Legal Office Standing Operating Procedure (SOP) for ...
Legal Office Standing Operating Procedure (SOP) for Electronically Filing (Efiling) & Managing Office of Government Ethics (OGE)
Form 450, Confidential Financial Disclosure Reports
(Revised December 2011 to add links to OGE’s updated Ethics site, , updates para 2l, adds para 2r, and adds an Army “stop-go” who files aide to Enclosure 4)
[Introduction.
This is a template for legal office use to electronically file (eFile) and manage the OGE Form 450, Confidential Financial Disclosure Report. It sets forth one way to migrate from paper-based filing and processing to the Army’s secure online eFiling system, Financial Disclosure Management (FDM), . Army policy established eFiling using FDM as the normal way to process OGE 450s for Army personnel with a Common Access Card (CAC) and/or registered on Army Knowledge Online (AKO). Promptly register Army OGE Form 450 Filers in FDM in time to file their report. FDM preserves the confidentiality of the report by limiting access to individuals in the Filer’s report review chain or associated with a Filer.
In subsequent years of use FDM users will see improved report accuracy and efficiency in the report process and save time. Reviewers will also save time using FDM’s report comparison tool (available when a Filer has two reports in FDM.)
FDM supports the DoD transformation of enterprise management and a specific DoD priority: “Improve Effectiveness and Efficiency Across the Board.” In January 2009 the Deputy Secretary of Defense designated Army as Executive Agent to fund and operate FDM for DoD-wide use. FDM is currently in use in OSD, JCS, the Air Force, Navy, Air National Guard, DISA, the Office of Government Ethics, and the Department of Veterans Affairs, among others. In 2009 the Department of Homeland Security and the Federal Bureau of Investigation signed on to begin using FDM.
In September 2011, the Office of Government Ethics presented the Army a plaque for Innovation & Excellence recognizing FDM and awarded a ribbon to FDM for Best eFiling System.
In this SOP template text in brackets [Office name] indicates suggestions for local substitution or deletion. Further local tailoring may be appropriate. Please send any comments or suggestions for improving this SOP to the FDM webmaster: FDMwebmaster2@conus.army.mil.]
1. Purpose.
This SOP establishes [legal office installation / location] procedures for using Financial Disclosure Management (FDM) to electronically file, review, and process the OGE Form 450, Confidential Financial Disclosure Report (CFDR), at [location] and for organizations the [SJA/legal office, location] supports.
2. References. [add others as appropriate, e.g., MACOM Ethics Regulation]
a. 5 C.F.R. 2634, Executive Branch Financial Disclosure, Qualified Trusts, and Certificates of Divestiture, Subpart I - Confidential Financial Disclosure Reports, §§ 901 to 909, .
b. OGE DAEOgram DO-06-036, Subj: Revised Confidential Financial Disclosure Regulation and OGE Form 450, December 12, 2006,
.
c. OGE’s Completing the OGE 450, for both new and experienced Filers: .
d. OGE 450 Frequently Asked Questions (FAQ) for Filers, , and FAQs for Ethics Officials, .
e. DoD 5500.7-R, Joint Ethics Regulation (JER) 7-300 to 7-310, .
f. DoD SOCO Advisory Number 07-02 January 12, 2007, Special Edition Concerning the New OGE Form 450, .
g. DoD General Counsel’s Memorandum, Subj: Superseding of Certain Sections of Chapter 7 of DoDD 5500.7-R, the Joint Ethics Regulation, Aug 1, 2006 (), its enclosure listing the OGE regulations and superseded JER sections (), the page-by-page listing of affected JER sections (), and program guidance ().
h. Army General Counsel Deputy Designated Ethics Officials (DAEOs) & Appointments – check the OGC web site, , Appointments & Delegations section.
i. FDM 450 Tracking Spreadsheet (available in the FDM Resources area, ). This spreadsheet helps local legal offices manage Filers and identify organization Points of Contact who assist with Filer registration/management in FDM.) Also check the FDM 450 User Guide (updated annually and available in the FDM Resources area, ). You may want to have an organization chart or wiring diagram available too.
j. Ethics Counselor Course materials on Financial Disclosures available online at .
k. SECARMY Memorandum of Oct. 11, 2001, Subj: Exclusion from OGE Form 450 Filing Requirement, .
l. DAEO Memorandum, Subject: Exclusion of Members of the Reserve Component from Filing the Confidential Financial Disclosure Report (Dec 9, 2011) (excluded all Army Reserve Component personnel (officer and enlisted) from filing the OGE 450 unless a supervisor requires the filing under 5 C.F.R. § 2634.904(a)(1)(i).)
m. OGE DAEOgram DO-00-030, Diversified and Sector Mutual Funds, Aug 25, 2000, available on FDM Resources, (Aug%202000).pdf.
n. DoD Contractors list (updated annually), available in DoD SOCO Ethics Library, .
o. Useful Ethics-Related web sites (see Enclosure 1).
p. OGE DAEOgram DO-05-019, Documenting Ethics Advice, . (Consider FDM’s Comment and Attachment features when documenting ethics advice on specific financial disclosure reports.)
q. The FDM Learning Center has narrated tutorials on managing org units and
Filers: , Quick References, and the FDM User Guide, .
r. The FDM 450 Certifier Quick Start, , including links to the FDM 450 Best Practices, , 450 Certifier Frequent Task How to Guide: , Using FDM 450 slides, , and narrated recording, .
3. General.
a. OGE created the Confidential Financial Disclosure Report, OGE Form 450, by regulation to mirror the statutory Public Financial Disclosure Report (SF 278). The goal of the program is to ensure that employees avoid situations that could violate ethics laws and rules and undermine the public’s trust in government. The OGE government-wide regulations, Executive Branch Financial Disclosure, 5 C.F.R. Part 2634 ( ), require all agencies to determine if the duties and responsibilities of an employee's position require the filing of a Confidential Financial Disclosure Report, OGE Form 450, to avoid a real or apparent conflict of interest. Agencies must also decide if filing is required to carry out the purposes behind any statute, Executive Order, rule, or regulation applicable to or administered by that employee. The Department of Defense (DoD) supplemented the regulation with the "Joint Ethics Regulation” (JER), DoD 5500.7-R (reference 2e). Based on both regulations, DoD supervisors must annually review the position description of each person under their immediate supervision to determine whether the incumbent must file the OGE Form 450. Individuals in certain positions in DoD must file because they occupy “covered positions” UP JER 7-300a. (See Enclosure 4 for an Army stop-go aide on who files an OGE 450.)
b. The confidential financial disclosure report (CFDR) program applies to employees below the level of general officer/SES. The report helps to provide early notice of potential conflicts of interest (18 U.S.C. 208, 5 C.F.R. 2635.402 and 502, and 5 C.F.R. 2640) between official duties and private financial interests or affiliations.
c. Ethics Counselors (ECs) administer and manage financial disclosure reporting at [location]. They must identify, with assistance from personnel offices and/or Administrative Officers, new employees who have to file. By working with organization Points of Contact (PoC), they inform Filers (or supervisors) of the initial and annual filing requirements. ECs typically register the supported organizations and the PoCs in FDM. The PoCs may then manage their organization Filers and Supervisors in FDM.
d. Ethics training.
(1) Deputy DAEOs are responsible for developing a written plan for annual ethics training (see reference 2h, 5. C.F.R. 2638.706 and JER 11-302).
(2) OGE Form 450 Filers must receive/complete annual ethics training each year. IAW reference 2h, OGE 450 Filers supported by [legal office installation / location] receive/complete annual ethics training as follows: [describe method(s)].
(3) [Indicate how your office will manage Filer ethics training.] FDM includes an optional Ethics Training tool (Ethics Training tab) to notify and manage ethics training for FDM-registered Filers. View the Ethics Training tutorial, , and/or scan the Quick Reference: .
Special Note: View/print/save ethics training information recorded in FDM before the year end to preserve Filer training records. FDM resets all Filers as untrained on 1 Jan annually.
