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Handbook: Supervisory Review of Financial Disclosure Report -

For more information, please contact Nicola Sanchez at [email protected]. Click here for the Table of Contents.

HANDBOOK

SUPERVISORY REVIEW OF FINANCIAL DISCLOSURE REPORTS

2018

mailto:[email protected]



Table of Contents

Table of Contents ....................................................................................................................... 2

Background Information ............................................................................................................. 3

Dates and Deadlines .................................................................................................................. 6

Supervisor Reviewer Job Aid: .................................................................................................... 7

Logging into FD-Online as a New Supervisor Reviewer ............................................................ 7

Logging into FD-Online as a Returning Supervisor Reviewer…………………………………….. 9

Reviewing and approving filings/reports .................................................................................. 12

Reviewer Checklist .................................................................................................................. 18

Applicable Financial Disclosure Laws and Regulations ........................................................... 20




Background Information

1. What is the goal of financial disclosure? The goal of financial disclosure is to promote public confidence in the integrity of Government officials and to help prevent employee financial conflicts of interest. The public may lose confidence in the integrity of our programs and operations if people perceive that an employee’s Government work is influenced by personal interests or by payments from an outside source. A conflict of interest or an appearance of a conflict of interest may occur when an executive branch employee’s work on an official Government matter has the potential to benefit the employee personally, affect the financial interests of the employee’s family, or involve individuals or organizations with which the employee has some past, present, or future connection away from his/her Government job. See federal criminal statute, 18 U.S.C. 208.

2. What is a financial interest? A financial interest may include ownership of stock, bonds, real

estate, mineral and property rights, personal property, a business interest, a debt or an outside position (whether compensated or not).

3. Who files financial disclosure reports in the Service? Approximately 1,500 Service

employees submit financial disclosure reports each year. Senior executives are required to complete the publicly available Office of Government Ethics (OGE) 278 reports. The majority of Service employees complete the confidential OGE 450 reports that are not publicly available. Generally, an employee must file an OGE 450 if he/she is at grade GS-15 or below and participates personally and substantially through making decisions or exercising significant judgment, without substantial supervision and review, in taking any of the following official actions: contracting, procurement, administering or monitoring grants, subsidies, licenses or other Federal benefits, regulating or auditing any non-Federal entity, or other activities in which a decision may have a direct and substantial economic impact on the interests of any non-Federal entity. Also, even if an employee’s official responsibilities do not include duties on the list above, a supervisor may make a determination that an employee must file an OGE 450 report. Exhibit 1 lists the categories of positions that must file an OGE Report 450. (See Service Manual Chapter 212 FW 2 Financial Disclosure, for more information.)

4. Who reviews Service employees’ financial disclosure reports? Supervisors and ethics

counselors review financial disclosure reports to check for potential conflicts of interest between the employee’s official responsibilities and his/her personal financial interests. If a conflict is identified, the ethics counselor, in conjunction with the supervisor, will work with the employee to resolve the conflict. Neither the supervisor nor the ethics counselor is responsible for auditing the report to determine whether the employee’s disclosures are accurate. The OGE regulations specifically state that financial disclosure reports shall be taken at “face value” as correct, unless there is a “patent omission or ambiguity or the official has independent knowledge of matters outside of the report.”


https://www.gpo.gov/fdsys/pkg/USCODE-2012-title18/html/USCODE-2012-title18-partI-chap11-sec208.htm

https://www.fws.gov/policy/e1212fw2.htm

https://www.fws.gov/policy/212fw2.html



o Supervisor review: Supervisors provide the first level of review for an employee’s report

because they are the most familiar with an employee’s specific job responsibilities. The supervisor adds notes to the report if any potential conflicts of interest or inaccuracies are identified. The supervisor may use the attached “Reviewer Checklist” and /or “Job-Aid” to assist with the review. An ethics counselor will review the report, once the supervisor’s review is complete.

