-ing to agency gift acceptance of travel and withthe Federal Acquisition Council on the issuanceof regulations on procurement integrity; andconsultation to agency ethics officials in theirwaiver determinations under the criminalconflict of interest statute, 18 U.S.C. § 208, foremployees who may be permitted to participatein official matters where they hold insubstantialinterests.
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Office of Agency Programs
At an OGE oversight hearing in 1990, theChairman of the Subcommittee onOversight of Government Management,
Senate Committee on Governmental Affairs,urged OGE to be more assertive in gainingcompliance from agencies on recommendationsmade as a result of its program reviews. Thelack of necessary personnel to conduct thereviews was noted in a General AccountingOffice (GAO) review of OGE’s agency over-sight role. GAO found that the Office could notmeet its goal of reviewing an agency’s ethicsprogram every three years because of limitedstaffing. It also recommended that OGEstrengthen its oversight through more aggres-sive follow-up with agencies on remedialactions taken.
With the support of the Administration and theCongress, the Office of Government Ethicsreceived the financial and personnel resourcesnecessary to address the concerns expressed bythe Chairman of the Subcommittee and by theGeneral Accounting Office.
Resource increases were primarily applied tostrengthening the program review function andestablishing the agency desk officer system.The on-going agency ethics liaison and reviewactivities are conducted in the Office of AgencyPrograms (OAP), formerly the Office of Pro-gram Assistance and Review. OAP is com-prised of three divisions: the Education andProgram Services Division (EPSD) and theFinancial Disclosure Division (FDD), whereOGE desk officers serve as liaisons to specificagencies, and the Program Review Division(PRD), where management analysts conduct
agency ethics program reviews. Although thedivisions are interrelated, each one will bedescribed here separately.
Education and Program ServicesDivision
The Education and Program ServicesDivision (EPSD) provides day-to-dayassistance to department and agency
ethics personnel in the administration andoperation of their ethics programs. Addition-ally, the division develops quality ethicseducation materials and training courses foruse by all executive branch agencies.
The Ethics Specialists, or Desk Officers, in thisdivision serve as the primary point of contactfor agency ethics officials in more than 125departments and agencies. In this liaison role,they provide information and assistance ontechnical matters as well as various substantiveethics issues. Since the Desk Officer programbegan in 1990, the Desk Officers have beenable to develop knowledge, insight and under-standing of each agencies’ ethics program bymaking personal contact with the agencyofficials a high priority. As a result, OGE hasenjoyed more effective communication withthe agencies it serves and the agencies haveexperienced increased access to OGE.
In addition to providing daily assistance toethics officials, the Desk Officers:
■ assist agencies in implementing recommen-dations made by OGE following ProgramReview Division reviews of their program;
■ assist with agency ethics training by identi-fying sources of training materials, providingtraining to the officials responsible for em-ployee ethics training and participating inactual employee ethics training sessions.
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■ review the annual and termination publicfinancial disclosure reports of approximately1000 Presidential appointees confirmed bythe Senate and approximately 125 DesignatedAgency Ethics Officials to ensure that publicreports are completed and do not raise anyunaddressed questions of potential conflictof interest;
■ review, along with the Office of GeneralCounsel, public financial disclosure reportssubmitted during the confirmation process byPresidential nominees who require the adviceand consent of the Senate prior to appointment.
Section 402(b)(14) of the Ethics in Govern-ment Act of 1978, as amended, makes theDirector of OGE responsible for “providinginformation on and promoting understandingof ethical standards in executive agencies.”Under implementing regulations at 5 C.F.R.§ 2638.203(b)(6), each Designated AgencyEthics Official must ensure that an educationprogram for agency employees concerning allethics and standards of conduct matters,including post-employment matters, is devel-oped and conducted in cooperation with theeducation program of the Office of Govern-ment Ethics.
The EPSD assists Departments and agencies ininsuring that quality ethics education programsare provided to almost five million executivebranch employees and materials are madeavailable to facilitate these programs. In orderto accomplish this goal the EPSD:
■ provides classes for trainers and practitionersin both Washington, DC and the Federalregions;
■ creates materials and media presentations onethics rules and policies;
■ provides guidance for agencies in the designof their ethics training programs;
■ maintains within the Ethics InformationCenter a central repository of ethics trainingmaterials from executive agencies;
■ plans and supports conferences and meetings;
■ coordinates joint agency cooperation in thecreation of training materials and the develop-ment of universal ethics courses; and
■ coordinates and analyzes the annual agencyreports to OGE.
EPSD publishes OGE’s Government EthicsNewsgram. Issued at least three times a year,the Newsgram informs the ethics communityabout OGE activities as well as various agencyactivities that are of interest generally.
In 1996, the Education and Program ServicesDivision took over responsibility for updating,revising and maintaining the Ethics CD-ROM.With technical support from the Office ofInformation Resources Management, OGEproduced three updates to the CD-ROM. Inaddition, a new search mechanism has beenincluded on the CD to provide easier researchcapabilities.
