OFFICE OF GOVERNMENT ETHICS OBJECT CLASSIFICATION in (000’s)

 

   

2007 Actuals  

 

11.1  Salaries                                           $6,763

12.1  Civilian personnel benefits            $1,663

21.0  Travel & Transportation/persons  $100

22.0  Transportation of things                 $8

23.1  Rental payments to GSA               $1,328

23.3  Communications, utilities, misc    $20

24.0  Printing and Reproduction             $48

25.2  Other Services                                $823

26.0  Supplies and materials                  $108

31.0  Equipment                                       $109

         Other Categories/CONV                $89

99.0  Subtotal                                           $11,059

99.0  Reimbursable                                 $261___

99.9  Totals                                               $11,320

 

2008 Appropriated

 

11.1  Salaries                                           $7,430

12.1  Civilian personnel benefits            $1,814

21.0  Travel & Transportation/persons  $158

22.0  Transportation of things                 $5

23.1  Rental payments to GSA               $1,341

23.3  Communications, utilities, misc    $65

24.0  Printing and Reproduction             $75

25.2  Other Services                                $695

26.0  Supplies and materials                  $75

31.0  Equipment                                       $92

         Other Categories/CONV                $0

99.0  Subtotal                                           $11,750

99.0  Reimbursable                                 $400___

99.9  Totals                                               $12,150

 

2009 Requested

 

11.1  Salaries                                           $8,404

12.1  Civilian personnel benefits            $2,020

21.0  Travel & Transportation/persons  $158

22.0  Transportation of things                 $5

23.1  Rental payments to GSA               $1,351

23.3  Communications, utilities, misc    $65

24.0  Printing and Reproduction             $75

25.2  Other Services                                $725

26.0  Supplies and materials                  $75

31.0  Equipment                                       $122

         Other Categories/CONV                $0

99.0  Subtotal                                           $13,000

99.0  Reimbursable                                 $400___

99.9  Totals                                               $13,400

OFFICE OF GOVERNMENT ETHICS RESOURCES BY OFFICE in (000's)

  

 

2007 ACTUALS

 

OFFICE:    DIRECTOR          

AMOUNT:  $373

 

OFFICE:    GENERAL COUNSEL & LEGAL POLICY

AMOUNT: $2,620

 

OFFICE:    ADMINISTRATION & INFORMATION MANAGEMENT

AMOUNT: $2,983

 

OFFICE:    AGENCY PROGRAMS

AMOUNT: $4,555

 

OFFICE:    INTERNATIONAL ASSISTANCE & GOVERNANCE INITIATIVES

AMOUNT: $528

 

Totals        $11,059

 

Reimbursable Obligations(ANNUAL ETHICS CONFERENCE) - $261

 

Total  $11,320

 

FTE:  71 

 

2008 APPROPRIATED

 

OFFICE:    DIRECTOR          

AMOUNT:  $425

 

OFFICE:    GENERAL COUNSEL & LEGAL POLICY

AMOUNT: $2,825

 

OFFICE:    ADMINISTRATION & INFORMATION MANAGEMENT

AMOUNT: $3,080

 

OFFICE:    AGENCY PROGRAMS

AMOUNT: $4,800

 

OFFICE:    INTERNATIONAL ASSISTANCE & GOVERNANCE INITIATIVES

AMOUNT: $620

 

Totals        $11,750

 

Reimbursable Obligations(ANNUAL ETHICS CONFERENCE) - $400

 

Total  $12,150

 

FTE: 80 

 

2009 REQUESTED

OFFICE:    DIRECTOR          

AMOUNT:  $475

 

OFFICE:    GENERAL COUNSEL & LEGAL POLICY

AMOUNT: $3,200

 

OFFICE:    ADMINISTRATION & INFORMATION MANAGEMENT

AMOUNT: $3,325

 

OFFICE:    AGENCY PROGRAMS

AMOUNT: $5,340

 

OFFICE:    INTERNATIONAL ASSISTANCE & GOVERNANCE INITIATIVES

AMOUNT: $660

 

Totals        $13,000

 Reimbursable Obligations(ANNUAL ETHICS CONFERENCE) - $400

 

Total  $13,400

 