What is the legal authority for supervisors to review these reports? The OGE

regulations include specific authority for a filer’s supervisor to provide an intermediary review of an employee’s financial disclosure report before it is forwarded to the agency ethics counselor. (See 5 CFR 2634.605(b)). The OGE 450 Report itself also includes a signature block for supervisor review. The review of an employee’s financial disclosure report simply is another responsibility for a supervisor. There is no legal liability if a supervisor fails to identify a conflict of interest.

Do other agencies require supervisors to review their employee’s financial disclosure reports? A number of other Federal agencies already incorporate supervisor review into their processes. It has been common practice for many years at the Department of Agriculture and all of the agencies within the Department of Defense. Within the Department of the Interior, the Bureau of Safety and Environmental Enforcement (BSEE), requires supervisors to review their employees’ reports. The Service recently added supervisors to the financial disclosure review process in light of the findings of an OIG investigation. (Senior FWS Employee Failed to Disclose Outside Employment and Conflict of Interest, June 7, 2016.)

Are there any privacy concerns with a supervisor reviewing an employee’s personal financial information? Supervisors are required to keep employee personal information strictly confidential. Also, although some supervisors may have concerns about intruding into the privacy of their employees, in fact the OGE 450 report contains very little specific information about the value of an employee’s assets or debts. The OGE 450 report contains just enough information to identify potential conflicts of interest. For example, employees must provide a list of stocks, bonds, real estate, outside jobs/positions, etc. that they hold. However, the report does not include any information about the monetary value of these investments, or the income received from these assets or outside activities. Also, the report does not include any information about the employee’s savings, money market accounts, diversified mutual funds, retirement accounts, value of a personal residence, mortgage, car or student loans, credit card accounts, etc.

o Ethics Counselor review: Once the Supervisor reviews and approves the report, FD-Online

will electronically forward the report to the ethics counselor, who is the expert on the ethics laws/regulations. The ethics counselor will conduct the final review to determine if the employee’s personal financial interests conflict with his/her official duties. If the ethics counselor identifies a conflict of interest, he/she will work with the supervisor and employee to address that conflict. The options for resolving the conflict are the following:

Recusal: This is a written disqualification from participating in specific Government matters. It is the most common and preferred method for dealing with potential conflicts


https://www.gpo.gov/fdsys/pkg/CFR-2011-title5-vol3/xml/CFR-2011-title5-vol3-sec2634-605.xml

https://www.doioig.gov/reports/senior-fws-employee-failed-disclose-outside-employment-and-conflict-interest

https://www.doioig.gov/reports/senior-fws-employee-failed-disclose-outside-employment-and-conflict-interest



of interest because it protects the Government without forcing employees to change their private interests.

Reassignment: Reassignment of duties ranges from avoiding particular cases or matters to transferring employees to different sections or subject areas. Since the changing of an employee’s duties is a personnel matter, the servicing Ethics Counselor and supervisor must work with the Human Resources Officer to craft a solution.

Divestiture or Resignation: The employee may be required to divest (i.e., sell) a particular stock or resign from a position outside the Government to resolve a conflict of interest.

Waivers and Exemptions: The criminal financial conflict of interest statute has four separate waiver/exemption provisions. This is used infrequently.




Dates and Deadlines

• February 15 – OGE 450 filers receive an e-mail notice to file their Financial Disclosure Report. After an employee completes his/her report, his/her supervisor will receive an email notification that the employee’s Financial Disclosure Report is ready for review. The supervisor will enter the FD Online system as described in the Job Aid and complete their preliminary review of the employee’s report.

• March 15 – Deadline for OGE 450 filers to complete reports. • March 31 – Deadline for supervisors to complete review of employees’ OGE 450 reports and

submit comments to Ethics Counselors. (Note: If employees do not file their reports by March 15, supervisors will have additional time to review as supervisor.)

• May 12 - Deadline for Ethics Counselors to complete final review of all OGE 450 reports.




