FY 2007 Performance Accountability Report - Annual Program Performance Report

Annual Program Performance Report
Office of Government Ethics for FY 2007

Strategic Goal One: Strengthening Ethical Culture Within the Executive Branch

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 tickets, 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, 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.

OGE tracks its progress toward achieving its strategic goals through specific objectives assessed with reference to established performance measures. Baseline data for the majority of measures was established by merging statistical data from a variety of existing sources, including ethics training surveys, annual ethics program questionnaires, employee ethics surveys, and surveys of ethics officials.

Performance Measure:
Percent of ethics officials who rate OGE as responsive to emerging ethics program issues.

Performance Target
Baseline      78%
FY 2007     80% / 81%
FY 2008     80%
FY 2009     80%
FY 2010     80%
FY 2011     80%

Performance Target
Baseline       94%
FY 2007     95% / 93%
FY 2008     95%
FY 2009     95%
FY 2010     95%
FY 2011     95%

Performance Measure:
Percent of ethics officials who say they receive the guidance they need to do their jobs effectively.

Performance Target
Baseline      85%
FY 2007     85% / 82%
FY 2008     85%
FY 2009     85%
FY 2010     90%
FY 2011     90%

OGE hosted its National Conference in March 2007 that provided 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 and the “Compliance Plus” initiative focused on 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 the usefulness of the program review process by emphasizing the goal of identifying and sharing model practices. Model practices focus on improving 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. The approach 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 review of financial disclosures. In addition, OGE produced written guidance for ethics officials on the requirements of public financial disclosure and conflicts analysis for 20 financial instruments, as a supplement to OGE’s financial disclosure guidance manual, Financial Disclosure: A Reviewer’s Reference.

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 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 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 their program outside the structure of routine onsite review. This project complemented an ongoing 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 an improved approach to program review that is designed to more actively engage agency ethics officials in understanding OGE’s program concerns and in developing strategies to effectively address agency-specific challenges.

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.

Performance Measure:
Percent of ethics officials who are satisfied with education and training provided by OGE to support ethics officials.

Performance Target
Baseline       64%
FY 2007     70% /72%
FY 2008     75%
FY 2009     80%
FY 2010     90%
FY 2011     90%

Performance Measure:
Percent of ethics officials who view OGE’s program review process as adding value to their own programs.

Performance Target
Performance Target
Baseline       65%
FY 2007     75% / 57%*
FY 2008     85%
FY 2009     90%
FY 2010     90%
FY 2011     90%

Performance Measure:
Percent of agencies that conduct internal reviews or audits to evaluate their program’s compliance with applicable ethics laws and regulations.

Performance Target
Baseline       59%
FY 2007     60% / 60%
FY 2006     65%
FY 2009     70%
FY 2010     75%
FY 2011     80%

Performance Measure::
Percent of agencies that use self-assessment surveys to evaluate employee perceptions of their agency’s ethics program and ethical culture.

Performance Target
Baseline       24%
FY 2007     25% / 28%
FY 2008     30%
FY 2009     40%
FY 2010     40%
FY 2011     50%

Performance Measure:
Percent of ethics officials who are satisfied with information shared on ethics program model practices.

Performance Target
Baseline       55%
FY 2007     65% / 63%
FY 2008     70%
FY 2009     75%
FY 2010     85%
FY 2011     85%

* The phrasing of the request for this information may have suggested that only agencies participating in a program review in 2007 had relevant data. OGE believes that the program review process, particularly in identifying and promoting implementation of model practices, adds value to the overall ethics program. Notably, the Compliance Plus initiative is intended to enhance the overall understanding of the usefulness of program review as a tool to identify and share model practices with the entire ethics community.

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 reviewed 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, 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 courses 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. The crossword puzzles focused on topics including: Misuse of Position, Outside Activities, and Gifts. Agencies have downloaded puzzles from its website and have begun to create their own crossword puzzles.

Performance Measure:
Percent of agencies that incorporate OGE education and training products into their program.