4. Responsibilities.
a. The Army General Counsel, the Army Designated Agency Ethics Official (DAEO), approved use of the Army’s online eFiling system, Financial Disclosure Management (FDM) () as the method to process OGE 450s.
b. The Army General Counsel designated several Deputy DAEOs including The Judge Advocate General, the Assistant Judge Advocate General, the Chief Counsel, US. Army Corps of Engineers, the Command Counsel, US Army Materiel Command, and Chief, Standards of Conduct Office (reference 2h). The designation included delegation of responsibility to oversee the financial disclosure reporting process and annual Ethics Training for the DDAEO’s organization(s). The DDAEOs are authorized to designate Ethics Counselors to certify the OGE 450 (reference 2h, para 3).
c. The [appropriate DDAEO, e.g., TJAG] appointed the [Staff Judge Advocate/other] as an Ethics Counselor with responsibility for certifying OGE 450s for Filers at [installation and/or supported organization location] (see Enclosure 2).
d. The [Staff Judge Advocate (SJA), installation / location] appointed [an] Ethic Counselor(s) (Enclosure 3) to manage and approve the timely filing of the OGE Form 450s required for personnel [at location or of organizations supported by this legal office].
e. UP JER 7-300 (reference 2e), personnel office directors and organization administrative officers are responsible for identifying positions requiring filing of an OGE 450 and providing the name(s) of Filers to Ethic Counselors. They should annotate the position description to reflect the filing determination. Directors of personnel offices must notify Ethic Counselors of a covered employee’s name, position, organization and entrance-on-duty date, immediately upon appointment (see JER 7-301(a)(1), reference 2e). Supervisors may use the supervisor’s determination form (Enclosure 6) to notify Ethic Counselors.
f. The appointed Ethics Counselor(s) and assistants will contact and coordinate with local personnel offices and supported organizations to identify OGE 450 Filers and supervisors. Organizations with more than [ten] OGE 450 Filers will appoint an organization Point of Contact (PoC) to coordinate and report the Filers’ and Supervisors’ names to [the legal office OGE 450 PoC]. Filers, Supervisors, and report certifying authorities must be registered in FDM before a report may be filed (see reference 2i).
g. Supervisors of OGE 450 Filers must:
(1) annually review positions to determine if the incumbent should file the OGE 450 (JER 7- 305) (see Enclosures 4 and 5) unless the position is a “covered position” UP JER 7-300a.
(2) review the report online in FDM. (a Quick Reference Card: Reviewing an OGE 450 can be found at the FDM Learning Center | Documentation area, ).
h. Filers are responsible for timely filing (i.e., within 30 days of learning the Filer is in a position requiring such filing or annually by 15 February).
i. Appointed Ethics Counselors (ECs) must conduct a preliminary technical review (see para 6c(1) below) within 60 days of the filing date. FDM requires Filers to “clear” any red flags (missing required information) before the Filer may eSign/submit the report. FDMs’ yellow flags call a reviewer’s attention to items that may need closer attention and analysis. ECs may use FDM’s flagging system to check reported information quickly. Thereafter, ECs serving as a “450 Certifier” should obtain answers to any questions, conduct the conflict of interest review, and then certify (eSign) the report (Complete status).
j. Special Government Employees (SGEs). SGEs normally file before assuming duties. Although the review time is still 60 days, the supervisor’s and EC’s review should be conducted as soon as possible to realize the benefit of requiring filing prior to assuming duties. SGEs also file new entrant reports on their anniversary or reappointment date (see JER 7-303(a)(2)).
5. Timeline.
a. Annual Reports. (Filing not required: Employees who start in a covered position between November 2nd and December 31st do not need to file an annual report by February 15th the following year because they must work over 60 days in the reporting period (1 January – 31 December) before an annual report is required. The employee would need to file a timely New Entrant report – see below.) These are [suggested] action dates for managing annual reports/Filers. [Revise as appropriate for your location.]
(1) NLT 15 October: Prepare “who files” advisory and request for Filer information. Enclosure 4 is guidance on identifying Filers. Enclosures 4 and 5 may be helpful for determining who files an annual OGE 450. Enclosure 6 is a sample supervisor decision on filing.
(2) NLT 31 October: Send information request to commanders/organization directors/personnel directors/administrative officers to identify organization Filers and supervisors, and [update FDM or report their names NLT 30 November].
(3) NLT 1 December: Review information received to confirm all named should file. Register in FDM all named Filers and supervisors not already registered.
(4) NLT 28 December: Register/verify Filers and supervisors are registered in FDM. Register those that need to be added. (Go to FDM’s Learning Center | Documentation area, , for Quick Reference Cards on step by step process.) Within the Army, FDM assigns Annual reports to those Filers registered before the end of the year unless the Filer has a New Entrant report in FDM with an appointment date of 2 November (or later) or has filed indicating the Filer is a Special Government Employee (SGEs). SGEs file New Entrant reports annually. Those have to be individually assigned.
(5) In early January: Using FDM’s Remind Filers tool (My Reviews | Remind Filers tab) notify registered annual Filers of the requirement to file and the due date (15 February). Consider mentioning how to request an extension if needed. Note: Upon written request Filers in a Combat Zone (CZ) on 15 February, the annual report due date, may have 90 days after last day in CZ to file (see 5 USC 2634.903(d)(2)) (). This is part of the extension provision for “Certain service during period of national emergency: available to “an active duty military officer or enlisted member of the Armed Forces, a Reserve or National Guard member on active duty under orders issued pursuant to title 10 or title 32 of the United States Code, a commissioned officer of the Uniformed Services (as defined in 10 U.S.C. 101), or any other employee, who is deployed or sent to a combat zone or required to perform services away from his permanent duty station in support of the Armed Forces or other governmental entities following a declaration by the President of a national emergency.“
(6) NLT 1 February: Monitor OGE 450s being prepared/eSigned in FDM (My Reviews | Review Reports or My Reviews | Manage Exceptions tab). Monitor Supervisor reviews; alert Supervisors to review those reports Filers have eSigned. (Use FDM’s Remind Supervisor tool (My Reviews | Remind Supervisors tab) or Enclosure 7 is sample text for an email to a Supervisor to review an OGE 450).
(7) NLT 15 February: Receive and manage Filer requests for extensions. Extensions may be granted for up to 60 days for good cause (e.g., extended TDY, pressing duty assignments, illness). (More information on this FDM feature is in the FDM Learning Center Documentation, or in the FDM Extensions document, .)
(8) 16 February: Send first late notice to delinquent Filers (Enclosure 8 is a sample) or use My Reviews | Remind Filers tab, Find Filers who are late option.
(9) NLT 1 March: Send second late notice (see Enclosure 9) to remaining delinquent Filers and supervisors. Repeat [every two weeks] until no remaining delinquent Filers. Elevate to senior legal advisor to raise with organization leadership as necessary.
(10) 2 March: Report delinquent annual OGE 450 Filers by name and organization to the SJA (see paragraph 7 below). Additional reports of delinquent Filers may also be required by Deputy DAEOs.
(11) NLT 16 April: complete preliminary technical review (see para 6c(1) below) of the OGE 450 for possible conflict of interests. (Enclosure 10 is a review checklist.)
b. New Entrant (NE) Reports. Register new entrant Filer and supervisor in FDM as soon as known.
(1) NE must file within 30 days of assuming position or Supervisor determining position requires an OGE 450.
(2) Supervisors and Ethic Counselors must review within 60 days from the date of filing (Filer eSigns in FDM).
(3) Ethics Counselors (ECs) may grant an extension up to 90 days (see JER 7-303(c)). (Check your appointment as an Ethics Counselor to see your specific authority.)
(4) Send reminder “requirement to file” notice 10 days after NE assumed duties (if NE has not eFiled).
(5) Send second reminder notice 20 days after NE assumed duty with courtesy copy to the supervisor (if necessary).
(6) Follow up with supervisor weekly until the delinquent employee files (if necessary).
(7) Report delinquent NE OGE 450 Filers by name and organization to the SJA beginning when the NE report is over [30] days late (see paragraph 7 below).
c. Using FDM to manage OGE Form 450s. Migrating to online filing of the OGE 450 is an excellent time to carefully scrutinize the list of who files. Enclosure 11, Understanding & Using FDM Organization Units, discusses the administrative set up required to build FDM organizational groupings of filers for each reviewing supervisor. Each OGE 450 Filer must be registered in FDM with a Supervisor and a 450 Certifier (approval authority).
6. Reviewing OGE 450 Reports.
a. Purposes:
(1) Assist employees to avoid conflicts of interest and protect the agency by giving agency representatives a chance to deal with conflicts of interest internally instead of publicly.
(2) Certification of reports. Agency review entails a technical review, a conflict of interest analysis of reported financial interests compared to the employee’s duties, and if necessary a recommendation of remedies to resolve a conflict, and certification or approval of the report.
b. Preparing to review an OGE 450. Generally ECs should be familiar with the OGE Form 450, its instructions, the references in paragraph 2, conflict of interest statutes (18 USC §§ 201 – 209), the financial disclosure regulation (5 CFR Part 2634), the standards of conduct regulations (5 CFR Part 2635 & the Joint Ethics Regulation), and the agency lists of contractors (reference 2m for DoD).
c. Review (see JER 7-306b).
(1) Technical Review – Ensure the Filer has completed the report accurately and completely. FDM includes flags to help Filers provide complete information. ECs or paralegals review the report to ensure required information is complete and the Filer timely filed (eSigned on or before the due date). See Enclosure 10 for a suggested “technical” review checklist. Use FDM’s “End Initial Review” feature on a report’s Review Status screen to record completion of the technical review on reports that you will not complete within 60 days of Filer’s submission.