Supervisor Reviewer Job Aid: Step-by step process for reviewing an Employee’s Financial Disclosure Report

This Job Aid covers the following procedures:

• Logging into FD-Online as a New Supervisor-Reviewer • Logging into FD Online as a Returning Supervisor-Reviewer • Reviewing your list of employee-filers • Reviewing and approving filings/reports

Logging into FD-Online as a New Supervisor Reviewer

NOTE: These instructions are for supervisors using the FD-Online system as a “Supervisor Reviewer”. Instructions for how to set up your initial password as a Supervisor Reviewer are included. This password can be different from the one you use when filing your personal Financial Disclosure Report.

Step Instruction Visual 1-1

If you are a new Supervisor-Reviewer, you will first set up a second FD-Online account separate from your filer account. Access the FD-Online login page using this URL in your browser. Your Username is your agency email address and your temporary password is: NeuJahr2018@!

* Admin – https://fd.intelliworxit.com/admin/auth/login.view NOTE: if you are a filer as well as a reviewer, you will use a different URL to access the system as a filer. The reviewer URL includes the word “admin” as shown here.

Username = your agency email address ([email protected]) Temporary password = NeuJahr2018@!

1-2 When you click login you will be taken to the Change Expired Password page. Create a personal permanent password.


https://fd.intelliworxit.com/admin/auth/login.view



Step Instruction Visual

1-3 After creating your new password, return to the login page.

Enter your username (your agency email address) and new password to enter FD-Online.

Don’t forget to keep track of your new password to review filings/reports in the future.

1-4

You will be emailed each time you log in. Wait a minute for the pin code to arrive via email. Cut and paste the pin into the Login Code field, then click “Submit.” Proceed to Step 2-1, below.




Logging into FD-Online as a Returning Supervisor Reviewer

Step Instruction Visual 1-1 If you are a returning

Supervisor-Reviewer, you will first reset your expired password. Access the FD-Online login page using this URL in your browser. Your Username is your agency email address. Click “Reset Password.” You will be emailed a link to click on to reset your password.

* Admin – https://fd.intelliworxit.com/admin/auth/login.view

NOTE: if you are a filer as well as a reviewer, you will use a different URL to access the system as a filer. The reviewer URL includes the word “admin” as shown here.

Username = your agency email address ([email protected])

1-2 When you click login you will be taken to the Change Expired Password page. Create a personal permanent password.

1-3

After creating your new password, return to the login page.

Enter your username (your agency email address) and new password to enter FD-Online.

Don’t forget to keep track of your new password to review filings/reports in the future.


https://fd.intelliworxit.com/admin/auth/login.view




1-4 You will be emailed each time you log in. Wait a minute for the pin code to arrive via email. Cut and paste the pin into the Login Code field, then click “Submit.” Proceed to Step 2-1, below.




Reviewing List of Employee-Filers


2-1

After you login to FD-Online, you will be taken to the Dashboard page shown here. To access a list of your employees/filers, click on Filings in the left hand menu.

2-2

On the Filings page, under the word Filings is a Search Filter. Click the filter to see the drop down fields. Change the fields, as noted below, to ensure you are able to see all the filings pending for your review: • Document Type:

OGE-450 • Filing Type: Annual • Reporting Year:

2017 • Reviewer: All

2-3

This will provide a list of filers in your organization.

If any of the employees listed do not report to you, please email [email protected]






Reviewing and approving filings/reports


3-1 After you login to FD-Online, you will be taken to the Dashboard page shown here. {You can click Filings and follow the steps above if you wish to see to see the list of employees assigned to you for review.}

3-2

On the Dashboard page, just beneath the word Status is a Search Filter. Click the filter to see the drop down fields. Change the fields, as noted below, to ensure you are able to see all the filings pending for your review.

• Reporting Year: 2017 • Document Type:

OGE-450 • Filing Type: Annual • Reviewer: All

Click Update

3-3

On the chart now displayed on the screen, click on (L1) Filed Awaiting Review to reveal a report on how many of your employees have filed and the type of report.