FTE: 80

 

FY 2009 Explanatory Notes and Performance Plan

 

 

Introduction

 

     Public confidence in the integrity of Government is one of the keys to the success of our democratic system.  The mission of the Office of Government Ethics (OGE) is directly linked to strengthening that confidence 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 budget request for FY 2009 of $13,000,000 will allow it to fulfill its role during a critical period for our Government: assisting the smooth transition to a new Presidential Administration.  This period traditionally is one of peak activity for OGE. During this time, OGE focuses its efforts on helping to review the incoming Administration’s nominees for conflicts of interest, advising new and outgoing employees of their ethics obligations, and training ethics officials in executive branch agencies on the skills they will need to meet their responsibilities.

 

 

Highlights for FY 2007

 

FY 2007 was the first year of OGE’s new five-year Strategic Plan.  Last year’s budget document outlined how OGE would meet those new objectives during the first two years of that Plan.  OGE announced that it would undertake initiatives to support three main priorities in FY 2007 and FY 2008, and OGE made substantial progress during FY 2007 in all three areas:

 

• Assisting in the transition to a new Administration.  OGE created a comprehensive transition plan listing the guidance documents, regulations, training and other materials it would produce during FY 2007 and 2008 to assist ethics officials with their preparations for the upcoming transition.  OGE then began to meet those objectives, for example, by issuing memoranda for ethics officials and drafting or revising several pamphlets for Federal employees.  OGE also worked on materials it will provide to ethics officials in FY 2008 to help them with the anticipated surge in nominee financial disclosure reports during the Presidential transition, and met with a focus group of ethics officials to determine what they viewed their needs to be in preparing for the transition.  In addition, OGE completed draft revised rules on blind trusts and submitted them to the Department of Justice (DOJ) and the Office of Personnel Management (OPM) for review.

 

• Addressing emerging ethics issues as they arise.  OGE has focused on the ethics issues associated with contractors in the Federal workplace.  A number of media reports in FY 2007 noted questions about contractor conflicts of interest in certain Federal programs, and many of these programs also attracted Congressional attention.  OGE continued to seek opportunities to raise awareness about these concerns, through presentations to outside organizations such as the Defense Industry Initiative conference and an ABA Public Contracts section meeting, and by other means such as coordinating with the Office of Management and Budget’s (OMB) Office of Federal Procurement Policy and the Government Accountability Office regarding their work on related issues.

 

• Using technology to improve the delivery of ethics services, information, and materials.  OGE sought new ways to use technology to deliver ethics training and information to Federal employees and ethics officials in FY 2007.  OGE released a series of online training courses on topics ranging from working with contractors to a tutorial on the ethics rules that apply to special Government employees.  It also partnered with another Federal agency to present web-based training that allowed OGE to train ethics officials at multiple locations simultaneously.  In addition, OGE worked with several agencies that are developing their own electronic financial disclosure process to ensure the legal sufficiency of the forms and instructions.

 

The successful planning and delivery of the 15th National Government Ethics Conference (National Conference) was another significant undertaking for OGE in FY 2007. The conference’s agenda provided a major opportunity to address OGE’s priorities.  The National Conference was comprised of workshops organized into six themed tracks, with one track devoted to emerging issues.  The track included several workshops on contractor ethics issues.  Another track focused on preparing for the next transition and offered sessions on topics such as reviewing nominee financial disclosure reports and what ethics officials need to know about the transition process.  At the National Conference, OGE’s Director introduced a Leadership Initiative to the ethics community.  This effort was initiated in FY 2007 to engage the leadership of Federal departments and agencies in developing and supporting an ethical culture in the executive branch.

 

Finally, in FY 2007, OGE played an important role in the United States' anti-corruption foreign policy initiatives, many of which focused on the prevention of corruption.  OGE has internationally recognized experience in designing ethics programs that complement other government systems.  Accordingly, OGE was asked by the Department of State to provide significant assistance in the development of programs and policies related to good governance, including various working groups and task forces of the Asia Pacific Economic Cooperation and the U.S.-China Joint Liaison Group, and in the development of a review mechanism for implementation of the UN Convention Against Corruption.  These efforts not only enhanced foreign policy goals, but also highlighted the United States ’ commitment to an ethical public workforce.