The Education and Program Services Divisioncontinues to maintain the Ethics InformationCenter, a repository of ethics training materials,for ethics officials executive branch wide. TheCenter provides a central location from whichethics officials, responsible for training, maycustomize their training session using OGE andother agency ethics training materials such as
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videotapes, computer-based games and preparedpresentation materials. During 1996 and 1997,over 280 individuals, primarily from executivebranch agencies, have visited the Center. Inaddition, in 1996, OGE conducted a survey ofthe Center’s visitors to identify ways in whichthe Center might be more useful to its users.The survey results showed that overall visitorswere very happy with the Center’s services,especially the staff support. The most usefulmaterials cited by respondents were trainingvideotapes.
In 1997, the Center manager began upgradingand revising the Center’s computerized catalogof available materials. The catalog will eventu-ally be included on the OGE Web site.
Financial Disclosure Division
The Financial Disclosure Division (FDD)has primary responsibility for tracking,collecting, and reviewing the annual and
termination public financial disclosure reportsof approximately 1,000 Presidential appointeesconfirmed by the Senate and approximately 125Designated Agency Ethics Officials (DAEOs).
FDD maintains an automated system that tracksall PAS appointees and DAEOs and worksclosely with agency ethics officials to ensurethat all reports are filed and complete, inaccordance with the Ethics in Government Actand implementing regulations. It ensures that allfilers are free of any conflicts of interest or theappearance of conflicts. FDD makes the publicfinancial disclosure reports available to thepublic and the news media upon request.
FDD also tracks a Presidential appointee’scompliance with any ethics agreement theappointee made during the confirmation pro-cess. These agreements may concern thefinancial interests of an appointee, his or herspouse, and any dependent children. An appoin-tee is to certify with documentation to OGE,that such agreements have been satisfied within90 days of confirmation.
FDD also performs all other administrativetasks in relation to the PAS public financialdisclosure system. This includes processingrequests from agencies for filing exemptionsand extensions, as well as requests for waiversof the $200 late filing fee. FDD advises agen-cies on matters concerning financial disclosurepolicies and regulations and is OGE’s liaisonwith the ethics community on financial disclo-sure issues.
Program Review Division
The Office of Government Ethics conductson-site ethics program reviews at head-quarters and field offices to determine
whether an agency has an effective ethicsprogram tailored to its mission. The reviewsare accomplished in accordance with detailedreview guidelines and are scheduled in advancein an annual program plan. The guidelinesprovide a step-by-step approach to examiningeach of the ethics program elements at anagency, while the program plan specifies thereviews to be conducted during the year, bothat headquarters’ offices in Washington, DC, andat civilian offices and military facilities in thefield. Approximately four weeks or more,typically, are spent at the headquarters of anagency during a review, while reviews at fieldoffices usually last a few days to a week.
Reviews entail a thorough examination of allelements of the ethics program, includingspecific ethics issues tailored to the mission ofthe agency. Individual ethics program elementswhich PRD examines include:
■ ethics program structure and staffing;■ public financial disclosure reporting systems;■ confidential financial disclosure reporting systems;■ ethics education and training;■ ethics counseling and advice;■ outside employment and activities; and■ travel payments from non-Federal sources.
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Following the review, a report is sent to theDesignated Agency Ethics Official which mayor may not contain recommendations to im-prove the ethics program. Since mid-1995,OGE changed its distribution policy and nowonly sends copies of PRD reports to Agencyheads when significant ethics program deficien-cies exist. Within the parameters of executivebranch laws and regulations, program reviewrecommendations are based on the type ofagency program, and focus on the proceduresand internal controls that will provide theagency a strong ethics program. Agencies arerequired to respond to OGE within 60 daysconcerning the actions they are taking or plan totake on OGE’s recommendations. To confirmthat the agency has acted on OGE’s recommen-dations, PRD conducts a follow-up review sixmonths from the date of the report.
Office of Information ResourcesManagement
The Paperwork Reduction Act of 1995 andthe Information Technology ManagementReform Act of 1996 charge Federal
agencies with improving their mission perfor-mance and service delivery through the strategicapplication of information technology. OGE’sOffice of Information Resources Management(OIRM) is responsible for overseeing andguiding the development, management, and useof information resources and technologiesthroughout the agency. Its role is to provide thedaily technical support services needed in anever increasing and complex technologicalenvironment and, even more importantly, toseek out and integrate these new technologiesinto the programmatic activities of the agency.In doing so, OIRM:
■ assists the program offices in developing andplanning for their information technologyrequirements and incorporating these require-ments in OGE’s strategic plan and budgetarydocuments;
■ operates and maintains the OGE Web sitewhich replaced The Ethics Bulletin BoardSystem (TEBBS). The OGE Web site providesa graphically rich means of disseminating ethicsinformation materials and makes these materialsmore accessible and economically affordable;
■ works in partnership with the Office ofEducation in the development, maintenance,enhancement and production of The EthicsCD-ROM, which is issued twice yearly;
■ develops and maintains mission criticaltracking systems used by various programoffices;
■ acts as OGE’s technical representative inoutside agency pilot projects relating to elec-tronic filing by providing technical assistanceand ensuring coordination with other OGEprogram offices; and
■ assists the Office of Education in the explora-tion, development and implementation of newtechnical methodologies for producing anddisseminating ethics training materials.