3-4 You will now see a chart with the following headings:

• (L1) No declared interests

• (L1) OGE-450A • (L1) At least one

declared interest

Click on one of the numbers at the bottom of the column on that page to be taken to the reports represented by that number.

All reports under each of these headings must be clicked on and reviewed.

If the number is zero, then there are no reports submitted for your review at this time. Check back periodically.

3-5

You should now see a list of employees. Before reviewing a report, you must assign the filings. You can select one by checking the box next to the filer’s name or select all by checking the box at the top of the list. Click Assign Selected to assign the filing to yourself. This must be done before reviewing a report.

3-6

After clicking Assign Selected you will see a confirmation question – click Save.





3-7 After assigning the filings to yourself, click on the Review button next to the employee’s name to review his/her report. You may also click on the box in front of the employee’s name and then select the box above titled “Review Selected”.

3-8

On the review page, you will see the Sections of the report listed along the left side.

Use the Reviewers Checklist provided in your Handbook to help you review the reported information for potential conflicts.

3-9 If you determine there are no conflicts, no issues of concern, or no issues requiring additional information or follow-up, click the Approve Other button at the top right of the page.

This completes your review of this report. Move on to Step 12.





3-10 If a potential conflict is suspected or an inconsistency is noted, describe the issue in the box labeled “Comments” located on the lower right hand side of the screen.

After typing your observation in the box, click on the blue button which says “Post Comment”. Do Not check the box labeled “Make Public”. Your comment will only be viewed by the Ethics Counselor. It will not be visible to the filer or any other person.

No entry is required if you did not perceive an issue that you wish to bring to the attention of the Ethics Office.

Please note that your comment cannot be changed once posted. If you need to add information or change it, you must add another comment.




Step Instruction Visual 3-11 After completing your

review and making any comments you wish to include, please go to the top of the page and click on the blue button labeled “Approve Other”.

The report will be automatically forwarded to the Ethics Office for further review and Certification.

This completes your review of this report.

3-12 NOTE: If you start to review a report but do not see the Approve Other button, it means you have not assigned the report to yourself.

Simply click Assign to Me and then Save on the confirmation page that appears and proceed with your review as noted above.





3-13 To finish your review, click on the button labeled “Done Reviewing” on the left hand side of the page to exit the report.

FD-Online will now electronically forward the report to the Ethics Counselor.

3-14

If there is another report to review in this category, an employee’s name will appear in the list. Return to STEP 3-5 and follow the procedures to review other reports.

3-15

If there are no other reports left to review in this category, the page will be blank. Return to STEP 3-1 to return to the Dashboard to check if there are other reports to review in other categories. If not, you may log off.

Please remember that employee information must be kept strictly confidential.




Reviewer Checklist Your job, as a supervisor, is to conduct the initial review of an employee’s Financial Disclosure Report. You are not expected to be an Ethics expert. Your task is to note any information on the employee’s financial disclosure report that might raise concerns about conflicts of interest with the employee’s official duties. The Ethics Counselor will review these issues to determine whether any actions need to be taken. You are encouraged to cite any and all matters that could present a potential conflict. This may include any potential oversights by the employee. As a reminder, you are not responsible for auditing the report to determine whether the employee’s disclosures are accurate. Following are some specific items to look for:

PART I: ASSETS & INCOME

☐ Yes ☐ No ☐ N/A Does the employee have official duties involving any of the assets or income entries reported (for self, spouse or dependent child)?

☐ Yes ☐ No ☐ N/A If the employee joined the Service within the past year, did he/she report his/her salary from that employer and does the employee have any official duties involving that reported employer?

☐ Yes ☐ No ☐ N/A

Does the employee’s spouse or dependent child work for a “prohibited source”? (i.e. organization/individual who has business with the Service, seeks to do business with the Service, conducts operations that are regulated by the Service, or has any interests that might be affected by the performance or non-performance of the employee's official duties, or is an organization a majority of whose members are described above.)

