Public 

Financial 

Disclosure: 

A Reviewer's 

Reference 

Second Edition 

U.S. Office of Government Ethics 
TABLE OF CONTENTS

1.0 INTRODUCTION ............................................................................................... 1-1

1.1 Using this Manual ..................................................................................... 1-2

1.2 Overview of the Office of Government Ethics ......................................... 1-5

1.3 Bases for Financial Disclosure .................................................................. 1-6

PART I: THE REVIEW PROCESS

2.0 THE DISCLOSURE SYSTEM .......................................................................... 2-1

2.1 Officials Required to File .......................................................................... 2-2

2.2 Reporting Forms ........................................................................................ 2-10

2.3 Types of Reports and Filing Deadlines ..................................................... 2-11

2.4 Extensions .................................................................................................. 2-14

2.5 Late Filing Fee ........................................................................................... 2-16

2.6 Filing Penalties .......................................................................................... 2-20

3.0 REPORT CONTENTS ....................................................................................... 3-1

3.1 The Cover Page .......................................................................................... 3-2

3.2 Applicable Schedules and Reporting Periods ............................................ 3-6

3.3 Schedule A: Assets and Income ................................................................. 3-7

3.4 Schedule B, Part I: Transactions ................................................................ 3-17

3.5 Schedule B, Part II: Gifts, Reimbursements, Travel .................................. 3-21

3.6 Schedule C, Part I: Liabilities .................................................................... 3-26

3.7 Schedule C, Part II: Agreements or Arrangements .................................... 3-28

3.8 Schedule D, Part I: Positions Held Outside Government .......................... 3-29

3.9 Schedule D, Part II: Sources of Compensation Over $5,000 ..................... 3-31

4.0 REVIEW PROCEDURES................................................................................... 4-1

4.1 Basic Procedures......................................................................................... 4-2

4.2 Tools of Review.......................................................................................... 4-4

4.3 Obtaining Additional Information .............................................................. 4-5

4.4 Certification Requirements ........................................................................ 4-12

4.5 Public Availability and Retention .............................................................. 4-13

4.6 Forwarding Reports to OGE ....................................................................... 4-16
Public Financial Disclosure: A Reviewer's Reference 

5.0 RESOLVING CONFLICTS OF INTEREST .................................................. 5-1

5.1 Ethics Agreements..................................................................................... 5-2

5.2 Disqualification.......................................................................................... 5-4

5.3 Waivers & Exemptions.............................................................................. 5-6

5.4 Reassignment............................................................................................. 5-13

5.5 Divestiture or Resignation ......................................................................... 5-14

5.6 Qualified Trusts ......................................................................................... 5-19

5.7 Other Financial Arrangements .................................................................. 5-21

5.8 Processing Ethics Violations .................................................................... 5-22

PART II: REVIEWING COMMON ENTRIES

6.0 EMPLOYMENT, OWNERSHIP, AND OUTSIDE ACTIVITIES ................ 6-3

6.1 Business Ownership and Employment Relationships ............................... 6-4

6.2 Law Firms ............................................................................................... 6-19

6.3 Farm Assets and Income ........................................................................... 6-26

6.4 Honoraria .................................................................................................. 6-29

6.5 Outside Positions ...................................................................................... 6-32

7.0 INVESTMENT VEHICLES .............................................................................. 7-1

7.1 Excepted Investment Funds ....................................................................... 7-2

7.2 Defined Benefit & Defined Contribution Plans......................................... 7-6

7.3 Individual Retirement Accounts (IRAs) .................................................... 7-15

7.4 Annuities .................................................................................................... 7-17

7.5 Life Insurance Policies............................................................................... 7-20

7.6 Investment Clubs ...................................................................................... 7-23

7.7 Trusts and Estates ...................................................................................... 7-27

7.8 Prepaid Tuition Plans................................................................................. 7-33

8.0 INVESTMENTS .................................................................................................. 8-1

8.1 Bank and other Cash Accounts ................................................................. 8-3

8.2 Corporate Securities................................................................................... 8-8

8.3 Government Securities............................................................................... 8-15

8.4 Mutual Funds and Unit Investment Trusts ................................................ 8-21

8.5 Limited Partnerships .................................................................................. 8-27

8.6 Futures and Options ................................................................................... 8-32

8.7 Real Estate and Mortgage Investments...................................................... 8-36

8.8 Collectibles, Metals, and Intellectual Property .......................................... 8-43

9.0 GIFTS .................................................................................................................. 9-1

9.1 Non-Travel Gifts ........................................................................................ 9-2

9.2 Travel-Related Gifts and Reimbursements ................................................ 9-8
Public Financial Disclosure: A Reviewer's Reference 

10.0 LIABILITIES AND FUNDS RECEIVABLE ................................................... 10-1

10.1 Liabilities .................................................................................................... 10-2

10.2 Funds Receivable ....................................................................................... 10-8

PART III: APPENDIXES

11.0 FEDERAL ETHICS LAWS AND

REGULATIONS IN BRIEF..................................................................................................... 11-1

11.1 Criminal Conflict of Interest Statutes......................................................... 11-3

11.2 Standards of Conduct Regulations ............................................................. 11-10

11.3 Other Conflict of Interest Provisions.......................................................... 11-22

11.4 Special Limitations on Senior Noncareer Employees ................................ 11-24

12.0 PROCESSING PRESIDENTIAL NOMINEE REPORTS............................... 12-1

13.0 SF 278 CASE STUDIES ...................................................................................... 13-1

13.1 Case 1: You Are the Filer ........................................................................... 13-2

13.2 Case 2: You Are the Reviewer .................................................................. 13-10

14.0 MODEL DOCUMENTS...................................................................................... 14-1

14.1 Notification of Filing Requirement ............................................................ 14-2

14.2 Cautionary Letter ........................................................................................ 14-4

14.3 Model Ethics Agreement ............................................................................ 14-6

14.4 Recusal Letter.............................................................................................. 14-9

14.5 Screening Arrangements ............................................................................ 14-12

14.6 Model 18 U.S.C. §208(b)(l) Waiver ........................................................... 14-15

14.7 Agency Procedures for Collection and Review of SF 278s........................ 14-18

14.8 SF 278 Review Checklist ........................................................................... 14-25

15.0 SAMPLE FORMS................................................................................................ 15-1

16.0 REFERENCE MATERIALS .............................................................................. 16-1

16.1 Abbreviations ............................................................................................. 16-3

16.2 Glossary....................................................................................................... 16-5

16.3 Index............................................................................................................ 16-11
November 2004

The Office of Government Ethics originally developed this reference manual in 

March 1994. We are pleased to reissue it now, with all changes that have been made to 

date.

This manual's purpose is to ensure the consistent, comprehensive and accurate 

review of executive branch employees' public financial disclosure reports. It aims to 

increase Government efficiency by providing uniform guidance and interpretation to 

agency ethics officials.

We have designed this guide primarily for the beginning and intermediate-level 

reviewer. The detailed summaries of review procedures and optional model documents 

should ease administration of the financial disclosure system. As you use this reference 

manual, you may have suggestions for revision. We welcome your ideas and urge you to 

contact us.

While this book provides a needed resource for ethics counselors, your review 

work must stand on your own judgment and analysis. The intention is not to create 

additional requirements but to specify the boundaries within which conflict of interest 

analysis may occur. Financial disclosure review should not be limited to satisfying 

technical disclosure requirements. Rather, ethics officials must focus on the research and 

analysis necessary to identify and resolve conflicts of interest.

The efforts of agency ethics officials, together with the Office of Government 

Ethics, are crucial in achieving the goals of maintaining the Government's integrity and 

fostering excellence in public service. This guide will play a significant role in that 

process.
Revised 11/04 

Page1-1 

1.0 INTRODUCTION 

The Ethics in Government Act of 1978, as amended, requires 

senior officials in the executive, legislative and judicial branches to file 

public reports of their finances as well as other interests outside the 

Government. The statute and the Office of Government Ethics's (OGE)

regulations specify which officials in the executive branch file a 

Standard Form 278 (SF 278). Unlike confidential financial statements

filed by some mid-level employees, the SF 278 is available to the 

public. Reviewing officials within each agency certify and maintain 

these reports. Agencies do, however, forward reports of Presidential 

appointees requiring Senate confirmation and certain other reports to 

OGE for additional review and certification. 

Although a financial disclosure report sometimes reveals a 

violation of law or regulation, the primary purpose of disclosure is to 

assist agencies in identifying potential conflicts of interest between a 

filer's official duties and her private financial interests and affiliations. 

Once a reviewing official identifies a potential conflict of interest and

consults with the filer's supervisor as necessary, several remedies are 

available to avoid an actual or apparent violation of Federal ethics laws

and regulations. 

A Caveat: Uses and Misuses

OGE has developed this reference manual on public financial disclosure for use by ethics

officials at executive branch agencies. While it is a comprehensive reference, the statutes and

regulations serve as the ultimate authorities. If this Reference's language and format

differ from the underlying statutes, regulations, or the instructions accompanying 

the standard reporting form, then reviewers must follow those primary sources.

Other cautions:

• All of the forms in Chapters 1 through 10 are sample forms only and they may have been

altered to focus on particular aspects of disclosure review. Filers may use only the official

standard forms.

• This work does not directly offer advice on Confidential Financial Disclosure Reports (OGE 

Form 450). Reviewers of the confidential form may, however, find the detailed information 

in Part II: Reviewing Common Entries to be a useful supplement to OGE Form 450: A 

Review Guide (September 1996). 

• While some examples use the names of actual investment companies or funds, OGE 

expresses no opinion about the quality of any specific private entity or investment. 
Public Financial Disclosure: A Reviewer's Reference 

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Page 1-2

1.1 USING THIS MANUAL

This manual is divided into three major parts that provide the most 

commonly used financial and legal background information necessary 

to review an SF 278, the Executive Branch Public Financial Disclosure 

Form. The first part provides an overview of the entire system. The 

second part focuses on distinct types of holdings and explains how they 

are disclosed and analyzed. The third part provides a list of 

abbreviations, a short glossary, an index, several suggested form 

letters, guides, and other information. 

More experienced reviewers may wish to use the table of contents 

and index to find the sections in which they are particularly interested. 

This Reference organizes the details of OGE's policies and practice in 

one work. For example, Section 4.3: Obtaining Additional Information 

discusses more than two dozen common assumptions that OGE makes 

when reviewing SF 278s, which help eliminate unnecessary follow-up 

with filers. 

Persons new to financial disclosure may find that the first section 

provides a useful general orientation to the area. In addition, new 

reviewers may find basic descriptions of investments and investment 

vehicles in chapters 7 and 8 to be especially helpful. 

Many sections of this manual contain cross-references and some 

repetition of information. This repetition is intentional; it will allow 

this manual to be used as a reference resource as specific questions 

arise on financial disclosure, review procedures, or conflicts of 

interest. 

GLOSSARY ENTRIES Readers may notice an occasional phrase in SMALL CAPITALS. This 

sign indicates terms that are included in the glossary at the end because 

they have specific meanings that are unique to disclosure review. 

Phrases in italics often indicate relevant cross-references.
Introduction 

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Page 1-3 

Citations 

Citations to applicable statutes, regulations, and executive orders, 

along with references to selected interpretive opinions, appear in the 

margins. These citations are intended to direct researchers toward 

sources of further information. In addition, OGE encourages reviewers 

to research other relevant OGE opinions for guidance. 

5 U.S.C. App. § • The Ethics in Government Act of 1978, as amended by the Ethics 

Reform Act of 1989, and various other provisions are codified in 

Title 5 of the United States Code in an appendix. Citations herein 

to “5 U.S.C. App. {section number}” are to the U.S. Code 

appendix containing the Ethics in Government Act of 1978.

Pub. L. _ - _ • Public laws may be cited as an alternate source for statutes. The 

citation is Pub. L. (number of Congress)-(page number).

E.O.12674 § • 

.R., 

1990 Compilation, pp. 306-311 are abbreviated “E.O. 12674.”

5 C.F.R. § • 

yee Standards of Ethical Conduct” or the 

__FR ____ (__) • All regulations were initially published in the Federal Register,

OGE__x__ 

__OGE__ 

• 

 Ethics. 

The informal opinion citation is: OGE [year] x [opinion number],

OGE DAEOgram 

of ___ 

• 

Citations to Executive Order 12674 of April 12, 1989 “Principles 

of Ethical Conduct for Government Officers and Employees,” as 

modified by Executive Order 12731 of October 17, 1990, 3 C.F

Unless otherwise noted, the Office of Government Ethics issued 

the regulations referenced. They are in Title 5, Chapter XVI, of the 

Code of Federal Regulations. The Standards of Ethical Conduct 

for Employees of the Executive Branch (5 C.F.R. part 2635) are

referred to as the “Emplo

“Standards of Conduct.”

listed as [volume number] FR [page numbers] (date of publication).

Formal and Informal opinions of the Office of Government Ethics 

are compiled in The Informal Advisory Letters and Memoranda and 

Formal Opinions of the United States Office of Government

while the formal opinion citation is: [year] OGE [number].

OGE periodically issues memoranda, called DAEOgrams, to 

provide guidance to DESIGNATED AGENCY ETHICS OFFICIALS. These 

DAEOgrams are often incorporated into OGE's published 

opinions. DAEOgrams are cited by the date of issuance.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 1-4

Certain citations to cases outside of OGE's jurisdiction are solely 

bibliographic in nature. Such citations include those to legislative 

history, academic works, court cases, and the forms, regulations, and 

decisions of any Government agency other than OGE. 

__F.2d__ (__) 

__ U.S. _ (__)

• Decisions by Federal courts are cited using the form: [volume 

number] F.2d, or U.S., [page number] (court and year). 

__ Op. O.L.C. __ (__) • This citation refers to opinions of the Office of Legal Counsel, 

Department of Justice. The citation form is [volume number] Op. 

O.L.C. [page number] (year of opinion). 

__ M.S.P.R. __ (__) • The Merit Systems Protection Reporter compiles the decisions of 

the Merit Systems Protection Board. The citations use the form: 

[volume number] M.S.P.R. [page number] (year). 

Many of the sources cited in this guide, in addition to being 

available in collected volumes, are accessible through one or more 

electronic research services, such as LEXIS, or WESTLAW. 

OGE as a Contact Point

When complex issues arise in connection with financial disclosure, 

reviewers should first contact ethics officials at their own agency. If 

questions persist, they should contact OGE through their agency's OGE 

desk officer. 

Comments on This Reference Manual

We Welcome 

Your Comments 

As agency ethics officials become familiar with this Reference, 

they are strongly encouraged to direct comments and suggestions 

to OGE. Constructive ideas will be useful in revising or improving 

both the contents and the format of this publication. For comments 

sent via e-mail, the subject line should indicate that the note includes 

comments on this Reference.

Office of Government Ethics 

(Attn: Judith A. Kim or Thomas F. Zorn) 

1201 New York Avenue, NW., Suite 500 

Washington, DC 20005-3917 

Phone: (202) 482-9300 

Fax: (202) 482-9237 

E-mail: usoge@oge.gov 
Introduction 

1.2 OVERVIEW OF THE OFFICE OF GOVERNMENT ETHICS

While originally part of the Office of Personnel Management 

(OPM), the Office of Government Ethics (OGE) became a separate

agency in the executive branch in 1989. OGE provides overall 

direction for policies related to preventing conflicts of interest on the 

part of officers and employees of the executive branch. The chart 

below summarizes the organization of OGE's offices. 

Office of Government Ethics

Organizational Chart

Revised 11/04 

Page 1-5
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 1-6

1.3 BASES FOR FINANCIAL DISCLOSURE

Statutes

5 U.S.C. App. (Ethics in 

Government Act of 1978) 

Two major laws, the Ethics in Government Act of 1978 and the 

Ethics Reform Act of 1989, create the statutory framework for 

financial disclosure. 

Since 1979, the Ethics in Government Act has required senior 

executive branch employees to file public financial disclosure reports.

Pub. L. 101-194 as amended 

by Pub. L. 101-280 

Title II of the Ethics Reform Act of 1989 substantially revised the 

Ethics in Government Act's financial disclosure requirements, effective 

January 1, 1991. The Ethics Reform Act merged the public financial 

disclosure requirements for all three Government branches into Title I 

of the Ethics in Government Act. In addition to extensive technical 

amendments, other amendments to Title I have made minor 

adjustments. Always consult the pocket part to 5 U.S.C. App. for the 

most current statutory text on financial disclosure requirements. 

Regulatory Guidance

5 C.F.R. part 2634 OGE first published executive branch-wide regulations 

implementing the public financial disclosure system in 1980 at 

5 C.F.R. part 734. Effective December 5, 1989, OGE redesignated 

these regulations as 5 C.F.R. part 2634. On April 7,1992, OGE issued 

revised regulations to implement the Ethics Reform Act of 1989. 

(Since 1992, OGE has issued various minor changes to these 

regulations, which now appear in the C.F.R.). 

Agency Summaries

5 C.F.R. §2634.103 Some agencies have developed summaries of this system or issued 

internal directives. At a minimum, they are required by law to have 

internal written procedural guidance on financial disclosure. Agencies 

may issue such internal documents without consulting OGE, provided 

that they are consistent with OGE's regulations (see Section 14.7: 

Agency Procedures for the Collection and Review of SF 278s for a model). 

Any supplemental regulations, however, require OGE's concurrence. 
Introduction 

Revised 11/04 

Page 1-7

Purpose of Financial Disclosure

The theory of public financial disclosure is rooted in postWatergate concepts of “Government in the Sunshine,” which aims to 

promote public confidence in the integrity of Government officials. 

While some disclosure elements may seem more relevant to avoiding 

conflicts of interest than others, OGE has no authority to alter the 

statutory requirements. 

OGE's regulation and the SF 278 format must reflect the law's 

mandates and its dual purpose: 

• avoiding conflicts of interest through reviewer analysis of 

disclosures, and 

• ensuring public confidence in Government through disclosure as 

an end in itself. 

An understanding of these goals will help ensure the full 

cooperation of those whom the law requires to file SF 278s, so that 

their reports are accurate, complete, and timely. It also underscores for 

reviewers the vital importance of their task. 
PART I:

THE REVIEW 

PROCESS
Revised 11/04 

Page 2-1 

2.0 THE DISCLOSURE SYSTEM 

This chapter summarizes the procedural aspects of the public 

financial disclosure system (see Section 14.7: Agency Procedures for 

Collection and Review of SF 278s, for a model of an agency public 

financial disclosure system). This chapter also describes some of the 

duties of the ethics official within the financial disclosure process.

Notification

Ethics officials must determine who meets the filing criteria and 

must maintain a current list of filers. Agencies should notify filers of 

the requirements and provide the necessary forms well in advance of 

the applicable filing deadline.

Nominee Reports

Reviewers must review, certify, and forward to OGE reports of 

persons whom the President nominates for positions that require Senate 

confirmation (PAS EMPLOYEES). Certification by the DAEO is nondelegable. These reports come through the White House and receive 

priority in the review process (see Chapter 12).

Extensions of Due Dates

Each agency specifies who can receive, evaluate, and grant or deny 

requests for filing extensions, for up to 45 days. An agency may grant 

an additional extension of up to 45 days.

Receipt

The reviewer must ensure that reports are marked or stamped with 

the date of receipt by the agency.

Collection of Late Reports and Fees

Reviewers must collect reports from delinquent filers. Filers must 

pay a $200 late filing fee for reports they file more than 30 days late.

Review, Counseling, and Certification

Within the 60 days after receipt, reviewers must complete an initial 

review of the report, begin any necessary conflict of interest 

counseling and determine if any ethics agreements are required. An 

ethics official must certify each report in the “Agency Ethics Official's 

Opinion” block upon satisfactory completion of review.

Forwarding to OGE

After agency certification, the agency must send the DAEO's 

SF 278 report, reports of PAS officials and certain other reports to 

OGE. Incumbent reports are due at OGE immediately after agency 

certification.

Availability and Retention

Within 30 days of receipt, agencies must make reports publicly 

available upon request. Agencies must retain reports for 6 years.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 2-2 

2.1 OFFICIALS REQUIRED TO FILE

5 U.S.C. App. § 101 

5 C.F.R. § 2634.202 Employees in statutorily-specified positions must file the SF 278. 

In general, these positions require the exercise of significant policymaking and command discretion. For example, the President, Vice 

President, candidates for the Presidency and Vice Presidency, the 

Director of OGE, certain commissioned White House appointees and 

senior postal service employees must file. Additionally, in each agency 

the following employees, including SPECIAL GOVERNMENT EMPLOYEES, 

serve in “covered” positions that require the filing of public financial 

disclosure reports:

Positions in 

Most Agencies

OGE 81x22 

• Employees in senior positions under a pay system other than the 

General Schedule, such as the Senior Executive Service or an 

agency pay schedule, must file when their positions' rate of basic 

pay (not including locality pay) is equivalent to or greater than 

120% of the minimum rate of basic pay for GS-15. A position's rate 

of basic pay is the amount authorized for the lowest step of the 

position's pay grade. As of January 2004, the triggering rate (120% 

of GS-15-01) is $104,927/year; for part-time employees, this 

converts to $50.28/hour [base ÷ 2087 hrs per year, under standard 

personnel practices]; or $402.24/day [$50.28/hr x 8 hrs].

• Employees who serve in positions classified above GS-15 under 

the General Schedule. 

• Uniformed officers paid at or above pay grade O-7. This does not 

include “frocked” O-7's who wear the rank but do not receive the 

pay. 

• SCHEDULE C and other civilian employees, regardless of pay grade, 

whose positions are excepted from the competitive service because 

of their confidential or policy-making character. 

Ethics 

Officials 

• Each agency's primary DESIGNATED AGENCY ETHICS OFFICIAL, 

regardless of pay grade. Other ethics officials need file only if they 

are in another specified category.

Presidential 

Nominees 

• Presidential nominees requiring Senate confirmation (PAS) 

(regardless of pay grade). [Uniformed and Foreign Service 

nominees file only if they are in another specified category]. 