In 1996, OGE issued a contract for the develop-ment of an automated SF 278 computer soft-ware program with OIRM responsible forproject management. OIRM is working withassistance from the Office of General Counseland Legal Policy and the Financial DisclosureReview Division in the development of thissoftware program. The program is designed toprovide the SF 278 filer with the ability toeither complete the SF 278 directly on a formon the computer screen, or to go through aninterview process which will integrate the filer’sanswers into the final form. The form may thenbe printed, signed and submitted by the filer.Planned additional enhancements to the soft-ware include prior and current filing datacomparison and the ability to integrate thedisclosure form into an acceptable electronicsigning and filing process.
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(Asterisk signifies that report covers reviews conducted at one or more subunits of the nameddepartment, agency, or military installation.)
Civilian Departmental Offices and Components Reviewed Date Report Issued
Department of Agriculture 08/27/97*Office of the SecretaryAgricultural Marketing ServiceForeign Agricultural ServiceMilk Marketing AdministrationRural Business-Cooperative ServiceRural Housing Service
Economic Research Service and the National Agriculture Statistics Service 02/14/96
Department of Commerce 02/18/97*Office of the SecretaryBureau of Economic AnalysisNational Technical Information Service
Department of Education 12/29/97
Department of Health and Human Services1
Administration on Aging 06/06/96
Agency for Health Care Policy and Research 08/28/96
Food and Drug Administration 10/10/97
Health Resources and Services Administration 07/07/97
Indian Health Service 05/06/97
Substance Abuse and Mental Health Services Administration 07/17/96
Department of Housing and Urban Development 01/13/97*Office of Federal Housing Enterprise Oversight
1Reviews conducted within Department of Health and Human Services’ componentsresulted in separately issued reports.
Appendix I
Program Review Division Reports IssuedDuring Calendar Years 1996 and 1997
37
Civilian Departmental Offices and Components Reviewed Date Report Issued
Department of the Interior 07/30/97*Office of the SecretaryBureau of Land ManagementNational Park ServiceU.S. Geological Survey
Department of Justice 04/25/96*Office of the Attorney GeneralCivil DivisionCivil Rights DivisionEnvironment and Natural Resources Division
Drug Enforcement Administration 03/28/96
Federal Bureau of Prisons 01/29/96
U.S. Marshals Service 07/07/97
U.S. Parole Commission 07/16/97
Department of Labor 09/17/96*Office of the SecretaryEmployment and Training AdministrationEmployment Standards AdministrationMine Safety and Health AdministrationOccupational Safety and Health Administration
Department of the Treasury 01/14/97*Departmental OfficesBureau of Alcohol, Tobacco, and FirearmsBureau of the Public DebtU.S. Secret Service
Department of Transportation 03/20/97*Federal Highway AdministrationMaritime Administration
Department of Veterans Affairs 09/30/96*Central OfficeBaltimore Regional OfficeChicago Regional OfficePhiladelphia Regional Office
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Defense Departmental Offices and Components Reviewed Date Report Issued
Department of Defense 06/06/96*Office of the Secretary of DefenseOffice of the Assistant Secretary of Defense for Health AffairsOffice of the Joint Chiefs of Staff
American Forces Information Service 03/05/96
Armed Services Board of Contract Appeals 12/12/96
Defense Logistics Agency 11/20/97
Defense Nuclear Facilities Safety Board 02/18/97
Defense Special Weapons Agency2 01/05/96
Department of the Air Force 06/06/96*Office of the SecretaryOffice of the Assistant Secretary for AcquisitionOffice of the Deputy Chief of Staff for Logistics
Air Force Flight Test Center (Edwards AFB, CA) 04/11/96
Air Force Materiel Command and the 88th Air Base Wing (Wright-Patterson AFB, OH) 04/29/96*
Air Mobility Command, the Air Force Communications Agency, the 375th Airlift Wing and the U.S. Transportation Command3
(Scott AFB, IL) 10/01/96*
Sacramento Air Logistics Center (McClellan AFB, CA) 01/24/96
U.S Strategic Command (Offutt AFB, NE) 07/02/97
55th Air Wing (Offutt AFB, NE) 07/02/97
89th Airlift Wing (Andrews AFB, MD) 01/16/97
377th Airbase Wing (Kirtland AFB, NM) 12/06/96
Department of the Army 06/20/96*Office of the SecretaryOffice of the Assistant Secretary for for Research, Development, and AcquisitionOffice of the Surgeon General
2Formerly named the Defense Nuclear Agency.
3The U.S. Transportation Command is a Department of Defense componentlocated at Scott AFB.
