U. S. OFFICE OF GOVERNMENT ETHICS

 

 

                                                   

 

 

 

 

 

 

 

 

 

 

 

 

                                                             

 

Fiscal Year 2008

Explanatory Notes

and

Annual Performance Plan

 

Prepared

for the

Committee on Appropriations

 

 

 

February  2007

 

 

                                      

 

 

OFFICE OF GOVERNMENT ETHICS
OBJECT CLASSIFICATION

in (000’s)

FY 2008 BUDGET AND PERFORMANCE PLAN

Introduction

Trust in governmental decision-making is one of the foundations of our democratic system.  The mission of the Office of Government Ethics (OGE/the Office) is to strengthen that trust by fostering high ethical standards for executive branch employees, and by ensuring that the Government’s business is conducted with impartiality and integrity.

OGE’s FY 2008 budget request of $11,750,000 will enable the Office to continue its critical task of setting the overall direction of executive branch policies designed to prevent conflicts of interest and ensure high ethical standards.  And notably, it will allow OGE to carry out one of its most crucial roles: supporting the transition to a new Administration during a Presidential election year.

OGE develops and executes five-year strategic plans with specific objectives and strategies to achieve its mission.  Since the submission of a new strategic plan with our FY 2007 budget request, we have received additional survey data for some of our performance measures.  That new data has resulted in revised FY 2006 baselines for the appropriate measures as well as revised performance measures and targets.  Those revisions have strengthened our intent of taking a cross-cutting approach to implementing our goals, as we integrate our budget request with our performance plan.

Highlights for FY 2006

OGE’s achievements in FY 2006 reflect the successful outcomes of our activities in the final year of the former strategic plan.  Our report of those achievements is described in detail below and is organized by the broad goals of the former plan.  A few highlights of OGE’s FY 2006 accomplishments include:

·                     Tackling emerging issues.  During FY 2006, OGE focused on anticipating and responding to current issues that impact how agencies ensure high ethical standards.  For example, OGE organized a group of nearly 40 departments and agencies to study the ethical implications of emergency response.  This initiative resulted in a conference, a report, and new materials to assist agencies in ensuring that ethical considerations are addressed when the Government responds to emergency situations such as natural disasters. The Office also completed a comprehensive review of the criminal conflict of interest statutes, many of which had not been evaluated for decades.  Based on the review, OGE submitted a report on the statutes to the President and the Congress recommending improvements to various provisions. 

·                     Improving the identification of conflicts of interest through financial disclosure.  In FY 2006, OGE published proposed and final rules designed to streamline financial disclosure for nearly 300,000 employees who file confidential forms.  OGE also developed a new confidential reporting form to help eliminate errors.  The revised form conforms to the more streamlined reporting requirements of the new rules and may be completed electronically. 

·                     Providing quality education and other resources to ethics officials and employees.  In FY 2006, OGE held three symposia for hundreds of ethics officials working at regional offices and military bases.  These mini-conferences focused on ethics rules and laws, as well as on the Hatch Act, travel regulations, and prohibited personnel practices.

·                     Promoting good governance.  OGE took a lead U.S. role in coordinating GRECO’s (Council of Europe’s Group of States Against Corruption) evaluation of the U.S.’s anti-corruption efforts.

Priorities for FY 2007 and FY 2008

OGE’s objectives for FY 2007 and FY 2008 are described in detail in the FY 2008 performance plan set out below.  They reflect the upcoming two years of activities that will move OGE toward achieving the goals under the new, five-year strategic plan.  These goals, beginning in FY 2007, are: (1) strengthening the ethical culture within the executive branch, (2) preventing conflicts of interest, and (3) promoting good governance.  Under the Director’s leadership, OGE plans to undertake a variety of initiatives to support the following three key priorities in FY 2007 and FY 2008:

·                     Assisting in the transition to a new Administration.  Activities in this category will include publishing a comprehensive rule on post-employment restrictions that can guide the future employment activities of outgoing Administration officials.   Additionally, the Office will prepare to handle the large volume of public financial disclosure reports submitted by incoming officials of the new Presidential Administration.  OGE also will concentrate its resources on producing materials and training for departing and entering senior Government officials, such as a DVD about ethical responsibilities to distribute to incoming senior officials.

·                     Addressing emerging ethics issues as they arise.  OGE plans to continue to address emerging issues such as the ethics issues associated with contractors in the Federal workplace.  The Office also plans to increase its capacity to work with non-governmental organizations and the increasing number of other private organizations that do business with the Government.

·                     Using technology to improve the delivery of ethics services, information, and materials.  The Office will continue to work with agencies such as the Department of the Army, to facilitate their development of electronic filing systems.  OGE expects to complete a curriculum of ethics training materials for employees that will include a mix of online and instructor-led training, as well as videos and job aids.

FY 2008 Budget Request Overview

OGE’s total budget request for FY 2008 is $11,750,000.  This amount reflects the Office’s commitment to balancing the necessary resources for carrying out its mission with the need to effectively manage taxpayer dollars.  This request enables OGE to assist in the transition to the new Administration, address cutting edge ethics issues as they emerge, and improve the delivery of services and materials to the ethics community through the use of technology.  Additionally, it allows OGE to continue its essential legal, agency liaison and review, training, and cross-governmental outreach functions.

FY 2006 Results

Strategic Goal One: Provide Overall Policy Direction to the Executive Branch Ethics Program

OGE provides overall policy direction to the executive branch ethics program by serving as the primary authoritative source of Federal executive branch ethics policy.  To execute that responsibility, OGE undertook a number of projects in FY 2006 designed to improve the effectiveness of the advice the Office gives through legal and policy guidance, to address emerging issues, and to promote intergovernmental good governance policies and practices. 