• All administrative law judges. 

While the statute does specify most positions that require filing, it 

also provides Senate confirmation committees, OGE, and the agencies 

some discretion to expand or narrow the class of filers, as discussed in 

the following subsections. 
The Review Process--The Disclosure System

Revised 11/04 

Page 2-3 

Employees Serving 60 Days or Less 

5 U.S.C. App. § 101(d) & (h) 

5 C.F.R. § 2634.201(a) & 

§ 2634.204 

Employees who work in a position for 60 days or less in a calendar 

year, such as some SPECIAL GOVERNMENT EMPLOYEES (SGEs) and 

persons assigned in an acting capacity, need not file an incumbent 

SF 278 for that year. Also, a regular employee who enters a covered 

position with less than 60 days left in the calendar year need not file an 

annual report for that year, but does file a new entrant report. For 

example, a regular employee who enters a covered position on 

November 15, 2003, files a report by December 15, but does not have 

to file an annual report in May 2004.

Agencies should determine whether they reasonably expect 

employees assigned in an acting capacity and SGEs (except PAS

SPECIAL GOVERNMENT EMPLOYEES, for whom OGE makes the 

determination) to work for more than 60 days in any calendar year 

when the individual assumes a covered position. If they are not 

expected to exceed the 60-day threshold, no new entrant report is 

required at that time. Agencies need not inform OGE of such decisions 

but must record them in their own files.

5 C.F.R. § 2634.905 

OGE DAEOgram of 

February 15, 2000 

SGEs exempted from the SF 278 requirement must file a new 

entrant OGE Form 450 confidential report, regardless of days served, 

unless they are exempted from filing by agency determination.

Employees Who 

Actually Work 

Over 60 Days 

If an employee has initially been exempted from public filing but 

does work more than 60 days in a calendar year, the employee must 

file a new entrant report within 15 days after the 60th day. She should 

also file any subsequent incumbent and termination reports.

PAS Employee 

Filing Exemption 

The Director of OGE will exempt a nominee to a PAS position 

from filing if the Director determines that the individual is not 

reasonably expected to perform the duties of the position for more than 

60 days in any calendar year. The Director makes this determination 

based on information from the employee's agency. Some Senate 

committees, however, require a nonpublic SF 278 under their own 

statutory authority to require information as a condition of 

confirmation (see Chapter 12: Processing Presidential Nominee 

Reports).

Day-Counting Rules for the 60-day Threshold

For part-time employees and SGEs, agencies should count days on 

which they actually worked. If a part-time employee works a part of a 

day, or on a Saturday, a Sunday, or a holiday, then that day counts as 

one day in determining the number of days worked. For full-time 

employees, agencies should count consecutive calendar days of 

assignment to the position, including weekends and holidays. 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 2-4 

Additional Designations by the Director of OGE

5 U.S.C. App. § 101(f)(3) 

5 C.F.R. § 2634.202(c) 

The Director of OGE may designate additional positions for filing 

SF 278s if OGE determines that those positions are equivalent to others 

that normally require filing. OGE uses this authority to account for 

employees with unusual status. While salary levels usually define the 

class of filers, the level of an employee's responsibility, not pay, 

actually determines who must file. Only the Director of OGE may 

determine whether a particular employee bears responsibilities equal to 

other filers. An agency that wishes the Director to designate a position 

for filing must submit a written request providing a basis for this 

determination.

Exclusions for Non-policy-making Schedule C Positions

5 U.S.C. App. § 101(f)(5) 

5 C.F.R. § 2634.203 

At the request of agencies, the Director of OGE routinely excludes 

politically-appointed administrative support positions from SF 278 

filing. The authority extends to SCHEDULE C and other civilian 

positions that:

• are excepted from the competitive service because of its 

confidential character and

• are classified at or below GS-15 or whose rate of basic pay outside 

the General Schedule (lowest step) is below 120% of the rate of 

pay for GS-15-01. 

Required 

Determination 

OGE exempts a position if it determines that the exemption would 

not adversely affect the integrity of the Government or the public's 

confidence in the integrity of the Government because the position has 

no policy-making or advising role of a programmatic nature. OGE 

distinguishes between positions with programmatic policy aspects such 

as confidential assistants and those without policy aspects, such as 

secretaries. The exemption applies to all employees who fill that 

position unless and until the duties of that position change.

Exemptions Automatic 

Upon Request but 

Subject to OGE 

Review

5 C.F.R. § 2634.203(c)(l) 

Agencies desiring exemptions must submit a written request to the 

Director of OGE that includes the position title and a copy of the 

position description. An exemption is effective upon the agency's 

written request to OGE; however, that request should be submitted 

before the due date for the report the employee would otherwise file. If 

OGE denies a request, it will set a due date for filing the SF 278, 

normally 30 days from the date of the denial. An agency may request 

reconsideration of a denial by submitting an amended position 

description or other additional materials.
 The Review Process--The Disclosure System 

Revised 11/04 

Page 2-5 

Special Government Employees 

OGE DAEOgram of 

February 15, 2000 

SPECIAL GOVERNMENT EMPLOYEES (SGEs) fall under the same 

criteria for filing SF 278s as other regular Government employees. If 

they meet the pay conditions for public filing and work more than 60 

days in a calendar year, then they must file new entrant, annual, or 

termination SF 278s, as appropriate. Additionally, any prospective SGE 

who is nominated by the President to a position requiring Senate 

confirmation, regardless of pay level or expected number of service 

days, may be required by the confirming committee to file an initial 

“nominee” report. (See Chapter 11: Federal Ethics Laws and 

Regulations in Brief for guidance on the reduced applicability of some 

ethics laws and regulations in the case of SGEs).

SGEs Not Filing 

SF 278s Usually File 

an OGE Form 450 

5 C.F.R. Part 2634, 

Subpart I 

Generally, any SGE who does not file an SF 278 must file a 

confidential financial disclosure report (OGE Form 450). For new 

entrant confidential reports, SGEs must file their reports no later than 

30 days after assuming their position or office, or no later than the first 

committee meeting for advisory committee members. If an SGE in a 

public filer position who was not expected to work more than 60 days 

in a calendar year actually does work more than 60 days, then she must 

file a new entrant SF 278 within 15 days after the 60th day.

Special Procedure 

If the Number of 

Days to Be Worked 

Is Unclear 

OGE DAEOgram of 

October 23, 2003 

Agency ethics officials may use a special procedure if they do not 

expect an SGE to work more than 60 days but recognize that it is a 

possibility. To avoid having the SGE complete both an OGE Form 450 

and an SF 278 as a new entrant if she in fact works more than 60 days, 

the ethics official may wish to offer the SGE the option of completing a 

modified SF 278 in lieu of the OGE Form 450. The modified SF 278 

would only list on Schedule A the assets that meet either the income or 

asset value reporting requirements, but would not report the values. 

Also, the filer would only report the general description of any 

liabilities held on Schedule C, Part I. The modified SF 278 would be 

treated as confidential and marked “not for public release” unless and 

until the SGE works more than 60 days in that calendar year. This 

procedure is acceptable because the SF 278 requires all of the 

information the OGE Form 450 requires. Within 15 days after the 60th 

day worked, employees must then update their reports to reflect any 

change in their finances and add asset, income and liability values and 

terms. Officials may not compel anyone to use this procedure.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 2-6 

18 U.S.C. § 202 

Who is a Special Government Employee?

A special Government employee (SGE) is defined as an officer or 

employee of the executive branch, of any independent agency of the 

U.S., or of the District of Columbia, who is retained, designated, 

appointed or employed by the Government to perform, with or without 

compensation, for not more than one hundred and thirty days, during 

any period of three hundred and sixty-five consecutive days, temporary 

duties either on a full-time or intermittent basis. The term also includes 

a Reserve officer of the Armed forces or an officer of the National 

Guard while on active duty solely for training, or if serving 

involuntarily.

Administrative Determination

The definition of SGE focuses on whether the employee was 

appointed to serve no more than 130 days of any consecutive 365-day 

period. At the time of appointment, the appointing official must 

determine whether the employee will be reasonably expected to work 

more than 130 days in the 365 days after the appointment date. Even if 

it is apparent, prior to the end of a 365-day period, that an employee 

was mistakenly classified as an SGE (that is, she actually did work 

more than 130 days in the 365-day period), she is still an SGE for the 

remainder of that 365-day period.

Filing Waivers for Special Government Employees

5 U.S.C. App. § 101(i) 

5 C.F.R. § 2634.205 

OGE 79 X 7 

In unusual circumstances, the Director of OGE may grant certain 

SGE filers a waiver of the public availability requirement for their 

financial disclosure report. This waiver may be granted only if the SGE 

has neither performed, nor is expected to perform, official duties for 

more than 130 days in a calendar year. The waiver does not exempt a 

person from the requirement to file a financial disclosure report; rather, 

it merely exempts the report from release to the public. (Once a waiver 

has been granted under the Ethics in Government Act, it will also be 

exempt from release under the Freedom of Information Act.) The 

Director may grant the waiver if all of the following four factors exist:

1. the individual is a special Government employee; 

2. the individual is able to provide services specially needed; 

3. it is unlikely that the individual's outside employment or 

financial interests will create a conflict of interest; and 

4. public disclosure is not necessary under the circumstances. 
The Review Process--The Disclosure System

Revised 11/04 

Page 2-7 

If an SGE desires a waiver, he must submit his written request to OGE 

via his agency within 10 days after he:

• learns that his position requires public disclosure and will 

involve more than 60 days of service or 

• works more than 60 days in a covered position despite his 

plans to work 60 days or less, 

whichever is earlier. The request must include a cover letter as well as 

a statement justifying the request and the filer's completed SF 278.

Each request for a waiver from filing an SF 278 must include the 

following:

Elements of a Filing 

Waiver Request

1. A cover letter that:

• provides the employee's name and position; 

• states the approximate number of days in a calendar year 

which he expects to serve in that position; and 

• requests a waiver of SF 278 filing under 5 C.F.R. 

§ 2634.205. 

2. A separate statement that provides the reasons for an 

individual's belief that the four factors listed above are met. 

3. The SF 278: which provides the factual basis for determining 

that no conflict of interest is likely. The form must bear the 

legend at the top of page one: “CONFIDENTIAL: WAIVER 

REQUEST PENDING PURSUANT TO 5 C.F.R. § 2634.205.” 

The agency should forward the request to OGE with their opinion 

as to whether OGE should grant a waiver. If OGE grants the request, 

the cover letter should be made publicly available in lieu of the SF 278. 

If OGE denies the waiver, the agency should remove the legend from 

the report and make it publicly available without the cover letter.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 2-8 

Detailees/Acting in a Position

5 C.F.R. § § 2634.201(a), 

 2634.602(a) & 2634.605(b) 

OGE 81 X 3 

The position, not the individual in the position, controls the SF 278 

filing requirements. Accordingly, individuals detailed to or acting in a 

“covered” position for more than 60 days must file a report. The 

detailed employee files the report with the agency that detailed him, 

that is, the primary agency. The agency to which he is detailed should 

perform an intermediate review.

Agencies should make a prospective determination whether a 

person entering a position will work more than 60 days when deciding 

whether the person should file a new entrant report. If agencies are 

uncertain about this estimate, they may offer the option of filing a 

modified SF 278 in lieu of the OGE Form 450 (see the discussion 

above on special Government employees).

Federal Advisory Committees

Who Is a Government 

Employee?

OGE 82 X 22 

OGE 00 X 1 

OGE DAEOgram of 

July 19, 2004 

Generally, only Government employees are subject to the Federal 

ethics requirements, including financial disclosure, the conflict of 

interest laws, and the standards of ethical conduct. Members of Federal 

advisory committees frequently are appointed as special Government 

employees (SGEs), and these SGEs are subject to the Federal ethics 

requirements, with certain exceptions and modifications. Sometimes, 

however, members are instead selected to serve as “representatives” of 

interest groups that have a stake in the work of the advisory committee. 

These representative members are not Government employees at all 

and, therefore, are not subject to the Federal ethics requirements. OGE 

has provided specific guidance to help agencies determine whether 

particular advisory committee members should be designated as SGEs 

or as representatives.
The Review Process--The Disclosure System

Revised 11/04 

Page 2-9 

Master List of Filers

Elements of an 

SF 278 Tracking 

System

Agencies must compile and maintain a list or database of SF 278 

filers. The ethics officials should coordinate this listing with the 

agency's personnel office and continuously update it to reflect 

significant actions taken with respect to each filer. In addition to a 

basic identification list of names, titles, addresses, and phone numbers, 

agencies may wish to include other information in their database to 

assist in program management. These other elements may include:

• dates of position entrance, filing, review, extensions, late filing 

fees, and certification; 

• number of days worked in that calendar year (for SGEs); 

• number and type of public requests; or 

• ethics agreements and their status. 
Public Financial Disclosure: A Reviewer's Reference

2.2 REPORTING FORMS

OGE DAEOgram of 

August 25, 2003

Filers must report the required information on OGE's standard 

form, the SF 278, except where the regulations explicitly allow 

alternative formats. The current edition of the SF 278 bears a revision 

date of March 2000. Section 15.1: SF 278 contains a sample SF 278.

Procuring the Form

How to Get the Form

41 C.F.R. § 101-26.302

OGE makes available a printable copy of the form as well as 

electronically fillable versions of the form on its website 

http://www.usoge.gov./ Or, the agency procurement officer may order

them from the General Services Administration (GSA) schedule. The 

GSA national stock number (NSN) is 7540-01-070-8444. Forms are

available in packages of 25 through the Customer Supply Center

Catalog. The Customer Supply Center telephone number is 1-800-525-

8027. Forms may also be ordered at the GSA Advantage! web site.

Alternative Reporting Formats 5 U.S.C. App. § 103(g); 5 C.F.R.§ 2634.311(c)

OGE DAEOgram of February 22, 2000

All filers must complete the SF 278's cover page. Filers may, however, supply some or all 

of the information for the schedules by attaching to the SF 278 a statement from a financial 

institution, brokerage report, or other material. These attachments must:

• include all of the information the SF 278 requires, 

• cover the appropriate time periods completely, and 

• readily disclose the information in a clear and concise manner. 

An SF 278 must be a complete document in itself. While the SF 278 can incorporate 

material from other sources, the material must be made part of the form by attaching it and 

referencing it on the relevant schedules.

Revised 11/04 

Page 2-10 
 The Review Process--The Disclosure System 

Revised 11/04 

Page 2-11 

2.3 TYPES OF REPORTS AND FILING DEADLINES

5 U.S.C. App. § 101 

5 C.F.R. § 2634.201 

The Ethics in Government Act requires three types of reports:

• New Entrant/Nominee: Due within 30 days after assuming a 

position covered by the SF 278 filing requirements or no later than 

5 days after nomination to a PAS position,

• Incumbent: Due annually, no later than the May 15th following 

the covered calendar year, and

• Termination: Due on or before the 30th day after leaving a covered 

position.

These reports use the same form but require slightly different 

information and cover different time periods. See Section 3.2: 

Applicable Schedules and Reporting Periods, for periods covered.

New Entrant or Nominee Reports

An employee must file a new entrant report within 30 days after 

assuming a covered position. The filer may sign a report in advance of 

his first day in the covered position. PAS nominees must file the 

reports within 5 days after nomination (see Chapter 12: Processing 

Presidential Nominee Reports).

Employees who are expected to work 60 days or less in any 

calendar year need not file, except for certain nominees (see 

Section 2.1: Officials Required to File). An official also need not file a 

new entrant report upon transfer from one covered position to another 

unless more than 30 days pass before she assumes the second position. 

When that occurs, OGE recommends that the new agency request a 

copy of the last filing from any official who transfers from a covered 

position at one agency to a covered position at another agency. This 

allows the new agency to determine whether there would be any 

conflicts of interest involving the individual's new duties.

Incumbent Reports

Annual Reports By May 15th of each year, an official serving in a covered position 

must file an SF 278 for the previous calendar year. As noted above, an 

official who served in a covered position for 60 days or less in the 

previous calendar year need not file a report. Thus, an employee who 

enters a position after November 1 files a new entrant report, but not 

an annual report the following May. Agencies should notify OGE if a 

PAS employee works 60 days or less in a calendar year.
 Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 2-12 

Moving Between 

Covered Positions In 

Different Agencies

OGE advises that when an official moves from a covered position 

in one agency to a covered position in another agency, on or before the 

30th day after leaving the first covered position, the current agency 

should collect and certify the incumbent report after coordinating an 

intermediate review with the former agency.

Termination Reports

Any official who served in a covered position must file a 

termination financial disclosure report within 30 days after leaving a 

covered position. The filer must sign and date a termination report no 

earlier than the last day of service in the position. An official need not 

file a termination report if he:

• is an SGE who worked 60 days or less in a calendar year, 

• worked 60 days or less in the position, or 

• transferred from one covered position to another, unless more than 

30 days passed before assuming the second position. 

Combined Reports Officials who anticipate leaving a covered position on or within 90 

days after the May 15 annual deadline may file a combined annual/ 

termination report if they request and receive an agency extension of 

the annual filing deadline (see Section 2.4: Extensions). An official 

leaving before May 15 who has not yet filed an annual SF 278, 

however, would file a termination SF 278, not a combined report. This 

termination report, it should be noted, will cover a period slightly 

longer than one year, including both the previous year and the current 

year up to the date of termination. A person could also file a 

combination new entrant/termination report. This situation would arise 

when a filer leaves a covered position within 120 days of entering it. 

With two 45-day extensions, the due date for the new entrant report 

could fall after the filer's termination, making a combined new 

entrant/termination report possible.
 The Review Process--The Disclosure System

Revised 11/04 

Page 2-13 

Collection of 

Delinquent 

Termination Reports

Agency ethics officials sometimes find it difficult to collect 

termination SF 278s from covered filers within 30 days of their 

departure. OGE suggests using the following steps in following up on 

delinquent termination report filers.

1. Mail an SF 278 to the former employee, requesting that it be 

completed and returned within a limited timeframe (15-30 days 

after receipt). 

2. If the report is not received within the requested timeframe, the 

mailing should be repeated using certified mail, with return receipt 

requested. 

3. If these efforts fail, the related correspondence should be forwarded 

to OGE for assistance in obtaining the delinquent report. 

4. OGE will then attempt to obtain the report by writing to the former 

employee using certified mail, with return receipt requested. 

5. If OGE is not successful in obtaining the report, they will advise 

the agency ethics official to refer the former employee to the 

Attorney General in accordance with the guidelines included in 

section 104 of the Ethics in Government Act, as amended. 

Referring to Reports

OGE's System OGE uses a standard system to refer to reports in its records, and 

recommends it for agency use. It combines the year in which the report 

is required to be filed with the type of report. The abbreviations are:

NE New Entrant Report

A Annual Report (Due May 15)

T Termination Report

AT Combined Annual and Termination Report

Examples: 04A An annual report due May 15, 2004. Even though 

an annual report covers the previous calendar year, 

it is labeled with the year in which it is required to 

be filed.

03AT A combined annual and termination report for 2002 

and 2003 up to the termination date, occurring on or 

after May 15.

03NE A new entrant report for an individual hired 

December 15, 2003, who files on January 12, 2004. 

It is an 03NE because the employee entered duty in 

2003.

04T A termination report for 2003 and 2004 up to a 

termination date of May 14.
 Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 2-14 

2.4 EXTENSIONS

The statute sets the due dates for the SF 278. Individual filers, or 

classes of filers, can be granted extensions of a filing deadline up to 90 

days for new entrant, annual, or termination reports, as described 

below. See the chart summarizing due dates in Section 2.5: Late Filing 

Fee, for a list of extended due dates for annual reports.

Agency Extension

5 U.S.C. App. § 101(g) 

5 C.F.R. § .2634.201(f) 

An agency may grant any official or class of officials an extension 

of the SF 278 deadline up to 45 days. The agency may grant an 

extension, usually in writing, for “good cause shown.” Some examples 

of good cause include:

• long periods of official travel prior to the due date; 

• significant illness just prior to the due date; 

• extremely pressing duty assignments; and 

• convenience of filing combined reports, as discussed in the 

preceding section. 

Agencies have discretion in the ease with which they grant 

extensions. Although oral extensions are permissible, OGE 

recommends that all agencies require filers to request extensions in 

writing, to establish proper documentation. Filers should request an 

extension before the due date. Likewise, agencies should act on the 

request prior to the due date. To increase public confidence in the 

system and to ease administration, OGE recommends that agencies 

indicate all extensions by using the check-off box, noting the number 

of days granted, in the reviewer comments area on the SF 278's cover 

page.

Additional Agency Extension

5 U.S.C. App. § 101(g) 

5 C.F.R. § 2634.201(f) 

OGE DAEOgram of 

 August 8, 2002 

An agency may, for “good cause shown,” grant an additional 

written extension of up to 45 days. This would give the filer a total of 

90 days beyond the original due date to file the report. The filer must 

set forth in writing why additional time is necessary. The reviewing 

official must approve or deny the request in writing. The statute does 

not allow any “good cause” extensions of more than 90 days, 

regardless of circumstances.
The Review Process--The Disclosure System 

Revised 11/04 

Page 2-15 

Service in a Combat Zone

5 U.S.C. App. § 101(g)(2)(A) An individual serving with or in support of the Armed Forces 

automatically qualifies for a 180-day extension if serving in a combat 

zone on the applicable due date. When applicable, this extension 

replaces all other extensions. This extension dates from the later of the 

last day of:

• the individual's service in the combat zone or

• the last day of the individual's hospitalization resulting from 

that service. 

Notations on Report Agencies should advise filers granted this extension to prominently 

mark their reports to indicate that they are filing under the 180-day 

combat zone extension. Filers should specify the date of their departure 

from the zone or the date the combat zone designation expired 

(whichever occurred earlier). Alternatively, the filer should list the 

dates of any resulting hospitalization.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 2-16 

2.5 LATE FILING FEE

5 U.S.C. App. § 104(d) 

5 C.F.R. § 2634.704 

OGE DAEOgram of 

August 8, 2002 

An official who files any SF 278 more than 30 days after the due 

date or more than 30 days after the last day of an extension, whichever 

occurs later, must pay the United States a $200 late filing fee. OGE has 

determined that the filing date is the date that the agency receives the 

report. The fee becomes due only when the report is actually filed. (If 

the employee refuses to file, see Section 2.6: Filing Penalties.)