(2) Conflict of Interest Analysis – This analysis is the basis for determining that the Filer is complying with the conflict of interest statutes and standards of conduct. See Enclosure 10 for issues corresponding to different areas of the report.
(a) Conflict of Interest Statutes Summary Chart:
|18 USC §§ |An employee must not . . . |
|201 |Seek, receive, or agree to accept anything of value for himself or others in return for: being influenced in an |
| |official act; being influenced to aid in the commission of a fraud on the US; or being induced to do or omit any act in|
| |violation of his official duties |
|203 |Seek or accept compensation for representing another before a federal department, agency, or court in matters where the|
| |US is a party or has a substantial interest; or receive money for anyone else’s representation |
|205 |Prosecute or assist in the prosecution of claims against the US; or represent another before a Federal department, |
| |agency, or court in matters where the US is a party or has a substantial interest, whether or not the employee is |
| |compensated |
|207 |Engage in certain representations, communications, aid, advisements, or appearances, with or without compensation, on |
| |behalf of persons or entities other that the US after leaving the government or certain high-level positions |
|208 |Participate personally and substantially in an official capacity in any particular matter that would have a direct and |
| |predictable effect on his own or his imputed financial interests |
|209 |Receive any salary or contribution to or supplementation of salary from any source other than the US as compensation |
| |for services as a government employee |
(b) 18 USC § 208 Implementing Regulation, 5 CFR Part 2640
|Subpart |Brief Summary |
|A – General Provisions |Describes the statutory prohibition of § 208(a), its purpose, scope and interpretation, and defines key terms used |
| |throughout part 2640 |
|B – Exemptions |Describes the financial interests OGE considers too remote or too inconsequential to affect the integrity of the |
| |services of the employees to whom the prohibition applies. Includes mutual funds, unit investment trusts, employee |
| |benefit plans, securities, and a variety of miscellaneous exemptions, and specific conditions that must be met for |
| |these exemptions to apply. |
|C – Waivers |Provides guidance to agencies on the factors to consider when issuing individual waivers under § 208(b)(1) or |
| |(b)(3). |
(c) 5 CFR Part 2635, Standards of Conduct, and the Joint Ethics Regulation
|Subpart |An employee must not . . . |
|A – General Provisions |Place private gain above loyalty to the Constitution, laws, and ethical principles. Nor, violate the 14 general |
| |principles of ethical conduct. |
|B – Gifts from Outside |Solicit or accept any gift given by a prohibited source or given because of his official position, unless the item |
|Sources |is excluded from the definition of a gift or falls within one of the exceptions in this subpart. |
|C – Gifts between |Give, donate to, or solicit contributions for a gift to an official superior nor accept a gift from an employee who|
|Employees |receives less pay, unless the item is excluded from the definition of a gift or falls within one of the exceptions |
| |in this subpart. |
|D- Conflicting Financial |Participate personally and substantially in any particular government matter that will affect his own financial |
|Interests |interest or those of certain other persons. Or, acquire or continue to hold financial interests specifically |
| |prohibited by his agency. |
|E – Impartiality in |Act on a matter if a reasonable person who knew the circumstances of the situation could legitimately question |
|Performing Official Duties|impartiality. |
|F – Seeking Other |Participate personally and substantially in any particular government matter that will affect the financial |
|Employment |interests of a person with whom he is seeking, negotiating for, or has any arrangement concerning prospective |
| |employment. |
|G – Misuse of Position |Use his government time, authority, information, and resources for: his own private gain; the endorsement of any |
| |product, service or enterprise; or the personal benefit of others. Nor may a supervisor use a subordinate’s time |
| |in this manner. |
|H – Outside Activities |Engage in outside employment or any outside activity that conflicts with his government job. Or, fail to adhere to|
| |restrictions: on outside earned income; service as an expert witness; compensation for teaching, speaking, or |
| |writing; and fundraising. |
(3) Compare the prior report (for Annual Filers). (FDM includes a “Compare” view when a Filer has two or more reports in FDM.)
(4) Verify that the Supervisor reviewed the report (required UP JER 7-306a).
(5) Accept the report at face value unless there is a patent omission or ambiguity or you have independent knowledge of matters outside the report (see JER 7-306(c)). See Enclosure 12 for a summary of reportable information.
(a) If additional information is required, notify the Filer of the additional information required and the date by which it must be submitted. Annotate the additional information in a comment to the report in FDM.
(b) If a substantial amount of information is missing or the Filer made significant errors requiring correction, direct the Filer to “amend” the report in FDM and add or correct the information. (FDM includes a “Request Filer Amend” action button.)
(6) Check the report type (determines which parts of the report are required (e.g., new entrants do not report gifts) and affects the period the report covers) and Filer’s duty position to determine the Filer’s official duties and whether the Filer deals with non-federal entities.
(7) Compare reported assets to the current version of the Contractor List (reference 2m, DoD). Review any list(s) of prohibited sources to determine potential conflicts of interest between official duties and the assets in question.
(8) If the employee reports or has assets of a non-Federal entity that does or seeks to do business with DoD, but that interest does not violate or appear to violate applicable conflict of interest rules, then the EC may issue a Memorandum of Caution to the employee (see JER 7-306(f) and Enclosure 13 for an example).
(9) If the EC thinks a violation of law or regulation exists, notify the Filer in writing of the preliminary determination and afford the employee an opportunity to respond (see JER 7-306(g)). If, after considering the Filer’s response, the EC still thinks there is a violation of law or regulation, notify the Filer in writing of the determination, allow the Filer an opportunity for personal consultation, determine what remedial action should be taken (see (10) Remedies, below), and notify the Filer in writing of the remedial action required, with a date of required compliance (normally 90 days from date of notification of required action). Notify the Supervisor of the Filer of the required remedial action and suspense date. (The most common type of remedial action is a disqualification statement or recusal.)
(10) Remedies: recommend one or more remedies to resolve a conflict of interest:
(a) Recusal – the Filer does not participate in the matter
(b) Waiver – 18 USC § 208 – permitted in government matters that would otherwise conflict with an employee’s financial interests, when certain conditions are met:
• (b)(1) waiver for circumstances where the employee’s interests are not so substantial as to be deemed likely to affect the integrity of the employee’s services to the government (see 5 CFR § 2640.301).
• (b)(3) waiver for circumstances where the need for the Federal advisory committee member’s services outweighs the potential for a conflict of interest created by the financial interest involved (see 5 CFR § 2640.302).
(c) Divestiture – the Filer sells the financial interest(s).
(d) Reassignment – the Filer avoids particular assignments, such as working on a particular contract, or transfers to a different section or subject area.
(e) Resignation – the Filer gives up his position in an outside organization or leaves his government position.
(f) Gift resolution – the Filer may choose one of the following options: return the gift, pay the market value, donate the gift to charity, destroy it, or share the gift within the office if it is perishable.
(11) When the report is complete and without conflicts, eSign and date the report. The EC should indicate compliance with any remedial measure(s) by adding a comment to the report.
7. Status Reports. Report delinquent annual OGE 450 Filers by name and organization to the SJA beginning [2 March]. Add delinquent new entrant Filers to the report when the new entrant is more than [30] days delinquent. [This information is included in the MACOM report to the DDAEO (see JER 7-309).]
8. Enclosures.
a. Enclosure 1: Useful Ethics-Related Web Sites
b. Enclosure 2: DDAEO Ethics Counselor Appointment
c. Enclosure 3: SJA Ethics Counselor Appointment
d. Enclosure 4: How to Identify OGE Form 450 Filers (includes an Army-oriented “Stop-Go” Who Files an OGE 450 and sample notice to Supervisors)
e. Enclosure 5: Information Paper, subj: Determining Annual Confidential Disclosure Filers
f. Enclosure 6: Supervisor’s Determination of Requirement to File OGE 450
g. Enclosure 7: Sample email to Supervisor, subj: Review OGE 450
h. Enclosure 8: Sample email to Filer, subj: Report is Late (1st notice)
i. Enclosure 9: Sample email to Filer, subj: Report is Late (2nd notice)
j. Enclosure 10: Conflict of Interest Analysis
k. Enclosure 11: Understanding & Using FDM Organization Units
l. Enclosure 12: Summary Chart: OGE 450 Contents & Report Type
m. Enclosure 13: Cautionary Notice to Filer with Financial Interests in DoD Contractors
n. Enclosure 14: Sample Notice of Disqualification
o. Enclosure 15: Supervisory review of SGEs OGE Form 450
p. Enclosure 16: Confidential Financial Disclosure Report System, Extract from OGE, Tips on Preparing for an Ethics Program Review (and for Administering a Well-Run Program)
[other enclosures]
9. POC: Point of Contact for this SOP is [?].
[SJA/GC Approving Official]
Enclosure 1
Useful Ethics Websites
Office of Government Ethics (OGE) web site:
The Ethics News and Information e-mail list service is OGE's primary medium for communicating with the ethics community. OGE uses the list to provide timely information to ethics officials about changes in ethics regulations, statutes, interpretations, guidance etc., as well as upcoming events such as the conference and ethics training. Sign up on OGE’s Legal Advisories page, .