Issued Legal and Policy Guidance

OGE undertook projects to provide clear and up-to-date direction for the executive branch ethics program by reviewing existing laws and policies and issuing new regulations and guidance.   One such project was a review of the Standards of Ethical Conduct, a comprehensive set of ethics rules that apply to all employees in the executive branch.  This review has resulted in a set of internal recommendations to revise the Standards.  In addition, OGE published proposed and final rules on the applicability of the Standards of Ethical Conduct to individuals detailed to work in the Government under the Intergovernmental Personnel Act (IPA).  These rules clarify the standards that apply to IPA detailees, many of whom are expert scientists who work in various science agencies.  Because these IPA detailees are essentially on a leave of absence from their non-governmental employers, typically there are a number of conflict of interest issues that need to be resolved.

To improve the confidential financial disclosure system, OGE published a final rule in FY 2006 that streamlines the disclosure requirements and changes the dates for filing so that they align with the calendar year.  The Office also developed a new, simpler reporting form that is designed to be completed electronically rather than on paper.  The new reporting form became effective at the beginning of calendar year 2007.

Focused on Emerging Ethics Issues

OGE also actively addressed several critical emerging ethics issues including contractor ethics and Federal emergency response.  Because of the increasing use of contractors in the Federal workplace and the myriad ethics issues that can arise when employees and contractors work side by side, OGE issued a comprehensive memorandum to agency ethics officials on this topic.  In addition, OGE continued to draw attention to the question of whether some form of ethics rules needs to apply to the employees of Government contractors.  OGE spoke to several groups about this topic (including the staff of the Senate Armed Services Committee), monitored the Acquisition Service Panel’s consideration of these issues, and participated in a working group examining the multi-sector workforce being undertaken by the National Academy of Public Administration.   

To address the pressing issue of the ethical implications of emergency response, OGE established a working group in October of 2005.  Federal agencies that had either been affected by Hurricanes Katrina and Rita or were involved in the response and recovery efforts came together to discuss lessons learned. Representatives of 15 departments and 21 agencies attended one or more of the working group sessions held between October 2005 and March 2006.  The working group meetings culminated in a conference: “Ethical Implications of Emergency Response,” held at the Federal Energy Regulatory Commission on March 21 and 22, 2006.  The conference emphasized the need for all ethics officials to better position themselves to be part of, and thereby ensure that ethics remains an integral part of, future response efforts.  In June 2006, OGE published and distributed the conference presentations to the ethics community so that it can better prepare for the next emergency. 

OGE also established a “value added group” whose goal is to enhance executive branch ethics programs by creating an environment in which model practices, knowledge, and experiences are shared.  Ethics officials representing 20 executive branch departments and agencies began a discourse about adding value.  Thus far, the group has focused on assessing their own ethics programs, developing model practices, and exploring other opportunities to leverage the resources and accomplishments of individual agencies to better serve the mutual interests of the ethics community. 

Promoted Intergovernmental Good Governance Activities

OGE’s Congressional efforts in FY 2006 focused on two principal areas.  First, OGE completed a comprehensive review of the criminal conflict of interest laws relating to executive branch employment, in consultation with the Department of Justice, and submitted a report to the President and Congress evaluating those laws in accordance with the Intelligence Reform and Terrorism Prevention Act of 2004.  In addition, because OGE’s current authorization lapses at the end of this fiscal year, the Office pursued reauthorization legislation in the House and Senate including preparing and presenting testimony, preparing an extensive response to post-hearing questions and working with House and Senate committees on proposed reauthorization legislation.  OGE also drafted testimony and responded to Congressional and Office of Management and Budget (OMB) requests for comment on draft bills, legislation, bill reports and testimony.

The Office’s recognized ethics program and policy expertise within the executive branch and its ability to see the role of an ethics program in a broader good governance context has made the Office a substantial resource to the United States in meeting its commitments in international anti-corruption agreements and promoting concepts of good governance.  The use of OGE expertise was particularly substantial for those agreements that involve multi-disciplinary mutual evaluation.  During this fiscal year, the Departments of State and Justice asked OGE to take the principal role in coordinating the Council of Europe’s Group of States Against Corruption’s (GRECO) evaluation of portions of the United States’ anti-corruption efforts.  As an example of serving as a resource for information on U.S. ethics and good governance, OGE met with over 360 individuals within 41 foreign delegations representing 69 countries in FY 2006.

Also, based upon recognized policy and program expertise, members of the OGE staff served as expert evaluators from the U.S. for the GRECO evaluation process and for the Follow-up Mechanism for the Inter-American Convention Against Corruption (MESICIC).  OGE staff also served as the U.S. representative in expert meetings on conflicts of interest and ethics policies for the Organization for Economic Cooperation and Development (OECD) Public Governance and Territorial Development Directorate and served as a member of an internal working group on policy objectives for implementation of the U.N. Convention Against Corruption.  

Strategic Goal Two: Support the President, Executive Branch Agency Heads and Employees in Administering Effective, Fair, and Consistent Ethics Programs within the Branch and Individual Agencies

     OGE took significant steps to support executive branch ethics programs in FY 2006.  The Office reviewed agency ethics programs, began improvements to the review and certification process of public financial disclosure reports, streamlined the confidential financial disclosure rules and form, and enhanced ongoing communication with executive branch agencies.    

Provided Additional Agency Ethics Program Review and Feedback

OGE conducted on-site reviews of ethics programs at executive branch departments and agencies to: (1) identify and report on strengths and weaknesses of the programs and, as appropriate, make specific recommendations for program enhancements designed to help ensure integrity in Government operations; and (2) provide technical assistance to agencies in order to implement well-run and employee-helpful agency ethics programs.  This assistance included: sharing model practices observed during reviews at other agencies; providing suggestions on how to correct identified deficiencies; and assisting agencies in developing plans, processes, and procedures to implement report recommendations and suggestions.  In FY 2006, OGE reviewed 31 executive branch agency ethics programs. 

     OGE also conducted six-month follow-up reviews to address the recommendations and suggestions contained in its reports.  Through discussions with ethics officials and an examination of relevant documentation, OGE determines whether appropriate practices and procedures have been put into place to provide reasonable assurances that the identified program weaknesses have been appropriately addressed. 

