The Office of Government Ethics oversees the administration of the public and confidential financial disclosure systems for the executive branch.
Reference: Section 102(f), Ethics in Government Act of 1978; 5 C.F.R. part 2634.
Public Financial Disclosure
Certain senior officers and employees of the executive branch are required to file publicly available reports (SF 278) disclosing their financial interests as well as the interests of their spouse and minor children. Public filers must report --
- interests in property held in a trade or business or for investment or the production of income (real estate, stocks, bonds, securities, futures contracts, beneficial interests in trusts or estates, pensions and annuities, mutual funds, etc.) that meet reporting thresholds
- earned income, retirement benefits, honoraria and any other non-investment income
- gifts and reimbursements that meet reporting thresholds
- liabilities (personal loans from certain family members, a mortgage on a personal residence, automobile, furniture and appliance loans, revolving charge accounts that do not exceed $10,000 at the close of the reporting period are excluded from reporting)
- agreements or arrangements with respect to future employment, leaves of absence and continuation of payments or benefits from a former employer, and
- outside positions as an officer, director, trustee, general partner, proprietor, employee, consultant, etc. of any organization (but positions with religious, social, fraternal or political entities are excluded, as are solely honorary positions).
Confidential Financial Disclosure
Certain other executive branch employees whose duties involve the exercise of discretion in sensitive areas such as contracting, procurement, administration of grants and licenses, and regulating or auditing non-Federal entities are required to file confidential financial disclosure reports (OGE Form 450). This reporting system generally tracks the approach of the public disclosure system with some differences. For example, asset values and income amounts are not required to be reported, nor are interests in or income from bank accounts, money market mutual funds, U.S. obligations and Government securities. The most notable difference between public and confidential reports, however, is that confidential reports are not available to the public.
Presidential Appointment Process
Persons who are nominated by the President for positions requiring confirmation by the Senate are required by law to file public financial disclosure reports. These nominee reports are reviewed prior to confirmation hearings by the White House Counsel's Office, by the agencies in which the nominees will serve, and by the Office of Government Ethics. OGE certifies the final reports before they are transmitted to the Senate.
The information on the reports is carefully analyzed, potential conflicts are discussed, and appropriate remedial measures are agreed to. These remedial measures include recusal agreements, divestitures, resignations, waivers, and qualified trusts.
OGE tracks a Presidential appointee's compliance with any ethics agreement that the appointee made during the confirmation process. These agreements may concern the financial interests of the appointee, as well as the appointee's spouse or dependent children. An appointee is to certify, with documentation to OGE, that such agreements have been satisfied within 90 days of confirmation.
Reference: 5 C.F.R. part 2634.