Examples: An employee files a new entrant report (due 

February 18, 2000) on March 10, 2000. This 

person does not owe a late fee.

A filer without an extension puts an annual 

report (due May 15, 2000) in the mail to her 

agency on June 12, 2000, the Monday before the 

administrative 30-day grace period expires. Her 

ethics office receives the report June 19, 2000. 

This person owes a late fee because the 30-day 

grace period is intended to account for such 

delays, not to extend the due date.

After receiving two 45-day extensions from an 

agency, an employee files an SF 278 115 days 

after the May 15th due date. This person does 

not owe a fee. If the individual waited another 

week and filed more than 120 days (30 + 45 + 45) 

after the due date, the employee would owe 

$200.

NOTE: Even though the employees in neither the first nor last 

of these examples owes a $200 fee, the reports were late. Thus, 

they could still be subject to administrative action (see Section 

2.6: Filing Penalties).

Agencies Collect the Fee OGE has delegated to agencies the responsibility to collect this fee. 

As part of this delegation, OGE requires that agencies first notify filers 

of the debt and of the procedures for paying it or requesting a waiver 

from the agency.
The Review Process--The Disclosure System 

Revised 11/04 

Page 2-17 

Notice of Late Filing Fee

Agency Must Provide 

Notice

For reports that are more than 30 days overdue, an agency must 

provide the delinquent filer with written notice that she:

• will owe the United States a $200 late filing fee upon filing that 

is subject to agency debt collection procedures if not paid; 

• must remit the full fee to the agency, payable to the “United 

States Treasury;” and

• may submit a written request to the agency that the fee be 

waived due to “extraordinary circumstances.” 

Agencies may be required to advise OGE of late notices sent and other 

actions to collect late filing fees on reports forwarded to OGE.

Collection of the Late Filing Fee

Disposition of the Check 

31 U.S.C. § 3302 

Vol. I Treasury 

Financial Manual 

6-8000 § 8030 

If successful in collecting a late filing fee, the agency's finance 

office must forward it to the U.S. Treasury for deposit as 

miscellaneous receipts. The account coding used for the $200 late 

filing fee is xx1099 with the first two digits being the agency number. 

Ethics officials should defer to their agency finance office for 

appropriate handling of fees collected.

Taking Action If the 

Filer Refuses to Pay

If unsuccessful in collecting the $200 late filing fee, the agency 

should institute debt collection procedures, such as salary or 

administrative offset. In addition, an agency may take appropriate 

disciplinary action.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 2-18 

Waiver of the Late Filing Fee

OGE DAEOgram of 

August 8, 2002 

5 CFR 2634.704 

OGE has delegated its authority to waive the late filing fee to 

agencies. The fee may be waived if the delay in filing was caused by 

extraordinary circumstances.

Extraordinary 

Circumstances 

Extraordinary circumstances may include the agency's failure to 

notify a new entrant, first-time annual filer or termination filer of the 

requirement to file the public financial disclosure report. Other 

circumstances that OGE views as extraordinary are:

• a family emergency, such as a fire, an illness or a death; 

• transfer of position causing confusion over filing; 

• agency errors (other than notification errors); and 

• the duties of an employee's office (only agency emergencies) 

Other Factors In determining whether circumstances are extraordinary, other 

factors to consider include:

• the position of the filer (a filer might be held to a higher 

standard because she is an agency head or in a similar 

position); 

• whether the filer requested any extensions, indicating a 

good- faith effort to file; and 

• the timeliness of the employee's previous reports. 

Factors Not 

Considered 

Extraordinary

Employees who have previously filed incumbent SF 278s 

should be aware of the next year's annual filing requirement. In 

the absence of other extraordinary circumstances, an agency 

should not waive the late filing fee based on failure of an ethics 

official to remind an experienced filer to submit the SF 278. Nor 

should the agency waive the late fee for any employee who was 

mistaken about the due date, unless the agency contributed to that 

misunderstanding.

The Grace Period Since the statute allows a 30-day grace period after the filing 

due date before late filing fees apply, filers should ensure that the 

agency receives their reports by the end of that period. 

Accordingly, administrative or postal delays at the end of the 

grace period alone do not constitute an extraordinary 

circumstance.
The Review Process--The Disclosure System 

Revised 11/04 

Page 2-19 

Summary of Due Dates and Late Filing Fee Dates

Report Late if 

Filed After 

$200 Fee Due if 

Report Filed After 

Annual Reports May 15 June 14 

45-Day Extension June 29 July 29 

90-Day Extension August 13 September 12 

Due Dates on Weekends and Holidays

If any of the above dates falls on a weekend or holiday, it is OGE's 

practice to consider the next normal workday to be the due date. The 

same rule applies for new entrant/termination reports. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 2-20 

2.6 FILING PENALTIES

5 U.S.C. App. § 104(b) 

5 C.F.R. § 2634.701 

Connett v. Department of 

Navy 31 M.S.P.R. 322 (1986), 

aff'd, 824 F.2d 978 (Fed. Cir. 

1987) 

In addition to the late filing fee discussed in Section 2.5, 

individuals who fail to file a report, file a false report, or fail to report 

required information risk serious consequences. Both the agency and 

the Department of Justice may take action against the employee. This 

possibility emphasizes the importance for ethics officials of carefully 

documenting all contact with troublesome filers. Ideally, all contact 

should be in writing. Ethics officials should also make notes about 

telephone and in-person conversations. 

Disciplinary Action

An agency may take any appropriate action against employees who 

have not filed or who have filed a false, incomplete, or late report, in 

accordance with applicable personnel laws and regulations. Agency 

action does not, however, preclude action by the Department of 

Justice. 

Actions the Department of Justice May Take

The Attorney General may bring a civil action against any person 

who does not file, files a false report, or fails to report required 

information. Employees who file a false report also risk criminal 

action.

5 U.S.C. App. § 104(a) Civil Action: The Attorney General may bring a civil action 

against any individual who knowingly and 

willfully falsifies or who knowingly and willfully 

fails to file or report any required information. The 

court may assess a civil penalty in any amount, not 

to exceed $11,000. 

18 U.S.C. § 1001 

18 U.S.C. § 3571 

Criminal Action: The Attorney General may bring a criminal action 

against any individual who knowingly and willfully 

falsifies information required to be reported. The 

court may assess a fine up to $250,000 and imprison 

the person for up to 5 years. 

Referrals should be coordinated with the U.S. Attorney where the 

alleged violation occurred, or with the civil or criminal division of the 

Department of Justice (DOJ). The DOJ address is as follows: 

Assistant Attorney General 

Civil Division 

Department of Justice 

Tenth Street and Constitution Avenue, NW. 

Washington, DC 20530 

Attention: Federal Programs
Revised 11/04 

Page 3-1 

3.0 REPORT CONTENTS 

This chapter describes the reporting requirements of each part of 

the public financial disclosure statement. The SF 278 has a cover page 

and six additional pages known as Schedules A through D. Schedules 

B, C and D each have two parts, and both Schedule A and Schedule B, 

Part I, have a continuation page for filers who need more space.

Schedule A: Assets and Income

Schedule B, Part I: Transactions

Schedule B, Part II: Gifts and Travel Reimbursements

Schedule C, Part I: Liabilities

Schedule C, Part II: Employment Agreements or Arrangements

Schedule D, Part I: Positions Outside the U.S. Government

Schedule D, Part II: Sources of Compensation in Excess of $5,000 

While this chapter answers questions about the requirements of 

particular schedules, Part II of this manual provides detailed guidance 

on specific requirements for particular types of interests. 

The SF 278 is not a net worth statement. Rather, it is designed 

solely to report information specified by statute for the purpose of 

conflict of interest counseling and public availability. Reviewers should 

consider all report contents as an interrelated whole that describe an 

employee's outside linkages.

Privacy Rights A basic presumption in financial disclosure is that an employee has 

a right to privacy in her financial affairs. The public interest in 

disclosure of information overrides this privacy right only to the extent 

that Congress has explicitly deemed it necessary and that the 

Constitution allows. Reviewers must, therefore, be as sensitive as 

possible to the privacy rights of filers while fulfilling the statutory and 

regulatory requirements.

Interests May Be 

Reported on Multiple 

Schedules

The following is a summary of the information that filers must 

report on each section of the SF 278. Information required on one 

schedule may be required in a different form, and with additional 

detail, on another schedule. This redundancy is required by the 

financial disclosure law.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-2

3.1 THE COVER PAGE

This section outlines the features of the SF 278's cover page.

1. Appointment or Nomination Date

All filers should list the date they entered a covered position or the 

President nominated them. Reviewers need not verify dates and may 

enter an appropriate date if it is available. If it is not readily available, 

the reviewer need not provide the date. However, reviewers should 

ensure that an employee filed her report within 30 days of entering a 

covered position.

2. Reporting Status

All filers must check the applicable block indicating whether the 

report is a new entrant/nominee, incumbent, or termination report.

3. Calendar Year Covered by Report

Only incumbents complete the calendar year block. For all other 

filers, the reporting period is not a calendar year, so the box should be 

blank. If a new entrant/nominee or termination filer does complete the 

box, the reviewer should make certain that his report covers the period 

appropriate to the type of report. New entrants and nominees, for 

example, must include information for the preceding two calendar 

years up to the date of filing, since this is the period applicable to 

Schedule D.

4. Termination Date

Only termination filers should complete this block. Alternatively, 

the agency personnel office may supply the date. Reviewers should 

ensure that the report was filed within 30 days of the termination date.

5. Reporting Individual's Name

Filers should print or type their last name, first name and middle 

initial. If the block is incomplete, a reviewing official may complete it 

based on the filer's signature or other available sources. If there has 

been a recent name change, the reviewer may wish to note it in the 

reviewer comments section.
The Review Process--Report Contents 

6. Position for Which Filing

Filers should enter the complete title of the position for which they are 

filing and the name of their department or agency. The filer must list all 

covered positions held during the applicable reporting period. Reviewers 

may complete or correct this block based on their knowledge.

Revised 11/04 

Page 3-3
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-4

7. Location of Present Office

This information enables the reviewing official to contact the filer. 

Except for nominees and new entrants who file early, the filer should 

use a current Government office. Terminating employees should 

provide a forwarding address. A reviewing official may complete this 

block with the filer's Government office. Home addresses and phone 

numbers should not be disclosed on the report. They may choose to 

provide this information privately to the reviewing official.

8. Position(s) Held with the Federal Government During

the Preceding 12 Months

Filers should list any positions (other than the one for which they 

are filing) that they held with the Federal Government during the 

twelve months prior to the date of filing. This includes positions in any 

branch of the Federal Government. A reviewing official may complete 

or correct this block based upon independent knowledge.

9. Name of Congressional Committee Considering Nomination

Only prospective appointees to PAS POSITIONS must complete this 

block. A reviewing official may complete or correct this block based 

on independent knowledge.

10. Qualified Diversified Trust

Only prospective appointees to PAS positions need to complete 

this block.

11. Signature of Reporting Individual and Date

Filers must sign their reports in ink. This signature is the filer's 

statement that the report is correct and complete. Without it, the report 

is not acceptable. The original signature should appear on the copy of 

the form that agency reviewers certify. Reviewers may certify 

photocopies, but OGE does not recommend this practice.

12. Signature of Other Reviewer and Date

The preliminary reviewing official should sign here if the agency 

requires an intermediate review. If there are more than two levels of 

review, the second highest reviewer should sign in this block. The 

reviewer(s) below the second level should initial and date the shaded 

area.
The Review Process--Report Contents 

Revised 11/04 

Page 3-5 

13. Signature of Designated Agency Ethics Official or

Reviewing Official and Date

Only an ethics official may sign this block. The signer certifies 

“on the basis of the information contained in this report, I conclude 

that the filer is in compliance with applicable laws and regulations 

(subject to any comments in the box below).” Before signing, the 

official should be aware of certification requirements (see 

Section 4.4: Certification Requirements).

14. OGE Signature and Date

The Director of OGE signs here for reports forwarded to OGE.

15. Comments of Reviewing Officials

Reviewers should use this space for comments, or for 

annotations of the report. Reviewers should avoid making comments 

which disclose more information about a holding than is legally 

required, unless the filer approves the disclosure, or it is necessary to 

explain adequately a required entry.

16. Agency Use Only

The reviewing official assigned the first level of review must 

stamp or annotate this block with the date of agency receipt. This 

official should verify that the reporting employee filed the report in a 

timely manner.

17. OGE Use Only

OGE stamps this block with the date that OGE receives a report.

Pagination

The filer must number each page in the upper right-hand corner. 

OGE recommends that filers number pages as part of a total number 

of pages - for example, “Page 1 of 15.” No authority, however, 

requires any particular style. Reviewers should check for 

completeness if they discover that pages are not numbered 

consecutively.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-6

3.2 APPLICABLE SCHEDULES AND REPORTING PERIODS

As indicated below, a filer must complete different portions of the 

form for different time periods depending upon the type of report filed. 

NEW ENTRANT/ 

NOMINEE 

ANNUAL TERMINATION COMBINED 

ANNUAL AND 

TERMINATION 

SCHEDULE A 

ASSETS AND 

INCOME 

PRECEDING 

CALENDAR YEAR 

TO FILING DATE1

 

PRECEDING 

CALENDAR 

YEAR 

FROM END OF 

LAST REPORT'S 

PERIOD TO 

TERMINATION 

DATE 

PRECEDING 

CALENDAR YEAR 

TO TERMINATION 

DATE 

SCHEDULE B-I 

TRANSACTIONS2

 

NOT APPLICABLE PRECEDING 

CALENDAR 

YEAR 

FROM END OF 

LAST REPORT'S 

PERIOD TO 

TERMINATION 

DATE 

PRECEDING 

CALENDAR YEAR 

TO TERMINATION 

DATE 

SCHEDULE B-II 

GIFTS AND 

TRAVEL2

 

NOT APPLICABLE PRECEDING 

CALENDAR 

YEAR 

FROM END OF 

LAST REPORT'S 

PERIOD TO 

TERMINATION 

DATE 

PRECEDING 

CALENDAR YEAR 

TO TERMINATION 

DATE 

SCHEDULE C-I 

LIABILITIES 

PRECEDING 

CALENDAR YEAR 

TO FILING DATE1

 

PRECEDING 

CALENDAR 

YEAR 

FROM END OF 

LAST REPORT'S 

PERIOD TO 

TERMINATION 

DATE 

PRECEDING 

CALENDAR YEAR 

TO 

TERMINATION 

DATE 

SCHEDULE C-II 

AGREEMENTS 

AND 

ARRANGEMENTS 

ARRANGEMENTS 

AS OF FILING DATE 

PRECEDING 

CALENDAR 

YEAR TO 

FILING DATE 

FROM END OF 

LAST REPORT'S 

PERIOD TO 

TERMINATION 

DATE 

PRECEDING 

CALENDAR YEAR 

TO TERMINATION 

DATE 

SCHEDULE D-I 

POSITIONS 

OUTSIDE THE 

GOVERNMENT 

PRECEDING TWO 

CALENDAR YEARS 

TO FILING DATE 

PRECEDING 

CALENDAR 

YEAR TO 

FILING DATE 

FROM END OF 

LAST REPORT'S 

PERIOD TO 

TERMINATION 

DATE 

PRECEDING 

CALENDAR YEAR 

TO TERMINATION 

DATE 

SCHEDULE D-II 

COMPENSATION 

OVER $5,000 

PRECEDING TWO 

CALENDAR YEARS 

TO FILING DATE 

NOT 

APPLICABLE 

NOT 

APPLICABLE 

NOT 

APPLICABLE 

1 Filers may end the reporting period for assets and liabilities on any day that they choose within 31 days of the filing date. 2 Filers need not include any periods when they were not in Government service.
The Review Process--Report Contents 

Revised 11/04 

Page 3-7 

3.3 SCHEDULE A: ASSETS AND INCOME

On Schedule A, the filer lists assets and income derived from them, 

as well as income earned for services.

Assets

5 U.S.C.App. § § 102(a)(l) 

& (a)(3) 

5 C.F.R. § § 2634.301-302 

Whose Assets Are

Reportable? 

4 Op. O.L.C. 340 (1980) 

found constitutional the 

statutory requirement to 

disclose a spouse's 

financial interests. 

DuPlantier v. U.S., 606 

F.2d 654, 669 (5th Cir. 

1979), cert, denied, 449 

U.S. 1076 (1981), held 

that the financial 

disclosure law did not 

unconstitutionally invade 

personal privacy of filers, 

their spouses or 

dependent children. 

Examples of reportable property interests or assets include stocks, 

bonds, and other securities, pension interests, tax shelters, interests in 

trusts, personal bank accounts, real estate, commercial crops, livestock, 

accounts or other funds receivable, and collectible items held for resale or 

investment. For each asset, the filer should provide a description 

sufficient for conflict of interest review, a category of asset value and the 

type and amount of income derived from the asset. The requirements for 

specific assets are discussed in Part II: Reviewing Common Entries. This 

section provides the general rules for Schedule A. 

Imputed Interests

In addition to the filer's own assets and income, he must list all 

reportable assets and investment income of: 

• his spouse or DEPENDENT CHILD

• indirect holdings through vehicles such as trusts, pensions, and 

businesses (discussed in Part II: Reviewing Common Entries). 

and

For conflict of interest purposes, reviewers should treat these assets as if 

the filer held them personally. The criminal financial conflict of interest 

statute (18 U.S.C. § 208) imputes such interests to the filer (except § 208 

refers to MINOR CHILDREN, not dependent children; see Dependent Children 

Defined later in this section). On a common sense level, the law identifies 

these interests with the filer to avoid creating loopholes. Without this 

rule, a filer could simply transfer any questionable interests to a spouse 

or close associate and avoid the law (see Section 11.1: Criminal Conflict 

of Interest Statutes). 

The Basic Reporting Test

When in doubt whether filers need to disclose particular assets, the 

basic test is whether the assets are held for investment or the 

production of income, and if they meet the filing amount thresholds. 

Filers need not report assets held for reasons other than investment or the 

production of income, such as common household furnishings. On the 

other hand, an art collection held for resale would be reportable. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-8

Reporting Thresholds

There are two distinct reporting thresholds for assets. If either 

condition is met, the filer must report the asset. Such instances are:

Two Distinct 

Thresholds

• assets with a fair market VALUE in excess of $1,000 at the close 

of the reporting period (or $5,000 for cash deposits at one 

financial institution) or 

• assets that generated more than $200 in income during the 

reporting period. 

Even if an asset had a fair market value less than $1,000 at the 

close of the reporting period, the filer must still report the asset if it 

generated more than $200 in income during the reporting period. For 

example, filers may sell assets during the reporting period, leaving 

those assets with a zero asset value. These assets must, however, be 

reported if they generated more than $200 in income during the year. 

Aggregating 

Income

When determining whether an asset (or a group of assets) meets 

the threshold, filers must aggregate all income from a particular source 

for themselves, their spouse, and their dependent children. The fact 

that the filer may choose to separate the reporting of her interest from 

her spouse's does not affect the thresholds. Likewise, filers must 

aggregate all the types of income from a particular source (interest, 

dividends, capital gains) in determining whether the threshold is 

reached.

Example: A filer sells 20 shares of a particular stock and 

receives $100 in capital gains. The filer's spouse 

holds 20 other shares of the same stock and 

receives $205 in dividends. All of the stock is 

reportable with $305 in income. If the same filer 

had a $100 capital loss instead of a gain, there 

would be only $105 in aggregate income with 

no income reporting required.
The Review Process--Report Contents 

Revised 11/04 

Page 3-9 

5 U.S.C. App. § 109(7) 

5 C.F.R. § 2634.105(j) 

Definition of Income

Investment Income

INVESTMENT INCOME, as discussed above, includes INTEREST, rents, 

royalties, DIVIDENDS and CAPITAL GAINS of the filer, his spouse, and his 

dependent children. It includes income derived from all forms of 

property (such as securities, funds, accounts, and real estate); annuities; 

partnerships, joint ventures, and businesses; the investment portion of 

life insurance or endowment contracts; and income from interests in 

trusts (see discussion above on aggregating income). Generally, filers 

must report gross income exceeding $200 from any single source 

(category of amount). Filers may note their net income in addition to 

their gross income if they desire to show a loss. For partnerships, LLC's, 

S-Corps and sole proprietorships (in the case of the filer) the actual 

amount is required.

Example: Rent received on a house totals $9,600 during 

the year. The filer must report the $9,600 even if 

the property cost $12,000 in expenses. The filer 

may note a $2,400 net loss. 

Accrued Income 

Is Reportable

The definition of investment income for purposes of financial 

disclosure is specifically not tied to the IRS' definition of income for 

tax purposes. Filers must report accrued income, even if deferred or 

exempt for tax purposes. For example, tax-deferred income in a 

retirement account is reportable. Where filers receive no report of the 

amount accruing, such as with U.S. Savings Bonds, they should make 

a good faith estimate. Financial institutions normally provide reports of 

accruing income on IRS Form 1099.

Example: A Certificate of Deposit held in an Individual 

Retirement Account (IRA) accrued $400 in 

interest during the covered period. The filer 

must report it, since the accrued interest exceeds 

the $200 threshold.

Earned Income

Filers must report the actual amount of their EARNED INCOME

acquired during the reporting period from any one source in excess of 

$200. Earned income includes fees, salaries, commissions, 

HONORARIA, and any other compensation for personal services, but 

excludes Federal Government salary and other Federal benefits 

(including retirement, unemployment benefits and veterans' benefits).
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-10

Threshold for Spouses For earned income of the filer's spouse, the reporting requirements 

are relaxed. The reporting threshold is in excess of $1,000, not $200, 

and only the source, not the amount, of the income is reportable. This 

threshold applies to fees a spouse may earn as a trustee of a trust. 