 

 

Priorities for FY 2008 and FY 2009

 

     OGE’s priorities for FY 2008 and FY 2009 are described in detail in the FY 2009 performance plan set out below.  They reflect the upcoming two years of activities that will move OGE toward achieving the goals in the second and third years of its five-year strategic plan.  These goals 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 2008 and FY 2009:

 

·        Assisting in the transition to a new Administration.  This will be OGE’s primary focus during this timeframe. OGE plans to complete the actions contained in its comprehensive transition plan in FY 2008 and early FY 2009, to prepare itself and ethics officials in the executive branch agencies to handle the anticipated surge in public and confidential financial disclosure reports during the transition as well as the ethics issues faced by outgoing and incoming Administration officials.  OGE intends to finalize new rules such as those on post-employment restrictions and blind trusts, issue additional guidance for ethics officials on key topics, and provide training for reviewers of nominee reports.  A Washington D.C. regional conference on financial disclosure, scheduled for early FY 2008, and OGE’s 16^th National Government Ethics Conference, to be held at the end of FY 2008, will provide ethics officials with much-needed advice in advance of the transition.

 

·        Engaging agency leadership in developing and supporting an ethical culture.  OGE will continue its efforts to meet with agency leaders to raise awareness of the importance and needs of agency ethics programs.  OGE will also use its program reviews to identify model practices for use by other agencies, and to identify how agency leaders can support their ethics officials in moving beyond a program of basic compliance with ethics requirements.  OGE will also develop a training program on ethical leadership specifically for agency leaders and will prepare ethics materials for the many new appointees who enter the Government as part of the incoming Administration in FY 2009.

 

·        Using technology to improve the delivery of ethics services, information, and materials.  If resources permit, OGE plans to increase its use of technology to deliver training to ethics officials through such means as web-based seminars, CD-ROMs, and videos in FY 2009.  Although these mechanisms will never replace face-to-face training, they will allow OGE to reach a wider audience in a cost-effective manner, particularly during a period in which many new ethics officials will come on board as part of the new Administration. 

 

 

FY 2009 Budget Request Overview

 

     OGE’s total budget request for FY 2009 is $13,000,000.  This funding level will allow OGE to add needed staff for the upcoming Presidential transition, a critical period for OGE during which its workload will be substantially increased.  OGE’s request will permit it to handle the expected surge in nominee financial disclosure reports filed by the incoming President’s nominees for high-level positions requiring Senate confirmation.  It also will enable OGE to provide the necessary training and guidance for new and experienced ethics officials so that they will be able to handle the ethics issues that arise during the transition period. \

 

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FY 2007 Results

 

Strategic Goal One: Strengthening Ethical Culture Within the Executive Branch

 

Objective 1.1: Improving the Effectiveness of Ethics Policy

 

In FY 2007, OGE began to prepare for the Presidential transition that will take place in FY 2008 and FY 2009.  As an initial step, OGE developed a comprehensive plan for identifying and updating guidance relevant to the transition, including guidance for officials leaving the current Administration.  OGE’s first new policy memorandum in support of this goal addressed the issue of whether, and under what circumstances, an executive branch employee may assist someone in seeking a job in the private sector.  During FY 2007, OGE also began the process of training its newer employees on topics that are particularly relevant to the transition, such as the rules applicable to seeking employment and post-employment activities and financial disclosure.

 

As part of OGE’s effort to continually review and update policy guidance for ethics officials, OGE published a number of comprehensive memoranda providing advice on key questions.  These memoranda, which are provided to agency ethics officials and are available to the public on OGE’s website, discussed issues such as the ethics rules that apply to detailees under the Intergovernmental Personnel Act, gifts of admission to events, and Government employees asked to serve as expert witnesses.  The memoranda also provided guidance on issuing conflict of interest waivers to employees, counting days of service for special Government employees, and determining what is a “matter” for purposes of the ethics rules.  In FY 2007, 93 percent of ethics officials surveyed said that OGE policy guidance was useful.