DoD SOCO Advisories:
SOCO Advisory, similar to OGE’s list serve letter.
Army General Counsel Ethics & Fiscal site:
JAGCNet FDM & Financial Disclosure Report Discussion site: (login required)
AF ethics email service: email mark.stone@wpafb.af.mil and ask to be added to his email list AF Ethics Materials – eMails (see example below)
[pic]
Interagency Ethics Council site: . “This site is a project of the Interagency Ethics Council that supports the lawyers and other federal government employees who work in the area of standards of conduct for government employees, often referred to as "ethics" for government employees.
This site aims to perform this function by providing timely links to resources at official web sites like the Office of Government Ethics as well as news reports and other resources, including training materials prepared by members of the Interagency Ethics Council.”
Financial Interest Websites
Some Financial Disclosure Report reviewers use one or more of these web sites for researching financial interests. This list is informational only and not intended as an endorsement of these sites.
(tip: use "quotation" marks around names or phrases in site search tools)
Sources for researching individual companies:
• Altavista –
• Ask Jeeves –
• Dog Pile –
• Google –
• Hoovers –
• Yahoo Finance –
• Wikipedia –
• [individual company web pages]
Sources for researching mutual funds:
• –
• Google finance –
• Lipper –
• NASDAQ –
• New York Stock Exchange –
• TIAA-CREF –
• Yahoo Finance –
Government sources:
• SEC (generally) –
• EDGAR (SEC) –
• IRS –
529 – Education Savings Plans: 401 kid advisors inc -
Searching a Filer’s name for outside positions:
• Altavista –
• Ask Jeeves –
• Dog Pile –
• Google –
• Yahoo –
• Wikipedia –
Information about individual company retirement packages: see individual company web pages
Telephone calls: a call to a fund manager may yield information about the fund's exact name or the fund's holdings (such a call may also be useful to confirm the existence of a listed fund)
Source: distributed at the National Office of Government Ethics Conference, Orlando, Florida, March 2007.
Enclosure 2
Insert DDAEO EC Designation/Delegation here.
See for Army DAEO Appointments & Delegations
Enclosure 3
Insert local SJA Appointment of EC here.
Enclosure 4
How to Identify OGE Form 450 Filers
1. The Office of Government Ethics (OGE) government wide regulations, Executive Branch Financial Disclosure, 5 C.F.R. Part 2634, require all agencies to determine if the duties and responsibilities of an employee's position require the filing of a Confidential Financial Disclosure Report, OGE Form 450, to avoid a real or apparent conflict of interest. The Department of Defense (DoD) supplemented the OGE regulation with the "Joint Ethics Regulation” (JER), DoD 5500.7-R. Based on both sets of regulations, DoD supervisors must annually review the position description of each person under their immediate supervision to determine whether the incumbent must file the OGE Form 450. UP JER 7-301, the directors of personnel offices are responsible for providing the following information to their DoD Component DAEOs or designees they service:
a. Immediately upon the appointment of covered DoD employees, the name, position, organization and entrance-on-duty date of DoD employees required by their supervisor to file a new entrant OGE Form 450; and
b. Annually, a list of the names, positions and organizations, when applicable, of DoD employees who are required to file an annual OGE Form 450.
2. Methods to identify who files:
a. Capturing New Entrants. [OSJA location] [paralegal] coordinates with Civilian Personnel Advisory Center (CPAC) and Military Personnel Office (MILPO) to get monthly reports of new civilian employees and military personnel, and changes to covered positions IAW reference 2e. If the new employee has previously filed an OGE Form 450 in another jurisdiction but did not retain a copy, contact the ethics counselor at their last position and request a copy. If the Filer previously filed using FDM, , update the Filer’s report review chain to see the prior report(s).
b. Annual Filers.
(1) NLT 31 October send information request to commanders/organization directors/personnel directors/administrative officers to identify organization filers, supervisors, and report their names NLT 30 November.
(2) Use office historical files for lists of recent civilian and military filers. Contact supervisors NLT 31 October and direct them to review list of filers. Annotate why an employee who filed last year is not required to file in the current year.
3. See OGE’s job aid to help ethics officials determine if career employees should file a Confidential Financial Disclosure Report (OGE Form 450). View it at: or .
Here is an Army-oriented “Stop-Go” Who Files an OGE 450:
OGE 450 Job Aid* – Determining Who Files
(Adapted from an Office of Government Ethics OGE 450 Job Aid)
Employees, Supervisors and Ethics Officials should use this job aid to determine whether a career employee should file an OGE 450. Supervisors should review it with the supporting Ethics Counselor.
|Supervisor Determination |
|Is the employee a Highly Qualified Expert or has the Supervisor decided that the duties and responsibilities of the |YES |NO |
|employee's position require employee file to avoid involvement in a real or apparent conflict of interest or to carry out |[pic] | |
|the purposes behind any statute, Executive order, rule, or regulation applicable to or administered by the employee? |Employee must |Go to # 2 |
| |file. | |
|Pay |
|Is the employee's position classified at or below the GS-15 level? |YES |NO |
|OR | |[pic] |
| |Go to # 3 |Consult the Ethics |
|If the employee is not paid on the GS scale, is the employee's rate of basic pay less than 120% of the minimum rate of | |Office to determine if|
|basic pay for the GS-15 level? | |this employee must |
|(Basic pay does not include locality payments, bonuses, etc. For reemployed annuitants, the rate of basic pay is the | |file an OGE 278 |
|employee's basic pay before any salary offset is applied.) | |Report. |
|Type of Work the Employee Does |
|Is the employee . . . ? |YES | NO |
|-a commanding officer, head, deputy head, executive officer of: Navy shore installations with 500 or more employees; and | | |
|all Army, Air Force, and Marine Corps installations, bases, air stations or activities. See JER 7-300.a.(1) [required to |Go to # 6 |Go to # 4 |
|file] | | |
|-involved in contracting or procurements above $2,500 (Example: A GS-7 Office Automation Clerk is issued a purchase card | | |
|to buy office supplies for her work unit as needed. Such an employee is generally excluded from filing.) | | |
|-involved in administering, awarding, monitoring, or making determinations regarding grants, subsidies, licenses, or other| | |
|federal benefits; | | |
|-involved in regulating, auditing, or inspecting non-federal entities*; | | |
|-performing other activities, when those activities will have a direct and substantial effect on the financial interests | | |
|of nonfederal entities | | |
|*Non-federal entities include, for example businesses, non-profit organizations, and state and local governments. | | |
|Is the employee serving in any other position where there is a potential for conflict of interest, appearance of |YES |NO |
|favoritism, or loss of impartiality? | |[pic] |
|Examples: |Go to # 5 |If “no” to # 3 & 4, |
|-investigating or prosecuting violations of criminal or civil law; | |then the employee does|
|-representing the United States in litigation or other proceedings; | |not need to file. |
|-scientific or social science research, when the research will have a direct and substantial effect on the financial | | |
|interests of non-federal entities. | | |
|Does the employee: |YES |NO |
|-only provide information? | | |
|Example: A GS-13 librarian for the Patent and Trademark Office (PTO) shows PTO staff members how to research the |[pic] |Go to # 6 |
|uniqueness of an invention and design complex search queries of the agency's electronic databases. The librarian does not | | |
|make decisions on the patentability of the invention. |The employee does | |
|OR |not need to file | |
|-only work on administrative or peripheral matters? |an OGE 450. | |
| | | |
|Example: A draftsman prepares the drawings to be used by an agency in soliciting bids for construction work on a bridge. | | |
|He is not involved in the contracting process associated with the construction. | | |
| | | |
|Example: An agency has just hired a GS-S Procurement Assistant who is responsible for typing and processing procurement | | |
|documents, answering status inquiries from the public, performing office support duties such as filing and copying, and | | |
|maintaining an online contract database. The Assistant has no actual contracting or procurement responsibilities. | | |
|Employee’s Level of Responsibility |
|Does the employee: |YES |NO |
|-engage in the work activity identified in # 3 & 4 by exercising significant judgment in performing any of the following | | |
|job functions without substantial supervision and review? |The employee |[pic] |
|-making decisions; |should file an OGE| |
|-approving or disapproving; |450 unless an |The employee does not |
|-making recommendations; |exclusion applies.|need to file an OGE |
|-conducting investigations; |Go to # 7 & 8 |450. |
|-rendering advice or opinions. | | |
|OR | | |
|-actively supervise a subordinate's performance of any of the above listed job functions? | | |
|Is there an exclusion* from filing? |
|Is the Army employee a Government purchase card holder or micro-purchaser ($3,000 limit) with authority only up to the |YES |No |
|simplified acquisition threshold (currently $150,000)? |[pic] |[pic] |
|Is the employee a Reserve Component member? (See DAEO Memorandum, Subject: Exclusion of Members of the Reserve Component |The employee does |The employee files. |
|from Filing the Confidential Financial Disclosure Report (Dec 9, 2011). |not need to file | |
|Is the Army employee in one of these categories: |unless Supervisor | |
|-- (officers O-3 and below, enlisted E-6 and below, and civilian GS-6 and below; |determined | |
|--volunteers providing gratuitous services under 10 U.S.C. § 1588; |otherwise. | |
|--intermittent employees who work 120 days or less; and | | |
|--members of the Center for Military History Board. | | |
|(Authority: SECARMY Memorandum of Oct. 11, 2001, subj: Exclusion from OGE Form 450 Filing Requirement.) | | |
|SA Exclusion from OGE 450 Filing Requirements: | | |
|*Supervisors and Ethics Counselors may request categorical filing exclusions through the Deputy DAEO to the DGC(E&F), | | |
|Office of the General Counsel. | | |
Adapted in 2011 from OGE’s Who Files an OGE 450 Job Aid.