Performance Target
Baseline     66%
FY 2007     70% / 72 %
FY 2008     75%
FY 2009     80%
FY 2010     90%
FY 2011     90%

Performance Measure:
Percent of participants whose knowledge of the ethics rules increased after participating in OGE conducted training.

Performance Target
Baseline     87%
FY 2007     90% / 100 %
FY 2008     90%
FY 2009    100%
FY 2010    100%
FY 2011    100%

Performance Measure:
Percent of ethics officials who are satisfied with employee education and training programs provided by OGE.

Performance Target
Baseline     44%
FY 2007     55% / 57 %
FY 2008     60%
FY 2009     70%
FY 2010   80%
FY 2011     80%

Performance Measure:
Percent of employees who indicate they are familiar with ethics rules.

Performance Target
Baseline     52%
FY 2007     60% / 59 %
FY 2008     70%
FY 2009     70%
FY 2010   80%
FY 2011     80%

Performance Measure:
Percent of employees who indicate that they recognize ethics issues when they arise.

Performance Target
Baseline     59%
FY 2007     65% / 66 %
FY 2008     70%
FY 2009     75%
FY 2010   80%
FY 2011     80%

Performance Measure:
Percent of employees who believe that if ethics concerns are reported to the agency, action is taken to resolve them.

Performance Target
Baseline     51%
FY 2007     55% / 56 %
FY 2008     65%
FY 2009     70%
FY 2010   75%
FY 2011     75%

Performance Measure:
Percent of employees who believe that employees who are caught violating ethics rules are disciplined.

Performance Target
Baseline     42%
FY 2007     45% / 50 %
FY 2008     45%
FY 2009     50%
FY 2010   55%
FY 2011     60%

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 may 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 also 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, many agencies have implemented or are developing plans to improve their programs. These improvements include restructuring their ethics programs to ensure that the programs are optimally located within the organizational hierarchy to most effectively carry out their responsibilities and reflect leadership commitment to their objectives.

Performance Measure:
Percent of employees who believe their agency leaders pay attention to ethics.

Performance Target
Baseline     64%
FY 2007     65% / 69 %
FY 2008     70%
FY 2009     75%
FY 2010   75%
FY 2011     80%

Performance Measure:
Percent of employees who believe their immediate supervisors pay attention to ethics.

Performance Target
Baseline     75%
FY 2007     75% / 80 %
FY 2008     75%
FY 2009     80%
FY 2010     80%
FY 2011     80%

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.

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 officials complied with their ethics agreements within the required time frame.

In addition to this individualized work, OGE 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. Instead, OGE published a separate supplement to this manual.

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.

In FY 2007, OMB informed OGE that its request to undertake an OMB-sanctioned e‑Gov Initiative for the development of an e‑filing system for financial disclosure reports in the executive branch would not be approved. OGE considered the possibility of attempting to manage an informal non-OMB sanctioned e-Gov initiative, but rejected that approach because OGE has neither the finances nor staff resources to oversee such an uphill effort of a strictly voluntary nature without definite funding sources. Instead, OGE decided to allow each agency to undertake its own development of an electronic filing process to use with either the public (SF 278) or confidential (OGE Form 450) reporting system.

Even though each department or agency will decide its own progression into the electronic filing arena, the integrity of financial disclosure processes will continue to be one of OGE’s highest priorities. Accordingly, OGE will take the following steps: (1) continue to monitor the executive branch’s movement into this area by requesting basic information on future Annual Ethics Program Questionnaires; (2) be a member of the “Electronic Filing Workgroup” formed late in FY 2007 to promote the development and advancement of executive branchwide electronic financial disclosure report filing; and (3) oversee agency electronic filing efforts as part of its Program Review Division’s future reviews of agency ethics programs.

