TREASURY DIRECTIVE: 61-01

DATE: February 21, 2007

SUBJECT:  Implementation of the Public Financial Disclosure Requirements of the Ethics in Government Act

1.   PURPOSE. This directive establishes procedures and guidance for the completion, submission, review, custody, and public disclosure of financial disclosure reports required for certain senior officers and employees in the executive branch by the Ethics in Government Act of 1978, as amended, 5 U.S.C. Appendix 4, section 101, et seq., and 5 Code of Federal Regulations (C.F.R.) Part 2634.

2. SCOPE. This directive applies to all bureaus, the Departmental Offices (DO), the Office of Inspector General (OIG), and the Office of the Treasury Inspector General for Tax Administration (TIGTA).

3. BACKGROUND. Treasury Order (TO) 107-04 delegated the authority to implement and manage the Department's ethics program to the General Counsel.

4. DEFINITIONS.

a. Act means the Ethics in Government Act of 1978, as amended.

b. Bureau shall include the Office of the Inspector General (OIG) and Treasury Inspector General for Tax Administration (TIGTA), for the purposes of this Directive.

c. Designated Agency Ethics Official (DAEO) means the Assistant General Counsel (General Law and Ethics) of the Department of the Treasury (see TO 107-01).
           
d. Senior Counsel for Ethics means the Senior Counsel for Ethics, Office of the Assistant General Counsel (General Law and Ethics), who also serves as the Alternate Designated Agency Ethics Official.

e. Bureau ethics official means the bureau’s chief law officer (Chief Counsel, Legal Counsel, or Counsel, or designee).

f. Standard Form (SF) 278, “Public Financial Disclosure Report,” means SF 278 (Rev. 3/00), or subsequent editions of that form as prescribed by the Office of Government Ethics.

5. REPORTING REQUIREMENTS.

a. Covered Individuals Required to File.
The following individuals are required to file a Public Financial Disclosure Report:

(1) Presidential nominees to positions requiring the advice and consent of the Senate (PAS).

(2) Officers and employees whose positions are classified above GS-15 of the General Schedule, or the rate of basic pay for which is fixed, other than under the General Schedule, at a rate equal to or greater than 120 percent of the minimum rate of basic pay for GS-15 of the General Schedule, including, among others, Special Government Employees as defined in 18 U.S.C. § 202 and members of the Senior Executive Service. Detailees who occupy these positions for more than 60 days are covered individuals.

(3) Employees in excepted service positions which are of a confidential or policy-making character (i.e., positions excepted from the competitive service by the Office of Personnel Management under Schedule C) unless exempted by the Director of the Office of Government Ethics.

b. List of Covered Individuals.

(1) Annual List. No later than February 1 each year, the Deputy Assistant Secretary for Human Resources or designee shall prepare a list of individuals required to submit annual Public Financial Disclosure Reports, except for officers and employees of the Internal Revenue Service (IRS) and the Office of the Chief Counsel to the IRS, and submit the list to the Senior Counsel for Ethics.  For the IRS, and the Office of the Chief Counsel to the IRS, an annual list shall be prepared by the Office of Executive Services, IRS, and IRS Associate Chief Counsel (Finance and Management), respectively, and submitted to the Associate Chief Counsel (General Legal Services), IRS.

(2) Bi-weekly Updates. The Deputy Assistant Secretary for Human Resources or designee shall provide bi-weekly amendments to the annual list in cases of:

(a) a new officer or employee not previously covered by the reporting requirements who enters into service in a covered position; or

(b) a covered officer or employee who leaves Federal service or transfers to another Federal position that is not covered by the SF 278 reporting requirements.

c. Information Required To Be Included In Report.
The information required to be included in the SF 278 is set forth in detail in 5 C.F.R. Part 2634 and the instructions accompanying the SF 278.

d. Report Filing Dates.