In addition, OGE updated and formalized its procedure for administering the Agency Program Review Evaluation Process, which is designed to provide: (1) insight into how ethics program reviews can be improved and (2) benchmarks for the performance measures established in the FY 2007-11 strategic plan.  The Office streamlined this process by developing an electronic evaluation form and instituting a formal follow-up mechanism. 

In response to a specific agency request, OGE formed a task force to assist the Federal Emergency Management Agency (FEMA) in meeting a broad range of its ethics program challenges, including promoting program compliance, raising awareness, and allocating resources.  This special project complemented a series of program reviews of other components of the Department of Homeland Security, provided a basis for developing improvements to OGE’s general review process, and established a framework for a more value-added approach to program review. 

The Office also administered various surveys to evaluate agency ethics programs and establish baseline data for OGE’s FY 2007 strategic plan.  The Office administered a survey to attendees of the Ethical Implications of Emergency Response Conference held in March 2006, to evaluate the effectiveness of the conference, to assess the usefulness of the working group structure, and to assist OGE in developing future plans to address emerging ethics program issues.  Another survey instrument OGE administered to employees was designed to measure their perceptions of their agencies’ ethical culture and ethics program. OGE also administered a third survey to ethics officials throughout the executive branch – approximately 130 departments and agencies − to measure their perceptions of the services provided by the Office and to help establish benchmarks for performance measures defined in OGE’s new strategic plan.

Improved Financial Disclosure Processes   

     OGE took strides in FY 2006 to improve its performance of one of its key responsibilities, the review and certification of public financial disclosure reports, through a range of improvements that included the retooling of OGE’s internal process for reviewing the reports. 

Improvements in FY 2006 addressed two separate aspects of the public financial disclosure process:  (1) the review of reports filed by individuals nominated by the President for Senate-confirmed executive branch positions (nominee reports); and (2) the review of their annual and termination reports.  With regard to annual and termination public financial disclosure reports, to reduce the follow-up required on the 1,000 reports for which OGE is the final certifying authority, OGE published guidance on certain technical review deficiencies that routinely raise “red flags” and result in automatic follow-up with agency ethics officials.  OGE developed and implemented new internal policies that reduced its backlog of uncertified reports by 50%.  The Office continued discussions with OMB and ethics officials regarding the electronic filing of the public and confidential financial disclosure reports, which are filed each year by approximately 330,000 employees and Presidential nominees throughout the executive branch.  At the end of FY 2006 OGE worked with OMB to develop an E-gov initiative proposal for the filing of public and confidential financial disclosure reports.  Although OGE has not been formally notified of its decision, OGE understands that OMB has not approved our proposal.  Accordingly, OGE will continue to work with agencies such as the Department of the Army, to facilitate their development of electronic filing systems.

OGE began an effort to improve the review and certification process for nominee reports.  The Office instituted an inter-office review team and completed a work flow study on the existing report review process for these reports to identify the policies and procedures to be improved.  An advisory team is making suggestions and creating training documents on review procedures for new reviewers as the examination of current processes progresses.  In addition, the reviewers now meet regularly to build skills and discuss more complex reporting issues as they arise.  OGE is continuing to monitor the compliance of more than 500 Presidential appointees with ethics agreements in which they have agreed to take specific actions to address actual or potential conflicts of interest with financial or fiduciary arrangements disclosed in their financial disclosure reports.  OGE also timely filled requests from 143 individuals and organizations for 500 copies of those public financial disclosure reports of senior executive branch officials for which OGE conducts a second-level review.

OGE made improvements to the confidential financial disclosure process through the issuance of new rules and a new form that will streamline these reporting requirements.  (See discussion in Strategic Goal One.)  In addition, the Office continued to encourage and approve the use of alternative confidential financial disclosure procedures to permit agencies to obtain information about specific kinds of financial interests that can present conflicts for their employees.  In FY 2006, OGE approved the use of alternative confidential financial disclosure procedures for the U.S. Commission on Civil Rights, National Archives and Records Administration, Department of Defense, Department of the Army and Department of Veterans Affairs.  Discussions on alternative procedures are underway with the Department of Agriculture. 

Finally, the Office fully implemented new Executive Order 13392 regarding the Freedom of Information Act (FOIA).  OGE completed the review plan and report required by that Order. 

Enhanced Agency Communication

     OGE instituted a practice of inviting agency leadership to meet with OGE’s leadership in connection with ethics program reviews.  In addition to promoting the importance of the ethics program, this practice serves to help ensure personal commitment to the program by agency leadership as well as to define and allocate sufficient agency resources for the program.  The Office also maintained strong liaison services provided to ethics officials in executive branch departments and agencies through the OGE desk officer program and the random call desk.  These 12 desk officers answered over 3,800 questions from ethics officials on the conflict of interest statutes, standards of conduct regulations, program operations and financial disclosure and over 2,100 questions from the public.  These were in addition to the numerous legal and policy questions answered by OGE attorneys.  In addition, OGE increased by 11 percent the number of ethics officials and enforcement personnel with whom the Office communicates through the OGE email ListServe on such topics as emerging issues, best practices, general news, and job vacancies in the Federal ethics community. 

Strategic Goal Three: Develop and Make Available to Agencies Innovative Training and Ethics Education Materials and Promote and Provide Quality Education and Training Experiences for Agency Ethics Officials and Employees

     The Office provided extensive education and training opportunities and materials to an array of ethics officials and employees during FY 2006.  From the development of new courses to the creation of new materials and initiatives, OGE worked to ensure that Federal employees have the information necessary to perform their jobs with integrity.