Honoraria, however, are an exception; the threshold remains $200 and 

the actual amount must be reported. The filer need not disclose any 

earned income of dependent children, regardless of amount.

Investment versus 

Earned Income

Confusing Interest 

and Dividends 

These different thresholds and certain other reporting requirements 

occasionally make it necessary to distinguish between investment and 

earned income. The crucial factor in this division is the filer's services. 

If the filer's services are a material factor in the production of income, 

it is earned income. For example, limited partners usually receive 

investment income from the partnership, since they normally do not 

perform services for the partnership. 

Other Non-Investment Income

OGE considers scholarships, prizes, and awards, a filer receives to 

be neither earned nor investment income. Filers must report all such 

income over $200 in the “other” category and disclose its actual 

amount. A filer need not report income which is neither earned nor 

investment income for a spouse or dependent child. 

Investment Income Types

Income types are relatively straightforward on the SF 278. The 

most common error is that persons do not include an actual amount of 

income when they use the “other” column for type of income, such as 

salary, partnership share, director's fees, or honoraria. 

Interest and Dividends

The type of income is normally determined by the nature of asset 

listed-debt instruments, such as bonds, produce interest, while equity 

instruments, such as stocks, produce dividends. Certain distributions 

that are commonly called dividends, however, are actually interest. 

Filers should report as “interest” the so-called dividends received on 

deposit or share accounts with credit unions and savings and loan 

associations.
The Review Process--Report Contents 

Revised 11/04 

Page 3-11

Filers should be able to determine the proper characterization of income in most 

cases by examining statements provided by the deposit institution or fund manager.

Capital Gains

A CAPITAL GAIN is the difference between an item's basis (usually the cost) and 

its sale price. Filers must report capital gains on the SF 278 when gains are realized, 

even if they have not been recognized for tax purposes. For example, a person who 

sells an asset under CERTIFICATE OF DIVESTITURE (CD) must report those gains on 

the SF 278, even though the CD may delay capital gains tax until a subsequent sale 

of the permitted property.

Excepted Investment Fund Income

Income from funds that meet the definition of an EXCEPTED INVESTMENT FUND

(EIF) may be reported by marking that single category, rather than separately 

listing interest, dividends, capital gains, or rents and royalties (see Section 7.1: 

Excepted Investment Funds).

Reporting Considerations

Filers should mark each type of investment income derived from a particular 

source. They may indicate a single category of amount as an aggregate of the 

various income types from an asset, or they may mark separate categories of 

amount with initials “I” for interest, “D” for dividends, “CG” for capital gains, and 

“R” for rents or royalties.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-12

Valuing Assets

Methods Used to 

Value Assets 

5 C.F.R. § 2634.301(e) 

Filers of new entrant and nominee reports may determine the 

VALUE of an asset by choosing its value on any date that is within 31 

days of the date of filing. Incumbent and termination filers should 

value assets as of the end of the reporting period. Filers may value 

assets by any method below, although the first is often the simplest:

• A good faith estimate of fair market value; 

• The purchase price (if the filer indicates the purchase date); 

• A recent appraisal; 

• The market value of the property as assessed for tax purposes; 

• The year-end book value of non-publicly traded stock, 

the year-end exchange value of corporate stock, or 

the face value of corporate bonds or comparable securities;

• The net worth of a business partnership; 

• The equity value of an individually owned business; or 

• Any other recognized indication of value (such as the last sale 

on a stock exchange). 
The Review Process--Report Contents 

Revised 11/04 

Page 3-13 

Exceptions to Schedule A's Requirements

Non-Reportable 

Assets and Income

A filer need not report the following on Schedule A, whether 

held/received personally or by a spouse or dependent child:

• Any PERSONAL RESIDENCE of the filer or spouse (unless rented out), 

including vacation homes if used as second personal residences and 

timeshares used as vacation homes; 

• Income from employment with the Federal Government, including 

military Reserve pay; 

• Retirement benefits from the Federal Government, including the 

Thrift Savings Plan; 

• Income from social security, unemployment, veterans benefits and 

other similar Federal Government benefits; 

• Deposits in a single financial institution aggregating $5,000 or less 

in money market accounts, certificates of deposit, savings accounts, 

checking accounts or other deposits; 

• Shares in a single money market fund aggregating $5,000 or less; 

• Liabilities owed to the filer, the filer's spouse or the filer's dependent 

child by their parent, spouse, sibling or child; and 

• Income arising from the dissolution of the filer's marriage or 

permanent separation, such as child support or alimony. 

Additionally, filers need not report any insurance claims and 

reimbursements, unless they are subject to Federal income tax. 

Personal frequent flyer accounts also are not reportable. See below for 

exclusions of certain separate assets of a spouse or dependent child.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-14

Spouses and Dependent Children

Test for Separateness of 

Assets of Spouses and 

Dependent Children

5 C.F.R. § 2634.309(a)(3) 

Filers often question the need to report the assets of a spouse when 

he handles his own finances. An asset of the filer's spouse (or 

dependent child) may be exempt from reporting only if it meets all 

four of these tests:

1. the asset represents the spouse's or dependent child's sole financial 

interest or responsibility; 

2. the filer has no specific knowledge regarding the asset 

(constructive or otherwise); 

3. the asset is not in any way, past or present, derived from the filer's 

income, assets or activities; and

4. the asset is one from which the filer neither derives, nor expects to 

derive, any financial or economic benefit. 

An asset which is reported on a joint tax return or held in a trust for 

a child's education is a benefit to the filer. Thus, the asset should be 

reported. A practical effect of this test is that filers who complete joint 

tax returns must disclose their spouse's assets.

Entries for the assets and income of spouses and dependent 

children may be marked “S” or “DC” (or “J” for joint) if the filer 

wishes to distinguish them from his own assets and income (it is not 

required).

Marriage During a 

Filing Period

When a filer gets married during the reporting period, her next 

report may reflect a substantial increase in her assets. She need only 

report the assets held by her spouse and the income received from 

them after they were married.

Divorce Rules 

5 C.F.R. § 2634.309(c) 

The filer need not report a spouse's assets in the case of a divorce 

or permanent separation. A separation is permanent if the spouse is 

living separate and apart from the filer, and there is an intention to end 

the marriage or to separate permanently. If that intent is not present, 

the spouse's assets must be listed, even if the couple is living 

separately. The filer need not disclose any income (or obligation on 

Schedule C) arising from the dissolution of a marriage. However, note 

that even in situations where there is no SF 278 reporting requirement, 

18 U.S.C. § 208 will still apply to matters in which an employee knows 

her spouse has a financial interest.
The Review Process--Report Contents 

Revised 11/04 

Page 3-15

Dependent Children If a child that was dependent during the reporting period is no 

longer dependent as of the date of filing, the filer need not report the 

childs' assets. However, any reportable income produced by the childs' 

assets while the child was a dependent should be reported.

Dependency Rules

5 U.S.C. App. § 109(2) 

26 U.S.C. § 152 

5 C.F.R. § 2634.105(d) 

Dependent Children Defined

Filers must consider a child a DEPENDENT CHILD if the child is:

1. a son, daughter, stepson or stepdaughter; and

2a. unmarried, under age 21 and living in the filer's house or 

2b. considered dependent by tax code standards (which, according 

to the Internal Revenue Code, generally requires that a 

dependent child receive more than half of her financial support 

from the filer). 

NOTE: While the term “dependent child” is used for financial 

disclosure, the conflict of interest statute attributes to a Government 

employee the financial interests of a MINOR CHILD, which is a narrower 

class of children defined by state law, usually as under age 18. 

Definition of Spouse

“Spouse” is not defined in the financial disclosure law. Its ordinary 

meaning is a marriage partner joined through legal union (wedlock) as 

husband or wife. Each state's laws define spouse more specifically; 

some may include common law marriages, where a couple live 

together and hold themselves out as husband and wife.

Alternative Life-Styles 

5 C.F.R. § 2635.502(a) 

Filers living with another person in a relationship which their states do 

not recognize as a marriage need not report the assets and income of their 

companions. Filers may report such holdings if they so choose. While 

the assets of the companions would not trigger disqualification under the 

criminal statute (18 U.S.C. § 208), the Employee Standards of Ethical 

Conduct may reach the financial interests of a companion who is a member 

of the employee's household. Given this accountability, filers may find it 

to their benefit to receive conflict of interest counseling on these interests. 

Joint Ownership

Subject to the thresholds and exclusions mentioned above, filers 

must disclose assets in which they have an ownership interest, whether 

held separately or jointly with others. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-16
The Review Process--Report Contents 

Revised 11/04 

Page 3-17

3.4 SCHEDULE B, PART I: TRANSACTIONS

5 U.S.C. App. § 102(a)(5) 

 

5 C.F.R. § 2634.303 

On Schedule B, filers must report the purchase, sale, or exchange 

of certain assets attributed to themselves, their spouse, or their 

DEPENDENT CHILD. This requirement does not apply to nominee and 

new entrant filers. All other filers must report transactions that involve 

more than $1,000 of either:

• real property or 

• stocks, bonds, MUTUAL FUND shares and other securities (see 

Chapter 8: Investments). 

There is no requirement to report transactions involving other types of 

assets even if they are reportable on Schedule A.

Filers need to report only a brief description, the appropriate 

category of value, type of transaction and date for Schedule B. Note 

that these categories are different than either the Schedule A asset or 

income ranges. Filers need not disclose actual amounts of transactions.

Periodic Transactions 

and Dividend 

Reinvestment

Filers may combine on the same line multiple purchases (or sales) 

for a single security. This includes dividends reinvested from a single 

security or mutual fund. Only those transactions that individually 

exceed $1,000 need to be included.

Example: A filer who purchases $1,100 per month of a particular 

mutual fund may report one transaction in the $1,001-

15,000 range with the date as “monthly.”

When aggregating intermittent (ones not occurring in accordance 

with a set schedule or on a regular basis) transactions of a single asset 

that occurred during the year, the date should be marked “throughout 

the year.”

Certificates of 

Divestiture

The filer must indicate whether an asset was sold pursuant to a 

CERTIFICATE OF DIVESTITURE that OGE had issued. See Section 5.5: 

Divestiture or Resignation.

Transactions Can Cover 

Assets Not on 

Schedule A

The requirements for reporting transactions apply regardless of 

whether the asset or income is listed on Schedule A. 

Example: A filer purchases $25,000 of a stock at the start of a 

reporting period. The stock loses $5,000 in 5 months and is sold for 

$20,000. The stock is not included on Schedule A because it did 

not generate more than $200 in income and was not held at the end 

of the period. Nevertheless, the filer must report the sale on 

Schedule B, Part I. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-18

Exceptions

Non-Reportable 

Transactions 

5 C.F.R. § 2634.303(b) 

A filer need not report transactions concerning the following:

• A PERSONAL RESIDENCE of the filer or spouse, unless it is rented out 

anytime during the reporting period; 

• Cash accounts such as money market, savings, or checking 

accounts and cash equivalents such as money market funds; 

• Purchases, sales or exchanges solely between the filer, the filer's 

spouse or the filer's dependent children; 

• Transactions that are not purchases, sales or exchanges, such as 

gifts given or received, stock splits, bond calls or maturity, OPTION

expiration (see Section 8.2: Corporate Securities); 

• A portfolio holding within a qualified blind trust, qualified 

diversified trust, excepted trust, or EXCEPTED INVESTMENT FUND; 

• Treasury bills, bonds, and notes (see Section 8.3: Government 

Securities); 

• Purchases, sales, or exchanges that occurred when the filer was not 

a Government employee; 

• Any asset of the filer's spouse or dependent child that is separate 

from the filer (see Section 3.3: Schedule A for separateness test); 

and 

• Assets that are solely incidental to the primary trade or business of 

an entity on Schedule A (see Section 6.1: Business Ownership and 

Employment Relationships). 

Day Trading

“Day trading” occurs when a position is established and liquidated 

within one day's trading cycle. Day trading has the same reporting 

requirements as regular stock trading.
The Review Process--Report Contents 

Exchanges

At Least Two Assets 

Are Involved in Any 

Exchange

An exchange generally occurs when one company acquires 

another. The shareholders of the acquired company are often given the

option to sell their shares to the acquiring company or exchange their 

existing stock for stock of the acquiring company. When a filer 

exchanges her stock, she must specify both the stock tendered and the 

stock acquired in its place.

Example: ABC Corporation recently acquired XYZ Corporation. ABC 

gave its shares to the shareholders of XYZ in exchange for their 

XYZ shares. A filer would report this exchange on Schedule B as 

follows:

Applicability

Not Applicable to 

New Entrants

Schedule B does not apply to new entrant and nominee filers. If 

new entrants or nominees have completed this schedule, reviewers 

should advise them of the over-disclosures and provide an opportunity 

to delete them. Reviewers should also counsel employees about any 

potential conflicts of interest arising from such disclosures.

Revised 11/04 

Page 3-19
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-20
The Review Process--Report Contents 

Revised 11/04 

Page 3-21

3.5 SCHEDULE B, PART II: GIFTS, REIMBURSEMENTS, TRAVEL

5 U.S.C. App. § § 102(a)(2) 

& (e)(1)(C) 

5 C.F.R. § 2634.304 

A filer must report gifts of food, lodging, transportation, 

entertainment, reimbursements or any gratuity, favor or other thing of 

value received by:

• the filer; 

• his spouse; and 

• his DEPENDENT CHILDREN

if the total VALUE of either gifts or reimbursements received from a 

single source exceeded $285 during the reporting period. New entrant 

and nominee filers need not complete this part.

Threshold Change

Pub. L. 102-90 & 102-378 

OGE DAEOgram of 

September 27, 2002 

The threshold for reportable gifts and travel reimbursements is now 

$285 (The thresholds are tied to the GSA definition of minimal value 

for foreign gifts). Reimbursements for travel are measured against a 

$285 threshold separate from the direct gifts threshold. The reporting 

thresholds will continue to change every three years as GSA redefines 

“minimal value” under the foreign gifts law at three-year intervals.

Aggregating 

Gifts

For the threshold, a filer may disregard gifts or reimbursements 

received with a fair market value of $114 or less. For any gifts worth 

more than $114, the filer must aggregate them from each source for the 

reporting period. Filers must also aggregate gifts received by their 

spouses and dependent children, subject to the exclusions listed later in 

this section.

Example: A friend gives a family the following gifts during a 

particular reporting period:

$ 75 -- Watch to filer

$150 -- Trip to filer and spouse

$140 -- Sculpture to filer's dependent child.

The filer would aggregate the $150 trip and the 

$140 sculpture, but could disregard the $75 

watch. The filer would disclose the $290 total 

gift and specify its components despite the fact 

that part went to the filer and spouse and part 

went to the filer's child.

Reimbursements Are 

Aggregated Separately 

From Gifts

If the trip listed in this last example were a reimbursement, not a 

direct gift, it would be measured against a separate $285 threshold. In 

that case, there would be no reportable gift or reimbursement.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-22

Valuation

5 C.F.R. § 2634.304(e) 

Filers should value gifts at fair market value. If this amount is 

unclear, then the filer should determine the gift's retail price in the 

metropolitan area nearest his duty station. If the price is not readily 

ascertainable, the filer should make a good faith estimate.

Reporting Exclusions

Non-Reportable 

Gifts

5 U.S.C. App. § § 102(a)(2), 

109(5) & 109(15) 

5 C.F.R. § § 2634.105(h,k,n), 

& 2634.304(c) 

Filers need not report or aggregate the following items:

• Anything for which the filer paid fair market value; 

• Anything accepted by the Government under a statute or contract; 

• Anything received when not a Government employee; 

• Anything from the filer's RELATIVES (the statute broadly defines 

“relative” to include a detailed list of persons related by blood or 

law, and even includes a fiance); 

• Bequests and other forms of inheritance; 

• Gift items in the nature of communications to the filer's office, 

such as subscriptions to newspapers and periodicals; 

• Nonbusiness gifts of PERSONAL HOSPITALITY (food, lodging, 

entertainment, but not transportation) on the donor's personal or 

family property; 

• Food and beverages not consumed in connection with a gift of 

overnight lodging (Additional costs included in the price of a 

ticket, such as entertainment or fund-raising, must be reported); 

• Food, lodging, transportation, entertainment or reimbursements 

provided by a foreign government within a foreign country or by 

the U.S., the District of Columbia, state or local governments; and 

2 U.S.C. § 434 • Reimbursements received for political trips that must be reported 

under § 304 of the Federal Election Campaign Act of 1971.
The Review Process--Report Contents 

Revised 11/04 

Page 3-23 

5 C.F.R. § 2634.309(a)(2) 

5 C.F.R. § 2634.105(h)(2) 

Exclusion for Spousal Gifts Independent of the Filer

Gifts given to the filer's spouse or dependent child totally 

independent of their relationship to the filer also need not be reported. 

Gifts given to a non-Governmental spouse because of the spouse's 

employment or other activities may sometimes benefit the Government 

employee. This might occur, for example, when the spouse's employer 

sponsors an event to which its employees may bring a spouse or other 

guest. These gifts do not have to be reported if the donor does not target the 

gift to the Government employee, such as by specifying that only the 

Government employee spouse may attend. 

Exclusion for Gifts Memorializing an Honoring Function

Another exclusion from the gift reporting requirement covers 

suitable mementos of a function honoring the filer. The gift reporting 

exclusion for “suitable mementos of a function honoring the reporting 

individual” covers items that serve to remind the recipient of an 

honoring event, whether a mere souvenir or something with utilitarian 

purpose. It is not limited to items of nominal intrinsic value, as the 

basic gift reporting threshold will have already excluded items worth no 

more than $114, or $285 in the aggregate from a single source. An 

“honoring function” might include a retirement party, personal 

achievement dinner, baby shower, or other similar event. 

Despite its apparent broad scope, this reporting exclusion for 

mementos is, however, limited by the term “suitable.” Whether a 

memento is “suitable” to a particular function must be determined from 

the circumstances surrounding the event, such as the types of gifts 

traditionally given or considered appropriate on such occasions, the 

recipient's position and relationship to the donors, the number of donors, and 

the gift's significance to the occasion. Ultimately, this is a matter for the 

filer and agency to examine in each instance.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-24

41 C.F.R. part 304.1 

(implementing 31 U.S.C. 

§ 1353) describes the GSA 

travel regulation. 

Agency-Accepted Travel

Filers should not report travel gifts and reimbursements that their 

agencies accepted under a gift statute, even if the filers primarily used 

the gift. 

Example: An employee travels officially from Washington, 

DC to Toledo, Ohio, to attend a conference. The 

conference's corporate sponsor provides the 

airline tickets. If the agency accepted the ticket or 

reimbursement from a non-Federal source under 

GSA regulations, the agency, not the individual 

traveling, accepts the funds. The filer should not 

report the reimbursement. 

5 U.S.C. § 4111 

Note, however, that some official travel gifts and reimbursements 

may actually be accepted by the employee under the Government 

Employees Training Act. In that situation, the filer must report the 

source of travel payments (see Section 9.2: Travel-Related Gifts and 

Reimbursements for further discussion). 

Applicability

Not Applicable 

to New Entrants 

Schedule B does not apply to new entrant and nominee filers. If new 

entrants or nominees have completed this schedule, reviewers should 

advise them of the over-disclosures and provide an opportunity to delete 

them. Reviewers should also counsel employees about any potential 

conflicts of interest arising from such disclosures. 
The Review Process--Report Contents 

Revised 11/04 

Page 3-25 

Waiver for Personal Gifts

5 U.S.C. App. § 102(a)(2)(D) 

5 C.F.R. § 2634.304(f) 

In unusual cases, the Director of OGE may waive the reporting of 

gifts on the SF 278 when two criteria are met:

• the filer's relationship to the donor and the donor's motivation for the 

gifts were personal and

• no separate public purpose requires disclosure of the nature, source, and 

value of the gift. 

This authority is often used for a filer who receives a large number of 

personal gifts such as at an engagement and wedding.

Elements of Request

Requests for these waivers must be made in writing to OGE. The 

request should contain a cover letter and an enclosure. The cover 

letter must contain:

• the identity and position of the filer and 

• a request for a waiver under 5 C.F.R. § 2634.304(f). 

For each donor, the enclosure must contain:

• the identity and occupation of the donor; 

• a brief description of the gift and the value of the gift; 

• a statement that the relati

• 

onor represents: 

• es in activities regulated by; or 

o 

role in official action directly affecting the donor or organizations served 

by it. If OGE grants the waiver, the employee's cover letter, but not the 

enclosure, will be available to the public as an attachment to the SF 278.

onship between the employee and donor is 

personal; and 

a statement that neither the donor nor any person or organization 

who employs the donor, or whom the d

• conducts or seeks business with; 

engag

• is directly affected by action taken by the agency employing the 

filer. 

If the employee cannot make the above-described statement, she 

should explain why she cannot, and must be able to state that she has n
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-26

3.6 SCHEDULE C, PART I: LIABILITIES

5 U.S.C. App. § 102(a)(4) 

5 C.F.R. § 2634.305 A filer must report any of his own, his spouse's, or his DEPENDENT 

CHILD'S liabilities to any one creditor that exceeded $10,000 anytime 

during the reporting period. Liabilities that dropped from more than 

$10,000 to $10,000 or less during the reporting period must be 

reported. The filer must also report the liabilities of any nonpublic 

business disclosed on Schedule A unless the liability is incidental to 

operation of the business.

Example: A filer who owns part of a farm co-operative takes out a 

$50,000 loan to buy seed and other materials for planting. That 

loan is not reportable. If, however, the co-op decides to buy 

into a local hamburger store as a side investment, the filer must 

report the loans to support that purchase.

Normally filers must report loans such as MORTGAGES on rental 

property, student loans, investment loans, and personal lines of credit. 