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Army Defense Language Institute Foreign Language Center (Presidio of Monterey, CA) 07/22/97
I Corps and the Madigan Army Medical Center (Fort Lewis, WA) 11/24/97*
U.S. Army Armor Center and the U.S. Army Recruiting Center (Fort Knox, KY) 11/14/96*
U.S. Army Aviation Center and Fort Rucker (Fort Rucker, AL) 11/07/96*
U.S. Army Engineering Center and Fort Leonard Wood (Fort Leonard Wood, MO) 12/09/97*
U.S. Army Medical Command, the Brooke Army Medical Center, the Army Garrison, and the Army Medical Department Center and School (Fort Sam Houston, TX) 07/02/97*
Department of the Navy 06/06/96*Office of the SecretaryOffice of the Chief of Naval OperationsNaval Sea Systems Command
Military Sealift Command (Washington Navy Yard, DC) 12/05/97
Naval Air Warfare Center Weapons Division (China Lake, CA) 04/11/96
Naval Facilities Engineering Command (Alexandria, VA) 03/14/96
Naval Postgraduate School (Monterey, CA) 08/14/97
Naval Supply Systems Command (Mechanicsburg, PA) 08/20/97
Naval Surface Force, the U.S. Atlantic Fleet, the Naval Station Norfolk, the Naval Base Norfolk, and the Naval Air Station Norfolk (Norfolk, VA) 07/19/96*
Naval Surface Warfare Center, Carderock Division (Bethesda, MD) 01/07/97
Naval Training Center Great Lakes, the Service School Command, and the Recruit Training Command (Great Lakes, IL) 11/12/96*
Naval Undersea Warfare Center and the Naval Education and Training Center (Newport, RI) 02/18/97*
Defense Departmental Offices and Components Reviewed Date Report Issued
40
U.S. Marine CorpsMarine Corps Air Station, the 3D Marine Aircraft Wing of Marine Forces Pacific, and the Marine Corps Logistics Base (El Toro & Barstow, CA) 10/27/97*
Independent Civilian Agencies and Offices Reviewed Date Report Issued
Advisory Council on Historic Preservation 04/11/97
African Development Foundation 09/19/96
Board of Governors of the Federal Reserve System 04/29/96
Commission of Fine Arts 07/11/96
Committee for Purchase from People who are Blind or Severely Disabled 01/04/96
Consumer Product Safety Commission 01/05/96
Corporation for National and Community Service 04/30/97
Equal Employment Opportunity Commission 03/26/97
Executive Office of the President4
Council of Economic Advisers 04/30/97
Council on Environmental Quality 01/25/96
National Security Council 11/24/97
Office of Management and Budget 10/17/96
Office of National Drug Control Policy 01/31/97
Office of Science and Technology Policy 04/18/96
Office of the U.S. Trade Representative 01/26/96
Office of the Vice President 03/12/97
The White House Office 02/28/96
Defense Departmental Offices and Components Reviewed Date Report Issued
4Reviews conducted within Executive Office of the President componentsresulted in separately issued reports.
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Independent Civilian Agencies and Offices Reviewed Date Report Issued
Farm Credit Administration and the Farm Credit System 08/20/97Insurance Corporation
Federal Communications Commission 10/22/97
Federal Financial Institutions Examination Council 05/22/97
Federal Labor Relations Authority 05/23/97
General Services Administration 10/30/97
International Trade Commission 09/30/97
Merit Systems Protection Board 08/15/97
National Capital Planning Commission 11/05/97
Nuclear Regulatory Commission 03/06/97
Office of Special Counsel 05/22/97
Social Security Administration 05/07/96*Headquarters (Baltimore, MD)Office of Hearings and Appeals Central Office (Falls Church, VA)Social Security Administration Region IV (Atlanta, GA)Office of Hearings and Appeals Region IV (Atlanta, GA)
Thrift Depositor Protection Oversight Board 01/24/96
U.S. Commission on Civil Rights 04/15/96
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VHS Videotapes
The following videos are offered throughINFOCUS, 341 Victory Drive, Herndon, VA20170. Telephone: 703-834-0100. A shippingand handling fee based on the number of tapesordered and preferred shipment option will beadded to the order.
Ethics InquiryThis 45-minute video explores various stan-dards of conduct issues using a broadcast-quality news magazine format. News “anchors”in Los Angeles and Washington host four fieldreporters, each of whom provides an in-depthlook at different ethics topics while bringing aunique and sometimes humorous approach totheir coverage. The result is an educational,interesting and even entertaining program forany level of employee. The program is dividedinto four segments with each segment devotedexclusively to one of the following topics: giftsfrom outside sources, gifts between employees,conflicting financial interests and impartialityissues. These segments can be shown separatelyor collectively, depending upon an agency’sneeds and interests. Video is closed-captioned.Price: $3.75.
The Battle for Avery MannThis 20-minute video is the story of an averageexecutive branch employee’s struggles with therules governing everyday conduct. Throughoutthe story, Avery is faced with different dilem-mas including using Government equipmentfor personal documents, accepting a gift froma subordinate and working on a project thatinvolves his outside employer. Avery findshimself caught between what he knows is theright thing to do and what may not be right butwould be more convenient or beneficial to him.Video is closed-captioned. Price: $3.10.
The Revolving DoorThis 20-minute video is a news show thataddresses the issues surrounding the seekingemployment and post-employment restrictionson executive branch employees. Throughoutthe show periodic updates are provided by a
Appendix II
Ethics Resource Materials
reporter covering a Congressional Hearing onCapitol Hill focused on one employee’s possibleviolation of the post-employment law. Video isclosed-captioned. Price: $3.10.
The following videos may be ordered throughthe National Technical Information Service,5285 Port Royal Road, Springfield, VA 22161.Telephone sales desk: 703-605-6000. A ship-ping fee will be added to all orders. The amountof the fee is determined by the total value ofyour order.