Examples from 5 CFR §2634.904:
A contracting officer develops the requests for proposals for data processing equipment of significant value which is to be purchased by his agency. He works with substantial independence of action and exercises significant judgment in developing the requests. By engaging in this activity, he is participating personally and substantially in the contracting process. The contracting officer should be required to file a confidential financial disclosure report.
An agency environmental engineer inspects a manufacturing plant to ascertain whether the plant complies with permits to release a certain effluent into a nearby stream. Any violation of the permit standards may result in civil penalties for the plant, and in criminal penalties for the plant's management based upon any action which they took to create the violation. If the agency engineer determines that the plant does not meet the permit requirements, he can require the plant to terminate release of the effluent until the plant satisfies the permit standards. Because the engineer exercises substantial discretion in regulating the plant's activities, and because his final decisions will have a substantial economic effect on the plant's interests, the engineer should be required to file a confidential financial disclosure report.
A GS–13 employee at an independent grant making agency conducts the initial agency review of grant applications from nonprofit organizations and advises the Deputy Assistant Chairman for Grants and Awards about the merits of each application. Although the process of reviewing the grant applications entails significant judgment, the employee's analysis and recommendations are reviewed by the Deputy Assistant Chairman, and the Assistant Chairman, before the Chairman decides what grants to award. Because his work is subject to “substantial supervision and review,” the employee is not required to file a confidential financial disclosure report unless the agency determines that filing is necessary under §2634.904(a)(1)(ii).
As a senior investigator for a criminal law enforcement agency, an employee often leads investigations, with substantial independence, of suspected felonies. The investigator usually decides what information will be contained in the agency's report of the suspected misconduct. Because he participates personally and substantially through the exercise of significant judgment in investigating violations of criminal law, and because his work is not substantially supervised, the investigator should be required to file a confidential financial disclosure report.
An investigator is principally assigned as the field agent to investigate alleged violations of conflict of interest laws. The investigator works under the direct supervision of an agent-in-charge. The agent-in-charge reviews all of the investigator's work product and then uses those materials to prepare the agency's report which is submitted under his own name. Because of the degree of supervision involved in the investigator's duties, the investigator is not required to file a confidential disclosure report unless the agency determines that filing is necessary under §2634.904(a)(1)(ii).
Unless required to file public financial disclosure reports by subpart B of this part, all executive branch special Government employees.
A consultant to an agency periodically advises the agency regarding important foreign policy matters. The consultant must file a confidential report if he is retained as a special Government employee and not an independent contractor.
A special Government employee serving as a member of an advisory committee (who is not a private group representative) attends four committee meetings every year to provide advice to an agency about pharmaceutical matters. No compensation is received by the committee member, other than travel expenses. The advisory committee member must file a confidential disclosure report because she is a special Government employee.
Sample notice to Commanders/Directors/Organization Administrative Officers
MEMORANDUM FOR ADMINISTRATIVE OFFICERS
SUBJECT: Annual Filing of OGE Form 450, “Confidential Financial Disclosure Report”
1. Ethics laws and regulations require certain DoD officers and employees to file a Confidential Financial Disclosure Report, OGE Form 450, by February 15th annually. It is your responsibility to ensure that your employees who are required to file are identified and informed of the requirement to file. [You may find the attached “Stop-Go” Who Files an OGE 450 helpful.] You must also ensure that all annual Filers have eFiled their reports online in FDM, , not later than February 15th unless an extension is obtained.
2. Your Filers and supervisors must be registered in FDM before the Filer may submit a report. Your name was provided as a Point of Contact for registering your organization Filers and supervisors. You are registered as such in FDM and may access FDM using your Common Access Card (CAC) and Personal Identification Number (PIN) or your AKO user name/password.
3. Information on how to register your OGE Form 450 Filers and supervisors is online in FDM in the FDM Learning Center, .
4. You should also encourage your employees to submit their reports between January [1st ] and February 15th so that supervisors will have time to review the reports, request clarifications and corrections as necessary, and sign them by [March 15th].
5. [OSJA POC information in case of questions.]
[Signature block]
Enclosure
Enclosure 5
Information Paper
Subject: Determining Annual Confidential Disclosure Filers
1. Purpose: Provide information on determining who files an annual Confidential Financial Disclosure Report, OGE Form 450.
2. Facts.
a. Personnel in these “covered” positions (including personnel detailed to these positions) file an annual OGE Form 450:
(1) Commanding officers, heads, deputy heads, and executive officers of: Navy shore installations with 500 or more employees; and all Army, Air Force, and Marine Corps installations, bases, air stations or activities. See JER 7-300a(1).
(2) SPECIAL GOVERNMENT EMPLOYEES (SGES). SGES ARE DEFINED AT 18 U.S.C. 202(A): GENERALLY, EMPLOYEES PERFORMING TEMPORARY DUTY FOR 130 DAYS OR LESS IN ANY 365 DAY PERIOD, INCLUDING RESERVE AND NATIONAL GUARD OFFICERS WHILE ON ACTIVE DUTY SOLELY FOR TRAINING, OR WHILE SERVING INVOLUNTARILY (). [ARMY SEE DAEO MEMORANDUM, SUBJECT: EXCLUSION OF MEMBERS OF THE RESERVE COMPONENT FROM FILING THE CONFIDENTIAL FINANCIAL DISCLOSURE REPORT (DEC 9, 2011). (EXCLUDED ALL ARMY RESERVE COMPONENT PERSONNEL (OFFICER AND ENLISTED) FROM FILING THE OGE 450 UNLESS A SUPERVISOR REQUIRES THE FILING UNDER 5 C.F.R. § 2634.904(A)(1)(I).)]
(A) While section 202(a) does not include enlisted members as SGEs, the JER, at section 1-232, applies the definition to enlisted members the same as it applies to officers. Unless excepted or required to file an SF 278, SGEs must file a new entrant OGE 450 no later than 30 days after assuming the position or upon reappointment. See 5 C.F.R. 2634.904(b). See exceptions in JER 7-300a(2). One exception is reservists on active duty for less than 30 consecutive days in a calendar year.
(B) See OGE memo, Financial Disclosure Reporting Requirements for Special Government Employees, 23 October 2003, online at , and OGE-prepared information on Special Government Employees, .
(3) Civilian employees at grade GS-15 and below (or comparable pay level), and military members below grade 0-7 when:
determined by the supervisor, or
(B) they participate personally and substantially, through decision or exercise of significant judgment, in taking an official action for:
(i) contracting or procurement,
(ii) administering or monitoring grants, subsidies, licenses, or other Federal benefits,
(iii) regulating or auditing any non-Federal entity, or
(iv) other activities in which the final decision may have a direct and substantial economic impact on the interests of any non-Federal entity. (Catch-all). Note that it is the final action or decision in a particular matter, not the individual's actions, that trigger the filing requirement.
(4) Personnel serving under the Intergovernmental Personnel Act (IPA) (5 USC §§ 3371-3376) who are not required to file an SF 278 and are serving in a position requiring filing as described above. Most IPAs are not required to file a 278.
b. Who is excluded from filing?
(1) Those employees in positions that a DoD Agency head excluded from filing because the duties are such that:
(A) the possibility that the employee will be involved in a real or apparent conflict of interest is remote, or
(B) there is a substantial degree of supervision and review, or the effect of any potential conflict on the integrity of the government is inconsequential.