 

One of the emerging issues in which OGE has been active is the area of contractor ethics.  Because an increasing number of contractor employees are assigned to work in Federal buildings alongside Federal employees, ethics issues that arise from working in such close proximity continue to raise concerns.  In January 2007, the Acquisition Advisory Panel released its final report on Federal contracting to the OMB and Congress.  The report adopted several recommendations by OGE regarding the need for executive branchwide ethics rules on contractors in the Federal workplace. 

 

In a related development, OGE submitted comments on proposed rules prepared by the Federal Acquisition Regulatory Council that would establish certain ethics requirements for Federal contractor employees.  OGE also advised the Government Accountability Office (GAO) on its inquiry into ethics issues involving contractors in the Department of Defense.  In addition, OGE launched an online training course specifically for contractor employees.  The course is designed to inform contractors about the rules that apply to Government employees and to alert contractor employees to avoid conduct that might trigger an inadvertent ethics violation. 

 

Another emerging ethics issue addressed by OGE in FY 2007 was the impact of alternative pay systems on financial disclosure requirements.  OGE previously had conducted a survey of agencies that have implemented non-standard pay systems (e.g., other than the GS or SES systems) to determine how the agencies were deciding who was required to file a public financial disclosure report.  OGE determined that, generally, agencies were adequately addressing financial disclosure, and OGE issued advice to assist those agencies who were still dealing with the issue. OGE exceeded its FY 2007 goal for the percentage of ethics officials who rate OGE as responsive to emerging ethics program issues.

 

In addition, since January 2007, Congress has considered several pieces of legislation affecting Government ethics laws.  OGE has closely tracked the development of these proposals and has provided technical assistance regarding the impact of these proposals on the existing executive branch program.  OGE also has responded to Congressional and OMB requests for comment on draft bills, legislation, bill reports and testimony. Specifically, OGE timely completed 169 OMB requests for review and comment in FY 2007 with OGE’s comments on direct ethics issues incorporated 97 percent of the time.   This represents a 48 percent increase in the number of requests for review over FY 2006 (114) and a 31 percent increase over FY 2005 (129).  The percentage of OGE’s comments incorporated on direct ethics issues also increased from 89 percent in FY 2005 and FY 2006 to 97 percent in FY 2007.

 

Objective 1.2: Enhance Assistance to and Oversight of Agency Ethics Programs

 

In March 2007 OGE hosted its National Conference, providing a major opportunity to address OGE’s priorities. Almost 600 ethics officials from 85 agencies or components of executive branch departments located at headquarters and regional offices, participated in the three-and-a-half day conference.  In addition, representatives from the Inspector General (IG) community and civil society organizations participated.  National Conference participants attended workshops organized into six themed tracks, including tracks devoted to leadership, emerging issues, and preparation for the Presidential transition following the general election in November 2008. 

 

For the first time, all conference materials were available in electronic format and distributed to participants on flash drives, thus enabling participants to refer easily to the information after the conference and providing an archive for future course development.

 

At the National Conference OGE launched two initiatives, both developed by OGE in FY 2007.  The “Leadership Initiative” focused on the critical role of high-level agency leadership in promoting an ethical culture.  The “Compliance Plus” initiative focused on ensuring integrity in Government decision making processes and the overall fostering of public confidence in Government. Under “Compliance Plus” an ethical culture is created by emphasizing the need for agencies to maintain effective ethics programs by establishing and meeting goals beyond minimum compliance with statutory and regulatory requirements.  The initiatives were created as a result of close coordination with the ethics community. OGE’s Director introduced the Leadership Initiative in the conference’s keynote address.

 

Because leadership support is a critical component of a successful agency ethics program, OGE is committed to raising the level of discourse between the leadership of executive branch agencies and the ethics community.  As part of the Leadership Initiative, OGE developed and provided to agencies suggestions for concrete actions that can be implemented at the leadership level to enhance agency ethics programs. 

 

The Compliance Plus approach enhances OGE’s program review process by emphasizing the goal of identifying and sharing model practices. Model practices serve to improve the processes and systems necessary to achieve compliance requirements, thus freeing up ethics program resources.  Model practices assist ethics officials in setting comprehensive performance targets for their programs.  As emphasized under “Compliance Plus,” an ethics program that strives only to meet the basic requirements is missing an opportunity to more fully advance agencies overall ethical culture. The approach also encourages cooperative work among ethics offices to establish benchmarks over time to facilitate program assessments.