A filer need not report the following:

Non-Reportable 

Liabilities

• Any liability owed to a spouse or dependent child, or to a parent, 

sibling, or child of the filer, her spouse, or her dependent child; 

• Any mortgage or home equity loan secured by a PERSONAL 

RESIDENCE of the filer or spouse, unless the personal residence is 

rented out or any loans of a townhouse, condominium, or 

cooperative association when the filer uses the townhouse, 

condominium or cooperative as a personal residence; 

• Any loan secured by a personal motor vehicle, household furniture, 

or appliances, if the loan does not exceed the item's purchase price; 

• Any revolving charge account, such as credit card balances, where 

the outstanding liability did not exceed $10,000 at the close of the 

reporting period. This method of calculating the threshold differs 

from the method for all other entries on Schedule C, part I; 

• Any liability of the filer's spouse or dependent child which meets 

the four tests for separateness of assets (see Section 3.3:

 Schedule A); 

• Obligations arising from a filer's divorce or permanent separation 

(see Section 3.3: Schedule A); or 

• Liabilities that are solely incidental to the primary trade or business 

of an entity on Schedule A (see Section 6.1: Business Ownership 

and Employment Relationships). 
The Review Process--Report Contents 

OGE 90 X 2 Overdue tax liabilities are generally reportable. Even when a tax 

liability is enforced by placing a lien on the filer's personal residence, 

it remains reportable. A tax lien does not equate to a mortgage 

liability, so the exception to reporting mortgages does not apply.

Revised 11/04 

Page 3-27 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-28

3.7 SCHEDULE C, PART II: AGREEMENTS OR ARRANGEMENTS

5 U.S.C. App. § 102(a)(7) 

5 C.F.R. § 2634.306 

This schedule records the filer's future employment agreements 

and arrangements and the filer's continuing past arrangements. The 

most common error is to omit continued participation in pension plans 

and other employee benefit plans. Termination filers must report 

arrangements for their next job. All filers must report any agreements 

or arrangements concerning:

• Future employment; 

• Leaves of absence from a former employer; 

• Continuing payments from a former employer, including 

severances and payments not yet received for previous work; and 

• Continuing participation in a former employer's employee welfare, 

retirement, or other benefit plan, such as pensions. 

This part has no value threshold, and unlike schedules discussed 

above, this part applies only to the filer and excludes the spouse and 

dependent children. Employment, leaves of absence, payments, and 

benefits from the United States Government are not reportable.

A complete disclosure for this part must include:

Required Information • a general description of the type of agreement, such as “defined 

benefit pension;” 

• a brief description of the terms of the agreement, such as “starting 

at age 65, will receive $45,000/year until death;” 

• the current status of the agreement, such as “definite offer of 

employment but currently negotiating terms;” 

• the parties to the agreement, other than the filer, including the city 

and state of the other party; and 

• the date of the agreement.
The Review Process--Report Contents 

Revised 11/04 

Page 3-29

3.8 SCHEDULE D, PART I: POSITIONS HELD OUTSIDE GOVERNMENT

5 U.S.C. App. § 102(a)(6)(A) 

5 C.F.R. § 2634.307 

A filer must report all compensated or uncompensated positions 

held currently or anytime during the reporting period. Positions 

include officer, director, trustee, general partner, proprietor, 

representative, employee or consultant of any for-profit or non-profit 

entity, including any labor organization or educational institution. 

Mere membership in any entity or organization does not trigger the 

reporting requirement (see also Section 6.5: Outside Positions).

Example: A Government attorney maintains a practice 

outside the Government. In addition to listing 

entries on other schedules, the attorney would 

report a position as a sole practitioner or law 

partner. The filer need not make an additional 

disclosure of membership in the bar.

Exceptions

Filers need not report the following:

Non-Reportable 

Positions

• positions that their spouses or DEPENDENT CHILDREN hold; 

• compensated or uncompensated positions held in any religious, 

social, fraternal, or political entity; 

• positions solely of an honorary nature; and 

• positions the filer fills in an official capacity as a representative of 

the United States Government. 

NOTE: If questions about an organization's nature arise, it may be helpful 

to consult the organization's charter for clues as to its stated purpose 

and activities. Positions such as those with a youth or scouting 

organization would not typically require reporting, since they are 

fraternal or social in nature. Excludable positions with political entities 

will generally be limited to political parties and campaign organizations, not 

special interest and lobbying groups.

Example: An FDA scientist is part of a project review panel 

at a state university. The scientist need not list 

this outside position if it is part of his officiallyassigned duties. Likewise, he would not list 

membership in the American Scientific 

Association.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 3-30
The Review Process--Report Contents 

Revised 11/04 

Page 3-31 

3.9 SCHEDULE D, PART II: SOURCES OF COMPENSATION OVER $5,000

5 U.S.C. App. § 102(a)(6)(B) 

5 C.F.R. § 2634.308(b)(6) Only new entrant and nominee filers must complete this part. They 

must report any source of compensation over $5000 which was paid 

for their personal services during either of the preceding two calendar 

years or the current calendar year up to the date of filing. This 

disclosure requirement includes the names of clients or customers for 

whom the filer personally provided more than $5000 in services, even 

if the client directed payment to the filer's employer. Filers need not 

report payments to their employer or a firm for which they were not 

directly involved in providing the services.

Disclosure must include a brief description of the nature of the 

services rendered. Reporting such as “legal services” is acceptable.

Address of Source Filers should include a name and address (city and state) of the 

source of the payment. Reviewers need not amend reports to reflect 

such information when the location of a business is available to the 

public in standard reference works.

Cross-referencing 

Schedule A

A common error for filers is to believe that disclosure on Schedule 

A satisfies the requirements of Schedule D. While the two schedules 

do overlap, the filer must complete each schedule with all of the 

required information. Filers (or reviewers) may cross-reference the 

other schedule only if it provides sufficient data.

Exceptions

Non-Reportable 

Sources

A filer need not disclose information in certain circumstances. If a 

filer and his client entered into a confidentiality agreement at the time the 

filers services were retained, then disclosure of the client will not be 

required. In addition, if the filer represents a client in a matter that is 

covered by a court order or is under seal; that involves a grand jury 

investigation; or that involves some other non-public investigation and 

there are no public filings or statements, disclosure of the client is not 

required. Finally, if disclosure is prohibited by a specific bar rule 

provision, disclosure of the client is not required. If certain clients are not 

disclosed because of the above reasons, a statement that “certain 

confidential clients are not reported” must be included on Schedule D, 

Part II.

This part does not apply to incumbent and termination filers or to 

spouses and dependent children. Reviewers may wish to notify filers of 

any over-disclosures so that filers can remove unnecessary information if 

they so desire. Reviewers should also counsel filers about potential 

conflicts arising from such disclosures.
Revised 11/04 

Page 4-1 

• ho should not be entering public

• nable the public to judge the performance of public

iewer's 

Client 

4.0 REVIEW PROCEDURES

1978 U.S. Code Cong. & 

 Admin. News 4216, 4237 

(Senate Report No. 95-170) 

When passing the Ethics in Government Act, a Senate report 

specified five purposes for the public financial disclosure system: 

• to increase public confidence in the Government, 

• to demonstrate the high level of integrity of the vast majority of 

Government officials, 

• to deter conflicts of interest from arising, 

to deter some persons w

service from doing so, and 

to better e

officials.

The Filer is not These objectives create two roles for the 

the Rev

reviewing official—one as 

protector of the public and its Government from conflicts of interest, 

and the other as a counselor to employees. As a counselor, the financial 

disclosure reviewer works to protect the employee from invasions of 

privacy and undeserved scandal. As an ethics official, a reviewer must 

ensure that reports comply with legal requirements. When these two 

roles conflict, reviewers must remember that their most basic loyalty 

belongs to the public and its Government, not the filer. 

The reviewer should seek to fulfill these purposes by using a 

systematic approach in reviewing financial disclosure reports. This 

Reference suggests the following procedures as a model. Reviewers 

should supplement these procedures with their own insights, while 

remaining within the legal authorities. Section 14.7: Agency 

Procedures for Collection and Review of SF 278s also provides a set of 

procedures for agencies to follow in outlining their financial disclosure 

syst

Outline of Chapter 

ion's discussion of 

assumptions OGE uses in the review of the SF 278.

ems.

This chapter begins with an overview of the entire SF 278 review 

process and then discusses several procedural issues, such as the tools 

of review, how and when to obtain additional information, who 

certifies the forms, and public access to the forms. This section should 

orient new reviewers to the SF 278 review process. More experienced 

reviewers may be especially interested in this sect
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 4-2

4.1 BASIC PROCEDURES

Steps to Follow 

When a Report Is 

Filed 

• Stamp the date of receipt on the report. A report is considered filed 

when the agency receives it. This date is critical in determining 

timeliness of filing and review. 

• Verify that the report was required against your master list and log 

the report into the list (see Section 2.1: Officials Required to File). 

• Inform the filer of any late filing fees that she may have incurred 

(see Section 2.5: Late Filing Fee). 

• Ensure that there are no missing pages or attachments and that all 

iew

schedules and/or parts have been completed, if applicable. 

• Gather the “tools of review” (see Section 4.2: Tools of Rev ). 

• Review the first page (see Section 3.1: The Cover Page). 

Compare and reconcile the report against the previous report, if any. 

Make sure that the current report accounts for all the entries that 

carried over from the last report. Note any that do no

• 

t. Reviewers 

• ach entry for disclosure of all required information (see

must reconcile all reports forwarded to OGE for approval and 

should encourage filers to reconcile their own reports. 

Review e

Chapter 3: Report Contents and Part II: Reviewing Common 

Entries). 

• Obtain additional information, if necessary, to make all disclosures 

complete (see Section 4.3: Obtaining Additional Information). 

• Look again at each item, especially any additional information 

supplied by the filer, to identify possible conflicts of interest (see 

Chapter 11: Federal Ethics Laws and Regulations in Brief). 

• Either forward the report to the next level of review or certify the

report as appropriate (see Section 4.4: Certification Requirements), 

or explore conflict of interest solutions (see Chapter 5: Resolving 

Conflicts of Interest).

• Forward the report to OGE or retain in agency files, as appropriate 

(see Section 4.6: Forwarding Reports to OGE).
The Review Process-Review Procedures

Revised 11/04 

Page 4-3

Review Timeframes 

5 C.F.R. § 2634.605 The statutes and regulations state only that agencies must complete 

their review within 60 days. OGE has interpreted this requirement to 

mean that agencies should accomplish final certification of reports 

(intermediate certification for agencies with multiple review levels) 

within 60 days of their receipt when the reports do not require 

additional information or remedial action. 

The reviewer should advise the filer of any questions, preferably in 

writing, within 60 days. Delays in the process can occur as filers try to 

gather information in response to these questions. Delays usually result 

from either filer reluctance to provide the information or lack of 

understanding about what specific information is needed (or both). 

Normally, reviewers should allow filers two weeks to respond to the 

questions. The letter to the filer should give an appropriate due date. 

If the agency does not receive a response, the ethics official should 

call filers to remind them and to clarify the questions. Agencies should 

normally not take action against an employee who is making a good 

faith effort to comply with their requests. For some filers, however, 

stronger enforcement may be necessary. Although agencies need not 

use OGE's timetable, a description of it may offer useful guidance: 

Days from Questions

Sent to Filer Action

15 Phone call reminder/clarification of questions. 

45 Written reminder/clarification of questions. 

90 Delinquency notice from the DAEO outlining future 

steps to be taken. 

120 Delinquency notice from the head of the agency or large 

component stating the report is not acceptable as 

submitted. 

150 Notice from the head of the agency or large component 

stating that the agency deems the report incomplete and 

will take action against the employee in 30 days. 

180 Administrative action begun or case referred to the 

Department of Justice (see Section 2.6: Filing Penalties). 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 4-4

4.2 TOOLS OF REVIEW

Financial disclosure reviewers should not analyze reports by 

looking solely at the current report. A reviewing official should have 

the following resources available while reviewing a report: 

• The filer's previous report, if any; 

• The instructions accompanying the SF 278; 

• A copy of the filer's position description or knowledge of the 

filer's duties; 

• The Federal ethics laws and regulations; and 

• Financial reference materials concerning financial institutions, 

corporate affiliations, mutual funds, etc. and/or access to the 

internet to conduct research. 

Filing Systems

Agencies may wish to use a filing system that separates information 

available to the public under the Ethics in Government Act from 

information which must be requested under the Freedom of 

Information Act. It also provides ready access to the entire history of 

reports. Agencies may wish to file reports in a manner that allows easy 

identification of reports that have been held six years and are, 

therefore, due for destruction (see Section 4.5: Public Availability and 

Retention). 
The Review Process --Review Procedures 

Revised 11/04 

Page 4-5

4.3 OBTAINING ADDITIONAL INFORMATION

5 C.F.R. § 2634.605(b)(2) There is no requirement to audit a report to determine whether 

disclosures are accurate. Reviewers should take disclosures at “face 

value” as correct, except as indicated below. It is appropriate to assume 

that the filer has read and understood the instructions and has reported 

accurately and fully, unless the filer's history demonstrates otherwise. 

REVIEWING OFFICIALS should, nevertheless, seek additional information 

on a report and annotate the report appropriately when: 

When to 

Obtain More 

Information 

1. The form is incomplete (for example, when a filer fails to check 

an asset value); 

2. The form reveals one entry (or the absence of one) that is 

inconsistent with another entry on the report or on the filer's 

previous report(s); 

3. The form omits an entry of which the reviewing official has 

independent knowledge; or 

4. The reviewing official requires more information to ensure the 

filer's compliance with Federal ethics laws and regulations or 

with other laws and regulations (see below, “Recording 

Additional Information,” for privacy considerations). 

Example: The reviewer should seek more information when the filer 

lists only the name of a private limited partnership. A 

conflict of interest analysis demands that the reviewing 

official know the nature of the partnership's business to 

determine whether its activities could conflict with the 

employee's duties. 

Exercise 

Prudent 

Judgment 

The decision whether to request additional information often 

involves the exercise of judgment on the part of the reviewer. This is 

especially true when two reports do not reconcile. Reviewers have the 

primary responsibility for conflict of interest counseling. Each reviewer 

should use more or less scrutiny, depending on the familiarity of the 

filer with the process, the technical accuracy of any previous report(s) 

and the possibility of conflicts of interest. With new filers, reviewers 

should approach the report as if it were the story of that person's 

finances. Look for obvious gaps in that story, such as long term 

employment with no pension reported or a new entrant with significant 

stock holdings and no employment. If gaps appear, reviewers should 

help filers to understand the disclosure requirements better. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 4-6

Review Assumptions

Assumptions Do 

Not Hold When 

Patterns of 

Error Are Present 

While the financial disclosure laws and regulations require that 

reviewers accept reports at face value, reviewers should use more 

stringent standards when a report exhibits a pattern of inconsistency 

that indicates the filer did not understand the reporting instructions. 

Absent such patterns of error, reviewers may wish to use the following 

review assumptions. 

Given this context, OGE has found that in the following situations 

it is reasonable not to follow-up with the filer. These review 

assumptions and the need for them will probably not be readily 

apparent to new reviewers. New reviewers should go on to “How to 

Obtain Additional Information” and return as needed. 

• If the filer failed to list the date of appointment on the cover, then 

the reviewer need not seek the date, except as needed for 

determining whether a new entrant report was filed late. 

Assets That Do Not 

Require Reporting of 

Transactions 

Schedule A

• If assets appear (or disappear) from one report to the next that 

normally would not require disclosure of transactions on Schedule 

B, such as money market funds, bank accounts, Treasury securities, 

or cash IRA's, reviewers may assume that a new entry (or the lack 

of an entry) is correct. 

Asset Value Changes • If the value of an asset changes from one category on a prior report 

to the next category, either higher or lower, on a current report 

without a reported transaction, reviewers may assume that market 

value fluctuated. 

Income Type Changes • If mutual funds or limited partnerships earn different types of 

income from one year to the next, reviewers may assume a nonreportable change in underlying portfolios. This would apply to an 

“EIF” designation appearing on the prior report but not on the 

current one. An “EIF” designation could be placed on the current 

report by verifying with appropriate reference materials. A 

conflicts analysis may still be needed. 

S, J, and DC • If an asset's identification as “spouse's,” “dependent child's” or 

“joint” is inconsistent with its identification on a previous report, 

reviewers may assume a non-reportable intra-family transfer. 
The Review Process --Review Procedures 

Revised 11/04 

Page 4-7

Brokerage 

Statements • If a brokerage statement covers the appropriate periods and 

includes required transaction information, reviewers need not 

compare it to previous brokerage statements for consistency. 

• Reviewers may assume that securities earn the type of income 

normally associated with them, such as dividends for stocks and 

interest for bonds and cash accounts. Reviewers may amend the 

report accordingly. 

Different Purchase 

and Asset Values 

Schedule B. Part I

• If the purchase price of an asset differs from the value of the asset 

as listed on Schedule A by one category, either higher or lower, 

reviewers may assume that the market value merely fluctuated. 

Assets Sold on B But 

Not Shown on A 

• If an asset is listed as sold on Schedule B and is not listed on 

Schedule A, reviewers may assume that it produced no reportable 

income during the period prior to its sale or capital gains upon its 

sale. If, however, a large number of assets is sold without any 

income being reported, the reviewer should inquire further to 

ensure understanding of the instructions. 

Assume 

Complete Sales 

• If an asset is listed as sold on last year's report and does not appear 

on the current year's report, reviewers may assume that the entire 

holding was sold. The assumption holds only when the sale 

amount is no more than one category of value below the previous 

asset value. 

Small Liabilities 

Disappear 

Schedule C. Part I

• If a liability previously listed at the lowest category of amount 

($10,001-$15,000) does not appear on the current report, assume 

that the liability never exceeded $10,000 during the reporting 

period. 

Non-profit 

Positions 

Schedule D. Part I

• If a filer lists a Board position with a non-profit entity, but reports 

no income on Schedule A, reviewers may assume that no income 

was earned. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 4-8

None Box Reporting

Filers should not leave any schedule or part blank, unless the 

instructions indicate it is not applicable. While there is no specific 

statutory or regulatory requirement that filers positively state that they 

have nothing to report in a particular part or schedule, reviewers 

should normally question patent omissions. In certain situations, 

however, reviewers may assume that a filer's lack of reporting on a 

particular section indicates “none.” The criteria for these cases are: 

Conditions on 

Assumption • the filer has previously filed a report that indicated “none” in 

that section; 

• there are no other entries that require the reviewer to seek 

additional information from the filer; and

• the reviewer believes that there is only a remote possibility that 

requesting the verification would disclose a conflict of interest. 

If the reviewer believes that a particular report meets the criteria 

listed above, she may note in the review comment space on the front of 

the report her assumption that the filer should have marked the “None” 

box. This rule avoids unreasonably technical questions while still 

protecting the public's right to full disclosure. 

When agencies distribute the SF 278 forms to the filers, they may 

wish to note, in written or oral form, that leaving an applicable 

schedule blank creates an uncertainty that may require additional 

questioning of the filer. 
The Review Process --Review Procedures 

Revised 11/04 

Page 4-9

Termination Review Standards

Reviewers may find it useful to use less stringent review standards 

on reports of persons who no longer work for the Government. Since 

termination filers have left Government employment, reviewers may 

wish to expand the usual review assumptions by using the ones listed 

below. Reviewers must determine whether these review assumptions 

are appropriate, given the filer's financial disclosure history and nature 

of the filer's position. Reviewers may wish to document the reasons 

they judged such assumptions appropriate in their review notes. In the 

situations described below, it may be reasonable not to follow-up with 

the termination filer. 

Errors Not 

Requiring 

Questioning 

Schedule A

• For disclosed assets, failure to check the type or amount of 

income of an asset that does not pose any conflict of interest. 

• Failure to mark a zero asset value for an asset listed as sold on 

Schedule B. 

• Providing only a category of value when the actual amount of 

salary or “other” income is reportable. 

Schedule B

• Failure to report a transaction of a publicly-traded security listed 

on Schedule A that does not pose any potential conflict of 

interest. 

• Failure to include the date and/or amount of a transaction. 

• Missing dates of travel on items that do not pose any apparent 

conflict of interest. 

• Missing values for gifts that do not pose any apparent conflict of 

interest. 

Schedule C

• Missing terms or dates on a liability. 

• Missing category of value for a liability if the filer had disclosed 

a category of value on a prior report. 

• Failure to report any future job agreements, unless the reviewer 

has independent knowledge. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 4-10

How to Obtain Additional Information

When the reviewer has decided to seek additional information 

about a report, several sources of information are available. Depending 

on the circumstances, a reviewing official can seek additional 

information from sources including the following: 

Sources of 

Information 

• The filer; 

• Prior reports; 

• The filer's accountant, aide, or similar official (but only when 

the filer has authorized the person to discuss the report); 

• Another reviewing official who previously reviewed the report; 

• The filer's personnel office; 

• Financial reference periodicals and other publications; 

• Financial and investment institutions, (good for general 

information about products and services); 

• Research over the internet; 

• Other entries on the report; and 

• Reviewing officials' independent knowledge. 

When using some of these methods of obtaining information, a 

reviewing official must exercise judgment in determining whether to 

seek confirmation from the filer. When in doubt, a reviewer should 

verify the information with the filer. 

Ensuring Clean Photocopies

Because photocopying of completed forms will be necessary 

when they are forwarded to OGE or made available to the public, 

reviewers should write legibly and use black or other dark ink when 

recording additional information. 
The Review Process --Review Procedures 

Amending Reports 

Recording Additional Information

A reviewing official should annotate the report itself when the entries

require additional information, clarification, or correction. As in the 

example below, the reviewer must initial all annotations and indicate the 

source of the information. If annotations made by the reviewer are based

on his own assumptions or on reference materials he should note this fact 

also. While no particular method is required, OGE makes notations by 

placing a footnote signal next to the information in the reporting block 

and indicating the source and date in the reviewer comments section of 

the cover page. 