Integrity in Public Service: Earning thePublic’s TrustThis 20-minute video uses vignettes to brieflyoutline the statutes and regulations governingemployee conduct. An on-screen narratorprovides commentary on the vignettes to clarifyparticular points. It may be used either with aninstructor present or as a stand-alone trainingtool. Video is closed-captioned. Order number:AVA19802-VNB1. Price: $55.00.
Guide to the Standards of Ethical ConductThis 50-minute video is intended to be used asan aid for ethics officials in educating them-selves about the Standards of Ethical Conductfor Employees of the Executive Branch (Stan-dards). It is divided into three sections, each ofwhich summarizes the major provisions of aportion of the Standards. An accompanyingstudy guide contains a brief summary of eachsubpart and rule. Order number: PB93-780005.Price: $40.00.
An audio tape of the Guide to the Standardsof Ethical Conduct is also available. Ordernumber: PB93-781409. Price: $12.50.
The Ethical Choice: Ethics for SpecialGovernment EmployeesThis 20-minute video follows three SpecialGovernment Employees (SGE) through manyof the ethical hurdles they face in the courseof their Government service. While the videofocuses on SGEs, it also addresses many of therules applicable to all executive branch employ-ees. Video is closed-captioned. Order number:AVA19673-VNB1. Price: $45.00.
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Public Financial Disclosure: A Closer LookThis 15-minute video explores the need forhigh-level executive branch officials to file apublic financial disclosure report (SF 278) andemphasizes the importance of completing thereport accurately and completely. Video isclosed-captioned. Order number: AVA19788-VNB1. Price: $50.00.
The Ethics CD-ROM
The Ethics CD-ROM may be ordered throughthe Government Printing Office (GPO), Super-intendent of Documents’ order line at 202-512-1800, or by accessing the GPO Web site atwww.access.gpo.gov/su_docs/sale/sale330.html.
NOTE: The Ethics CD-ROM is publishedbiannually in January and July. Each subsequentissue contains all information from previousissues and incorporates new material availablesince the last publication date.
The Ethics CD-ROMThis is a multimedia searchable collection ofFederal executive branch ethics laws, Executiveorders, regulations, advisory opinions, policymemoranda (DAEOgrams), Federal Registernotices, and ethics program administration aids.It includes the Office of Government Ethics’(OGE) publications: A Brief Wrap on Ethics,Take the High Road, Do It Right, the public andconfidential financial disclosure review guidesand the new OGE pamphlets.
This CD-ROM previews sample video andaudio clips from each of the OGE ethics videos:Ethics Inquiry; The Battle for Avery Mann; TheRevolving Door; The Ethical Choice: Ethics forSpecial Government Employees; Public Finan-cial Disclosure: A Closer Look; Integrity inPublic Service: Earning the Public’s Trust; andGuide to the Standards of Ethical Conduct forEmployees of the Executive Branch. Each videoclip lasts three to four minutes and includescomplete ordering and pricing information.
Although the CD-ROM is capable of runningon either a DOS- or Windows-based personalcomputer (PC), a Windows-based PC with asound card is necessary to view the video clips.Price: $49.00 for annual subscription (twoissues).
Interactive Computer EthicsTraining
This ethics game can be downloaded from theOGE Web site at www.usoge.gov. You mayalso obtain a copy from the OGE Ethics Infor-mation Center by contacting Tonda King at202-208-8000, extension 1229. The game canbe distributed and installed on an unlimitednumber of computers in any agency.
Gameshow.P.A.L.®This ethics game is the first in a series of newinteractive computerized ethics training gamesavailable from OGE. This game consists of 25ethics questions based on an overview of theethics regulations and statutes. The questionsare presented in Jeopardy®-style format andintended to challenge the player’s thinking.Players can compete against themselves orother players at a computer workstation. Thegame is preset at 20 minutes for a single roundand includes a bonus and a final question. Arunning tally is kept of the score as players gainor lose points with their answers. There is nolimit to the number of times that an employeemay play the game.
Reference Publications
These OGE reference publications are availablein Adobe Acrobat’s PDF file format from TheEthics CD-ROM or the OGE Web site atwww.usoge.gov.
Standards of Ethical Conduct forEmployees of the Executive BranchThis booklet presents the Standards in an easy-to-read format and incorporates all amendmentsthrough September 17, 1997.
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Standards of Ethical Conduct forEmployees of the Executive BranchThis booklet is also available in Spanish butdoes not incorporate amendments throughSeptember 17, 1997. The amendments areavailable in Spanish as a separate document.
Informal Advisory Letters and Memorandaand Formal Opinions of the U.S. Office ofGovernment Ethics 1979-1988A complete collection of all OGE opinionsissued between 1979 and 1988.
Supplement to the Informal AdvisoryLetters and Memoranda and FormalOpinions of the U.S. Office of GovernmentEthics 1989A complete collection of all OGE opinionsissued in 1989.
Supplement to the Informal Advisory Lettersand Memoranda and Formal Opinions of theU.S. Office of Government Ethics 1990Includes all OGE opinions issued in 1990 aswell as an index to the 1990 opinions.