NOTE: THE ARMY EXCLUDED SEVERAL CATEGORIES OF EMPLOYEES FROM THE FILING REQUIREMENT (OFFICERS 0-3 AND BELOW, ENLISTED E-6 AND BELOW, AND CIVILIAN GS-6 AND BELOW; VOLUNTEERS PROVIDING GRATUITOUS SERVICES UNDER 10 U.S.C. 1588; INTERMITTENT EMPLOYEES WHO WORK 120 DAYS OR LESS; AND MEMBERS OF THE CENTER FOR MILITARY HISTORY BOARD). (SEE SECARMY MEMORANDUM OF OCT. 11, 2001, SUBJ: EXCLUSION FROM OGE FORM 450 FILING REQUIREMENT (REFERENCE 2K). ALSO SEE, DAEO MEMORANDUM, SUBJECT: EXCLUSION OF MEMBERS OF THE RESERVE COMPONENT FROM FILING THE CONFIDENTIAL FINANCIAL DISCLOSURE REPORT (DEC 9, 2011). (EXCLUDED ALL ARMY RESERVE COMPONENT PERSONNEL (OFFICER AND ENLISTED) FROM FILING THE OGE 450 UNLESS A SUPERVISOR REQUIRES THE FILING UNDER 5 C.F.R. § 2634.904(A)(1)(I).)
(2) Those employees who a supervisor determines need not file.
Enclosure 6
Supervisor’s Filing Determination OGE Form 450
[Optional – may be most useful for New Entrant Filers]
___________________________________________
NAME of EMPLOYEE
___________________________________________
GRADE of EMPLOYEE
___________________________________________
POSITION of EMPLOYEE
___________________________________________
AGENCY, BUILDING, ROOM # and PHONE # of EMPLOYEE
I have reviewed the duties of the individual identified above and determined that the official responsibilities of this person’s position
DO DO NOT
require the individual to participate personally and substantially through decision or the exercise of significant judgment in taking Government action regarding contracting or procurement; administering or monitoring grants, licenses or other federally conferred financial or operational benefits; regulating or auditing any non-federal entity; or other activities which will have a direct and substantial economic effect on the interest of any non-federal entity.
If the individual does have such responsibilities, I advised that person of the requirement to file an OGE Form 450 within 30 days, in accordance with 5 CFR 2634, and have noted the annual filing requirement on his support form.
___________________________________________
NAME of SUPERVISOR
___________________________________________
SIGNATURE of SUPERVISOR / DATE
Forward a copy of this determination to [contact information].
If you need additional guidance on who should file please contact an Ethics Counselor at [contact info].
Enclosure 7
Use FDM’s My Reviews | Remind Supervisors tab or
Sample Review Notice to Supervisor
Subject: [Filer name] OGE Form 450 Ready for Review Online
Content:
FDM shows that [Filer name] has an OGE Form 450 that you have not reviewed.
To do so, please login to FDM, , go to the Review Filers tab. Set the filters to:
OrgUnit: select an Org Unit from the next level down to see a listing of Filer reports for that org unit.
Select the radio button for “Show My Filer’s Reports” to see those where you are named as supervisor (or filling that role because another supervisor is absent)
Form: OGE 450
Role: Supervisor
Year: 200?
Reporting Status: All
Review Status: Under Review
The FDM Learning Center, , includes a Quick Reference, Reviewing an OGE 450, and a video tutorial is available in the Learning Center | Tutorials, , on Reviewing an OGE 450, that you may find helpful.
[Consider adding
Guidance to Supervisors Reviewing OGE Form 450,
Confidential Financial Disclosure Report
1. The Confidential Financial Disclosure Report (OGE Form 450) is used to ensure that employees comply with conflict of interest laws and regulations. As a supervisor, you are required to review, sign, and date each report employees you supervise submit.
2. These reports contain sensitive personal and financial information that you must safeguard from inappropriate disclosure. Suggestions:
• Do not leave the reports where they might be seen by others.
• Do not send the reports through internal mail in unsealed envelopes.
• Do not use the information in the reports for any purpose other than ensuring that your employees' work assignments are not in conflict with their financial interests.
3. When reviewing the report you are seeking to determine that the reported financial interests do not conflict with the Filer’s government duties.
4. Review the financial interests reported in the report. When looking at corporations, consider corporate subsidiaries. For example, corporate subsidiaries of Lockheed Corp. are Loral Intl., Inc. and Martin Marietta Diversified Technologies, Inc., and a corporate subsidiary of Boeing Co. is McDonnell Douglas.
5. If there is no relationship between reported interests and your employee's work, you should sign and date the report.
6. If there is a conflict between a reported interest and the employee's duties, the employee must furnish you a written, signed disqualification statement. A new disqualification statement must be filed each year. Sign the disqualification statement, keep a copy for yourself, and attach the original to the report in FDM. Make sure the employee is not given any work assignments involving that company or any of its subsidiaries, affiliates, or joint ventures.
7. If, in your opinion, there is a potential for a conflict of interest because the employee might be assigned work involving a company in which he or she has reported an interest, but no actual conflict exists at the time of your review, sign and date the report. You should caution the employee not to accept an assignment involving the company and make sure no work involving that company is given to the employee.
8. Link to Supervisor FDM Review Quick Start: .
For additional assistance, consult your legal advisor. ]
Enclosure 8
Use FDM’s My Reviews | Remind Filers tab
Sample first late notice to delinquent Filer
Subject: Late OGE Form 450
1. Your annual OGE Form 450 is late. Please login to FDM, , to complete your report today.
2. The annual OGE Form 450 was due 15 February [or later date if prior extension expired].
3. Failure to file by [date] will result in a delinquency report to your Supervisor with a request for disciplinary action.
Enclosure 9
Use FDM’s My Reviews | Remind Filers tab
Sample second late notice to delinquent Filer
Subject: Late OGE Form 450 – 2nd Notice
1. Your annual OGE Form 450 is late. This is the second notice that you are delinquent.
2. The annual OGE Form 450 was due 15 February [or later date if prior extension expired].
3. Please login to FDM, , to complete your report today.
4. I cc’d your Supervisor who may consider disciplinary action.
Enclosure 10
Reviewing an OGE 450
Technical Review
The Ethics Counselor or paralegal should review all OGE 450s within 60 days of the Filer’s submission.
|Report Area |Conducting a technical review: |
|General |The technical review is an initial determination to see if the filer provided complete information and properly |
| |completed the report. See 5 CFR § 2634.907, Report Contents. Often, a skilled paralegal will conduct the |
| |technical review using FDM’s flag system and checking the e450 display to ensure the information reported makes |
| |sense. Use this checklist as a guide when viewing the e450. Per 5 CFR § 2634.909, Procedures, penalties, and |
| |ethics agreements,(a) The provisions of subpart F govern the review of confidential disclosure reports. See 5 CFR|
| |§ 2634.605. Click “End Initial Review” in FDM 450 to stop the 60-day review clock. |
| |Use FDM’s Compare to see changes Filer made in prior report. |
|Assets & Income |Has the filer provided complete information? |
| |Has the filer reported underlying holdings (except diversified mutual funds) for investment clubs, private pension|
| |interests, investment life insurance, and retirement plans? |
| |If the filer reported a defined benefit plan, did the filer report the name of the employer providing the plan and|
| |identify it as a defined benefit plan? |
| |If the filer reported a defined contribution plan, did the filer report the reportable underlying assets of the |
| |plan (not diversified mutual funds)? |
| |Did the filer over-report items that should not be reported (e.g., diversified mutual funds)? |
| |When a previously reported asset no longer appears you may presume that it fell below the reportable threshold. |
| |Reference: 5 CFR § 2634.907(c) |
|Liabilities |Did the filer report any liability that exceeded $10,000? |
| |Did the filer report the creditor’s name, city, and state? |
| |Did the filer over-report items that should not be reported (e.g., loans for automobiles, household furniture, or |
| |appliances (as long as the loan does not exceed the purchase price); loans from banks or other financial |
| |institutions on terms generally available to the public (e.g., mortgages); revolving charge accounts, student |
| |loans, loans from a spouse or to a parent, sibling, or child of filer, spouse, or dependent child(ren)? (Note: The|
| |new regulation does not require filers to report student loans, credit card debt, or loans from a financial |
| |institution or business entity that are granted on terms made available to the public.) |
| |When a previously reported liability/debt no longer appears you may presume that it was paid off or dropped below |
| |the $10,000 reportable threshold. |
| |Reference: 5 CFR § 2634.907(d) |
|Outside Positions |Evaluate the completeness of each position reported (e.g., name, location of the organization, type or purpose of |
| |the organization, and specific position held) |
| |Verify that pertinent income-producing activities are also reported in the assets/income section of the report. |
| |Confirm that the filer is not over-reporting (e.g., did not report positions held by spouse or dependent |
| |child(ren); compensated or uncompensated positions held in any religious, social, fraternal, or political entity; |
| |positions solely of an honorary nature, positions filers hold as part of official duties, mere membership in an |
| |organization. |
| |Consider outside activity approval forms (if available) |
| |Reference: 5 CFR § 2634.907(e) |
|Agreements & Arrangements |Evaluate the completeness of each entry (e.g., the name of the parties, the location, terms, and, if there is an |
| |arrangement for future employment, the date when the arrangement was made) |
| |Confirm that pension plans and leaves of absence also appear in Assets & Income and Outside Positions, |
| |respectively. |
| |Confirm that the filer is not over reporting. |
| |Reference: 5 CFR § 2634.907(f) |
|Gifts & Travel |Assess the completeness of each reported item (e.g., donor’s name, gift description, itinerary (i.e., purpose, |
|Reimbursements |date(s), and kinds of expenses when a travel-related gift)). |
| |Assess the relationship between donor and filer |
| |Confirm the filer is not over-reporting (e.g., filer does not report anything less than $134, received from |
| |relatives, the US Government, DC, state, or local governments; bequests and other forms of inheritance; gifts and |
| |travel reimbursements given to filer’s agency in connection with filer’s official travel; gifts of hospitality |
| |(e.g., food, lodging, entertainment) at the donor’s residence or personal premises; anything received by filer’s |
| |spouse or dependent child totally independent of their relationship to filer.) |
| |Reference: 5 CFR § 2634.907(g) |
Conflict of Interest Analysis*
Use this checklist when checking an OGE 450 for possible conflict of interests.