Annotation 

Limits 

OGE 79 x 2

Filers are encouraged to, but need not, justify disclosed gifts or 

indicate details of other entries beyond the legally established reporting 

requirements. While reviewers may seek such justifications, these are not 

public, unless the filer consents to their inclusion or they are considered 

necessary to explain adequately a required entry. This is a matter of caseby-case judgment and balance of privacy against disclosure. Adding 

information to disclosures which exceeds these limits is an unwarranted

invasion of privacy that the statute did not intend. Accordingly, the

reviewer's note in the example below does not explain Mr. Mack's

relationship to the filer; the entry merely satisfies the minimum disclosure

requirements. Ethics officials who obtain confidential additional

information should retain it to respond to official inquiries or to aid in the

review of the filer's next report. 

Entry on Cover Page: 

Revised 11/04 

Page 4-11

Entry on Schedule B, Part II:
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 4-12

4.4 CERTIFICATION REQUIREMENTS

5 C.F.R. Part 2638, 

Subpart B discusses agency 

ethics officials' 

appointment, qualifications 

and duties. 

Financial disclosure rules require certification by the: 

• DESIGNATED AGENCY ETHICS OFFICIAL (DAEO); 

• alternate designated agency ethics official (ADAEO); or 

• a delegate of the DAEO, such as a deputy ethics official 

(DEO), deputy ethics counselor (DEC), deputy standards of 

conduct counselor (DSCC), or the equivalent. 

5 C.F.R. § 2634.602(c)(2) They must certify each report in the block of the cover page reserved 

for “Agency Ethics Official's Opinion.” (For the DAEO's own report, 

the agency head or his delegate should certify the report.) Certification 

involves signing and dating the report to indicate the reviewer's 

opinion that the filer is in compliance with conflict of interest laws and 

regulations. 

DAEO Designations 

5 C.F.R. § 2634.105(e) 

Before beginning review work or certifying any reports, the DAEO 

and ADAEO should obtain a written delegation of authority to act as 

DAEO or ADAEO from the head of the agency. OGE requires that 

copies of these DAEO designations be forwarded to OGE. DAEOs 

may wish to delegate part of their authority to DEOs and other 

employees. OGE does not request or desire copies of these further 

delegations. Note that the certification of nominee PAS reports is not 

delegable. Only the DAEO (or ADAEO in the DAEO's absence) may 

certify reports of Presidential nominees. 

What Is Not 

Required 

5 C.F.R. § 2634.605(b) 

There is no general requirement that a filer's supervisor or any 

intermediate official examine or review the report. However, large or 

geographically diverse agencies may find such a stepped process 

necessary. A supervisor may be asked to examine a report for a limited 

purpose of comparison to duty assignments, if desired, instead of a full 

review. Only ethics officials who certify the report must necessarily 

“review” it in terms of the procedures in this chapter. In determining 

the appropriate chain of review, each agency must ensure that all 

reviewers: 

• are familiar with the technical reporting requirements; 

• are familiar with the Federal conflict of interest laws; and 

• can evaluate available conflict of interest remedies in light of 

the filer's duties. 
The Review Process --Review Procedures 

Revised 11/04 

Page 4-13

4.5 PUBLIC AVAILABILITY AND RETENTION

5 U.S.C. App. § 105 

5 C.F.R. § 2634.603 

Almost all SF 278s are available to the public under the Ethics in 

Government Act of 1978, as amended. Within 30 days after receiving a 

report, an agency must permit its inspection and furnish a copy to any 

individual who presents a proper written request. The report must be 

made available for inspection and copying regardless of whether the 

agency has reviewed or certified the report. These reports are available 

under the Ethics in Government Act, not the Freedom of Information 

Act (FOIA), so their release does not involve the discretionary 

determinations required by FOIA. 

Application to Inspect or Copy an SF 278

Any person or entity that wishes to inspect or obtain a copy of a 

report must submit a written request to the relevant agency stating: 

• his name, occupation, and address, 

• the name and address of any other person or organization on 

whose behalf the inspection or copy is requested and 

• that he is aware of the prohibitions on obtaining or using the 

report (listed below). 

OGE has developed a standardized application form, OGE Form 

201, which agencies may reproduce. OGE recommends use of 

OGE Form 201 by all agencies (see Section 15.2: OGE Form 201). 

5 C.F.R. § 2634.603(e) 

Records Systems 

OGE/GOVT-1, 55 FR 6327 

(February 22, 1990)

SF 278s are normally retrievable by name only. Individuals 

requesting an SF 278 should specify each requested report by the filer's 

name. OGE currently charges fees for copies of SF 278s, at a rate of 

$.03 per page, but only if the total charge is more than $10.00. 

Agencies may establish fee systems to cover their costs but only 

through regulation issued in the Federal Register. 

Individual agencies need not establish records systems for SF 278s 

because the SF 278 files are part of an executive branch-wide records 

system that OGE has developed under the Privacy Act. This records 

system publicly documents information about the SF 278 system 

including its location, who is included, categories of records, legal 

authorities, purposes, routine uses, certain legal notice and procedural 

provisions, access procedures and policies on storage, retrievability, 

security, retention, and disposal. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 4-14

5 U.S.C. App. § 105(a) 

5 C.F.R. § 2634.603(b) 

Exemptions

Reports may not be made available to the public if filed by persons 

engaged in intelligence activities or by an Independent Counsel whose 

identity is under seal. Also, certain reports filed by SGEs may be 

exempt from release (see Section 2.1: Officials Required to File). 

Certain Uses of the 

SF 278 are Unlawful 

5 U.S.C. App. § 105(c) 

5 C.F.R. § 2634.603(f)

Restrictions on Use of the SF 278

While these forms are available to the public, their uses are 

restricted. Agencies must require those who wish to examine or obtain 

a copy of a report to sign a statement that the agency has informed the 

requestor of these restrictions. No SF 278 may be used for: 

• any unlawful purpose; 

• any commercial purpose except by news and communications 

media for dissemination to the general public; 

• determining or establishing a credit rating; or 

• direct or indirect use in the solicitation of money for any 

purpose, including political and charitable purposes. 

The Attorney General may bring a civil action against anyone who 

uses or obtains a report for these purposes, with penalties up to 

$11,000. 

Where the Public May Obtain Reports

Interested persons should submit written applications to inspect or 

copy any SF 278s to the filer's agency's ethics office. In the case of a 

request for a PAS EMPLOYEE'S report, the agency may wish to ensure 

that the copy released reflects any changes that OGE made during its 

review. If the agency does not have a copy of the report with OGE 

changes, then the agency may refer the applicant to OGE. OGE 

responds to applications for the reports that it reviews. 
The Review Process --Review Procedures 

Revised 11/04 

Page 4-15

Reports Available for 

Six Years Only 

5 U.S.C. App. § 105(d) 

5 C.F.R. § 2634.603(g) 

Retention of Reports

Agencies must make reports publicly available for six years after 

receipt. Unless the reports are needed in an ongoing investigation, the 

agency must destroy the reports after that six-year period. Agencies 

should destroy nominee reports of individuals whom the Senate did not 

confirm one year after the individual is no longer under Senate 

consideration. OGE has no authority to maintain archived report files 

for agencies that cease to exist. These reports should remain with the 

agency's other records and remain publicly available for six years. 

5 C.F.R. § 2634.1004 

Releasable Documents

Upon proper request for an SF 278, by means of OGE Form 201 or 

other written application, an agency should also release any 

attachments that the filer submitted with the form, such as statements 

from banks and brokers or RECUSALS. Additionally, agencies must, 

upon written request, release copies of CERTIFICATES OF DIVESTITURE; 

18 U.S.C. § 208(b)(l) & (b)(3) WAIVERS, subject to the limitations in 

§ 208(d)(l); and OGE-certified blind and diversified trust instruments 

(see Section 15.2: OGE Form 201). Individuals must seek other 

information under FOIA. 

5 C.F.R. § 2634.603(c) 

OGE 85 X 8 

Intra-Governmental Access to Reports

Certain Government officials may review reports in their official 

capacities without formal application. They are: 

• Agency ethics officials and support staff who maintain the files 

(for reports within their own agency only); 

• OGE staff; and 

• Special Agents of the FBI and U.S. Attorneys conducting a 

criminal investigation into possible conflict of interest 

violations. 

5 U.S.C. App. § 105(b)(2) 

5 C.F.R. § 2634.603(d) 

OGE 79x2 

Notifying Filers of Requests for their Reports

No law or OGE regulation currently requires agencies to inform 

filers of requests for access to their SF 278s. Filers desiring to know 

whether a member of the public has requested their SF 278 may, the 

same as any member of the public, request a copy of all applications to 

inspect their SF 278s. OGE Form 201 may be used to request copies of 

applications to inspect the SF 278s (see Section 15.2: OGE Form 201). 

All applications to inspect the SF 278 are available to the public for the 

period when the SF 278 itself is available to the public. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 4-16

4.6 FORWARDING REPORTS TO OGE

OGE Must Receive 

Reports of PAS and 

DAEO Filers 

5 U.S.C. App. § 103 

5 C.F.R. § 2634.602 

After certification by the DESIGNATED AGENCY ETHICS OFFICIAL

(DAEO), or ADAEO, agencies must forward reports (nominee/new 

entrant, annual, and termination) filed by certain officials to the 

Director of OGE for final certification. These officials include: 

• the DAEO but not the ADAEO; 

• PAS EMPLOYEES, excluding most military officers; and 

• employees of the Executive Office of the President who are 

appointed under 3 U.S.C. § 105(a)(2)(A) or (B) or 3 U.S.C. 

§ 107(a)(l)(A) or (b)(l)(A)(i) and employees of the Office of the 

Vice President appointed under 3 U.S.C. § 106(a)(l)(A) or (B). 

Because of the added OGE review process for these reports, agencies 

should forward them to OGE as soon as they are certified by the 

agency. 

Agencies Retain Copy OGE will accept either the original or a copy of these reports but 

agencies must retain a copy for their records. OGE advises that 

agencies send reports either through certified mail or courier. 

OGE has administratively determined that annual and termination 

reports of PAS employees should only be forwarded to OGE if the 

PAS filer meets certain criteria. These criteria are: 

• the filer served in a PAS position(s) for more than 60 days 

during the reporting period and 

• he remained in a PAS position at the end of the reporting 

period. 

Status as a PAS employee on the report's due date is not sufficient to 

require forwarding to OGE, even though the employee may need to file 

an annual SF 278 report with his agency for an SES or other non-PAS 

position. In addition, agencies need not forward to OGE the reports of 

acting DAEOs or employees who serve in PAS positions in an acting 

capacity, because those filers do not go through Senate confirmation. 

The annual and termination reports of any recess appointees to PAS 

positions need not be forwarded to OGE. These practices will also help 

to avoid excessive forwarding of reports to OGE from agencies where 

employees move frequently between PAS and SES positions. 

Example: An employee serves in an SES position for more than 60 

days in 2003. She is nominated and confirmed in a PAS position in 

December. Her annual report covering calendar year 2003 need not 

be forwarded to OGE. 
The Review Process --Review Procedures 

Revised 11/04 

Page 4-17

Senate Requests Senate committees confirming Presidential nominees may request 

that OGE review the reports of nominees who would not normally be 

required to file during the confirmation process. For example, 

Presidential nominees to boards and commissions who are not 

expected to serve more than 60 days in any calendar year do not meet 

the statutory requirement for filing a nominee report. Nonetheless, the 

Senate confirmation committee has authority to seek additional 

information, such as an SF 278, from any nominee as part of the 

confirmation process and to ask that OGE review it. While OGE does 

review these reports at the time of confirmation, it does not review any 

annual and termination reports that may be filed by such persons. 
Revised 11/04 

Page 5-1 

5.0 RESOLVING CONFLICTS OF INTEREST

18 U.S.C. § 208 

5 C.F.R. Part 2640 

5 C.F.R. § 2635.402

The public financial disclosure system is designed to reveal actual and 

potential conflicts of interest. The basic criminal financial conflict of 

interest statute, 18 U.S.C. § 208, prohibits Government employees from 

participating personally and substantially in official matters where they 

have a financial interest. In addition to their own interests, those of their 

spouse, MINOR CHILD, general partner, and certain other persons and 

organizations are attributed to them (see Section 11.1: Criminal Conflict of 

Interest Statutes). 

Real Possibility Test 

United States v. Gorman 

807 F.2d 1299,1303 

(6th Cir. 1986) 

5 C.F.R. § 2635.402 

5 C.F.R. § 2640.103

An employee has a disqualifying financial interest in a particular matter 

only if there is a close causal link between a particular Government matter 

in which the employee participates and any effect on the asset or other 

interest (direct effect) and if there is a real possibility of gain or loss as a 

result of development in or resolution of that matter (predictable effect). 

Gain or loss need not be probable. The possibility of a benefit or detriment 

must be real, not speculative. 

Financial Interest in a 

Particular Matter 

One common point of confusion is distinguishing between an asset or 

other interest and a financial interest in a particular matter under 18 U.S.C. 

§ 208. The financial interest is the possibility of gain or loss (of the value 

of an asset or other interest) resulting from a particular matter, not the asset 

or interest itself. Thus, a person could have a large holding but only a 

relatively small financial interest in the particular matter, because the 

potential for gain or loss is small. 

No De Minimis 

5 C.F.R. Part 2640 

The criminal prohibition has no de minimis level. That is, it applies 

where any financial interest exists, no matter how small. However, certain 

interests that OGE has determined to be too remote or inconsequential to 

affect the integrity of the employees' services to the Government are 

exempt from the application of the prohibition. Other insubstantial interests 

that do not meet the requirements for a regulatory exemption might be 

waived under 18 U.S.C. § 208(b)(l). 

The Standards of 

Conduct Also Apply 

5 C.F.R. § 2635.502 

Assets and other interests may also be disqualifying under the 

Employee Standards of Ethical Conduct, which apply to all executive 

branch employees. The Standards of Conduct attribute to an employee 

certain interests which are beyond the scope of the ban in 18 U.S.C. § 208, 

but which may require recusal because of the appearance of losing 

impartiality (see Section 11.2: Standards of Conduct Regulations). 

Disclosure does not authorize the receipt of any income, gifts, or 

reimbursements or the holding of any interest or involvement in any 

transactions otherwise prohibited by law, executive order, or regulation. 

Reporting an interest does not resolve a conflict of interest, nor does it 

eliminate the possibility of criminal, civil, or administrative action based on 

a filer's official actions that affect the interest. 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 5-2

5.1 ETHICS AGREEMENTS

OGE DAEOgram of 

March 28, 2001 

If a conflict of interest exists under either a criminal statute or the 

Standards of Conduct (or an agency statute or any other statute 

discussed in Chapter 11: Federal Ethics Laws and Regulations in 

Brief), employees should enter into ETHICS AGREEMENTS with their 

agency ethics officials, OGE, or a Senate committee to resolve that 

conflict of interest. Ethics agreements include any oral or written 

promise by a filer to undertake an action to alleviate an actual or 

apparent conflict of interest. For PAS employees, the ethics agreement 

must be in writing. (See Section 14.3: Model Ethics Agreement) This 

chapter discusses the actions that a filer may take. 

Choosing the Correct 

Ethics Agreement Filers may be advised to consider several different types of action 

for inclusion in ethics agreements, which are tailor-made to suit the 

circumstances. For example, a filer with a substantial stock holding 

may wish to divest of the stock. If divestiture is not possible, then she 

might be permitted to recuse from participating in matters affecting the 

company that issued the stock. The resolution of a conflict should be 

appropriate to the particular interest, depending on its size or type. 

In some cases, one or more types of ethics agreements may not be 

workable. For example, if a filer's financial interest would force him to 

recuse from duties central to his Government position, he may agree to 

seek a WAIVER of the criminal financial conflict of interest statute 

(18 U.S.C. § 208), unless ethics officials determine that the statutory 

test cannot be met. Alternatively, he may agree to divest the asset, or to 

be reassigned to new duties that do not involve the conflicting interest. 

In certain situations where the filer's duties and assets are wideranging, he may wish to consider establishing a QUALIFIED TRUST or to 

use another specially-tailored solution. Ethics officials will need to 

assist filers in fashioning appropriate remedies. 

5 U.S.C.App. § 110(a) 

5 C.F.R. § 2634.802(b)

Ethics Agreement Timeframes

Once an employee makes an ethics agreement, he must comply 

with it not more than three months after the date of the agreement. 

OGE has determined that the day a PAS EMPLOYEE is confirmed is the 

day that she makes the agreement, even if she had reached the 

agreement previously. OGE considers any agreements that the 

employee has not complied with after 90 days to be delinquent. 
 The Review Process-Resolving Conflicts of Interest

Revised 11/04 

Page 5-3

This deadline may be extended only if the employee demonstrates 

“unusual hardship.” The agency ethics officials make this determination 

for all employees except for those employees who are required to submit 

evidence of ethics agreements to OGE. In those cases, the agency should 

offer its opinion to OGE, but only OGE may determine whether the 

deadline will be extended. OGE will consult with Senate confirmation 

committees where appropriate. 

5 C.F.R. §§ 2634.803-804 

OGE DAEOgram of 

March 8, 2002 

Ethics Agreement Notice and Evidence

For reports that OGE reviews (such as for PAS employees), the 

DESIGNATED AGENCY ETHICS OFFICIAL must submit the following to 

OGE: 

• notice of all ethics agreements made, including those made as a 

result of confirmation hearings; 

• and evidence that these agreements have been satisfied. 

Required Evidence of 

Ethics Agreements 

Fulfillment 

Employees must submit the following evidence to their DAEO to 

demonstrate fulfillment of any ethics agreement. Agencies should 

retain this evidence along with the filer's financial disclosure reports. 

The type of evidence varies according to the type of agreement: 

Agreement Evidence Required

Divestiture Written notification, including the date of divestiture, 

from the employee. A broker order or statement of the account is 

acceptable. 

Qualified Trust All information required by Subpart D of 5 C.F.R. 

Part 2634. If OGE does not approve the trust, the employee should 

inform the DAEO and, as appropriate, the Senate confirmation 

committee. 

5 U.S.C. App. § 110(b) 

OGE DAEOgram of 

June 1, 2004 

Recusal A signed copy of a recusal agreement with details as to 

matters covered and method of enforcement, including who is 

responsible for screening matters, and to whom these matters will 

be referred. A recusal will be documented in both an ethics 

agreement and screening arrangement. 

Resignation Written notification, including the date of resignation, 

from the employee. A letter of resignation is acceptable. 

Reassignment Written notification, possibly including transfer of 

duties/station orders. 

Waiver of 18 U.S.C. § 208 A copy of the waiver, signed by the 

appropriate appointing official or that official's delegate. 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 5-4

5.2 DISQUALIFICATION

5 U.S.C. App. § 110(b) 

5 U.S.C. § 2634.804(b)(l) 

OGE 92 X 12 

OGE DAEOgram of 

April 26, 1999

A written disqualification, or RECUSAL from participation in 

specified Government matters, is by far the most common ETHICS 

AGREEMENT. In past years, filers have entered into recusal agreements 

several times more often than any other form of ethics agreement. 

OGE encourages agencies to accommodate employees by allowing 

recusal when possible. A recusal is the preferred instrument for dealing 

with potential conflicts because it protects the Government from a 

conflict of interest without forcing employees to change their private 

interests. 

 

Elements of a Recusal A recusal must contain the following elements for OGE to consider 

it complete (see Section 14.4: Recusal Letter for a model recusal 

integrating these elements): 

• a specification of the matters to which the recusal applies; 

• a statement of the process or method by which the employee

will ensure the implementation of the recusal within the

agency, including the position of the employee delegated to

work on matters subject to the recusal; and 

• the positions of those involved in its execution (for example,

the individual's immediate subordinates and supervisors). 

Screening Mechanisms 

OGE DAEOgram of 

June 1, 2004

General Recusals 

The preferred method of enforcing a recusal is by having a specific,

named party screen matters that would come before the recused 

official. The party must be aware of the specific nature of the

employee's disqualifying financial interest and should know the extent 

of the recusal. The screening party need not, however, be an ethics

official. (See Section 14.5: Screening Arrangement) 

Some agencies require that even general recusals be reduced to 

writing. These recusals contain a pledge to recuse from any particular 

matter that might arise in which the employee has a financial interest 

that results from present or future assets or other interests. OGE does 

not consider this type of general recusal to constitute an ethics 

agreement because it is simply a promise to obey the law. 

Accordingly, employees need not put a general recusal in writing, and 

agencies need not track its completion. Agencies are still free, 

however, to require these recusals to the extent they deem appropriate 

as a reminder to filers. 
 The Review Process-Resolving Conflicts of Interest

Revised 11/04 

Page 5-5

When Not to 

Allow Recusals 

5 C.F.R. § 2635.403(b) 

Recusals are not appropriate in certain circumstances. An agency 

should not allow a recusal if it determines the recusal would: 

• disqualify the employee from matters so central or critical to the 

performance of assigned duties that the employee's ability to 

perform those duties would be materially impaired or 

• adversely affect the efficient accomplishment of the agency's 

mission because of its frequency or difficulty in reassigning 

responsibilities. 

OGE normally defers to the agency's determination that such situations 

exist that would bar recusal and require divestiture. Certain Senate 

confirmation committees require divestiture because they do not find 

recusal to eliminate sufficiently a conflict of interest. 

Other Recusals 

5 C.F.R. § 2635.502 & 503 

The impartiality standard in the Employee Standards of Ethical 

Conduct also requires agencies to analyze whether employees should, 

in some situations, recuse from matters involving entities with which 

they have certain relationships not otherwise covered by 18 U.S.C. 

§ 208. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 5-6

5.3 WAIVERS AND EXEMPTIONS

18 U.S.C. § 208(b) 

5 C.F.R. Part 2640 The criminal financial conflict of interest statute has four separate 

WAIVER/exemption provisions. An employee who has been granted a 

waiver or qualifies for an exemption can participate in official matters 

without violating 18 U.S.C. § 208, even though he has what would 

otherwise be a disqualifying financial interest in the matters. Ethics 

officials often use waivers for broad particular matters, such as general 

policy matters, in conjunction with a RECUSAL from particular matters 

involving specific parties for a specific financial interest. The four 

types of waiver/exemption are: 

208(b)(l): A waiver issued by the employee's agency that covers 

certain financial interests that are not so substantial as to 

affect the integrity of the employee's services. 