Supplement to the Informal Advisory Lettersand Memoranda and Formal Opinions of theU.S. Office of Government Ethics 1991-1992Includes OGE guidance issued in 1991 and1992, a new index for the guidance issued from1990 through 1992, and a corrected version ofthe index for the guidance issued from 1979through 1989.
Supplement to the Informal Advisory Lettersand Memoranda and Formal Opinions of theU.S. Office of Government Ethics 1993Includes OGE guidance issued in 1993 and anew index for the guidance issued from 1990through 1993.
Supplement to the Informal Advisory Lettersand Memoranda and Formal Opinions of theU.S. Office of Government Ethics 1994Includes OGE guidance issued in 1994, anew index for the guidance issued from 1990through 1994, and labels for the first twovolumes of OGE guidance.
Supplement to the Informal Advisory Lettersand Memoranda and Formal Opinions of theU.S. Office of Government Ethics 1995Includes OGE guidance issued in 1995, and anew index for the guidance issued from 1990through 1995. Printed copies are still currentlyavailable and may be ordered through theGovernment Printing Office (GPO), Superinten-dent of Documents’ order line, 202-512-1800.Stock number: 052-003-01462-9.Price: $6.50.
Public Financial Disclosure: A Reviewer’sReferenceThis is a loose-leaf 300-page reference manualfor reviewers of Standard Form 278. It containsan introduction to the public financial disclo-sure system, the procedures and mechanics ofreview and conflict resolution, summaries ofapplicable ethics laws and regulations, sampleSF 278 entries, model letters and documentsrelated to the review process, and case studies.Printed copies are still currently available andmay be ordered through the GovernmentPrinting Office (GPO), Superintendent ofDocuments’ order line, 202-512-1800. Stocknumber: 052-003-01458-1. Price: $26.00.
OGE Form 450: A Review GuideThis bound 60-page reference guide is designedfor anyone who reviews the OGE Form 450 oradministers agency confidential financialdisclosure systems. The guide presents anoverview of the confidential financial disclosuresystem and the specific requirements of theOGE Form 450. The guide includes appropri-ate reference materials and guidance on con-ducting effective reviews.
Booklets
These booklets are provided in Adobe Acrobat’sPDF file format and are available on TheEthics CD-ROM or the OGE Web site atwww.usoge.gov. Printed copies of the bookletsare still currently available and may be orderedthrough the Government Printing Office(GPO), Superintendent of Documents’ orderline, 202-512-1800.
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Do It RightThis 35-page booklet provides a detailedsummary of the conflict of interest statutes andthe standards of ethical conduct as they applyto executive branch employees. The bookletuses examples to promote reader comprehen-sion. Stock number: 052-003-01359-2.Price: $3.25.
Take the High RoadThis 22-page booklet provides an intermediatelevel summary of the ethics laws and regula-tions. It uses a question-and-response format,as well as examples, to help the readerunderstand the material. Stock number:052-003-01355-0. Price: $3.00.
A Brief Wrap on EthicsThis 20-page booklet provides an easy-to-read,anecdotal treatment of some of the basic ethicslaws and regulations. It uses simple examplesto facilitate reader understanding. Stocknumber: 052-003-01401-7. Price: $2.00.
Pamphlets
These pamphlets are provided in AdobeAcrobat’s PDF file format and are available onThe Ethics CD-ROM or the OGE Web site atwww.usoge.gov. If you would like a camera-ready copy of these pamphlets, please contactSonya Hall at 202-208-8000, extension 1138 orAngelique Ewell, extension 1111.
Conflicts of Interest and GovernmentEmploymentThis pamphlet provides a short discussionof the basic conflict of interest laws andregulations and focuses on the exemptions to18 U.S.C. § 208 recently published by OGEat 5 C.F.R. part 2640.
Gifts of Travel and Other BenefitsThis pamphlet provides a simple comparativechart that will be useful in analyzing keyauthorities available for accepting gifts oftravel in connection with official duties.
Rules for the RoadThis pamphlet provides brief summaries of18 U.S.C. § 207, 18 U.S.C. § 203 and the new“procurement integrity” law, and alerts employ-ees to some other possible sources of post-employment restrictions.
U.S. Office of Government EthicsThis pamphlet provides a brief description ofthe history, structure and responsibilities of theU.S. Office of Government Ethics.
Posters
Posters may be ordered by contacting theUNICOR Federal Prison Industries CustomerService Center at 1-800-827-3168 or by sendingan SF 1 or purchase order to Danny Faulconer,Graphics Coordinator, Graphics Order Process-ing, Customer Service Center, P.O. Box 13640,Lexington, KY 40583-3640. If using theGovernment IMPAC credit card, please call1-800-827-3168.
Posters are sold ONLY in increments of 10.Please specify by name which poster youare ordering. Estimate shipping costs to beapproximately 15 percent of the total order.
Both posters are two-color on white coated textstock.
Code of EthicsThis 12x16 inch poster, lists the 14 points of theStandards of Conduct. Order number:QSFPI0110. Price: $31.50 for 10 posters.
Ethics is the Cornerstone of GovernmentServiceThis 10x14 inch poster, symbolizes strengththrough ethics, and contains an allocated spacefor your agency to add the name and phonenumber of its Designated Agency EthicsOfficial. Order number: QSFPI1011.Price: $26.50 for 10 posters.