☐ Yes ☐ No ☐ N/A Are you aware of any assets or income valued at over $200 not reported on this report (i.e. income from outside job, rental property, honoraria, awards, etc.)?


Are you aware of any situations, not reported on this report, where the employee (or spouse or minor child) holds a financial interest in Federal lands or resources managed by the Department of the Interior? (i.e. mining claim, grazing or commercial photography permit, lease, small tract entry, or other rights that are granted by the Department of the Interior in Federal lands)

PART II: LIABILITIES

☐ Yes ☐ No ☐ N/A Does the employee have duties involving any of the creditors reported on his/her report?


Does the employee have any liabilities reported with “prohibited sources” (i.e. debts owed to organizations/individuals who have business with the Service, seek to do business with the Service, conduct operations that are regulated by the Service, or have any interests that might be affected by the performance or non-performance of the employee's official duties, or is an organization a majority of whose members are described above.)?

☐ Yes ☐ No ☐ N/A Does the employee’s list of liabilities include any debts with other Service employees?


Are you aware of any liabilities over $10,000 that the employee should have listed on this report? (Please note that the following liabilities are not required to be reported: Mortgages, student loans, car loans, credit card accounts and other liabilities from a financial institution or business entity granted on terms made available to the general public.)




PART III: OUTSIDE POSITIONS

☐ Yes ☐ No ☐ N/A If the employee lists an outside position in this section, does he/she have official duties involving this organization?

☐ Yes ☐ No ☐ N/A If the employee lists an outside position with a “prohibited source”, did the employee receive written approval from you and the Ethics Counselor to participate in the activity? (See 212 FW 5 Outside Employment or Activity)

☐ Yes ☐ No ☐ N/A Are you aware of any other outside positions (i.e. employee, officer or director of a business entity, non-profit or volunteer organization, or educational institution), held by the employee in his/her personal capacity, that are not listed on this report?

PART IV: AGREEMENTS OR ARRANGEMENTS

☐ Yes ☐ No ☐ N/A Does the employee have duties involving the outside organization or individual with whom he/she has reported an agreement or arrangement?

☐ Yes ☐ No ☐ N/A Are you aware that the employee has accepted an offer of future employment with a non-Federal employer or of any current negotiations by the employee for future employment with a non-Federal employer?

PART V: GIFTS & TRAVEL REIMBURSEMENT

☐ Yes ☐ No ☐ N/A Does the employee have duties involving any of the organizations from whom he/she has accepted a gift listed in this section?


Are any of the listed gifts from a “prohibited source”? (i.e. an organizations/individuals who has business with the Service, seeks to do business with the Service, conducts operations that are regulated by the Service, or has any interests that might be affected by the performance or non-performance of the employee's official duties, or is an organization a majority of whose members are described above)?

☐ Yes ☐ No ☐ N/A Are you aware of any other gifts accepted by the employee totaling more than $390 (i.e. free attendance at a banquet, reimbursements for personal travel, etc.) which are not listed on the report?

REVIEWER’S FINDINGS

☐ Yes ☐ No ☐ N/A If you answered yes to any of the questions above, did you include the information in the Comments section in FD-Online? If you included comments, an Ethics Counselor will review these issues to determine whether any actions need to be taken.

REMINDERS:

• Don’t forget to describe any concerns or questions in the Comments section in FDOnline. • You do not need to save this checklist after using it to review each employee’s report.

Approving the report in FD-Online signifies that you have reviewed this checklist. • Please remember that all employee information must be kept strictly confidential.


https://www.fws.gov/policy/212fw5.html



Applicable Financial Disclosure Laws and Regulations The following information is provided to assist you in the review process. You are not expected to have an in depth knowledge or understanding of these laws and regulations. This information is provided merely as a quick reference guide. Please feel free to contact the Ethics Office with any questions. 18 USC 208. Acts affecting a personal financial interest: This criminal statute bars an employee from participating personally and substantially in an official capacity, in any particular government matter that would have a direct and predictable effect on the employee’s own financial interest or those that are imputed to him/her.