208(b)(2): Blanket exemptions issued by OGE for financial interests 

considered too remote or too inconsequential to affect the 

integrity of the employee's services. 

208(b)(3): A waiver for special government employees on Federal 

Advisory Committee Act committees when the need for 

services outweighs the potential for conflicts. 

208(b)(4): An exception for employees that have certain Native 

American or Alaska Native birthrights. 
The Review Process --Resolving Conflicts of Interest 

Revised 11/04 

Page 5-7

Waivers under 18 U.S.C. §§ 208(b)(l) & (b)(3) 

Ethics officials are directly involved in issuing waivers under the 

(b)(l) and (b)(3) provisions. Once an employee properly seeks and 

obtains either waiver in writing for the specified matters, the employee 

is not subject to prosecution under § 208 for acting within the terms of 

the waiver. An employee must not act when a conflict of interest exists 

unless and until such a waiver is issued. Such waivers are not 

retroactive and only serve to cover future conduct. 

OGE 91 X 30 Agencies may not use these waivers in relation to any conflict of 

interest prohibitions in their own organic statutes. Those statutes may, 

however, authorize other exemptions. 

Employee Request 

The Waiver Process

To begin the waiver process under § 208(b)(l) or (b)(3), the 

employee must submit a written waiver request to the appointing 

official or her authorized delegate. That request must: 

• make full disclosure of the conflicting interest; and 

• describe the particular matters from which the employee would be 

disqualified without the waiver. 

The appointing official, or her delegate, should ascertain whether the 

request is complete, and then go through the process of consultation 

and analysis described below. 

Consultation with OGE 

E.O. 12674 § 301(d)

While the statute specifies that the appointing official decides 

whether a particular holding meets the specified test, an Executive 

order directs agencies to consult with the Office of Government Ethics 

prior to granting the waiver (where practicable). (Agencies normally 

consult with their OGE Desk Officers to fulfill this requirement.) In 

addition, they must issue waivers in writing and provide OGE a copy 

of all waivers they have issued. In most cases, OGE does not issue any 

written response to verify agency consultations. 

Granting Official 

E.O.12674 §§ 401-402

OGE DAEOgram of 

April 26, 2002 

Agency heads are the appointing officials authorized to grant 

waivers to employees within their agencies, except for Presidential 

appointees. They often, however, delegate this authority to the DAEO. 

The President has delegated his waiver authority for PAS EMPLOYEES to 

agency heads. For Presidential boards and commissions and for 

appointees within the White House, the President has delegated his 

waiver authority to the Counsel to the President. President Bush has 

delegated his authority to grant waivers for agency heads to the 

Counsel to the President. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 5-8

Requirements for Waivers

The written § 208(b)(l) waiver should describe: 

• the disqualifying financial interest; 

• the particular matters to which it applies; 

• the employee's role in the matter and any limitations on his 

participation; and 

• the basis for granting the waiver. 

The written § 208(b)(3) waiver should describe: 

• the nature of the financial interest; 

• the particular matters to which it applies; 

• any limitations on the employee's ability to act in the matter; 

and 

• the basis for granting the waiver. 

The waivers should not focus on subjective elements, such as the 

employee's reputation for personal integrity. 

Effect on Appearance 

Determination 

5 C.F.R. § 2635.501 note 

Officials granting waivers should be aware that a decision to waive 

the effect of the criminal statute also waives the consideration of 

appearances under Subpart E of the Employee Standards of Conduct. 

This rule modifies OGE's earlier opinions on granting waivers, which 

had expressed concerns about residual appearances of conflict. 

No Reconsideration 

Process 

OGE 92 X 10 

The authority to grant a waiver is within the sole discretion of the 

Government employee's appointing official or delegate. The employee 

has no statutory right to receive such a waiver. The statute does not 

provide for a review of the employing agency's discretion in the 

matter. When their agencies decline to issue waivers, employees must 

resolve conflicts through other remedies, such as recusal, 

reassignment, or divestiture, or they risk criminal prosecution. OGE 

has no authority to serve as an appellate body in matters of individual 

employee disputes with the appointing official about denial of waiver 

requests. 
The Review Process --Resolving Conflicts of Interest 

Revised 11/04 

Page 5-9

Waiver Analysis

A waiver analysis should focus on the nature and amount of an 

employee's financial interest in the outcome of a particular matter in 

which he is participating. If a disqualifying financial interest exists and 

the ethics official is considering a waiver, then the specific analysis 

necessary for the waiver determination depends on the language of the 

statute: 

Waiver Type Waiver Standard

208(b)(l) the “interest [in the matter] is not so substantial as to be 

deemed likely to affect the integrity of the services which 

the Government may expect” from the employee. 

208(b)(3) “the need for the individual's services outweighs the 

potential for a conflict of interest created by the financial 

interest involved.” 

5 C.F.R. § 2640.301 

An important difference between these two standards is that (b)(l) 

focuses on the substantiality of the financial interest in the matter, 

while (b)(3) balances the need for services against the potential for 

conflict. 

OGE has published regulatory guidance that agency ethics officials 

may use when determining whether the waiver standard has been met. 

Among the listed factors to consider for (b)(l) waivers are the type and 

value of the interest, the identity of the person whose financial interest 

is involved, the dollar value of the disqualifying financial interest and 

the nature and importance of the employee's role in the matter. 

5 C.F.R. § 2640.302 For (b)(3) waivers, an agency ethics official should consider the 

type and value of the interest, the identity of the person whose interest 

is involved, the dollar value of the disqualifying financial interest, the 

uniqueness of the individual's qualifications, the difficulty of locating a 

similarly qualified individual and the extent to which the disqualifying 

financial interest will be affected by the action of the committee. 

Obtaining Additional 

Information 

In addition to the written waiver request, a granting official may 

wish to examine the employee's position description and financial 

disclosure statement. The granting official may also need to seek, on a 

confidential basis, more precise information about the nature of the 

interest that is causing the disqualification. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 5-10

18 U.S.C. § 208(d)(l) 

5 C.F.R. § 2640.304

Public Availability

Waiver determinations are available to the public for inspection or 

copying at the agency that issues the waiver. Agencies may withhold 

information that the Freedom of Information Act exempts from 

disclosure. Additionally, an agency must withhold any information in a 

waiver granted under § 208(b)(3) that is more extensive than that 

required to be disclosed by an SGE in his financial disclosure 

statement. 
The Review Process --Resolving Conflicts of Interest 

Revised 11/04 

Page 5-11

Exemptions under 18 U.S.C. § 208(b)(2) 

5 C.F.R. Part 2640 Exemptions issued by OGE pursuant to 18 U.S.C. § 208(b)(2) 

allow an employee to participate in a matter, notwithstanding the 

prohibition under § 208(a). A written document describing the 

applicability of an exemption to the employee is not required; 

however, an employee may need to seek the advice of her ethics 

official about the availability of the exemption. 

Mutual Funds, UITs, & 

Employee Benefit Plans 

5 C.F.R. § 2640.201 

OGE DAEOgram 

of 3/19/02

The regulations at 5 C.F.R. Part 2640 contain three categories of 

exemptions. The first category contains exemptions for interests in 

mutual funds, unit investment trusts, and employee benefit plans. 

Under the exemption for mutual funds, an employee may participate in 

a matter which affects the holdings of a diversified mutual fund that 

she, her spouse, or her minor child holds. In order to be diversified, the 

mutual fund should not have a stated policy of concentrating its 

investments in any industry, business or single country other than the 

United States, or in bonds of a single state within the United States. An 

employee may also participate in a matter which affects the holdings of 

a sector mutual fund if the aggregate market value of interests in the 

fund or funds does not exceed $50,000. Likewise, an employee may 

participate in particular matters affecting the holdings of her Thrift 

Savings Plan, a pension plan established or maintained by a state 

government or a diversified employee benefit plan. A diversified 

employee benefit plan means that the plan's trustee has a written policy 

of varying plan assets. The exemptions under this category are 

available for any amount of interest held by the employee. 

Securities 

5 C.F.R. § 2640.202 

OGE DAEOgram 

of 3/19/02 

The second category of exemptions covers interest in SECURITIES. 

This category permits an employee to act in matters affecting his 

interest in publicly traded securities. Two of the exemptions are based 

on the value of the securities. One of these two exemptions allows the 

employee to act in particular matters involving specific parties that 

affect his financial interest in publicly traded securities, where the 

securities are valued at no more than $15,000 in the aggregate. The 

other exemption allows the employee to participate in particular 

matters of general applicability where his interest in publicly traded 

securities does not exceed $25,000 in a single issuer, and $50,000 in all 

affected securities. There are also exemptions in this category for 

matters affecting nonparties, for certain federal Government securities, 

for securities held by a tax-exempt organization when the employee 

serves the organization in a certain capacity, and for securities or 

interests of the employee's general partner. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 5-12

Miscellaneous 

Exemptions 

5 C.F.R. § 2640.203 

The third category of exemptions covers miscellaneous 

exemptions. This category contains exemptions for special kinds of 

financial interests, as well as exemptions which address specific 

agency concerns. 
The Review Process --Resolving Conflicts of Interest 

Revised 11/04 

Page 5-13

5.4 REASSIGNMENT

While a waiver accommodates employees' financial interests to their 

work, reassignment accommodates filers' work to their financial 

interests. Reassignment of duties often ranges from avoiding particular 

cases to transferring employees to different sections or subject areas. 

Because this solution often involves transferring a particular case or 

contract, it requires relatively little documentation. The actual process 

of changing an employee's duties is more of a personnel matter than an 

ethics matter. Ethics officials interested in using this solution should 

consult with their agency's personnel officers. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 5-14

5.5 DIVESTITURE OR RESIGNATION

5 C.F.R.§ 2635.403 Divesting (or selling) an asset or resigning from a position outside 

the Government is a common method of resolving a conflict of 

interest, but it may not be the employee's first choice because of its 

severity. This method has a distinct advantage in that it permanently 

resolves a conflict without the exercise of discretion inherent in a 

waiver or the ongoing screening necessary for a RECUSAL. While 

employees often voluntarily break outside connections, ethics officials 

have clear authority to require divestiture or resignation in appropriate 

cases. Specifically, divestiture or resignation may be ordered when 

maintaining the financial interest or position would: 

• disqualify the employee from matters so central or critical to the 

performance of assigned duties that the employee's ability to 

perform those duties would be materially impaired; or 

• adversely affect the efficient accomplishment of the agency's 

mission because of its frequency or difficulty in reassigning 

responsibilities. 

Additionally, some agency statutes and supplemental Standards of 

Conduct regulations prohibit the holding of certain interests and may 

require divestiture. 

Senior Noncareer 

Employees 

5 U.S.C. App. §§ 501-502 

5 C.F.R. § 2636.301 

Resignation is also appropriate to comply with special limits on 

outside employment. By statute, certain noncareer SF-278 filers whom 

the President appoints or who serve in SES (or SES-type) positions or 

SCHEDULE C (or similar political-type) positions may not in any 

calendar year have outside earned income that exceeds 15% of the 

annual rate of basic pay for Executive Level II. In addition, these 

employees may not have certain compensated outside employment 

positions or allow use of their name in connection with professional 

service involving a fiduciary relationship (see Section 11.4: Special 

Limitations of Senior Noncareer Employees). 

E.O. 12674 § 102 Furthermore, an Executive order currently bans all outside earned 

income for full-time, non-career Presidential appointees, except for 

certain White House employees paid below the GS-9 level. For 

persons whom the President appoints and the Senate confirms, the 

White House has also traditionally forbidden any outside positions 

with for-profit entities. It has allowed positions with non-profit entities 

to continue only after a case-by-case review. 
The Review Process --Resolving Conflicts of Interest 

Revised 11/04 

Page 5-15

5 U.S.C. § 1043 

5 C.F.R. Part 2634, 

Subpart J 

OGE 92 x 11 

OGE DAEOgram of 

April 26,1999 

IRS Form 8824

Certificates of Divestiture

To ease the tax burden from selling conflicting financial interests, 

Congress has authorized the Office of Government Ethics to establish 

a CERTIFICATE OF DIVESTITURE (CD) program. A CD allows an eligible 

person (as defined below) to defer recognition (for income tax 

purposes) of capital gains from the sale of an interest that presented a 

conflict. OGE will not issue a CD for the sale of an asset that will not 

result in the realization of capital gains. 

Only OGE may issue a CD, and it may do so only when an 

employee must sell an interest to comply with an ethics agreement. 

The Director of OGE can issue a CD only when the divestiture is 

reasonably necessary for the employee to comply with ethics 

restrictions. 

Procedure for CD 

Requests 

The CD process may involve a fair amount of time and must 

follow a specific order. It should be started immediately after the 

divestiture agreement is made to ensure that the sale occurs within the 

three month ethics agreement compliance period. The proper sequence 

of events is vital because OGE cannot issue the CD retrospectively; the 

filer must obtain a CD before divesting an asset in order to secure the 

tax deferral. In a nutshell, the process is: 

1. An agency ethics official or Senate confirmation committee 

informs the employee of a conflicting interest and orders 

divestiture. 

2. The employee must submit a written request for a CD submitted to 

the DAEO. 

3. The DAEO forwards the request and the other documents specified 

below, including an opinion, (or evidence that the Senate 

Committee requires divestiture) to OGE. 

4. For those who qualify as an eligible person, the Director of OGE 

will issue a CD if she concurs with the DAEO's opinion. 

5. The eligible person may then sell the interest. 

6. Within 60 days of the divestiture, the eligible person must reinvest 

the proceeds of the sale in “permitted property” (see below). 

7. The eligible person reports on IRS Form 8824 a reduction in the tax 

basis of the newly-acquired permitted property, to the extent of 

unrecognized gain allowed by the CD. This reduction has the effect 

of deferring tax until a future sale or transfer. (Capital gains will, 

however, be immediately recognized for tax purposes if and to the 

extent that the employee does not roll over the entire amount 

realized from the sale into permitted property.) 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 5-16

SF 278 

Reporting 

Requirements 

Information OGE 

Needs 

to Issue a CD 

5 C.F.R. § 2634.1005 

Financial Disclosure Requirements

Filers should report any capital gains realized from the sale of the 

conflicting property on Schedule A when they sell the interest (if the 

gains are over $200). As with other forms of tax-deferred income, this 

income must be reported on the SF 278 when the filer realizes it, 

regardless of when it is taxed. A filer should also report sales under a 

CD on Schedule B, part I of the SF 278 and should check the 

Certificate of Divestiture box. 

Requirements for a Certificate of Divestiture

Before issuing a CD, the Director of OGE must concur with the 

DAEO's determination that a divestiture is reasonably necessary to 

comply with conflict of interest restrictions. To aid in the Director's 

determination, the agencies must submit the following materials: 

• a copy of the written request to the DAEO for a CD (signed by the 

employee, but stating that the eligible person has agreed to divest; 

• a copy of the latest financial disclosure report filed by the 

employee; 

• a detailed description of the property involved, including the name 

of the security's issuer, the number of shares or face amount of the 

debt instrument, the names of those holding a beneficial interest, 

and the nature of their legal title to the property (individual or joint, 

for example); 

• a complete description of the facts and circumstances relevant to 

the determination of “reasonable necessity” of divestiture, which 

includes a description of and any statutory citations regarding the 

employee's duties; 

• the DAEO's written analysis of the relevant conflict of interest 

restriction, and his opinion justifying the “reasonable necessity” of 

divestiture, or for Senate ordered divestitures, evidence that the 

Committee requires the divestiture; and 

• any other information necessary for the Director of OGE to verify 

the DAEO's submitted analysis and opinion. 
The Review Process --Resolving Conflicts of Interest 

Revised 11/04 

Page 5-17

Property to Replace 

Conflicting Assets 

26 U.S.C. § 1042(a) 

5 C.F.R. § 2634.1003

Permitted Property

After obtaining a CD and selling the conflicting interest, the 

employee must buy permitted property within 60 days in order to 

obtain the tax rollover relief that the CD can provide. Permitted 

properties include: 

• any obligations of the Unites States (bonds and notes as well as 

U.S. Savings Bonds) and 

• any “diversified investment fund.” 

Reviewers should note that a “diversified investment fund” is not 

necessarily the same as an “EXCEPTED INVESTMENT FUND” or a “widely 

diversified investment fund.” A “diversified investment fund” is a 

diversified mutual fund or diversified unit investment trust. In order to 

be diversified, the fund must not have a stated policy of concentrating 

investments in an industry, business, single country other than the 

United States, or bonds of a single state within the United States. 

Eligible persons may wish to seek professional guidance before buying 

a replacement property. 

A CD authorizes only one protected “rollover” for each asset or 

interest. Thus, a filer who divests under a CD and acquires U.S. 

Government obligations as permitted replacement property will be 

subject to tax on any gain upon the obligation's maturity. Likewise, the 

subsequent sale of a permitted diversified investment fund will give 

rise to taxable gain. 

Eligible Persons

Reviewers should note that only “eligible persons” may receive a 

CD. These persons are: 

Special Government 

Employees Are Not 

Eligible for CDs 

26 U.S.C. § 1043(b) 

• Any officer or employee of the executive branch except a SPECIAL 

GOVERNMENT EMPLOYEE; 

• the spouse or MINOR or DEPENDENT CHILD of such an employee 

whose financial interests are imputed to the employee under 

Federal conflict of interest rules. Adult, non-dependent children 

are not eligible persons; and 

• certain trustees, as discussed below. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 5-18

26 U.S.C. § 1043(b)(5) 

5 C.F.R. § 2634.1005(d) 

OGE 90 x 14 & 92 x 14

Issues Concerning Trusts

A divestiture may be required for an asset held in a trust if the asset 

itself poses a conflict of interest or if the asset's value exceeds the 

maximum percentage of the full trust's value that is permitted to be 

held in a qualified diversified trust. 

Eligible Trustees When a conflicting interest is held in a trust, OGE may issue a CD 

to an eligible trustee. Generally, a trustee may qualify as an eligible 

person if the only people with a beneficial interest in the trust are the 

Government official, her spouse, or her minor or dependent child. 

When a conflicting asset is in a trust with multiple beneficiaries, 

including non-eligible persons, the CD may not be proper. 

The trust should take steps to eliminate these unintended 

beneficiaries of CD coverage. Such steps may include: division of the 

trust into separate portfolios, limited distributions, dissolution of the 

trust, or any other method that the Director of OGE, in her sole 

discretion, deems feasible under the facts and circumstances to exclude 

unintended parties from benefiting from the CD. These steps are, 

however, subject to applicable state trust and estate laws. 

CD Requests for Trusts In addition to the documents regularly required for a CD, an eligible 

person seeking a CD for an asset in a trust should submit: 

• a copy of the trust instrument; and 

• a list of the trusts current holdings unless the holdings are 

listed on the employee's most recent financial disclosure 

reports. 
The Review Process --Resolving Conflicts of Interest 

Revised 11/04 

Page 5-19

5.6. QUALIFIED TRUSTS

5 C.F.R. Part 2634, 

Subpart D Before the Ethics in Government Act, a great variety of blind trust 

arrangements existed. In that Act, Congress created a uniform system 

of qualifying trusts that emphasizes independent trustees and limited 

communication with the employee involved. With a qualified trust, the 

interests will cease to be disqualifying to the filer for purposes of 

18 U.S.C. § 208 when the conditions described below are met. For 

employees who have large portfolios and who wish to consider 

establishing a qualified trust, the reviewer should assist them in 

contacting OGE for assistance as early as possible. 

5 U.S.C. App. § 102(f)(3) 

Qualified Blind Trusts

The most universally adaptable type of qualified trust is a blind 

trust. In this trust, an employee places assets in the care of an 

independent trustee (and other designated fiduciaries). The trustee has 

the full responsibility to administer and manage the trust without 

participation by or knowledge of any interested party. For trust 

purposes, an interested party is, generally, the Government employee, 

his spouse, and his dependent children. The qualified blind trust 

insulates those assets which have been acquired without the filer's 

knowledge or which have been reduced to a value under $1,000. 

5 U.S.C. App. § 102(f)(4)(B) 

Qualified Diversified Trusts

The other type of qualified trust is a qualified diversified trust. 

This type of trust resolves conflicts by having a portfolio so diversified 

that the Government employee involved would not be able to take 

specific actions that materially enhance the overall value of the 

portfolio. Upon certification, the assets of this trust no longer cause 

disqualification under 18 U.S.C. § 208. The holdings must be a welldiversified portfolio of securities with several specific requirements, 

including: 

• no more than 20% of its total value may be concentrated in any 

particular geographic, industrial or economic sector; and

• no more than 5% of its total value may be in securities from any 

one issuer (other than the United States Government). 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 5-20

Previously Established Trusts

Filers with trusts that were previously established may seek to have 

their trust arrangements qualified as blind or diversified. 

5 U.S.C. App. § 102(f) 

5 C.F.R. §§ 2634.405-408 

The Process of Qualifying a Trust

General guidance is not well-suited to the variety and complexity 

of scenarios in this area. Accordingly, interested parties should contact 

OGE to coordinate efforts to create an appropriate type of trust. OGE 

has several model qualified trusts available on its website. 
The Review Process --Resolving Conflicts of Interest 

Revised 11/04 

Page 5-21

5.7 OTHER FINANCIAL ARRANGEMENTS

OGE 99 X 6 

OGE DAEOgram 

of 4/14/99 

Third Party Guarantors

Certain interests, such as in DEFINED BENEFIT pension plans, may 

not be readily divested and for practical purposes must be retained. If 

the employee's responsibilities include participation in matters that will 

directly and predictably affect the company's willingness or ability to 

pay that pension, the employee's financial interest in those matters may 

not be appropriate for a waiver under 18 U.S.C. § 208(b)(l). However, 

in such cases it may be possible to obtain a third party guaranty to 

insure the obligation's full payment regardless of the financial health of 

the former employer. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 5-22

5.8 PROCESSING ETHICS VIOLATIONS

28 U.S.C. § 535(b) 

5 C.F.R. § 2638.603 

Ethics officials should be alert for possible criminal or Standards of 

Conduct violations. In general, whenever ethics officials have 

information concerning a possible violation of a criminal statute, the 

agency should coordinate with its office of Inspector General, or 

similar investigative unit, to ensure the matter is referred to the 

Department of Justice (DOJ). Only DOJ may decide whether to pursue 

the violation with criminal charges. Agencies must report such referrals 

to OGE. They may use OGE Form 202, a “Notice of Conflict of 

Interest Referral Form” (see Chapter 15.3: OGE Form 202 for a 

sample Form). 