Accordingly, OGE provided assistance to executive branch agencies that are developing electronic financial disclosure systems. OGE communicated with agencies regarding plans and requirements for such systems in a DAEOgram, at a special meeting of Designated Agency Ethics Officials, and at OGE’s National Conference. OGE’s staff provided feedback to the Army, the Federal Deposit Insurance Corporation, and the Federal Aviation Administration regarding electronic filing formats they had developed. OGE also provided evaluations of the legal sufficiency of frequently asked questions and screen instructions that the Army had developed in connection with its electronic filing system.

Performance Target
Baseline     2%
FY 2007       6% / 4 %
FY 2008       *%
FY 2009     *%
FY 2010       *%
FY 2011     *%

Performance Measure:
Percent of users who are satisfied with electronic filing systems.

Performance Target
Baseline     **%
FY 2007       **%
FY 2008       **%
FY 2009     **%
FY 2010       **%
FY 2011     **%

Performance Measure:
Percent of officials who comply with ethics agreements within required time frames.

Performance Target
Baseline     95%
FY 2007     95% / 98 %
FY 2008     95%
FY 2009     95%
FY 2010     95%
FY 2011     95%

Performance Measure:
Resolves all conflicts and technical reporting issues for nominee financial disclosure reports no later than five days after a nomination is made.

Performance Target
Baseline     90%
FY 2007     90% / 95 %
FY 2008     90%
FY 2009     95%
FY 2010     95%
FY 2011     95%

In FY 2007, OGE continued to identify and address executive branch compliance with annual financial disclosure report requirements and ethics agreements. During the fiscal year, over 900 Presidentially appointed, Senate confirmed (PAS) SF 278 annual and termination reports were filed with OGE for its final review and certification. During this process, OGE worked with agencies to ensure that the reports were technically accurate and conflict free. In addition, OGE strengthened its monitoring system to ensure that reports are filed as quickly as possible. As a result, OGE experienced an 8 percent increase in reports that did not require a filing extension. OGE also analyzed the quality of the reviews performed at the agency level. This analysis will serve as the focus of a targeted program review in FY 2008.

OGE also continued its monitoring of ethics agreements of PAS officials. During this fiscal year, OGE monitored a total of 212 agreements made by 127 PAS officials. Because of OGE’s strict follow-up procedures, 98 percent of all required actions were completed within the standard initial period of 90 days.

In FY 2007, OGE program reviewers routinely emphasized the importance of notifying public filers once their reports had been reviewed and certified. In those cases where reports had not been certified or were certified late due to filing errors or inconsistencies, OGE program reviewers ensured that agency officials were making efforts to collect or correct the information that was delaying certification. In addition, OGE’s reviews of agency ethics programs identified and reported on systemic weaknesses that led to the late submission and review of annual and termination public financial disclosure reports. OGE has recommended a variety of strategies that agencies could use to correct these weaknesses, including: utilizing human resources officials to ensure that the ethics office is timely notified of incoming, incumbent, and departing filers; including the filing requirement in filers’ position descriptions; and foregoing raises or promotions for those employees who are delinquent in filing.

IGs provide critical support to the enforcement of ethics laws and rules, as they usually conduct the primary investigations of alleged violations. Therefore, OGE seeks opportunities to strengthen the relationship between IGs and the ethics community and to help IGs understand the application of the ethics requirements. For example, OGE provided IGs with training on the review of public financial disclosure reports and provided a briefing on the OGE program review process. In addition, OGE staff consulted regularly with IG offices to advise them on ongoing investigations.

Performance Measure:
Percent of audited entities that provide public financial disclosure report filers with feedback after their reports have been reviewed.

Performance Target
Baseline     84%
FY 2007     85% / 100 %
FY 2008     90%
FY 2009     90%
FY 2010     95%
FY 2011     95%

Performance Measure:
Percent of audited entities that have written procedures for following up with delinquent filers.