(1) Due Date. Reports must be filed:

(a) except for Presidential nominees, within 30 days following the covered employee’s appointment, unless the employee vacated another position subject to the reporting requirement within 30 days prior to assuming the new position;

(b) by May 15 each year, if the employee served 61 days or more in a covered position during the preceding calendar year;

(c) within 30 days of termination of employment, if the employee served 61 days or more in a calendar year and has not moved to another covered position within 30 days thereafter; or

(d) in the case of Presidential nominees to positions requiring the advice and consent of the Senate, no later than five days after the President transmits the nomination to the Senate.

(2) Extensions of Time. The Senior Counsel for Ethics, or designee, or the Associate Chief Counsel (General Legal Services), IRS, may grant reasonable extensions of time not exceeding a total of 45 days to employees for submitting SF 278s.  For good cause shown, the DAEO or designee, or the Associate Chief Counsel (General Legal Services), IRS, for IRS and Office of the Chief Counsel to the IRS filers, may grant filers an additional extension not to exceed 45 days.  Ordinarily, a request for an additional extension of time for up to 45 additional days must be made in writing to the DAEO or designee, or the Associate Chief Counsel (General Legal Services), IRS, stating specific reasons why an additional extension of time is necessary. The DAEO, the Associate Chief Counsel (General Legal Services), IRS, or designee shall approve or deny such requests in writing.  The total of any extensions shall not exceed 90 days.

(3) Late Filing Fee. An individual who files a report more than 30 days after the report is required to be filed, or, if an extension is granted, more than 30 days after the last day of the extension period, shall be subject to a late filing fee of $200.00.  The DAEO or designee, or the Associate Chief Counsel (General Legal Services), IRS, may waive the late filing fee if he or she determines that the delay in filing was caused by extraordinary circumstances, including but not limited to, the agency’s failure to notify a new entrant, first-time annual filer, or termination filer of the requirement to file the public financial disclosure report, which made the delay reasonably necessary.  A request for a waiver must be made to the DAEO, or to the Associate Chief Counsel, (General Legal Services), IRS, for IRS and Office of the Chief Counsel to the IRS filers, in writing, with supporting documentation.  The determination shall also be in writing.  The DAEO, designee, or the Associate Chief Counsel, (General Legal Services), IRS may consult with the Office of Government Ethics prior to approving any waiver of the late filing fee.

6.   DISTRIBUTION OF SF 278. 

a. DO and non-IRS Bureau Employees.

(1) Annual Reports. No later than March 15 each year, a blank SF 278 and cover memorandum from the DAEO shall be distributed electronically to each covered employee by the Assistant General Counsel (GLE), or designee for DO filers, and by the bureau’s chief legal officer for bureau filers.  Each form shall have a cover memorandum from the DAEO containing instructions and the name and telephone number of an official or officials designated by the DAEO to answer questions.  Supplemental guidance may be included in addition to the memorandum, regarding bureau form access, completion, and submission. For DO filers, a preprinted envelope may also be provided to the reporting individual, if requested, for transmittal of the completed report.

(2) New Entrant and Termination Reports. Upon entrance on duty or termination of a covered employee, the appropriate Departmental or bureau personnel officer shall ensure that the employee is provided with a blank SF 278 in sufficient time for the employee to meet his filing obligations under Section 5.d. (1)(a) and (c).

b. IRS and Office of the Chief Counsel to the IRS Employees. The Associate Chief Counsel (General Legal Services), IRS, shall establish procedures to ensure the prompt distribution of SF 278s to covered officers and employees of the IRS.

