# LEGAL

**1. REASON FOR ISSUE:** To clarify financial disclosure requirements
affecting Department of Veterans Affairs (VA) employees. These rules are
summarized in the handbook for the convenience and ease of the reader.
Readers should consult the specific references noted for more definitive
information on a topic or consult the Designated Agency Ethics Official
(DAEO) for VA, the Assistant General Counsel (023).

**2. SUMMARY OF CONTENT/MAJOR CHANGES:** This handbook outlines
requirements imposed by law, Federal regulation, and other policies.
This revision clarifies the definition of a public filer for the purpose
of financial disclosure. The pages in this handbook replace the
corresponding page numbers in VA Handbook 5025. These revisions will be
incorporated into the electronic version of VA Handbook 5025 that is
maintained on the [Office of Human Resources Management and Labor
Relations Web site](http://vaww1.va.gov/ohrm/).

**3. RESPONSIBLE OFFICE:** Office of the Deputy Assistant Secretary for
Human Resources Management and Labor Relations.

**4. RELATED DIRECTIVE:** VA Directive 5025, "Legal."

**5. RESCISSIONS:** None

**CERTIFIED BY: BY DIRECTION OF THE SECRETARY**

**OF VETERANS AFFAIRS:**

/s/Robert N. McFarland /s/R. Allen Pittman

Assistant Secretary for Assistant Secretary for

Information and Technology Human Resources and Administration

ELECTRONIC DISTRIBUTION ONLY

**LEGAL**

**PART VI. FINANCIAL DISCLOSURE**

**CONTENTS**

### PARAGRAPH PAGE

1\. [BACKGROUND](#ptVIpar1) VI-1

2\. [PUBLIC](#ptVIpar2) VI-1

3\. [CONFIDENTIAL](#ptVIpar3) VI-\[2\]

4\. [ETHICS TRAINING](#ptVIpar4) VI-\[3\]

5\. [NEW EMPLOYEE ORIENTATION](#ptVIpar5) VI-\[3\]

6\. [CONTACT INFORMATION](#ptVIpar6) VI-\[3\]

# PART VI. FINANCIAL DISCLOSURE AND ETHICS TRAINING

**1.** []{#ptVIpar1 .anchor}**BACKGROUND.** One component of the
Department's ethics program is the financial disclosure program. There
are two financial disclosure programs, public and confidential
\[required by the Ethics in Government Act of 1978, as amended (Pub.L.
95-521). Financial disclosure statements required for researchers are
not covered under the Act and the requirements for submitting a Research
Financial Conflict of Interest Statement are not outlined in this
handbook\].

**2.** []{#ptVIpar2 .anchor}**PUBLIC**

a\. **Who is a Filer.** \[Public filers include:

\(1\) Employees whose positions are classified above GS-15. See 5 CFR
2634.202(c).

\(2\) Employees, whose rate of basic pay is fixed, other than under the
General Schedule (i.e. title 38 employees), at a rate equal to or
greater than 120 percent of the minimum rate of basic pay for GS-15. See
5 CFR 2634.202(c). In most instances, the rate of basic pay used for the
purpose of this determination is the Step 1 equivalent, exclusive of
locality pay. For title 38 physicians and dentists, the rate of basic
pay used for this determination is the Step1 rate on the Physician and
Dentist Base and Longevity Pay Schedule.

\(3\) Employees who are appointed as administrative law judges pursuant
to 5 U.S.C. 3105. See 5 CFR 2634.202(d).

\(4\) Employees who are in a position which is excepted from the
competitive service by reason of being of a confidential or
policy-making character (i.e. Schedule C employees). See
5 CFR 2634.202(e).\]

b\. **When to File.** The Ethics in Government Act of 1978, as amended
(Pub.L. 95-521) requires that public filers file Public Financial
Disclosure Reports \[(SF 278) as follows\]:

\(1\) \[A "new entrant" report\] within 30 days after appointment to a
public filer position,

\(2\) \[An "incumbent" report\] annually, before May 15, while occupying
a public filer position, and

\(3\) \[A "terminee" report\] within 30 days after leaving a public
filer position.

\[(4) Employees appointed on November 1st through December 31st file a
new entrant report but do not need to file an incumbent report the
following year. Employees appointed on January 1st through October
31^st^ will still need to file an incumbent report no later than May of
the following year, in addition to the new entrant report.

\(5\) Employees who leave a public filer position in another Executive
Branch Federal agency within 30 days prior to appointment to VA do not
file a new entrant report. See 5 CFR 2634.201(b)(2)(i). Human Resources
staff should notify the Office of General Counsel (023C) of the
appointment and request the new employee to provide a copy of his last
incumbent report filed at the former agency to the Office of General
Counsel (023C).

\(6\) Public filers do not need to fill out a terminee report if, within
30 of separating from VA, the employee transfers to another covered
position with another Executive Branch Federal agency. Notify the Office
of General Counsel (023C) that the employee will transfer to another
covered position at a different Federal agency so the Office of General
Counsel can update its records and provide the gaining agency a copy of
the filer's previous SF 278.