Performance Target
Baseline     49%
FY 2007     60% / 91 %
FY 2008     75%
FY 2009     90%
FY 2010   100%
FY 2011   100%

Objective 2.3: Administer an Effective Confidential Financial Disclosure System

OGE made improvements to the confidential financial disclosure process through the issuance of new rules and a new form that streamlines the reporting requirements. (See discussion in Strategic Goal One, Objective 1.2.) In addition, OGE 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 2007, OGE approved the use of alternative confidential financial disclosure procedures for the Department of the Army, the Department of Justice, the Defense Science Board, the Inter-American Foundation, the President’s Foreign Intelligence Advisory Board, and the Office of Thrift Supervision. Finally, during the course of its onsite evaluations of agency ethics programs, OGE ensured that previously approved alternative procedures were being administered in compliance with the plan approved by OGE.

Performance Measure:
Percent of alternative systems judged by program review to have been effectively implemented.

Performance Target
Baseline     60%
FY 2007     65% / 100 %
FY 2008     70%
FY 2009     80%
FY 2010     90%
FY 2011     90%

Performance Measure:
Percent of required confidential filers who filed by end of reporting year.

Performance Target
Baseline     70%
FY 2007    ***% / 100 %
FY 2008     75%
FY 2009     75%
FY 2010     80%
FY 2011     80%

***The regulation was amended for this reporting period. Results for FY2007 will be available in FY2008.

Objective 3.1 Increase OGE’s Support of and Cooperation With Federal, State and Local Agencies Implementing Programs That Help Support Good Governance

In FY 2007 OGE engaged in a number of activities with Federal, State and local agencies that promote integrity, accountability, and transparency in Government. At the Federal level, OGE’s Director maintained consistent communication with the IG community through regular attendance at the President’s Council on Integrity and Efficiency’s (PCIE) and the Executive Council on Integrity and Efficiency’s (ECIE) monthly meetings. The Director continued to serve on the PCIE Integrity Committee and was a featured speaker at the 2007 PCIE/ECIE Conference. OGE also maintained a consistent presence at the Federal Interagency Ethics Council, an informal group of executive branch ethics officials who meet monthly to share model practices and practical information. In support of the substantial number of federal advisory committees, OGE staff participated in a multi-day curriculum development exercise held by the General Services Administration to improve training for Federal Advisory Committee management officers in Departments and agencies.

At the State and local level, OGE continued to be an active member of the Council on Governmental Ethics Laws (COGEL), an organization of Federal, State and local government agencies primarily from the United States and Canada that, in part, are responsible for Government ethics and access to information programs. In FY 2007, OGE received requests for good practice information from several COGEL member organizations including the ethics offices in New York City and the State of Illinois. OGE made its own requests of COGEL members for practical information on topics of mutual interest such as the ethics issues associated with the increasing number of contractor employees in the Government workforce. OGE staff participated in both COGEL Conferences that were, for scheduling reasons, held during the same fiscal year.

Throughout FY 2007, OGE coordinated extensively with Federal, State and local government agencies in conjunction with U.S. obligations under international anti-corruption conventions and mutual evaluation mechanisms. In addition to obtaining specific information on the laws, regulations and policies for the programs of these agencies that support anti-corruption efforts, OGE used the anti-corruption conventions and evaluation mechanisms as platforms for discussions of specific internationally recognized good governance and integrity issues. OGE worked cooperatively with Federal agencies to implement or report on implementation of recommendations made specifically to the United States through these evaluations.

OGE exceeded its targets for the year. As expected, however, the range of cooperative endeavors in which it engaged with Federal, state and local agencies did not always lend itself easily to gathering written, qualitative feedback. It was pleased to note that in its discussions with these agencies and entities, they indicated they found their interactions with OGE to be useful. OGE certainly found them to be.

Objective 3.1
Increase OGE’s Support of and Cooperation With
Federal, State and Local Agencies Implementing

Performance Measure:
Number of programs/projects involving federal agencies/ organizations.

Performance Target
Baseline        6%
FY 2007     8% / 14 %
FY 2008       8%
FY 2009     10%
FY 2010     10%
FY 2011     10%

Performance Measure:
Percent of feedback from federal program/project attendees indicating OGE participation was useful.