Created Innovative Training and Education Materials

OGE developed several job aids aimed at helping ethics officials to more efficiently perform their jobs.  These include: (1) a flow chart on analyzing post-employment conflicts, (2) an analysis of conflicts of interest, (3) an analysis of the impartiality rule, (4) guidance on post-employment, and (5) a flow chart on ethics agreements.  OGE distributed these job aids to ethics officials who attended ethics training either as a stand-alone event or as part of the regional symposia or national ethics conference.  Also, OGE developed a comprehensive training program for new ethics officials.  The highly interactive, two-day program is designed to prepare new ethics officials to give advice and to help them hit the ground running.  The Office conducted approximately 50 instructor-led training programs for ethics officials in headquarters and in the regions, with most sessions filled within 48 hours of being announced.  The end-of-course evaluations demonstrate that the ethics officials found the training very helpful (as evidenced by an average rating of 4.4 on a 5-point scale). 

OGE also generated new guides and evaluation tools.  The Office developed instructor and participant guides for four courses to be distributed to ethics officials for use in training their employees.  These materials include one online course and three instructor-led courses.  Ultimately, each ethics topic will be presented in both online and instructor-led versions so that ethics officials have the option of selecting the medium that best addresses their needs.  In addition, OGE developed two new evaluation products: an objective multiple choice test to measure the extent to which employees acquired knowledge and skills as a result of the training provided and a subjective assessment that asks ethics officials at the start and end of the training to rate their perceived knowledge and skills. 

Provided Quality Ethics Education and Training

OGE developed and delivered numerous training sessions tailored to the specific needs of individual agency ethics programs.  These sessions covered such topics as making the appropriate determinations of positions meeting the requirements for filing confidential financial disclosure reports, determining the rules applicable to special Government employees, and carrying out other aspects of the duties and responsibilities associated with the position of Designated Agency Ethics Official (DAEO).  OGE routinely evaluated and revised its ethics training programs based on information provided by ethics officials who attended OGE training, feedback from the instructors, and observations made by the instructional designers.  These periodic revisions help to ensure that products are up-to-date.  To further ensure the quality of its products, OGE improved the formal internal review and approval process for employee and ethics officials’ course materials. Also, OGE convened a meeting of ethics officials representing a range of executive branch agencies in order to better identify and focus the appropriate scope of employee ethics training. 

OGE also continued its efforts to provide clear guidance to Federal advisory committees.  In FY 2006, the Office revised the training it offers in coordination with GSA to agency advisory committee management officials.  OGE also worked with GSA to develop a template to be used by agencies to draft advisory committee charters.

To recognize educational achievements and enhance the ethics community’s ability to leverage its resources, OGE launched an initiative to give awards to agency ethics training programs.  By identifying creative and innovative products, OGE can underscore the responsibility of the ethics community to go beyond merely fulfilling minimum ethics training requirements.  This initiative also is aimed at promoting efficiency by allowing agencies to avoid unnecessarily starting from scratch or duplicating the efforts of others.  The awards will be presented at OGE’s national conference in March, 2007. 

Finally, OGE conducted three symposia, two of which covered ethics laws, as well as such diverse topics as the Hatch Act, travel regulations, prohibited personnel practices and contractors in the workplace.  The third symposium addressed ethics issues that arise during and after emergencies.  OGE also began planning the 15th National Government Ethics Conference to be held in Orlando, Florida in March, 2007.

Strategic Goal Four: Administer an Effective Outreach Program

     The Office focused its outreach efforts on two tracks in FY 2006: externally, by disseminating ethics information to private sector, nonprofit, and international organizations, as well as state, local and foreign governments; and internally, by participating in Federal government conferences, work groups and councils to address ongoing and emerging ethics issues.

External Outreach

OGE administered an effective outreach program by sharing its programmatic and policy development experiences with those outside the U.S. Government.  This outreach included governments, nonprofits, corporations, professional and trade associations, and institutions of higher education that are developing or enhancing their own educational or ethics programs.

Primary examples of OGE’s effective sharing of programmatic and policy development experiences through international organizations and directly with foreign governments include: (1) OGE’s well-received service as a U.S. expert for conflict of interest and good governance projects of the OECD including the Good Governance for Development in the Arab countries of the Middle East and North Africa; and (2) service as a member of the delegation to the U.S.-China Joint Liaison Group bilateral meetings on anti-corruption held this fiscal year in China.  OGE also worked directly with individual country programs such as the Commission for the Prevention of Corruption of Slovenia, and through the Network of Ethics Offices of the Americas with Argentina, Uruguay, Chile, Brazil, Mexico, China and Puerto Rico.

In addition, repeat requests for OGE’s service as a primary resource for the State Department’s International Visitors Program, particularly in the areas of ethics, conflicts of interest and good governance programs, indicated the continued value of those presentations.  During the fiscal year, OGE met with over 41 delegations comprised of more than 360 foreign visitors representing over 69 countries.  OGE also has continued to be an active member of the Council of Governmental Ethics Laws (COGEL), an organization of Federal, state and local government agencies with expertise in ethics, campaign finance, lobbying registration and access to information.

Internal U.S. Government Outreach

OGE’s internal U.S. Government outreach included consistent participation in the activities of the President’s Council on Integrity and Efficiency (PCIE), the Executive Council on Integrity and Efficiency, the Interagency Ethics Council, and the Small Agency Council. OGE implemented an outreach program aimed at small boards and commissions to better tailor and more efficiently provide OGE services.  Finally, OGE worked to improve and modernize the Office’s web page in order to streamline the information available, enhance its usefulness to the ethics community and the general public, and better position it as a tool for meeting OGE’s strategic goals.  

Enhanced Internal Administrative Support

Without critical, internal administrative supports, OGE could not successfully pursue or reach its strategic goals.  During FY 2006, OGE strove to maintain strong, effective leadership by undertaking vital services related to budget and finance, human resources, graphics, facilities and property management, travel, procurement, telecommunications, records management, and information and web site technologies. 

In addition to this array of services, OGE undertook a significant number of internal, mission-support initiatives. To assist OGE in attracting and retaining a highly efficient workforce, the Office received OPM recertification of its SES pay-for-performance system and developed or revised eight Human Resource Manual chapters.  In addition, the Office developed and conducted reviews of OGE’s awards, telecommuting, and training programs.  OGE also improved recruiting by providing electronic notifications to African-American and Hispanic serving colleges and universities and by enhancing performance on OPM’s 45-day hiring model.