 

OGE took additional steps to leverage the resources of the ethics community.  First, OGE convened various focus groups to discuss its Leadership Initiative and to promote wider access to and use of training products that received awards at the National Conference.  Second, OGE instituted lunch-time forums to focus on the emerging issue of the upcoming transition and enhance program management.  Third, OGE continued to forge a stronger relationship with regional ethics officials and the IG community by including topics of interest to them in the conference agenda.

 

OGE also focused on Presidential transition issues as part of its efforts to enhance assistance to agency ethics officials in FY 2007.  For example, OGE offered a presentation at its National Conference on book deals by executive branch officials.  OGE expects to issue written guidance on this topic in FY 2008.  In FY 2007, OGE also began training additional staff to review financial disclosure reports.  This action was taken in anticipation of a significant surge in the volume of reports filed by Presidential nominees for positions requiring Senate confirmation during the Presidential transition following the general election in November 2008.  The National Conference also included an OGE presentation urging executive branch agencies to begin preparations for this upcoming Presidential transition by training additional reviewers of financial disclosures. 

 

OGE worked on several issues in connection with tax matters related to ethics programs.  In order to assist executive branch agencies in requesting Certificates of Divestiture (which allow employees to defer capital gains taxes on assets they are required to divest), OGE issued a DAEOgram describing the processing of such requests and developed a draft recommended format for requests.  OGE provided technical advice to officials from the Supreme Court and the Administrative Office of the United States Courts regarding draft rules they had created to implement a newly authorized judicial branch program for Certificates of Divestiture.  OGE also worked with officials of the Internal Revenue Service (IRS) to develop IRS regulations regarding the tax treatment of accelerated payments under deferred compensation plans pursuant to 26 U.S.C. § 409A, when such payments are accelerated as a means of complying with Governmental ethics requirements.

 

In FY 2007, OGE also continued to provide strong liaison services to ethics officials in executive branch departments and agencies through the OGE desk officer program and the random call desk.  Desk officers delivered timely, accurate, and consistent guidance to executive branch ethics officials on a wide range of ethics issues, from answering questions about conflicts of interest and other ethics rules to identifying model practices and programs in other agencies and offering suggestions for improving program operations. In addition, numerous complex legal and policy questions were answered by OGE attorneys.  OGE also continued its efforts to enhance individual agency programs and the ethics community as a whole through its identification, development and dissemination of model practices.

OGE provided quality ethics education and training to over one thousand agency ethics officials in FY 2007, in addition to the training provided during the National Conference. To measure the effectiveness of the training, OGE administered an assessment tool during the training.  The results:  100 percent of responding ethics officials indicated that their knowledge of, and ability to apply, ethics laws and rules increased as a result of the training they received.  Using feedback provided by ethics officials who attended OGE training and from the instructors, as well as observations made by the instructional designers, OGE revised certain courses to ensure that they are up-to-date and effective.  To further ensure the accuracy and quality of its products, OGE expanded the formal internal review and approval process for course materials.  OGE also developed numerous job aids -- e.g., flow charts, timelines, and summaries -- to help ethics officials perform their jobs.  Copies of these job aids were distributed to ethics officials either as part of ethics training or upon request.

 

In FY 2007, OGE launched a new award program to recognize agency educational achievements, and invited ethics officials to submit their best training products.  OGE selected the 10 most effective agency ethics training programs, from more than 60 entries, and met with representatives of the agencies that developed the products to discuss how to leverage the programs for use by all executive branch agencies.

 

OGE conducted onsite reviews of 24 ethics programs at executive branch departments and agencies in order to: (1) identify and report on strengths and weaknesses of the programs; (2) make specific recommendations for program enhancements; (3)  provide technical assistance to agencies; (4) identify and share model practices; (5) provide guidance on correcting deficiencies and implementing specific recommendations and suggestions; and (6) promote the goal of reaching beyond mere compliance with regulatory standards.  OGE’s program reviews continued to emphasize the importance of having written procedures for following up with delinquent financial disclosure filers.  OGE also conducted six-month follow-up reviews to address recommendations and suggestions made in its reports.  Through discussions with ethics officials and examination of relevant documentation, OGE determines whether appropriate practices and procedures are in place to provide reasonable assurances that the identified program weaknesses are appropriately addressed. 