Performance Target
Baseline        6%
FY 2007     8% / 14 %
FY 2008       8%
FY 2009     10%
FY 2010     10%
FY 2011     10%

Performance Measure:
Number of programs/projects involving state/local/government agencies/organizations.

Performance Target
Baseline        2%
FY 2007       2% / 5 %
FY 2008       2%
FY 2009       3%
FY 2010       3%
FY 2011       3%

Performance Measure:
Percent of feedback from state and local program/project attendees indicating OGE participation was useful.

Performance Target
Baseline        30%
FY 2007       30% / 100 %
FY 2008       40%
FY 2009       50%
FY 2010       50%
FY 2011       60%

Objective 3.2: Enhance Outreach to the Public and Private Sector and Civil Society

OGE continued to serve the public effectively by providing timely and thorough responses to public requests for information relating to public financial disclosure reports and the semi-annual reports of travel payments accepted from non-Federal sources, as well as queries from the general public handled through its call desk system. To enhance general public access to information about the agency and the executive branch ethics program, OGE also continued to work with the Government Printing Office to refine OGE's website design and to modernize the features of the site.

The Director and other members of the staff made numerous presentations in FY 2007 to private sector and civil society organizations whose understanding of the Federal ethics program would help support public trust in Government. The audiences included non-Government organizations, professional and business associations and educational institutions. The OGE Director and his staff specifically reached out to organizations OGE wished to engage in a dialogue on key emerging issues. For example, the Director spoke to the Defense Industry Initiative, a coalition of major defense contractors on the ethics issues of contractors in the Federal workplace. Others in OGE made presentations to organizations such as the Public Contracts section of the American Bar Association, a large group of private-sector companies who market products and services to the Government, and a national association of scientists. Overall, these interactions resulted in consistently positive responses.

Performance Measure:
Number of meetings, speeches, presentations and similar outreach efforts to organizations that represent the public, civil society and persons who do business with the Government.

Performance Target
Baseline         8%
FY 2007       10% / 12%
FY 2008       10%
FY 2009       12%
FY 2010       12%
FY 2011       15%

Performance Measure:
Percent of feedback from attendees indicating that interaction with OGE was useful.

Performance Target
Baseline        30%
FY 2007       30% / 100 %
FY 2008       40%
FY 2009       50%
FY 2010       50%
FY 2011       60%

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

OGE’s provision of ethics program expertise and an understanding of an ethics program’s role in good governance have had an appreciable and positive effect on the recipients of United States anti-corruption foreign policy initiatives as well as within the executive branch. FY 2007 was an extremely active and highly successful year for OGE in its support of United States foreign policy initiatives in the area of corruption prevention -- certainly more active than initially anticipated.

OGE served as a primary representative of the United States Government at the plenary meeting of the Council of Europe’s Group of States Against Corruption (GRECO) during the consideration and adoption of the second round evaluation report on the United States; continued to represent the United States at GRECO meetings throughout the year; and was selected to continue to serve as expert evaluators of other GRECO members during the third round of evaluations which will begin in FY 2008.

The United Nations Convention Against Corruption has been and continues to be a priority United States anti-corruption foreign policy initiative. At the request of the Department of State and because of its expertise in mutual evaluation mechanisms, OGE served as a principal member of an interagency committee responsible for developing the United States’ position on review of implementation of the Convention; represented the United States at UN meetings to develop a system for reviewing implementation of the Convention; coordinated a substantial portion of the United States’ response to the checklist required of all States Parties to the Convention; and assisted in the initial stages of a pilot review program.

Throughout FY 2007, OGE provided expertise in a number of initiatives of other international organizations in which the United States is a member. OGE worked with the Asia Pacific Economic Cooperation (APEC) Anticorruption and Transparency Task Force by developing and leading the Task Force discussion on proposed Conduct Principles for Public Officials in the APEC economies. These Principles were ultimately adopted by APEC leaders in their September, 2007 meeting in Australia.