In FY 2006, to harness technology to improve business processes, the Office upgraded its email system, converted its IT network backup system from tape to disk, and provided the capability to transmit live or recorded video.  In addition, as part of the Office’s efforts to improve the financial disclosure system, it implemented a web-based Financial Disclosure Tracking System and continued the development of a web-based Review Tracking System.  The Office also provided OGE’s telecommuting employees with the capability to access their network files remotely, replicate their “C drive” data into a network drive for remote access, make and receive telephone calls remotely via an OGE notebook computer, and instant message.  OGE met all FY 2006 OMB deadlines concerning the transition to a new Internet Protocol (IPv6). 

Finally, to provide as safe a work environment as possible and ensure continuity of OGE operations, in FY 2006 the Office established an off-the-premises OGE Intranet site to store record information that can be accessed during an emergency, oversaw the development of a pandemic continuity of operations plan, and in light of the pandemic effort, initiated a review of the existing non-pandemic continuity plan.  The Office also updated its Federal Protective Service alarm system, developed an Administrative Manual chapter on information privacy, and continued the transition to the government-wide standard identification card.

FY 2008 Performance Plan Based on the New FY 2007-2011 Strategic Plan

Note: Some changes have been made in measures and targets based on our experience so far with the strategic plan and our survey results.

Strategic Goal One: Strengthening Ethical Culture within the Executive Branch

Objective 1.1: Improve the Effectiveness of Ethics Policy

FY 2007 and FY 2008 Planned Results

The development of ethics policy is one of OGE’s main responsibilities.  A major focus during FY 2007 and FY 2008 will be on preparing for the upcoming transition from the current Presidential Administration to the new one that will take office in January, 2009.  In both years, OGE will work to identify and update ethics policy guidance relevant to a Presidential transition.  This will include guidance for those leaving the current Administration, and for the many issues that will face the incoming Administration as it looks to get its appointees in place. 

In FY 2007, the Office plans to release final rules revising OGE regulations on the post-employment restrictions under 18 U.S.C. § 207, and to issue a significant memorandum for ethics officials on the complex rules governing Federal employees who plan to write books related to their government experience.  OGE also plans to publish proposed rules updating the Standards of Ethical Conduct for Employees of the Executive Branch, and hopes to have the final rules in place at the beginning of the new Administration.  (Although the plan had been to complete the proposed rule for this project in FY 2006, this release was delayed by the arrival of OGE’s new Director in mid-June, 2006, and the desire to obtain his input on this project.) 

In FY 2008, OGE will train its staff in preparation for working with the Presidential transition teams of the major Presidential candidates.  Following the national nominating conventions, the Office will begin working with these transition teams to advise them on the nomination and Senate confirmation process they will use to get new high level political appointees in place if their candidate is elected.  These meetings help the new Administration understand this process and OGE’s role in certifying nominees’ financial disclosure reports, so the Administration can move quickly to put its team in place after the inauguration. 

During FY 2007 and FY 2008, OGE also will continue to focus on emerging issues in the ethics field.  These efforts include raising awareness about issues that arise due to the presence of contractors in the Federal workplace and analyzing the effects of the executive branch’s potential adoption of alternative pay systems on certain ethics requirements tied to pay levels.  They also may include other matters that arise in the context of Congressional action, media interest, or agency review. 

In addition, the Office will perform its customary responsibilities throughout this period, including maintaining its relationship with Congress, responding to Congressional requests, drafting testimony, and tracking any legislation that could affect the executive branch ethics program.  OGE also will continue to coordinate and provide timely responses to requests from OMB for reviews of draft bills, legislation and testimony.  In addition, OGE will provide oral and written guidance to agency ethics officials, and will work with agencies on the preparation and issuance of agency rules supplementing the executive branch-wide Standards of Conduct.  The Office also will address issues raised by Congress, GAO, and Inspectors General regarding individual agency ethics programs and ethics issues of executive branch-wide applicability.  OGE anticipates that two reports scheduled to be released during the FY 2007 and FY 2008 period will be of particular relevance to OGE’s work on emerging issues: a report by the Services Acquisition Reform panel and a GAO report for the Senate Armed Services Committee.  Both reports are expected to address ethics issues regarding contractors in the Federal workplace.

Finally, OGE will continue to evaluate information collected during its program reviews, hold periodic seminars and other information-exchange opportunities with small groups of agency ethics officials, and identify trends and emerging ethics issues.  The results will be evaluated and considered in establishing the scope and schedule for OGE’s program reviews.  The Office also has established specific timeframes for reviewing its memorialized advice and publishing guidance with broad application on the OGE ListServe.  OGE will expand its effort to communicate guidance through the OGE webpage when the redesign is complete.  To assess the usefulness of this information, OGE will survey, at least annually, executive branch ethics officials.

Performance Measures

Objective 1.2: Enhance Assistance and Oversight of Agency Ethics Programs

FY 2007 and FY 2008 Planned Results

In FY 2007 and FY 2008, OGE will refine the scope of program reviews, enhance assistance to agency ethics officials reviewing public financial disclosure reports, and increase the training provided to new and experienced ethics officials.  In addition, the Office will continue its desk officer program to provide on-the-spot assistance to agencies. 

OGE’s program reviews will include assessments of whether: (1) agencies are adequately staffing the ethics program, (2) ethics officials are carrying out their duties and responsibilities, and (3) agencies are moving beyond basic regulatory compliance. While OGE will continue to identify weaknesses in agency ethics programs and make recommendations for improving these weaknesses, the Office will focus on identifying and highlighting successes and innovations in program administration.  Moreover, while OGE routinely identifies and shares model practices during program reviews, the Office will begin to solicit such model practices from agencies in years in which they are not subject to a program review.   Finally, OGE will develop an agency self-assessment tool for use by agencies to evaluate their own programs.