46Appendix III
References
August 1990 - present Mr. Stephen D. Potts**
November 1989 - July 1990 Mr. Donald E. Campbell (acting)
December 1987 - October 1989 Judge Frank Q. Nebeker
August 1987 - December 1987 Mr. Donald E. Campbell (acting)
August 1983 - August 1987 Mr. David H. Martin
August 1982 - August 1983 Mr. David R. Scott (acting)
October 1979 - August 1982 Mr. J. Jackson Walter
January 1979 - October 1979 Mr. Bernard Wruble (interim)
Current and Past OGE Directors*
*Directors appointed after October 1,1983 receive a five-year appointment(Pub. L. 98-150).
**Mr. Potts’ first term expired August 5,1995. He was renominated by PresidentClinton and confirmed by the Senate.His appointment to a second five-yearterm was effective August 14, 1995.
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October 26, 1978 Enactment of Ethics in Government Act(Pub. L. No. 95-521)Established the Office of Government Ethics as a part of theOffice of Personnel Management, effective as of January 1, 1979.
June 13, 1979 Ethics in Government Act of 1978, Amendment(Pub. L. No. 96-19) Amended certain financial disclosure provisions promptedby problems encountered in the administration of thedisclosure system in each branch of Government.
June 22, 1982 Ethics in Government Act Amendments of 1982(Pub. L. No. 96-28)Made substantial changes in the restrictions on formerGovernment officials from representing others in certain mattersbefore the agencies in which they served.
November 11, 1983 Ethics in Government Act of 1978, Amendment(Pub. L. No. 98-150)Extended the authorization of OGE until September 30, 1988,amended and clarified the authority of OGE and amendedcertain financial disclosure provisions of the 1978 Act.
November 3, 1988 Office of Government Ethics, Reauthorization(Pub. L. No. 100-598)OGE is reauthorized and made a separate agency effectiveOctober 1, 1989.
November 30, 1989 Ethics Reform Act (Pub. L. No. 101-194).Amended for technical corrections on May 4, 1990(Pub. L. No. 101-280)
July 16, 1990 Ethics in Government Act Amendment of 1990(Pub. L. No. 101-334)Increased the appropriations cap to $5 million.
October 24, 1992 Office of Government Ethics Amendment of 1992(Pub. L. No. 102-506)Removed appropriations cap.
August 6, 1996 Office of Government Ethics, Reauthorization(Pub. L. No. 104 -179)OGE is reauthorized for three years and provided gift acceptanceauthority for the Office
Key Legislative Dates
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Citations to Statutes, Regulations and Executive Ordersin which OGE has an interpretative or other role
Statutes, Regulations and Executive Orders in which OGEhas an interpretative or other role:
■ 5 U.S.C. app. §§ 101 et seq. (Title I of the Ethics in Government Act, as amended) Public financial disclosure requirements
■ 5 U.S.C. app. §§ 401 et seq. (Title IV of the Ethics in Government Act, as amended) Office of Government Ethics
■ 5 U.S.C. app. §§ 501 and 502 Outside earned income limitation, honoraria prohibition and outside employment limitations
■ 5 U.S.C. § 7351 Prohibition against gifts to superiors
■ 5 U.S.C. § 7353 Prohibition against solicitation or receipt of gifts
Criminal Conflict of Interest Statutes (ch. 11 of Title 18,United States Code)
■ Section 203 Prohibition against seeking or receiving compensation for certain representational services before Government
■ Section 205 Prohibition against assisting in the prosecution of claims against the Government or acting as an agent or attorney for others before the Government
■ Section 207 Post-employment restrictions
■ Section 208 Conflicting financial interest restrictions
■ Section 209 Prohibition against supplementation of Government salary as compensation for Government services
■ 26 U.S.C. § 1043 Sale of property to comply with conflict of interest requirements
■ 28 U.S.C. § 594(j) Independent Counsel restrictions
■ 31 U.S.C. § 1353 Acceptance of travel and related expenses from non-Federal sources
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Regulations issued by or assisted in by OGE:
■ 5 C.F.R. part 2634 Financial Disclosure, Blind Trusts and Certificates of Divestiture
■ 5 C.F.R. part 2635 Standards of Ethical Conduct for Executive Branch Employees
■ 5 C.F.R. part 2636 Limitations on Outside Employment and Outside Earned Income and Prohibition of Honoraria
■ 5 C.F.R. part 2637 Post-employment pre-1/1/91
■ 5 C.F.R. part 2638 Office of Government Ethics
■ 5 C.F.R. part 2640 Interpretation, Exemptions and Waiver Guidance Concerning 18 U.S.C. 208 (Acts Affecting a Personal Financial Interest)
■ 5 C.F.R. part 2641 Post-employment After 1/1/91
■ 5 C.F.R. Chapters XXI Agency Supplemental Standards of conduct to LXXVI
■ 41 C.F.R. part 304-1 Travel Payments from Non–Federal Sources
■ 48 C.F.R. part 3 Procurement Integrity
Executive Orders in which OGE has a role:
■ E.O. 12674, as modified Directs OGE to establish a single, comprehensive, and clear by E.O. 12731* set of Executive Branch Standards of Conduct
■ E.O. 12834 Clinton Administration post-employment pledge
*The Fourteen Principles of Ethical Conduct for Executive Branch Employees printed onpage 50 are taken from this Order.