OGE continued to serve as a United States expert resource to the Organization for Economic Cooperation and Development Public Governance and Territorial Development Directorate on a variety of topics and programs including post-employment, lobbying, and assessing integrity programs. OGE also served as the head of the United States delegation to the Fifth Global Forum on Fighting Corruption and Safeguarding Integrity in South Africa and as a United States host in high-level exchanges with China in support of the Anti-Corruption Working Group of the U.S.-China Joint Liaison Group.

In long-standing support of the Department of State's International Visitor Leadership Program, OGE continued to meet with delegations of foreign visitors interested in ethics, conflicts of interest, transparency, and other good governance initiatives. During FY 2007, OGE hosted approximately 40 delegations made up of approximately 300 visitors from over 60 countries. Nearly 60 percent of the surveyed visitors were public officials and the others included journalists, academics, and members of non-governmental organizations. In FY 2007, OGE began surveying the delegations and found that nearly all visitors reported that OGE’s presentations helped them understand the role of OGE and how the executive branch ethics program works and that they felt the knowledge they gained from the presentations would be useful to them in their countries.

OGE continued to support a number of other Department of State programs in FY 2007, including the International Information Program, by participating in video conferences and web-chats with groups of individuals from numerous countries including Bangladesh, Paraguay, Mozambique and Cameroon, and in Speaker Program visits in Thailand and Vietnam. Additionally, OGE worked with the Bureau for International Narcotics and Law Enforcement Affairs within the State Department, to provide technical assistance to individual country anti-corruption programs and continued to review follow-up reports on anti-corruption prevention efforts made by countries who have signed on to the Follow up Mechanism of the Inter-American Convention Against Corruption.

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

Performance Measure:
Number of programs/projects OGE participates in at the request U.S. foreign policy agencies/ organizations.

Performance Target
Baseline           7%
FY 2007          7% / 21 %
FY 2008          7%
FY 2009          8%
FY 2010          8%
FY 2011          8%

Performance Measure:
Percent of feedback from program/project participants indicating that interaction with OGE was useful.

Performance Target
Baseline        30%
FY 2007       30% / 90 %
FY 2008       40%
FY 2009       50%
FY 2010       50%
FY 2011       60%

Without critical, internal administrative support, OGE could not successfully pursue or reach its strategic goals. During FY 2007, OGE maintained vital services related to budget and finance, human resources, graphics, facilities and property management, travel, procurement, telecommunications, records management, and information and website technologies.

To add to this array of services and related reporting requirements, OGE took steps to better enable OGE to attract and retain a highly efficient workforce. OGE met the Office of Personnel Management deadlines for requesting recertification of its SES pay-for-performance system and revised both its Human Resources Manual Chapter on OGE’s SES Performance Appraisal System and its SES performance appraisal form. OGE also revised its Manual chapters dealing with employee training, telework, incentive awards, and time and attendance. OGE also adopted policies regarding the credit of prior experience for leave purposes and the recruitment of attorneys.

OGE completed a review of its pandemic plan for continuity of operations in such an event. In addition to enhancing its security profile by complying with HSPD-12 deadlines, OGE entered into an extensive review of emergency and security issues with other Federal agencies sharing the same worksite, the General Services Administration, and the Federal Protective Service. OGE also revised its Administrative Manual chapters concerning mail, procurement, travel, and forms management.n FY 2007, OGE undertook several initiatives to improve business processes. For example, OGE initiated a review of its storage and tracking of SF-278s and a review of the control and disposition of e-mail. It also successfully completed a test of OGE’s access to the Army’s electronic Financial Disclosure Management System. OGE procured software to better permit the IT Security Officer to monitor IT network changes. OGE developed a database to enable a more expeditious reporting of training data to the Office of Personnel Management. OGE participated in the National Finance Center’s migration of its IT functions from New Orleans to Denver. OGE also developed a data breach policy. Looking to the future, OGE initiated steps for the transition from WITS2001 to WITS3 and for the implementation of a standardized desktop configuration developed by OMB, as well as continuing the transition to Internet Protocol version 6, all of which are to be finalized in 2008.

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