7. WHERE EMPLOYEES MUST FILE REPORTS.

a. DO and Certain Other Employees.  The following persons shall file SF 278 reports with the Senior Counsel for Ethics (General Law and Ethics):

(1) DO Employees; 

(2) The Commissioner of the Internal Revenue Service, the Assistant General Counsel who is the Chief Counsel for the Internal Revenue Service, and the Associate Chief Counsel (General Legal Services), IRS; and

(3) Bureau chief law officers.

b. IRS Employees.  Covered employees of the IRS and the Office of the Chief Counsel to the IRS, other than the Commissioner of Internal Revenue, and the Chief Counsel and Associate Chief Counsel (General Legal Services), shall submit their SF 278s to the Associate Chief Counsel (General Legal Services), IRS.

c. Bureau Employees.  Covered officers and employees, other than bureau chief law officers, shall submit their SF 278 reports to the respective bureau ethics official or designee.  A bureau ethics official may provide specific instructions to filers regarding report submission. 

8.   FAILURE TO SUBMIT OR FALSIFICATION OF PUBLIC FINANCIAL DISCLOSURE REPORTS.

a. Failure of a covered individual to submit a Public Financial Disclosure Report, including information required to be reported, and providing information that does not fully and accurately reflect the matters being reported, may subject such individual to penalties and other consequences as provided by law.  Knowing and willful falsification of information required to be filed under section 102 of the Act may also subject a covered individual to criminal prosecution and sentencing under 18 U.S.C. § 3571.

b. Any instance of failure to file an SF 278 within 30 days of the date it is due, including any extensions, should be reported promptly to the DAEO by the Senior Counsel for Ethics or designee, or, for IRS, the Associate Chief Counsel (General Legal Services), IRS.  The DAEO shall ensure that the individual whose report is late is contacted and directed to file the report within as short a time as practicable.  Similarly, the DAEO should be apprised immediately of any allegation of falsification of an SF 278.  The DAEO shall take any appropriate action required by the Act, or other applicable regulations, to assure compliance with the reporting requirements and shall refer allegations of falsification and other violations of the reporting requirements to the Office of the Inspector General or, in the case of employees of the IRS and of the Office of the Chief Counsel to the IRS and TIGTA employees, to the Office of the Treasury Inspector General for Tax Administration.  However, instances of inadvertent noncompliance with the technical reporting requirements need not be reported to the Office of the Inspector General or TIGTA if they are promptly corrected by the filer.

9.   BUREAU REPORTING REQUIREMENTS (STATUS REPORTS).

a. With the exception of IRS, bureau ethics officials shall provide filer status reports to the Senior Counsel for Ethics (General Law and Ethics) or designee, as requested, to ensure ethics program responsibilities are carried out in accordance with applicable regulations and this directive and to ensure any tracking systems of records are accurate against data from personnel or Human Resources offices.

b. These status reports shall include the names of all bureau filers, type of filer, date report filed, extensions granted, and dates of review and certification, as applicable.

10. REVIEW OF PUBLIC FINANCIAL DISCLOSURE REPORTS.

a. Date of Receipt.

Upon receipt of each SF 278, the Senior Counsel for Ethics; a bureau ethics official; or, for IRS, the Associate Chief Counsel (General Legal Services), IRS, or designee, as appropriate, shall enter on the report the date it was received.

b. Assignment of Initial Review.

(1) Departmental Offices filers: All SF 278 reports, including those of all DO Presidential appointees with Senate confirmation, and bureau chief legal officers, will be reviewed initially by the Senior Counsel for Ethics or designee.  The Senior Counsel for Ethics or designee may request another DO employee who may be more familiar with the reporting individual’s responsibilities to assist in this review.  The DAEO may request another Assistant General Counsel to perform an initial review of an SF 278 for an individual within an area for which their office provides legal advice.  Reviewers may request the filer’s supervisor to assist in the review by identifying potential conflicts of interest.

(2) Bureau filers: The appropriate bureau official may conduct an initial review of SF 278s required to be filed with the bureau.  Reviewers may request the filer’s supervisor to assist in the review by identifying potential conflicts of interest.  Upon completion of an initial review of SF 278s filed by bureau or agency heads, including reports of all Presidential appointees, those reports shall be forwarded to the Senior Counsel for Ethics or designee for final review and certification.