     In FY 2007, OGE will expand its assistance to agency ethics officials who review public financial disclosure reports (SF-278), in order to build an increased capacity in the executive branch for handling the anticipated surge in such filings during the Presidential transition following the 2008 general election.  To achieve this expansion, OGE will increase the ability of agencies to conduct their own reviews by updating sections of OGE’s “Reviewer’s Guide,” which is the primary reference resource for agency reviewers who process public financial disclosure reports.  In FY 2007, OGE will convert this guide to a primarily electronic format so that it can be timely updated to respond to emerging trends in financial arrangements.  OGE also will assess the needs of individual agencies for training regarding the review of public financial disclosure reports.  Based on this assessment, in FY 2008, OGE will supply agency reviewers with guidance and instruction that will expand their ability to review public financial disclosure reports.  OGE also will increase this capacity by providing instruction to enable agency reviewers to handle complex issues raised in such reports. 

OGE’s nominee financial disclosure team will supply agency reviewers with a compilation of OGE’s guidance and documents related to public financial disclosure in an electronic medium, which will increase the efficiency of agency reviewers during the Presidential transition.  In FY 2007 and FY 2008, OGE will build its own capacity for handling a high volume of public financial disclosure reports by providing individual and group training to its reviewers and by extending its reviewer training to a number of staff members who have not previously reviewed public financial disclosure reports. 

      Of the more than 10,000 ethics officials worldwide, OGE trains approximately 1,500 ethics officials each year.  While some have as much as 15 years experience, many have far less.   In FY 2007 and FY 2008, OGE plans to expand the training provided to new and experienced ethics officials.  This expansion will take place on several fronts.  First, OGE will deliver repeated sessions, in headquarters and the regions, of its two-day, instructor-led orientation program to new ethics officials.  Second, the Office will use technology such as web-based training, CD-ROMs, satellite broadcasts, and videos, to develop ethics training for and deliver training to officials who may be unable to attend either headquarters training or the regional symposia.  The goals are to significantly increase the number of ethics officials trained each year and to increase the variety of opportunities offered.  Third, for more experienced ethics officials, OGE plans to develop hands-on, instructor-led training that addresses complex issues and the “grey areas” officials are likely to encounter.  The Office will continue to use end-of-course evaluations to assess the effectiveness of training and course materials.

     Finally, OGE will continue with its desk officer program, which offers executive branch ethics officials a range of on-the-spot assistance from answering questions about conflicts of interest laws to suggestions on improving program operations.  In addition, in FY 2007 and FY 2008, the desk officers will continue to provide specific outreach to small boards and commissions and to agencies that employ large numbers of scientists. 

Performance Measures

Objective 1.3: Increase Employee Awareness of their Ethics Responsibilities

FY 2007 and FY 2008 Planned Results

Consistent with OGE’s plan to emphasize preparation for a Presidential transition in FY 2008, the Office will prepare new and updated materials for officials leaving the Government in FY 2007 and FY 2008.  These materials will specifically address the ethics rules that apply when seeking non-government employment as well as the rules that apply to post-employment activities.  The Office also will hold training sessions for agency ethics officials to prepare them for providing advice to departing employees within their agencies.

During FY 2007 and FY 2008, OGE also intends to continue coordinating with the General Services Administration (GSA) on advisory committee matters.  In particular, the Office will participate as presenters in GSA-sponsored training for agency advisory committee management officials.  OGE also intends to issue a pamphlet in FY 2007 that can be distributed to advisory committee members, outlining their ethical responsibilities.

Beginning in FY 2007, OGE will analyze reports on agency referrals of allegations of violations of the criminal conflict of interest statutes sent to the Department of Justice or a U.S. Attorney for prosecution and information on the disposition of these referrals, including any administrative sanctions undertaken.  OGE is currently responsible for collecting and maintaining this data.  The analysis will be used to focus education and outreach efforts on recurring types of allegations. 

     To help promote an ethical culture and ensure that employees know and can meet their responsibility for ethical behavior, OGE provides training and training materials and evaluates the effectiveness of its products.  With a target completion date of FY 2008, OGE has begun developing a curriculum for executive branch employees that will be delivered to them by their agency ethics officials.  When completed, the curriculum will consist of a mix of online and instructor-led training as well as videos and job aids.  OGE also will continue identifying agencies that have exemplary products and will present the agencies and their products at OGE’s national ethics conference in FY 2007.  After identifying the products, OGE will distribute them electronically to agencies, upon request, in FY 2007 and FY 2008.  And, to ensure that the training OGE develops and delivers results in learning for officials and employees, the Office is developing new pre- and post-assessments for its courses. 

Performance Measures

Objective 1.4: Increase OGE’s Focus on Senior Officials’ Roles in Implementing Ethics Program

FY 2007 and FY 2008 Planned Results

During FY 2007 and FY 2008, OGE plans to develop a training program on ethical leadership specifically for agency leaders.    The course will focus on why ethical leadership is important, how such leadership benefits the agency and the Government, and what concrete actions agency leaders can take to enhance their ethics programs.  OGE also will be reaching out to thousands of individual nominees who enter the Government as part of the 2009 Presidential Administration following the 2008 election.  To help them with the transition and prepare them for their roles as public servants, OGE will develop a DVD message from OGE’s Director explaining the significance of financial disclosure and other ethics responsibilities. 

Also in FY 2007 and FY 2008, OGE will continue to use employee ethics surveys.   These surveys include questions that assess employees’ perceptions of the attitudes of agency leadership and supervisors to ethics.  Moreover, OGE will continue its recently instituted practice of inviting agency leadership to meet with OGE leadership in conjunction with ethics program reviews.

Performance Measures

Strategic Goal Two: Preventing Conflicts of Interest

Objective 2.1: Enhance Assistance to the President and Congress in the Presidential Appointments Process

FY 2007 and FY 2008 Planned Results

     In FY 2007 and FY 2008, OGE will enhance the means available to agencies for resolving potential conflicts of interest during the Presidential appointment process.  This is a key part of OGE’s preparation for the anticipated surge in public financial disclosure filings during the Presidential transition following the 2008 general election.  In FY 2007, OGE will issue a proposed revision to its regulations on blind trusts, in order to clarify the process for establishing a blind trust, and will adopt a final regulation on the blind trust program before the Presidential transition begins. 