|Report Area |Considerations to conduct a conflict of interest analysis: |
|Admin – Filer’s position, |What official duties does the filer perform? |
|grade |Does the filer deal with non-federal entities? |
|Assets & Income |Are any of the reported interests in DoD contractors or are they on a DoD/Army prohibited holdings list? |
| |Do any of the reported financial interests raise a potential conflict with the filer’s official duties: |
| |Determine if the filer might take an official action that would result in a monetary gain or loss to himself or |
| |those whose financial interests are imputed to him |
| |Consider whether the filer’s official action may create an appearance of a conflict of interest |
| |Decide if the filer has a covered relationship that creates an appearance of a conflict of interest |
|Liabilities |Does filer have a loan with a prohibited source? If yes: ask about |
| |loan terms (e.g., same as available to general public or more favorable) & |
| |filer relationship to creditor |
|Outside Positions |Do any of filer’s official duties impact any of the organizations listed? |
| |What does filer do for the listed organization? |
| |Watch for situation where filer may attempt to represent the organization before the Government (18 USC §§ 203, & |
| |205) |
| |Is filer an employee of the organization and does filer take Government action that affects the organization (18 |
| |USC § 208)? |
|Agreements & Arrangements |What are the terms of the agreement/arrangement – do they indicate any special treatment because of filer’s |
| |federal job? |
| |Could filer take an official action that could result in a monetary gain or loss to himself or the entity with |
| |which he has an agreement/arrangement? |
| |Whether filer’s official action may create an appearance of a conflict of interest |
| |Whether filer has a covered relationship that creates an appearance of a conflict of interest |
|Gifts & Travel |The relationship between donor and filer |
|Reimbursements |What could donor and its affiliates gain from filer’s official performance of duties? |
| |Is the donor a prohibited source? |
| |How frequently does donor give gifts? Does a gift exception or exemption apply? |
*Adapted from OGE training, Certifying Confidential Financial Disclosure Reports
Enclosure 11
Understanding & Using FDM Organization Units (“Org Unit”)
Introduction. In the Army several Deputy Designated Agency Ethics Officials (DDAEOs) are responsible for the financial disclosure reporting program and process for specific areas generally along command lines. (See Army General Counsel web site, , for DAEO Appointments and Delegations.)
FDM uses a hierarchical Organizational Unit (“Org Unit”) tool to group Filers by supervisor for visibility to the respective, responsible DDAEO.
1. An FDM “Org Unit” contains a group of one or more financial disclosure report (FDR) Filers for a particular supervisor. Each reviewing supervisor has at least one FDM Org Unit. Within an organization, one or more other Org Units are created and added to link each reviewing supervisor to all his or her FDR Filers. Senior Legal Counsels (SLCs), Ethics Counselors (ECs), and FDM 450 Certifiers may create these Org Units and register the Filers in them. SLCs and ECs may delegate this to organizational points of contact (POCs) and Assistants to spread the level of effort and share the administration at all levels.
2. The FDM website, , has Quick References in the Learning Center (), including tutorial movies (), on creating and managing Org Units and adding Filers to those units.
3. The first step is to identify Filers by organization and group them by reviewing supervisor. The 450 Tracking Workbook spreadsheet, available on the FDM web site, Resources, , helps with this. It includes several tabs, including instructions, and may be used to track and manage ethics training for FDR Filers. Many SLCs/ECs or 450 Certifiers will ask organizational leaders to assign an organization POC to identify OGE 450 Filers for the organization and to identify the reviewing supervisor for each Filer. AKO user names are required to register Army users in FDM and the Workbook includes a column for that information. For DoD users (non-Army), use the email address embedded on the Common Access Card.
4. Add a new Org Unit on the Admin | Org Unit tab. There, you will find a “My Orgs” display showing existing organizations with which you have an association in FDM. Most SLCs will start with an organization corresponding to the supported SF 278 Filer (e.g., CG of the organization) and may see other Org Units where there is an SLC relationship. SLCs and ECs may add a new Org Unit and assign a POC to register and manage Filers for that organization online in FDM.
5. Summary. FDM uses an Organizational Unit (“Org Unit”) tool to “group” Filers by supervisor and provide visibility to the responsible DDAEO.
Generally FDM will have an Org Unit for each supervisor who will review one or more FDRs. If the supervisor is also an FDR Filer then the supervisor may be registered as a Filer in the Org Unit where the supervisor’s supervisor is the registered supervisor.
Org Units may be flat or hierarchical. A hierarchy structure may require more “drilling down” from higher levels while a flat structure requires less. The important point is that the proper supervisors are associated with the proper Filers in the Org Unit.
Remember to browse the FDM website Learning Center (), including tutorial movies (), on creating and managing Org Units and adding Filers to those units.
Enclosure 12
Summary Chart: OGE 450 Contents & Report Type*
(effective 1 January 2007)
As indicated below, a Filer must complete different parts of the report covering different time periods depending upon the type of report filed. For Annual reports due February 15, 20__ the period covered is all of the previous calendar year.
|Report Part |New Entrant |Annual |
|Part I: Assets and Income: Report for yourself, your spouse, and dependent child those held for |Preceding 12 months |Preceding |
|investment with a value over $1,000 at the end of the reporting period OR if produced over $200 | |Calendar Year |
|income during the reporting period. Examples: stocks, bonds, annuities, trust holdings partnership | | |
|interests, life insurance, investment real estate, or a privately-held trade or business; sector | | |
|mutual funds; holdings of retirement plans (e.g., 401(k)s or IRAs (list each holding except | | |
|diversified mutual funds)); defined benefit pension plans provided by a former employer (include the | | |
|name of the employer) | | |
|Also filer reports for filer all sources of salary, fees, commissions, and other earned income | | |
|greater than $200, honoraria greater than $200, and other non-investment income such as scholarships,| | |
|prizes, and gambling income greater than $200. | | |
|Filer reports for spouse all sources of salary, fees, commissions, and other earned income greater | | |
|than $1000 and honoraria greater than $200. | | |
| | | |
|Do not report: Federal Government retirement benefits, Thrift Savings Plan, certificates of deposit, | | |
|savings or checking accounts, term life insurance, money market mutual funds and money market | | |
|accounts, personal residence (unless rented), diversified mutual funds (e.g., ABC Equity Value Fund),| | |
|US Government Treasury bonds, bills, notes, and savings bonds, money owed to you, your spouse, or | | |
|dependent child by a spouse, parent, sibling, or child. | | |
|Part II: Liabilities: Report for yourself, your spouse, and dependent child a liability over $10,000|Preceding 12 months |Preceding |
|owed at anytime during the reporting period other than a loan from a financial institution or | |Calendar Year |
|business entity granted on terms made available to the general public; a loan over $10,000 from an | | |
|individual such as a friend or business associate. | | |
| | | |
|Do not report: any liability, such as a mortgage, student loan, or a credit card account, from a | | |
|financial institution or business entity granted on terms made available to the general public; loans| | |
|secured by automobiles, household furniture, or appliances, unless the loan exceeds the purchase | | |
|price of the item it secures; or liabilities that you owe to your spouse or to the parent, sibling, | | |
|or child of you, your spouse, or your dependent child. | | |
|Part III: Outside Positions: Report for yourself all positions outside the US Government held at any|Preceding 12 months |Preceding |
|time during the reporting period, whether or not you were compensated and whether or not you | |Calendar Year |
|currently hold that position. Examples: officer, director, employee, trustee, general partner, | | |
|proprietor, representative, executor, or consultant of a corporation, partnership, trust, or other | | |
|business entity, non-profit or volunteer organization or educational institution. | | |
| | | |
|Do not report: any position with a religious, social, fraternal, or political entity; any position | | |
|held by your spouse or dependent child, or any position you hold as part of your official duties. | | |
|Part IV: Agreements and Arrangements: Report continuing participation in an employee pension or |Preceding 12 months |Preceding |
|benefit plan maintained by a former employer; a leave of absence; future employment, including date | |Calendar Year |
|you accepted employment offer; continuation of payment by a former employer (including severance | | |
|payments). | | |
|Do not report: any agreement or arrangement related to your employment by the Federal Government or | | |
|spouse’s and dependent child’s agreements or arrangements. | | |
|Part V: Gifts and Travel Reimbursements: Report for yourself, your spouse, and dependent child |Not applicable for |Preceding |
|travel-related reimbursements (e.g., lodging, transportation, and food) totaling more than $335* from|New Entrants & SGEs |Calendar Year |
|any one source during the reporting period; include where you traveled, the purpose, and date(s) of | | |
|the trip; any other gifts totaling more than $335* from any one source during the reporting period. | | |
| | | |
|*If you received more than one gift from one source determine the value of each item you received | | |
|from that source but ignore each item values at $134 or less. Add the value of those items above | | |
|$122. If the total exceeds $335 then you must report those items. | | |
| | | |
|Do not report: anything received from relatives, the US Government, DC, state, or local governments; | | |
|bequests and other forms of inheritance; gifts and travel reimbursements given to your agency in | | |
|connection with your official travel; gifts of hospitality (e.g., food, lodging, entertainment) at | | |
|the donor’s residence or personal premises; anything received by your spouse or dependent child | | |
|totally independent of their relationship to you. | | |
*Adapted from OGE Form 450
Enclosure 13
Cautionary Notice to Filer with Financial Interests in DoD Contractors
Ethics Counselors may further tailor as appropriate and email to OGE Form 450 Filer. Consider attaching with Filer’s reply in FDM to the Filer’s report.