(3) IRS filers: Reports, including those of the Commissioner, Chief Counsel, and Associate Chief Counsel (General Legal Services), shall be reviewed by the Associate Chief Counsel or designee in the Office of General Legal Services, IRS.  Upon completion of an initial review, the reports of the Commissioner, Chief Counsel, and Associate Chief Counsel (General Legal Services) shall be forwarded to the Senior Counsel for Ethics or designee, Office of General Law and Ethics, for final review and certification.

c. Initial Review Process.

(1) Each SF 278 should be reviewed to determine if it has been completed in accordance with instructions on the form and the requirements of
5 C.F.R. Part 2634 and whether the report discloses the existence of any conflict of interest. 

(2) Initial reviewers of reports shall recommend to the certifying official identified in Section 10.e. (1) below whether the report should be certified, upon completion of their initial review.  

(3) In the course of the review, the reviewer may require the submission of additional information by the reporting individual.  If the reviewer determines that a report has not been completed in a manner consistent with instructions, the reviewer may request an amended report.  The reviewer may make pen and ink amendments as specifically requested by the reporting individual and indicate on the report that the amendments were entered at the request of the reporting individual. 

(4) Upon completion of an initial review, a designated initial reviewer shall sign the cover page of the SF 278 under “Other Review (if desired by agency).”

d. Initial Review Deadline.

Except as provided in Section 11.a., review must be completed no later than 60 days from the date of receipt of the report.  Any reviewer designated in Section 10.b.(1) or (2) shall inform the Senior Counsel for Ethics or designee regarding any difficulties or delays in completing an initial review well in advance of the due date for completion of the review.

e. Final Certification.

(1) Authority. After completion of the initial review, the final review and certification of reports will be undertaken by:

(a) The DAEO, in the case of nominee or new entrant reports filed by Presidential appointees;

(b) The Senior Counsel for Ethics, in the case of annual and termination reports filed by Presidential appointees, including IRS reports filed by the Commissioner, Chief Counsel, and Associate Chief Counsel (General Legal Services);

(c) The Senior Counsel for Ethics or designee, in the case of bureau heads, bureau chief legal officer, and Departmental Offices employees;

(d) A bureau ethics official, in the case of other non-IRS officers and employees; or

(e) The Associate Chief Counsel (General Legal Services), IRS, in the case of all other IRS and the Office of the Chief Counsel to the IRS employees.

(2) Process. The certifying officials described in e.(1)(a)-(e) of this Section shall sign and date the SF 278, certifying that, in that official’s opinion, and based on the information submitted, the report discloses no conflict of interest under applicable laws and regulations.

f. Remedial Action.

In the event the certifying official concludes that the report discloses a conflict of interest or is not in compliance with the Act, the certifying official may offer the reporting individual, in writing, an opportunity for personal consultation and suggest measures that can be taken to bring the report into compliance.  Such remedial action, other than divestiture, shall be completed no later than 30 days from the date the individual was notified.  Divestiture shall be completed in accordance with 5 C.F.R. § 2635.403(d).  If compliance is not secured, the DAEO shall report the matter to the Deputy Secretary for appropriate action under sections 106(b) (4) and (6) of the Act. 

g. Sampling of Certified Reports.

The Senior Counsel for Ethics or designee shall conduct a periodic review of randomly selected reports that have been reviewed and certified by bureau ethics officials, in order to ensure that reports are substantively and technically in compliance with the requirements of 5 C.F.R. Part 2634.

11. TRANSMITTAL OF CERTAIN SF 278 REPORTS TO THE OFFICE OF GOVERNMENT ETHICS.

a. Presidential Appointees. Following certification of the SF 278s by the DAEO or the Senior Counsel for Ethics, the annual and termination reports of Presidential appointees shall be forwarded to the Office of Government Ethics for final review and certification.

b. Designated Agency Ethics Official. Following certification of the SF 278s by the Senior Counsel for Ethics, the annual or termination reports of the DAEO shall be forwarded to the Office of Government Ethics for final review and certification.