Also in anticipation of the next Presidential transition, OGE will increase its internal capacity for reviewing ethics agreements by developing draft model language addressing the wide variety of conflicts issues that OGE’s reviewers resolve through such agreements.  These models will include language for resolving potential conflicts associated with emerging trends in the financial holdings of nominees.  Likewise, OGE will develop direct guidance for nominees, which will make the appointment process more efficient by improving the quality of nominees’ initial draft financial disclosure reports. During the 2007 National Ethics Conference and at a 2008 regional symposium that will focus specifically on transition issues, OGE also will provide additional guidance and assistance to the ethics officials who will be the primary points of contact for these nominees.  In addition, OGE has been working with the Department of the Army, which has begun developing an electronic public financial disclosure form and an electronic review process.  At the end of FY 2006, OGE worked with OMB on developing an E-Gov initiative to permit electronic filing of the public and confidential financial disclosure reports.  Although we have not received formal notification, we understand this initiative has not been approved by OMB.

Performance Measures

*  Because OGE’s E-Government initiative was not approved, we do not know whether there will be a government-wide electronic filing system during this time period.

** OGE has not previously gathered information on this performance measure.  OGE intends to establish a baseline and develop performance targets after consultation with agencies.

Objective 2.2: Monitor Continued Compliance with Conflict of Interest Laws

FY 2007 and FY 2008 Planned Results

OGE has recently begun, and will continue in FY 2007 and FY 2008, to determine whether agency ethics officials notify public filers that either their report has been certified or that the certification is pending based on the need to resolve an identified potential conflict of interest.  OGE also will continue to monitor compliance with the annual financial disclosure report process and ethics agreements that are entered into as a result of information disclosed on the reports to identify and address any systemic weaknesses. 

Internally, OGE also will formalize its notification process, alerting agencies when their employees’ annual and termination financial disclosure reports have been certified and providing feedback on the quality of reviews performed by agency ethics officials.  In FY 2006, OGE strengthened internal processes and procedures in the area of financial disclosure with the aim of ensuring that annual and termination reports are submitted to OGE as timely as possible.  While timeliness has improved, it is not universal:  certain individual reports and agencies still lag.  In FY 2007, OGE will revisit these policies and procedures to determine where improvements can be made.

Performance Measures

Objective 2.3: Administer an Effective Confidential Financial Disclosure System

FY 2007 and FY 2008 Planned Results

During its program reviews, OGE assesses the effectiveness of agencies’ confidential financial disclosure systems.  These assessments will continue in FY 2007 and FY 2008.  In addition, OGE is responsible for reviewing and approving requests from agencies to use an alternative confidential financial disclosure procedure.  During the course of its standard program reviews, and on routine occasions such as panel presentations at OGE’s National Ethics Conference, OGE has underscored the option of using an alternative procedure and provided interested agencies with copies of previously approved forms already in use at other agencies.  In FY 2007 and FY 2008, OGE will continue to encourage agencies to use an alternative procedure and work with them in developing such procedures where appropriate.

Performance Measures

Strategic Goal Three: Promoting Good Governance

Objective 3.1:  Increase OGE’s Support of and Cooperation with Federal, State and Local Agencies Involved with Ensuring the Integrity of Government Functions

FY 2007 and FY 2008 Planned Results

The Office will continue to increase the effectiveness and efficiency of programs promoting integrity, accountability, predictability and transparency.  In FY 2007, OGE will use the report of the Council of Europe’s Group of States Against Corruption (GRECO) on the United States as a platform for discussion of elements of good governance perceived by the member states of GRECO and expand that discussion to include other international, mutual-evaluation agreements in which the U.S. is a party (such as MESICIC).  In FY 2007 and FY 2008, the Office will work cooperatively with Federal agencies to implement the recommendations made to the U.S. in the GRECO report.  Also in those fiscal years, the Office will use the subjects covered by the United Nations Convention Against Corruption (UNCAC) to discuss cross-cutting programs within the U.S. Government and to develop expert resources for use by foreign policy agencies in helping to promote the adoption and implementation of the UNCAC by other countries.  In FY 2007, OGE will explore opportunities to use ethics program expertise in training members of the inspector general community on continuing and emerging ethics issues and in FY 2007 and FY 2008 provide that training. 

OGE works with a number of other Federal agencies, directly and through interagency organizations, whose missions include good governance and enforcement of the ethics rules.  For example, the Director of OGE is a member of the President’s Council on Integrity and Efficiency and its Integrity Committee, a subcommittee which reviews any allegations made against Inspectors General.   And, because an effective ethics program must include mechanisms for enforcing the rules, OGE works with the Department of Justice (DOJ) and Inspectors General on enforcement of ethics requirements.  Although many violations of ethics rules are handled through administrative disciplinary proceedings, OGE coordinates with DOJ on criminal prosecutions where requested, and sometimes makes referrals based on information received by OGE.  The Office expects that these activities will continue in FY 2007 and FY 2008.  Furthermore, OGE will continue to liaison with DOJ on any cases in which the Office is a party, or which involve important legal questions that arise under the criminal and civil statutes within OGE’s jurisdiction.

Finally, in FY 2007, OGE will continue monitoring the comments and suggestions made by the ethics community via the formal feedback mechanism the Office established in FY 2006.  This system solicits suggestions about how the ethics community can better leverage its resources and add value through collaboration and the sharing of model practices, knowledge and experiences.  Once a consensus is reached regarding the most common issues and interests, individual working groups will be established.  This mechanism is the result of meetings held by OGE in FY 2006 with various agency ethics officials to discuss the value that would be added by encouraging more coordination among agencies through the use of techniques such as mutual evaluation by peers.

In addition, in FY 2007, OGE will identify joint projects of mutual interest to the State and local government members of COGEL. In FY 2007 and FY 2008 OGE work with COGEL to develop a plan to implement those projects.   