Subject: OGE Form 450 – Potential Conflict of Interest - Precaution
This email is to put you on notice of potential conflicts of financial interest in accordance with the Standards of Ethical Conduct for Employees of the Executive Branch. A financial conflict arises when you are asked to take personal and substantial action in a particular matter that will have a direct and predictable effect on your or your family members' (spouse, dependant child) financial interest. A review of your Office of Government Ethics Form 450 reveals that you have a potential conflict of financial interest with the following entity, which does business with the Department of Defense: [Name of Contractors]. [Additionally, you should review your duties to ensure that there is no conflict of interest with your spouse’s employment.]
If you are required to take official action with regard to these entities, you must inform your supervisor. At that time, you and your supervisor, with assistance from this office, will work towards a solution to remove the conflict of financial interest. Possible solutions include:
1. Disqualifying yourself from personal and substantial participation in the particular matter. Disqualification should be written and inform your supervisor of your disqualification. I have included for your use the disqualification memorandum format. If you decide to use this format, I ask that you provide a copy to your supervisor and a copy to [local legal office contact], who may be reached at [phone number] or [email].
2. Asking for reassignment of duties that do not involve personal and substantial participation in the matter.
3. Divesting yourself of the financial interest, in which case you can receive a Certificate of Divestiture (CD) from the Office of Government Ethics to defer capital gains taxes. We would require further information to determine whether this is a viable option in your case. Warning: The procedure to obtain a CD is very complex. You must hold the stock until you receive the certificate. You cannot receive a CD if you sell the stock first.
4. Seeking an individual waiver under 18 U.S.C. §208(b)(1) issued by the Office of Government Ethics via the Office of General Counsel. The factors considered in granting the waiver include the type of interest creating the conflict, the identity of the persons holding the financial interest, the dollar value of the interest and its relationship to the entire value of the person's assets, the nature and the importance of the employee's role in the particular matter, the need for the employees services in the matter, and whether adjustments can be made in the employee's duties minimizing their impact in the particular matter.
If you have no duties that would impact either [ ] or your spouse’s employment, please let me know and I will make an appropriate annotation in your file. If you have duties that conflict with either [ ] or your spouse’s employment, please let me know and we can discuss how to resolve the conflict. I may be reached at [phone number].
Regards,
[sender’s information]
Enclosure 14
Sample Format For Conflicting Financial Interests Disqualification Memo
MEMORANDUM FOR SEE DISTIBUTION
SUBJECT: Notice of Disqualification
Title 18, United States Code, Section 208 (18 U.S.C. § 208) requires me to disqualify myself from participation in any particular matter that will have a direct and predictable effect on the financial interests of a person or organization with whom I have a financial interest. I have a financial interest in the following:
[List all financial interests. These may include financial assets, such as stocks in DoD contractors; spouse’s employment; or organizations in which you are a member.]
Accordingly, I am disqualified from participating in any official matter that will have a direct and predictable effect on the financial interests on this organization. This means that I cannot act directly or through others in deciding, approving, or disapproving such official matters; nor may I recommend, investigate, advise or otherwise contribute to or influence such official matters.
Any official matter that will conflict with the above-listed financial interest must be handled without my knowledge or participation. If such official matter would otherwise have required my personal decision, approval or disapproval, the matter should be referred to [Name of Individual].
Signature Block
DISTRIBUTION
Name of Immediate Supervisor
Name of Person Signing the Memo
[Local OSJA Ethics Counselor]
Sample Format for Spousal Employment Disqualification Memo
MEMORANDUM FOR SEE DISTRIBUTION
SUBJECT: Disqualification
Title 18, United States Code, Section 208 (18 U.S.C. § 208) requires me to disqualify myself from participation in any particular matter that will have a direct and predictable effect on the financial interests of a person or organization with whom I have a financial interest. I hereby give notice that my spouse, [Name], [is an employee with] [has a consulting arrangement with] [Name of Corporation(s) or other entities in which he or she has a financial arrangement]. Accordingly, I have a financial interest in these entities.
Pursuant to law (18 U.S.C. Section 208) and the "Standards of Ethical Conduct" (5 C.F.R. Sections 2635.402(c), .502(a) and .604), I am disqualified from participating in any official matter that will have a direct and predictable effect on the financial interests of the above-listed organization. This means that I cannot act directly or through others in deciding, approving, or disapproving such official matters; nor may I recommend, investigate, advise or otherwise contribute to or influence such official matters.
Accordingly, any official matter that will conflict with the above-listed financial interest(s) must be handled without my knowledge or participation. If such official matter would otherwise have required my personal decision, approval or disapproval, the matter should be referred to [name of person who should handle issues].
Signature Block
DISTRIBUTION:
Supervisor
Name of Person Signing the Memo
[OSJA FDM POC]
Enclosure 15
Supervisory Review of SGEs OGE Form 450
Μ The Confidential Financial Disclosure Report (OGE Form 450) is used to ensure that employees, including Special Government Employees (SGEs), comply with conflict of interest laws and regulations. As a supervisor, you are required to review, sign, and date each financial disclosure report submitted by your SGEs.
Μ Review the OGE Form 450 before the SGE performs any work for the Government.
If you have any questions or want additional information, please contact [your name, office] at [your number].
Μ You must maintain the confidentiality of all information contained in your employees', including SGEs’, OGE Form 450s. Do not leave the reports where they might be seen by others. Do not send the reports through internal mail in unsealed envelopes. Do not use the information in the reports for any purpose other than ensuring that work assignments are not in conflict with financial interests.
Μ Review the financial interests listed in the report. When looking at corporations, you must consider corporate subsidiaries.
Μ If there is no relationship between reported interests and the SGE’s work, you should sign and date the report.
Μ If there is a conflict between a reported interest and the SGE’s duties, he or she must make a written, signed disqualification statement. A new disqualification statement must be filed each year with each new report. Make sure the SGE is not given any work assignments involving that company or any of its subsidiaries, affiliates, or joint ventures.
FDM link to Supervisor Review Quick Start, .
Enclosure 16
Confidential Financial Disclosure Report System
Extract from OGE
Tips on Preparing for an Ethics Program Review
(and for Administering a Well-Run Program)
Adapted from:
|Confidential System |□ Are the procedures for administering the confidential system documented? |► Provide procedures. |
| |□ Is it time to refresh your annual filer notification memorandum? | ► Provide notification memo. |
| |□ Are listings of confidential filers up-to-date? |► Provide listings. |
| |□ Identify special Government employees who are confidential filers. |► Provide list of names and |
| | |corresponding OGE Forms 450. |
| |□ Are the confidential reports organized? (In addition, are the reports signed and |► Provide access to last two years of|
| |dated in accordance with regulatory requirements? If the confidential system is |reviewed/certified OGE Forms 450. |
| |administered outside of the ethics office, contact those responsible for this aspect | |
| |of the program.) | |
| |□ What mechanisms are in place to identify those who enter confidential filing | |
| |positions to ensure that required reports are filed within 30 days? | |
| |□ Is it time to refresh your new entrant notification memorandum? |► Provide new entrant notification |
| | |memo. |
| |References: | |
| |□ 5 CFR Part 2634 (available at ). | |
| |□ Joint Ethics Regulation 7-300 et seq. | |
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