• To participate personally means to participate directly. It includes the direct and active supervision or the participation of a subordinate in the matter. To participate substantially means that the employee’s involvement is of significance to the matter. Personal and substantial participation may occur when, for example, an employee participates through decision, approval, disapproval, recommendation, investigation, or the rendering of advice in a particular matter. (5 CFR 2640.103(a)(2))

• Particular matters are issues which involve deliberation, decision, or action that is focused on the interests of specific persons/companies; or a discrete and identifiable class of persons. (5 CFR 2640.103(a)(1)).

• Direct and predictable effect: A particular matter will have a “direct” effect on a financial interest if there is a close causal link between any decision or action to be taken in the matter and any expected effect of the matter on the financial interest. A particular matter will have a “predictable” effect if there is a real, as opposed to a speculative, possibility that the matter will affect the financial interest. (5 CFR 2640.103(a)(3))

• Disqualifying financial interests means the potential for gain or loss to the employee, or other person, as a result of governmental action on a particular matter. The disqualifying financial interest might arise from ownership of certain financial instruments or investments such as stocks, bonds, mutual funds, or real estate. Additionally, a disqualifying financial interest might derive from a salary, indebtedness, job offer, or any similar interest that may be affected by the matter. (5 CFR 2640.103(b)).

• Imputed interests are the financial interests of certain other people that are considered to be the same as an employee’s personal financial interests. (5 CFR 2640.103(c)). The following persons’ interests are “imputed” to the employee:

o spouse; o minor child; o general business partner; o any organization in which the employee serves as an officer, director, trustee, or

general partner or employee; o any person or organization with which the employee is negotiating or has an

arrangement for prospective employment. 5 CFR 3501.103 (c) Prohibition as to Department-granted rights in Federal lands: Service employees and their spouses and minor children are prohibited from acquiring or retaining any claim, permit, lease, small tract entry, or other rights that are granted by the Department of the Interior in Federal lands. Nothing in this regulation, however, prohibits employees, their spouses and minor


http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr;sid=cbc7425f9cf4949f6e219b8737e5b2b2;rgn=div5;view=text;node=5%3A3.0.10.10.12;idno=5;cc=ecfr#se5.3.2640_1103








children report recreational or other personal noncommercial use of Federal lands on the same terms as the use available to the general public. 5 CFR 2635.502 Impartiality in Performing Official Duties; Personal and business relationships: This is often referred to as the “appearance standard”. If an employee knows that a particular matter involving specific parties is likely to have a direct and predictable effect on the financial interest of a member of the employees household; or if the employee knows that a person with whom he/she has a covered relationship is or represents a party to the matter and the circumstances would cause a reasonable person with knowledge of the relevant facts to question the employee’s impartiality in the matter, the employee should not participate in the matter.

• A particular matter involving specific parties means a proceeding affecting the rights of identifiable parties or a transaction between identifiable parties. It includes any investigation, application, request for a ruling or determination, rulemaking that applies to specific parties, contract, cooperative agreement, partnership agreement, controversy, claim, charge, accusation, arrest, or judicial or other proceeding. It does not include general rulemaking, general legislation, or general policy issues.

• An employee has a covered relationship with:

o A person with whom the employee has or seeks a business, contractual or other financial relationship that involves other than a routine consumer transaction;

o A person who is a member of the employee's household, or who is a relative with whom the employee has a close personal relationship;

o A person for whom the employee's spouse, parent or dependent child is, to the employee's knowledge, serving or seeking to serve as an employee (including trustee or consultant, etc.)

o Any person for whom the employee has worked within the last year (employee consultant, etc.)

o An organization, other than a political party, in which the employee is an active participant. Active participation includes service as an official of the organization; committee chairperson, spokesperson; or if significant time is devoted to promoting the organization. Payment of dues or the donation or solicitation of financial support does not, in itself, constitute active participation.

• See 18 U.S.C. 208 above for definitions of financial interest and direct and predictable effect.


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