12. CUSTODY OF PUBLIC FINANCIAL DISCLOSURE REPORTS.

a. General. Except as provided in paragraphs b and c of this Section, SF 278s submitted by covered employees will be maintained by the Senior Counsel for Ethics.

b. IRS Employees. SF 278s submitted by covered employees of the IRS and Office of Chief Counsel, IRS, other than those of the Commissioner, Chief Counsel and Associate Chief Counsel (General Legal Services) will be maintained by the Service-wide Ethics Program, Employee Conduct and Compliance Office, Human Capital Office, IRS.

c. Bureau Employees. SF 278s submitted by bureau employees, other than those of Presidential appointees, other non-Presidential appointee agency or bureau heads, and bureau chief legal officers shall be retained by the bureau ethics official or designee in the bureau in which the employee files.

d. Duration. SF 278s will be retained for six years from the date of execution (or a longer period, as necessary, if related to an ongoing investigation).

13. PUBLIC DISCLOSURE OF SF 278 REPORTS.

a. Availability. The official designated in Section 12 as having custody of a Public Financial Disclosure Report shall make the report available for public inspection in accordance with the procedures outlined in paragraphs b and c of this Section.

b. Requests for Disclosure. Within 30 days after its receipt in the designated office, a Public Financial Disclosure Report can be made available for inspection or copying by any member of the public in accordance with the Act upon written request submitted to the official designated in Section 12 as having custody of the report, in accordance with paragraph c of this Section and with 5 C.F.R. § 2634.603(c).  The report will be made available as soon as practicable, and not later than 30 days from the date of the request, unless extenuating circumstances are present.

c. Application to Inspect or Copy an SF 278.

(1) Any person or entity that wishes to inspect or obtain a copy of a report must submit a written request on the Office of Government Ethics standardized application form, Request to Inspect or Receive Copies of SF 278 Executive Branch Personnel Public Financial Disclosure Report (OGE Form 201) to the official designated in Section 12 as having custody of the report.  The OGE Form 201 is available on the Office of Government website at http://www.usoge.gov/pages/forms_pubs_otherdocs/fpo_files/forms/fr201_06.pdf

(2) There may be a charge per page to cover the costs of reproduction computed in accordance with 31 C.F.R. 1.7(g) (1).  If so, no copies will be made until payment is received.  Any request for a waiver of the charge, in the public interest, must be made in writing to the official designated in Section 12 as having custody of the report and must include specific reasons for the request.

d. Record of Disclosure. The official designated in Section 12 as having custody of a report shall maintain the record of the disclosures made in response to written requests in the space provided for this purpose on the requester’s application to inspect or copy an SF 278 (OGE Form 201) -- that is, Part II, Notice of Action.

e. Notification of Disclosure to Filer. Although not required by regulation, ethics officials may notify filers regarding the release of their report (e.g., name of requestor, date of release; report released) where practicable. 

14.   SUPPLY OF FORMS.

Employees may obtain blank copies of SF 278 forms from their personnel office or download the SF 278 from the Treasury Intranet ethics website, a Treasury bureau website, or other authorized agency website such as Office of Government Ethics or National Finance Center/USDA site.

15. CANCELLATION.

Treasury Directive 61-01, Implementation of Public Financial Disclosure Requirements of Ethics in Government Act, dated December 11, 2000, is superseded.

16.  AUTHORITIES.

a. TO 107-01, The Ethics in Government Act of 1978, as amended
b. TO 107-04, The General Counsel

17.  REFERENCES.

a. Title II of the Ethics in Government Act of 1978, as amended, 5 U.S.C. App. 4.

b. 5 C.F.R. Part 2634, Executive Personnel Financial Disclosure Requirements

18. OFFICE OF PRIMARY INTEREST. Office of the General Counsel, Legal Division.