\(7\) Public filers that will separate from the covered position on
January 1^st^ through May 14th need only file a terminee report. They do
not have to file an incumbent report for that year. The rules permit
employees combine the incumbent and terminee reports if the employee
will separate from the covered position after May 15 but before August
13. Employees should contact Office of General Counsel (023C) to request
the required extension necessary to file a combination report.\]

\[c.\] **Where to File.** Completed \[original SF 278\] reports must be
filed directly with the DAEO in the Office of General Counsel (023C) for
review and approval. \[Reports are considered filed when received by the
Office of General Counsel (023C).\] The address is Office of the General
Counsel (023C), 810 Vermont Avenue, NW, Washington, D.C. 20420. The DAEO
(023), the Assistant General Counsel for Professional Staff Group III\[,
or his designee\] in the Central Office, can grant extensions. Failure
to file the report in a timely manner results in a \$200 fine.

**3.** []{#ptVIpar3 .anchor}**CONFIDENTIAL**

a\. **Who is a Filer.** The determination as to \[which employee must
file\] a confidential financial disclosure report is \[based on the
duties of his or her position\]. (See 5 CFR 2634.904.) The Department
has determined which positions are confidential filing positions. The
DAEO, the Assistant General Counsel (023), has the authority to maintain
and amend the listing. A copy of the position listing can be obtained
from the DAEO's office or from a Regional Counsel's Office.

b\. **When to File.** The Ethics in Government Act of 1978, as amended
(Pub.L. No. 95-521) requires that \[ \] employees \[in designated
positions\] file Confidential Financial Disclosure Reports \[(OGE Form
450) as follows\]:

\(1\) \[A "new entrant" report\] within 30 days after assuming a
designated position and

\(2\) \[An "annual" report every year\], no later than October \[31\],
while occupying a designated position.

\[(3) Employees appointed to designated positions on August 2^nd^
through September 30^th^ file a new

entrant report but do not need to file an annual report in October of
the year of appointment. They will file an annual report in October of
the following year. Employees appointed on October 1^st^ through August
1^st^ will still need to file an annual report in October, in addition
to the new entrant report.

\(4\) Employees that transfer from another executive branch Federal
agency from a public or confidential filer position within 30 days of
appointment to VA, do not file a new entrant report. See 5 CFR
2634.903(b)(2)(i). Notify the Office of General Counsel (023C) of the
appointment and request the new employee to provide a copy of his last
annual report to the Office of General Counsel (023C).

\(5\) Employees who retire or otherwise leave VA [before]{.underline}
the October 31st due date are not required to complete a confidential
disclosure report. Employees that will retire or leave VA
[after]{.underline} the October 31st due date, however, are required to
complete a confidential disclosure report if they worked over 60 days in
the designated filing position during the fiscal year. See 5 CFR
2634.903(a).\]

c\. **What to File.** Certain \[confidential\] filers may substitute a
shorter "\[Confidential Certificate of\] No New Interests \[ \], \[OGE
Optional\] Form 450A" \[form\] instead of the \[long\] form \[ \]. The
short form may not be used \[by new entrant filers or by annual filers\]
for more than three consecutive years. Filers should contact either the
DAEO's office or a Regional Counsel's office for clarification of the
proper form to file.

d\. **Where to File.** \[ \] Central Office \[and Resident Engineer
filers must submit completed original\] confidential financial
disclosure reports \[ \] to the Office of General Counsel (023C). In the
field, all confidential financial disclosure reports \[ \] are submitted
to Regional Counsel within the appropriate jurisdiction. \[Reports are
considered filed when received by the appropriate office.\]

**4.** []{#ptVIpar4 .anchor}**ETHICS TRAINING.** Public financial
disclosure filers, i.e., SES, Schedule C, noncareer SES appointees and
\[certain\] title 38 executives are required to receive one hour of
\["verbal"\] ethics training each year by a qualified \[instructor\].
\[See\] 5 CFR 2638. \[The training regulation requires that all
confidential filers receive annual ethics training. Unlike the public
financial disclosure filers, the confidential financial disclosure
filers require "verbal" training only once every three calendar years
and may receive written briefings for the other two years*.* See 5 CFR
2638.705.\] Regional Counsel \[ethics staffs\] conduct training for
\[public and confidential filers\] in the field; the DAEO's ethics staff
in Central Office conducts training for \[public and confidential filers
in\] Central Office \[ \]. \[Facilities may require their employees to
receive additional ethics training and may request ethics attorneys as
presenters or secure videos or other materials for that purpose.\]

**5.** []{#ptVIpar5 .anchor}**NEW EMPLOYEE ORIENTATION.** \[Within 90
days from the time an employee begins working for VA,\] Human Resources
Management Service provides new employees a minimum of one hour to
review a copy of the Standards of Ethical Conduct for Employees of the
Executive Branch pursuant to 5 CFR 2638.703. The Standards are available
on the [VA ethics Web site](http://vaww.gc.va.gov/ethics/).

**6.** []{#ptVIpar6 .anchor}**CONTACT INFORMATION.** For more
information, Human Resources Service staff or other VA employees may
contact their Regional Counsel or the DAEO.