Performance Measures

Objective 3.2: Increase Outreach to the Private Sector and Civil Society

FY 2007 and FY 2008 Planned Results

The Office, through its active outreach, expects to enhance the understanding of the private sector and civil society about the goals and operation of the executive branch ethics program.  In FY 2007, OGE will identify organizations within the private sector and civil society whose broader understanding of the Federal ethics program would help support public trust in government and identify opportunities to work with these organizations.  In FY 2007 and FY 2008, based on the results of the outreach, the Office will plan and carry out programs that will utilize these opportunities.  OGE also will expand its audience at the March, 2007 National Ethics Conference by extending invitations to private sector organizations and civil society.

As part of this plan to enhance outreach to the public during FY 2007 and FY 2008, OGE will continue to respond to press and public inquiries in a timely manner, with an eye toward raising public awareness of the ethics issues confronting the executive branch.  In particular, the Office will seek out opportunities to speak to NGOs and other private organizations on the emerging issues OGE will address through training and other means.  For example, OGE expects to speak to private corporations, and organizations representing them, about contractor ethics issues.  In addition, during FY 2007 and FY 2008, OGE will continue to handle all the FOIA and Privacy Act requests received.  OGE typically handles between 50 and 100 requests a year, and it is likely that this trend will continue.

In addition, OGE is currently developing survey questions for agency ethics officials designed to elicit information on contractor employees in the Federal workplace.  In FY 2007, OGE will gather information on ethics-related issues as they relate to contractors in the workplace and identify effective ways that Government contractors and others who interact with Federal officials can be made aware of how to avoid interactions that might result in misconduct by a Federal official.

Finally, in FY 2007 OGE will substantially improve its web site through re-design and modernization.  The new web site will enhance public access to information about the agency and the executive branch ethics program.  In addition, the Office will continue to respond quickly and thoroughly to public requests for information, such as public financial disclosure reports and the semi-annual reports of travel payments accepted from non-Federal sources, and to general public queries about the agency through the random call desk. 

Performance Measures

Objective 3.3: Support U.S. Foreign Policy Anti-Corruption and Good Governance Initiatives

FY 2007 and FY 2008 Planned Results

OGE’s provision of ethics expertise has an appreciable and positive effect within the executive branch as well as on the recipients of U.S. anti-corruption foreign policy initiatives.  In FY 2007, in continuance of this objective, OGE will serve as the primary representative of the U.S. Government at the GRECO plenary at which the report on the United States is discussed and adopted.  In addition, in FY 2007 and FY 2008, the Office will continue to represent the U.S. at GRECO plenary meetings and to serve as an expert U.S. evaluator of other GRECO members during the third round of evaluations.

In FY 2007 and FY 2008, OGE will serve as a primary member of an interagency committee responsible for developing the U.S.’s position on implementation of the U.N. Convention Against Corruption and assisting in implementation of that position.  The Office also will continue to serve as a U.S. expert resource to OECD on issues of public governance including the Good Governance for Development for Arab countries of the Middle East and North Africa and for other programs.

In addition, OGE will serve as a U.S. Government resource for the Fifth Global Forum Against Corruption in FY 2007 and will respond to requests for assistance from the Departments of State and Justice on regional good governance projects in the Middle East, Africa, and the Asian Pacific Economic Communities, in both FY 2007 and FY 2008.  During both fiscal years, OGE also will support the Department of State International Visitors Program by continuing to meet with delegations of foreign visitors interested in ethics, conflict of interest, transparency, and other good governance initiatives of the U.S. Federal Government, and will continue, with support from the Bureau for International Narcotics and Law Enforcement Affairs within State, to provide technical assistance to individual country anti-corruption programs.  Finally, the Office will assist the U.S. Government in reviewing the steps taken by members of MESICIC (the Follow-up Mechanism to the Inter-American Convention Against Corruption) in implementing recommendations received by them during the first round of evaluation in FY 2007 and FY 2008.

Performance Measures

Enhanced Internal Administrative Support

FY 2007 and FY 2008 Planned Results

In FY 2007 and FY 2008, the Office will continue its efforts to recruit and retain an effective and efficient workforce.  OGE will achieve this through human resource management services that include staffing, position management and classification, awards, performance management, and personnel/payroll processing.  In addition to meeting performance measures regarding the use of information technology to improve OGE’s business processes, in FY 2007 and FY 2008 the Office will continue the transition from Internet Protocol version 4 to version 6, complete the implementation of the web-based Review Tracking System, and work to re-design the OGE web site. 

To ensure a safe work environment, OGE will complete the review of its non-pandemic plan for the continuity of operations in FY 2007.  In addition to continuing with essential administrative services that include budget and financial services, travel, procurement, printing, graphics, and personnel security, the Office also will complete development of a new email policy in FY 2007.  In FY 2007 and FY 2008, the Office will plan and then complete implementation of the government-wide identification card (HSPD-12).  Finally, OGE will develop an automated training system to better meet the reporting requirements of OMB and develop an automated procurement system to improve the tracking and control of expenditures in FY 2007.  Both systems will be implemented in FY 2008. 

Conclusion

The Office of Government Ethics (OGE) will use its $11,750,000 FY 2008 budget request to support its mission of fostering high ethical standards for executive branch employees and thereby to enhance the public’s confidence that the government’s business is conducted with impartiality and integrity.  Under the direction of its new Director, OGE will employ its resources to achieve its new strategic goals of strengthening the ethical culture within the executive branch, preventing conflicts of interest, promoting good governance and preparing for one of OGE’s most critical roles: supporting the transition to a new Administration.  OGE will assist with the transition in a myriad of ways, including assisting with post-employment issues for the outgoing officials and financial disclosure for incoming nominees and officials.  As evidenced by the many achievements in FY 2006, the carefully planned activities for FY 2007, and the intense focus on supporting the transition to a new Administration in FY 2008, OGE is prepared to undertake mission-critical tasks and an array of new initiatives to reach its new strategic goals.