50
(9) Employees shall protect and conserveFederal property and shall not use it for otherthan authorized activities.
(10) Employees shall not engage in outsideemployment or activities, including seeking ornegotiating for employment, that conflict withofficial Government duties and responsibilities.
(11) Employees shall disclose waste, fraud,abuse, and corruption to appropriate authorities.
(12) Employees shall satisfy in good faith theirobligations as citizens, including all financialobligations, especially those -- such as Federal,State, or local taxes -- that are imposed by law.
(13) Employees shall adhere to all lawsand regulations that provide equal opportunityfor all Americans regardless of race, color,religion, sex, national origin, age, or handicap.
(14) Employees shall endeavor to avoid anyactions creating the appearance that they areviolating the law or the ethical standards setforth in the Standards of Ethical Conduct.Whether particular circumstances create anappearance that the law or these standardshave been violated shall be determined fromthe perspective of a reasonable person withknowledge of the relevant facts.
Fourteen Principles of Ethical Conduct forExecutive Branch Employees
(1) Public service is a public trust, requiringemployees to place loyalty to the Constitution,the laws and ethical principles above privategain.
(2) Employees shall not hold financial intereststhat conflict with the conscientious perfor-mance of duty.
(3) Employees shall not engage in financialtransactions using nonpublic Governmentinformation or allow the improper use of suchinformation to further any private interest.
(4) An employee shall not, except as permittedby the Standards of Ethical Conduct, solicit oraccept any gift or other item of monetary valuefrom any person or entity seeking officialaction from, doing business with, or conduct-ing activities regulated by the employee’sagency, or whose interests may be substantiallyaffected by the performance or nonperfor-mance of the employee’s duties.
(5) Employees shall put forth honest effort inthe performance of their duties.
(6) Employees shall not knowingly makeunauthorized commitments or promises ofany kind purporting to bind the Government.
(7) Employees shall not use public office forprivate gain.
(8) Employees shall act impartially and notgive preferential treatment to any privateorganization or individual.
51
Mission Statement, Goals & Objectives
Mission
The Office of Government Ethics exer-cises leadership in the executive branchto prevent conflicts of interest on the
part of Government employees, and to resolvethose conflicts of interest that do occur. Inpartnership with executive branch agencies anddepartments, we foster high ethical standardsfor employees and strengthen the public’sconfidence that the Government’s business isconducted with impartiality and integrity.
Goals and Objectives
Goal I.OGE will provide overall policy direction to theexecutive branch ethics program.
Objective 1.Develop, evaluate, and promote ethics policiesfor employee conduct that protect executivebranch processes from conflicts of interest, aswell as from appearances of conflicts of inter-est. Ensure that these policies are consistent,reasonable, and understandable to employees.
Objective 2.Serve as the primary authoritative source ofFederal executive branch ethics policy.
Objective 3.Solicit the advice of agency ethics officials inpolicy-making processes.
Goal II.OGE will support the President, executivebranch agency heads and employees inadministering effective, fair, and consistentethics programs within the branch and indi-vidual agencies.
Objective 1.Provide evaluations of agency ethics programsto agency heads and ethics officials whichidentify strengths and weaknesses of theprogram. Make specific recommendations forprogram enhancement designed to help ensureintegrity in Government operations.
Objective 2.Provide timely and accurate written and oralopinions and be available for informal consulta-tions concerning matters involving the applica-tion of the standards of ethical conduct, criminalconflict of interest statutes, and other relatedstatutes and regulations.
Objective 3.Provide technical assistance to agencies in orderto implement well-run and employee-helpfulagency ethics programs.
Objective 4.Provide expert review and conflict of interestanalysis of the new, annual and terminationfinancial disclosure reports filed by Presidential
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appointees requiring Senate confirmation toassist agencies in providing appropriate adviceon and taking appropriate actions to preventfinancial conflicts of interest by those appoin-tees. Evaluate follow-up by agencies andofficials regarding ethics commitments madeby nominees during the confirmation process.
Objective 5.Promote the importance of the ethics programto department and agency heads and otherGovernment officials in order to secure personalcommitment and sufficient agency resources.
Goal III.OGE will develop and make available toagencies innovative training and ethics educa-tion materials and promote and provide qualityeducation and training experiences for agencyethics officials and employees.
Objective 1.Provide quality education and training coursesfor agency ethics officials.
Objective 2.Provide accurate, consistent, beneficial andcost effective materials for agencies to use intheir ethics education and training programsfor employees.
Objective 3.Create opportunities for inter-agency educa-tional programs to disseminate information andencourage the sharing of ideas and knowledge.
Goal IV.OGE will administer an effective outreachprogram.
Objective 1.Foster a greater appreciation on the part of thepublic and future employees of the fact thatthere is a strong ethics program for employeesof the executive branch and that standards areenforced.
Objective 2.Share the programmatic and policy develop-ment experiences of OGE with other govern-ments, non-profits, corporations, professionaland trade associations and institutions ofhigher education who are pursuing the devel-opment or enhancement of their own educa-tional or ethics programs.
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