 

OGE completed a special project at the Federal Emergency Management Agency (FEMA) providing the Department of Homeland Security, FEMA and OGE leadership with suggestions to enhance the overall effectiveness of the FEMA ethics program. The project arose from FEMA’s interest in working informally with OGE to examine and improve its program outside the structure of routine onsite review.

 

OGE administered surveys to evaluate agency ethics programs and establish baseline data for OGE’s FY 2007-2011 strategic plan.  OGE developed and used a newly designed survey -- administered to ethics officials throughout the approximately 130 departments and agencies of the executive branch -- to assess the effectiveness of the services and support provided by OGE and to help establish benchmarks for performance measures defined in the strategic plan. OGE also administered surveys to measure employees' perceptions of their agencies’ ethical culture and ethics program.

 

 

Objective 1.3: Increase Employee Awareness of Their Ethics Responsibilities

 

OGE finalized improvements to the confidential financial disclosure reporting system in FY 2007.  OGE issued a new reporting form to be used by approximately 300,000 employees.  The form was designed to be completed electronically, although paper submission is still required.  OGE implemented changes in the system that included a new reporting date (February 15) and a new reporting period (calendar year), as well as streamlined reporting requirements.  OGE launched an online training course for confidential filers to acquaint them with the new reporting requirements and form, and provided a set of Frequently Asked Questions (FAQs) that confidential filers can access through the OGE website.  OGE has received strong positive feedback from ethics officials on the improvements in this form.  The FAQs were also one of the website’s most frequently viewed sections.

 

As exemplified by the training materials related to financial disclosure, OGE plays an important role in preparing training materials that can either be used by agencies as issued or modified for agency-specific needs.  While individual departments and agencies prepare much of the training information distributed to their staffs, OGE-produced materials reduce the time and resources that agencies would otherwise have to spend in producing their own training.  For example, in support of OGE’s efforts to emphasize ethics issues that result from the Government’s increasing use of contractors, OGE issued: (1) a brochure that outlines ethics rules for Government employees who are primarily involved in contracting and procurement activities, and (2) an online training course for Government employees who work with contractors on a frequent basis.   OGE launched another online course that explains how the ethics rules apply to special Government employees (SGEs) (i.e., temporary or intermittent employees who work for 130 days or less).  This course is expected to be particularly useful to members of Federal advisory committees.

OGE expanded its use of low-cost technology to deliver ethics training and information to Federal employees and ethics officials in FY 2007.  Many of its training products are available on its website.  Here are some creative ways OGE presented ethics information in FY 2007, in addition to the web‑based courses described above:

 

• OGE successfully partnered with the Environmental Protection Agency to conduct OGE’s first live, online, interactive training.  The training was broadcast to 25 ethics officials at 4 separate sites.  Because EPA funded the program, the broadcast focused exclusively on the needs of EPA staff.  The project provided a solid framework for OGE’s future development and delivery of live, online, inter-active, and cost‑effective training programs. 

 

• OGE developed comic strip-style posters, Ethics Guardian, which can be used to educate employees on ethics rules and regulations.  The posters are available to agencies in an electronic format that allows customization of information about agency ethics contact points.  In response to requests from ethics officials, OGE provided over 350 customized versions of the posters to representatives from more than 65 agency components.  OGE continues to receive requests for customized versions.

 

• OGE began to develop a series of instructor-led courses for employee ethics training.  The course materials consist of instructor and participant guides and an evaluation instrument.  OGE distributes the courses via email in response to agency requests.  Over 150 ethics officials have requested and received the first course, “Initial Ethics Orientation.”  Other courses in the series will be released in FY 2008.

 

• OGE developed a series of online ethics crossword puzzles which focused on topics including: Misuse of Position, Outside Activities, and Gifts.  Agencies have downloaded the crossword puzzles from OGE’s website and have begun to create their own.

   

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

 

     OGE's Director introduced the Leadership Initiative to the broader ethics community at the National Conference.  The initiative provides agency leaders with suggestions for concrete actions that they can implement to fulfill their ethics responsibilities.  Leadership support is a critical component of a successful agency ethics program. OGE is committed to raising the level of discourse between the leadership of executive branch agencies and the ethics community.  To achieve this goal, OGE consulted with several sources to identify specific steps that agency leaders could institute to promote an ethical culture, and to support an agency’s ethics program.  OGE worked closely with the Department of the Interior, which developed a comprehensive program to ensure compliance with regulatory requirements and to underscore their Secretary’s commitment to establishing an ethical culture throughout the Department. 

 

The theme was further reinforced by the Secretary of the Department of the Interior, who was a keynote speaker at OGE’s National Conference. The leadership theme also was interwoven into all of the presentation streams of the conference.  The Leadership Initiative continued after the conference with a series of working groups of ethics officials to discuss strategies to engage agency leadership and implement effective leadership actions.

 

     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.  OGE’S Director met with several high-level agency leaders, including the Secretaries or other top officials of cabinet-level and other executive branch agencies that were scheduled for onsite reviews in FY 2007:  the Department of Agriculture, the Department of Education, the Department of the Interior, the Federal Trade Commission and the Pension Benefits Guaranty Corporation.  As a result, several agencies have implemented or are developing plans to improve their ethics programs.  These improvements include ensuring the ethics programs are optimally located within the organizational hierarchy to most effectively carry out agency ethics responsibilities.  Restructuring of the ethics program has resulted in a direct reflection of commitment of the organizations leadership to the ethics program objectives.

 

 

Strategic Goal Two: Preventing Conflicts of Interest

 

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

 

In preparation for the Presidential transition, OGE began assessing the training needs of individual agencies on the review of public financial disclosure reports.  In the course of reviewing nominee reports in FY 2007, OGE scrutinized the work of agency ethics officials and met internally to discuss the issues that were arising in the course of these reviews.  Also, OGE’s financial disclosure team and program reviewers met to discuss specific issues with agency programs in connection with the review of financial disclosure reports.  Based on this assessment, OGE will continue in FY 2008 to provide agency reviewers with guidance and instruction that will improve their review of public financial disclosure reports.

 

During FY 2007, OGE reviewed and certified 252 financial disclosure reports submitted by nominees to positions requiring Senate conformation.  In addition, OGE worked more closely with ethics officials to provide guidance on ethics agreements for nominees to resolve the nominees’ potential conflicts of interest.  Heightened scrutiny of the quality of these ethics agreements increased the emphasis on resolving conflicts prospectively.  In order to build the skills of agency ethics officials, OGE contacted agency ethics officials directly to explain and negotiate changes to their nominees’ ethics agreements.  In FY 2007, 98 percent of filers complied with their ethics agreements within the required time frame.

 

OGE also has developed draft written guidance on ethics agreements as a supplement to OGE’s financial disclosure guidance manual, Financial Disclosure: A Reviewer’s Reference.  OGE will issue a final version of this guidance in FY 2008.

 

In addition, several presentations at OGE’s National Conference addressed both technical disclosure issues and substantive conflicts issues related to nominee financial disclosure.  OGE also conducted training for new financial disclosure reviewers in Washington , DC .

 

In OGE’s FY 2008 budget request, OGE indicated that it intended to convert its Financial Disclosure: A Reviewer’s Reference to a primarily electronic format so that it could be timely updated to respond to emerging trends in financial arrangements.  The guide is currently available on OGE’s website in HTML and PDF versions.  OGE had planned in FY 2007 to convert this document to a new format that would be easier to update.  However, OGE lacked the financial resources to accomplish the technological steps necessary to complete this task. 

 

OGE submitted a proposed regulation on qualified blind trusts and qualified diversified trusts to DOJ and OPM for review.  This proposed regulation revises existing regulations in order to clarify the process for establishing such trust instruments.  OGE had hoped to issue the proposed regulation in FY 2007, but a staffing shortage in 2007 delayed its issuance.  After the review process is completed, OGE will adopt a final regulation on its trust program before the beginning of the Presidential transition.