Where To Refer 

Violations Matters involving the criminal conflict of interest statutes should 

be referred to the United States Attorney where the alleged violation 

occurred, or: 

Director, Conflict of Interest Crimes Branch 

Public Integrity Section, Criminal Division 

Department of Justice 

Washington, DC 20038 

If DOJ declines prosecution, the agency should then determine 

whether any violations of the Standards of Conduct regulation have 

occurred that should be pursued with disciplinary action. The agency 

must notify OGE in writing of any subsequent actions taken. 

See Sections 11.3: Other Conflict of Interest Provisions and 11.4: 

Special Limitations on Senior Noncareer Employees for information 

on referring violations of non-criminal statutes. 
PART II:

REVIEWING COMMON 

ENTRIES
Revised 11/04 

Page 6-1 

REVIEWING COMMON ENTRIES 

Part I provided guidance on what is reportable on the SF 278, as 

well as procedural aspects of review and conflict analysis. The three 

basic reporting questions it covered were: 

• What particular types of interests does the disclosure statute 

require to be reported? 

• When are these interests attributable to the filer for reporting 

purposes? 

• Do these interests meet the value thresholds and fall within 

reporting periods? 

Part II describes the next steps in the overall disclosure and review 

process: 

• ensuring full disclosure and 

• analyzing interests for conflicts with official responsibilities or 

statutory and regulatory prohibitions. 

Each Section Has 

Three Elements 

Each section of the chapters in Part II covers three basic aspects of 

the financial interests being discussed: 

1. Description of Entries

The first part of each section provides a brief description of an 

interest that could be listed on the SF 278. 

2. Disclosure Requirements

Next, each section discusses the financial disclosure requirements, 

including what information to report and on which schedules to 

report them. 

3. Conflicts of Interest

Finally, each section discusses conflicts, beginning with 18 U.S.C. 

§ 208, the basic conflict of interest statute. This part also addresses 

other statutory restrictions, such as 18 U.S.C. §§ 203, 205, & 209. 

In addition, the discussion will include considerations of restrictions 

under the Employee Standards of Ethical Conduct. (For more 

information on conflicts of interest, see Chapter 5: Resolving 

Conflicts of Interest, and Chapter 11: Federal Ethics Laws and 

Regulations in Brief.) 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-2 

General 

Guidance Only 

This text and its examples do not cover all unique aspects of 

financial disclosure and cannot serve as a substitute for experience. 

This manual provides only general information, disclosure guidance, 

and conflict of interest analysis considerations about various types of 

interests. Specific cases, however, require individual analysis and onthe-job experience. 

Aid to Filers Reviewers may wish to provide particular sections of this Part to 

filers with complex holdings as a supplement to the SF 278 

instructions and examples. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-3 

6.0 EMPLOYMENT, OWNERSHIP, AND OUTSIDE ACTIVITIES 

One of the most important concerns in conflict of interest analysis 

is a filer's employment with and other linkages to outside 

organizations. While these concerns are especially relevant when 

reviewing new entrant or nominee reports, they are also relevant to all 

filers. 

Government employees functioning in their private capacities 

become involved with organizations outside the Government in several 

different ways, such as: 

• an employee; 

• an active owner; 

• a contractor; 

• a member or volunteer; or 

• an investor. 

Outline This chapter discusses how to disclose and analyze the 

relationships listed above. Chapter 8: Investments will cover 

investments in more detail. In addition to dealing with employment, 

ownership, contractual, and volunteer relationships, this chapter also 

addresses honoraria, leaves of absence, and severance payments that 

may result from these linkages. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-4 

6.1 BUSINESS OWNERSHIP AND EMPLOYMENT RELATIONSHIPS

Business Ownership

General Discussion 

5 U.S.C. App. § 102(a)(3) 

5 C.F.R. § 2634.301

Reviewers may see various business ownership arrangements 

disclosed, such as sole proprietorships, joint ventures, general 

partnerships, limited partnerships, “S” corporations, or regular 

corporations. The details of the structures of these arrangements are 

generally not important for purposes of financial disclosure and 

conflict analysis. More relevant is the relationship that filers have to 

the entity and how filers can affect their interest in the entity. These 

concerns dictate the level of disclosure required. 

The major structural differences among these entities provide 

different ownership options. These options include: the amount of 

investment and risk, the extent of liability, the expectation of profit, the 

tax treatment, and the degree of time commitment. For example, 

limited partnerships and corporations usually provide more limited 

liability and risk than the other types of arrangements. Likewise, while 

a sole proprietorship or joint venture may be relatively easy to 

organize, it will often require greater financial capital than does 

investing in a more complex entity, such as a corporation. 

Private Versus 

Public Interests 

What controls the degree of disclosure on an SF 278 is whether 

shares of a business are publicly traded, as are some limited 

partnerships and many corporations. A filer's interest in a publiclytraded entity requires less descriptive information on Schedule A than 

does a private business arrangement, because publicly-traded entities 

are described in standard reference materials. 

The type of ownership usually dictates both the nature and the 

extent of information that a filer should include on the SF 278. For 

example, it normally determines how to characterize income from the 

business, whether gross receipts, net distributive share, dividends, etc. 

The type of business relationship may also suggest which additional 

schedules will require information, such as Schedule C for past and 

future employment arrangements or Schedule D for outside positions 

and clients. These matters are discussed more fully below. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-5

General Discussion 

5 U.S.C. App. § 102(a) 

5 C.F.R. §§ 2634.302 & 306

Employment Relationships

Employment relationships are among the most important elements 

to report on the SF 278. Most reportable employment involves salary 

or other earned income from the filer's former positions or those of a 

spouse, but filers must also include any current outside employment 

for themselves or their spouse. For themselves, filers must also make 

certain disclosures about any future employment agreement. 

Ties to a Former 

Employer 

Filers may retain ties to a former employer in a number of ways, 

each of which they must list on the SF 278. One common linkage is a 

leave of absence, which many people take to retain a highly 

competitive position, such as a tenured faculty slot at a university. In 

addition, an employee may have other benefits from a former 

employer, such as deferred compensation, profit-sharing, stock 

options, employee pension, medical and insurance plans. Most of these 

linkages to former employers represent a continuing financial interest 

in those employers, which makes them potential conflicts of interest. 

Severance 

Payments 

A severance payment, which firms sometimes pay departing 

employees for their past service, is another type of linkage. It may 

represent a continuing interest in the employer, if paid over a period of 

time, and could violate the criminal statute on supplementation of 

Government salary. It may also pose appearance problems, even if 

occurring prior to Government employment. 

Future 

Employment 

Filers may also have future employment agreements. Often before 

leaving the Government, filers negotiate for or accept employment 

with an outside entity. Any such negotiation or agreement to take 

another position upon leaving Government represents a financial 

interest in the future employer. 

Financial Disclosure Requirements 

Schedule A 

Requirements 

OGE 87 X 9 

Business Ownership Interests

Filers must report on Schedule A their business ownership 

interests, and those of their spouse or DEPENDENT CHILD, that exceed 

$1,000 or earn more than $200. Reporting of shares in publicly-traded 

entities is relatively straightforward because information on their 

activities and holdings is publicly available. Accordingly, filers need 

not supply information about publicly-traded corporations or limited 

partnerships; disclosing the name of the entity in Block A is sufficient. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-6

Non-Public 

Businesses 

Interests that are not publicly-traded, on the other hand, require 

more detailed information. An identification of a non-public entity in 

Block A of Schedule A is incomplete unless the description reveals: 

Elements of a Complete 

Description 

• the full name of the entity; 

• its address (city and state is sufficient); 

• the nature of any trade or business that is actively conducted by 

or through the entity; and 

• any portfolio investments or other attributions from the entity 

that are not solely incidental to the trade or business disclosed. 

Business-related 

Assets & Liabilities 

Businesses sometimes have non-incidental assets and liabilities that a 

filer should disclose. When they do, the filer should disclose the value 

of her share, as appropriate to the type of asset. 

Example: The activity of a law firm constitutes the conduct of a 

trade or business. To report an interest in a law firm, a filer 

merely identifies the firm and notes that it is engaged in the 

practice of law. He need not separately disclose assets (and 

liabilities) that are incidental to the legal practice, such as its 

law library books, furniture, supplies, accounts receivable, and 

so on. 

Asset Values In Block B of Schedule A, filers must mark the category of the fair 

market value of their interest in a business. Filers need not show the 

business' overall value. They must merely disclose the value of their 

investment, capital account, or shares in the business. Filers who 

cannot determine the actual value may make a good faith estimate (see 

Section 3.3: Schedule A, “Valuing Assets”). 

Income Type and 

Amount 

Block C of Schedule A applies if the business interest produced 

more than $200 of income during the reporting period. Filers must 

mark the type of income from shares held in a corporation, such as 

interest or dividends, and show a category of value. For income from 

most other business ownership arrangements, filers will need to show 

the actual amount of their income. They should describe the type of 

income, such as S-Corp income, joint venture income, or partnership 

income, in the “Other Income” column. Filers should normally list the 

gross, not net, income, except where a partnership or “S” corporation 

distributes a net share. In addition to disclosing gross income, filers 

may note the net amount if they wish. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-7

Sole Proprietorships

For sole proprietorships, filers should describe the type of income 

as “Business Income” and list the gross income in the “Other Income” 

column. If the sole proprietorship belongs to the spouse, the gross 

income is not required to be reported. If the sole proprietorship is an 

entity through which the filer arranges speaking engagements for 

herself, gross income of the business is not required to be reported. 

Instead, each speaking engagement should be reported as honoraria 

(See Section 6.4: Honoraria). 

Employment Relationships

In addition to ownership, filers must disclose on Schedule A any 

employment relationships and income. These disclosures include 

salaries, commissions, fees and any other outside EARNED INCOME of 

the filer from full or part-time employment or consulting (other than 

from the United States). Filers must also report the source, but not the 

amount, of their spouse's compensation. Filers need not report any 

information about their dependent children's outside earned income. 

Schedule A 

Disclosure 

Filers must report employment that generates more than $200 in 

income from a single source (more than $1,000 for a spouse) on 

Schedule A. In Block A, they must list the source of the payment, 

including the name of the company. Block B, the asset value, is often 

blank if the employee's only interest in the company is salary. An asset 

value listed could indicate deferred compensation owed to the 

employee or perhaps an equity or ownership interest in the business. In 

Block C, the type of income should be noted in the “Other Income” 

column as salary, commissions, bonuses, or fees, as appropriate. Filers 

must list the actual amount of earned income, as opposed to marking a 

category of amount (for a spouse, no amount is required). 

Severance 

Payments 

Filers must also report any anticipated or received severance 

payment from a previous employer as an asset or as income. If the 

payment is anticipated, the filer should list the source of the payment 

in Block A, the category of value for the anticipated payment in Block 

B, and the type of income (if any) in Block C. If the payment has been 

received, the filer should list the source of payment in Block A, and the 

type of income as “Severance Payment” in the “Other Income” 

column, as well as the exact amount in Block C. 

Pensions In addition, filers should also report in Block A any retirement 

arrangement that they may have in connection with their employment 

(see Section 7.2: Defined Benefit and Defined Contribution Plans and 

Section 7.3: Other Types of Retirement Arrangements for more 

information on employee benefit reporting.) 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-8

Both Business and 

Employment 

Disclosures 

Disclosure On Additional Schedules

Interests in businesses and employers often require significant 

amounts of information on the same holding. Considering the 

thresholds and exclusions (see Chapter 3: Report Contents), reviewers 

may wish to remind filers that they must report the following outside 

linkages beyond the requirements of Schedule A: 

• On Schedule B, part I, transactions by businesses involving 

securities/real estate, but only to the extent that they are not solely 

incidental to the business (also transactions of shares by the filer).

• On Schedule B, part II, reimbursements and gifts received in 

connection with their outside employment. This requirement 

includes spouses and dependent children, but with some exclusions 

(see Section 3.5: Schedule B, Part II).

• On Schedule C, part I, business loans or other liabilities which are 

not solely incidental to the business.

The following schedules apply to the filer but not his spouse or 

dependent child: 

• On Schedule C, part II, continuing participation in employee 

benefit plans and other arrangements, including: 

Employee 

Benefits • pension plans • leaves of absence 

• payments from employers • deferred compensation 

• stock options 

• profit sharing 

• travel and other employee 

discounts, such as reduced 

tuition rights. • restricted stock 

• health plans • phantom stock 

• return of capital accounts 

 

Employment 

Agreements 

• Also on Schedule C, part II, the filer must report any future 

employment agreements, negotiations or re-employment rights. A 

complete reporting of an employment arrangement includes: 

• parties to the agreement; 

• dates of the agreement; 

• a specific description of the position involved, 

• terms of the agreement; and 

• at the filer's option, information about steps taken to eliminate 

any potential conflict of interest in regards to these 

arrangements. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-9

Severance 

Payments 

• Finally on Schedule C, part II, filers should detail arrangements 

for any continuing severance payments. This description should 

include: 

• the name of the employer, 

• the amount and timing of all payments, 

• the basis of the payments, that is, the method used to calculate 

the payment including whether it was pursuant to an 

established company plan and 

• the date of the agreement. 

• On Schedule D, part I, positions with the company, such as 

employee, consultant, sole proprietor, general partner, board 

member, or corporate officer.

• On Schedule D, part II, a list of certain income sources (if 

applicable). For example, attorneys and other professionals with 

specific clients must list sources for which they personally 

provided services worth more than $5,000.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-10

Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-10

Examples

The following samples from the SF 278 demonstrate a normal

listing of business ownership and employment on the form. The

examples cannot cover all possibilities for such entries, but they do 

reflect several common scenarios. 

The following samples from the SF 278 demonstrate a normal

listing of business ownership and employment on the form. The

examples cannot cover all possibilities for such entries, but they do 

reflect several common scenarios. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-11
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-12

General Outline 

Conflict of Interest Analysis

When examining disclosures related to business ownership or 

employment interests, reviewers will encounter a variety of potential 

conflicts. Below is a quick outline of the relevant conflicts issues, 

followed by a more detailed discussion that addresses each restriction.

18 U.S.C. §208 • Could the financial interests of the filer, her spouse, her MINOR 

CHILD, or certain others (see below) which exist through a reported 

business or employment tie be affected “directly and predictably” by the 

outcome of an official Government matter in which the filer will be 

participating? When that connection exists, conflicts may occur under 

18 U.S.C. § 208. Resolutions to conflicts of interest are discussed in 

Chapter 5: Resolving Conflicts of Interest.

5 C.F.R. § 2635.502 • Did the filer report business or employment interests which do not 

pose a conflict under 18 U.S.C. § 208 but which create “covered 

relationships” that may cause appearances of conflict? Covered 

relationships could include a previous employer that the filer left within 

the past year; someone with whom the filer has a joint business venture or 

a contract or consultancy; or her spouse's employer or general partner. The 

filer may need to recuse in cases where a covered entity is or represents a 

party before the Government, and the filer will be participating in that 

matter. 

Representations 

18 U.S.C. §§ 203 & 205 

• If the filer reports a past or present outside business arrangement, 

has he been counseled that generally he may not represent that entity nor 

can he receive compensation resulting from anyone else's representation 

of it before the executive branch or any court (if the U.S. is a party or has 

an interest)? This restriction includes any matter, whether or not it is 

related to his Government duties. 

Severance Payments 

18 U.S.C. § 209

• Has the filer reported that, during Government service, he received 

or expects to receive a severance payment or similar allowance from an 

entity where he had a business or employment interest? If such payments 

vary from established company plans or the plans permit discretion in 

determining the nature or amount of payments in a way that could favor 

those entering Government service, 18 U.S.C. § 209 may prohibit them as 

an improper supplementation of Government salary. 

18 U.S.C. § 208 

5 C.F.R. § 2635.503 

• An anticipated severance payment may also present a conflict 

under 18 U.S.C. § 208, because it represents a continuing interest in a 

former employer. Even where violations of §§ 208 and 209 are avoided 

because the payment is made before Government service, the Standards of 

Conduct may require recusal from matters affecting the source of 

“extraordinary” severance payments. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-13

Interests of Spouse 

and Minor Child 

Financial Conflicts Under 18 U.S.C. § 208

Chapter 5 discusses the various means of resolving conflicts, such 

as RECUSAL, divestiture, written WAIVER, EXEMPTION, or reassignment. 

A business interest may present § 208 conflicts with official duties 

where the filer, spouse, or MINOR CHILD is an owner or employee. 

NOTE: Section 208 attributes to a Government employee the interests 

of his minor child, a narrower class than DEPENDENT CHILD, whose 

interests the financial disclosure law requires to be reported. Minor 

child is defined in most states as a child under 18. 

Real Possibility Test 

5 C.F.R. § 2635.402 

A § 208 conflict will occur only if there is a real possibility that 

the particular matter will affect the financial interest. 

Example: A filer serves on her agency's evaluation panel to review 

proposals for a furniture acquisition. Her minor child owns 

stock in Bud's Furniture, Inc., and her husband is one of three 

employees of Sitbetter, Inc. If either company plans to bid on 

the contract, the filer would be disqualified from serving on the 

evaluation panel. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-14

Interests of Other 

Entities 

Section 208 also attributes the financial interests of certain entities 

(in addition to the spouse or minor child) to the filer, if she has 

knowledge of those interests. As a result, she should not participate in 

official matters where the financial interests of those entities could be 

affected, even if she does not personally stand to gain or lose by the 

outcome of the matter. These entities include: 

• her outside employer; 

• general partners; 

• any organization that she serves as an officer, director or 

trustee; and 

• any organization with which she is negotiating or has an 

arrangement for future employment. 

For example, if Joe, the filer's general partner in a restaurant 

business, were to submit a proposal (on behalf of Joe's own furniture 

business) in the furniture acquisition example above, this could present 

a § 208 conflict, even though that proposal is entirely separate from 

Joe's business relationship to the filer. Section 208 only addresses 

these relationships with other entities for the Government employee 

herself; however, the Standards of Conduct cover similar ties of the 

filer's spouse. 

Employee 

Benefit Plans 

In addition, other disclosed ties to a business can create potential 

conflicts under § 208, even if ownership and employment ties are 

severed or otherwise insulated from the conflict statute through 

appropriate ethics agreements. These other ties include: 

• company pension plans, health plans, insurance, and similar 

continuing benefits and 

• deferred compensation, stock options, severance payments, and 

leaves of absence. 

If these ties create a financial interest that would be directly and 

predictably affected by the outcome of an official matter in which the 

filer will participate (for example, by affecting the company's ability or 

willingness to pay a benefit), a § 208 conflict exists. Thus, even if the 

filer's spouse has severed his employment with Sitbetter, Inc., in the 

above example, a conflicting financial interest under § 208 may 

continue to exist if he has a pension plan or deferred compensation 

arrangement with one of these companies. 

Pensions Section 7.2: Defined Benefit and Defined Contribution Plans offers 

additional guidance on the various types of pension interests, when 

they represent a continuing tie to a former employer, and how to 

resolve resulting conflicts. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-15

Appearance 

Standard 

5 C.F.R. § 2635.502 

Financial Conflicts Under the Standards of Conduct

The Standard of Conduct principle at 5 C.F.R. § 2635.502 is an 

extension of the provisions of 18 U.S.C. § 208. Under the Standards of 

Conduct, a business entity to which § 208 does not apply may still 

present appearances of conflict because of a “covered relationship,” 

where the entity is or represents a party on a matter before the 

Government in which the filer will participate. 

Covered 

Relationship 

5 C.F.R. § 2635.502

Even after § 208 is no longer of concern because a filer has 

severed ties with a business entity, he will have a covered relationship 

under the Standards of Conduct with entities that he served during the 

past year as an officer, director, trustee, general partner, agent, 

attorney, consultant, contractor or employee. He will also have a 

covered relationship with: 

• anyone with whom he currently has a joint business venture, a 

contract, or a consultancy, and 

• his spouse's present or prospective employer, general partner or 

other business tie. 

Example: A filer who left employment with a contractor six 

months ago might not be permitted to participate in an official 

matter which involves testing products provided by that 

contractor. 

The key inquiry is whether the circumstances would cause a 

reasonable person with knowledge of the relevant facts to question the 

filer's impartiality if he were to participate in the official matter. If the 

filer or his agency determines under the Standards that such an 

appearance of conflict would result, then he should not participate in 

the matter where the entity with whom he has the covered relationship 

is or represents a party. Alternatively, the regulation outlines criteria 

under which an agency designee may authorize participation after 

weighing the circumstances in terms of certain specified factors. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-16

18 U.S.C. §§ 203 & 205 

Representational Prohibitions

With some exceptions, 18 U.S.C. § 205 bars Government 

employees from representing anyone other than themselves on any 

matter before the executive branch or any court (if the U.S. is a party 

or has an interest). In addition, 18 U.S.C. § 203 bars them from sharing 

in compensation for someone else's representational activities before 

these bodies. Therefore, employees need to terminate any such 

arrangements with past or present business associates. They also 

cannot accept residual payments from a former business or 

employment tie which are calculated in a manner to include any such 

prohibited receipts (see Section 6.2: Law Firms for additional 

information). 

18 U.S.C. § 208 

Severance Payments

Severance payments that a Government employee will receive 

during her Federal service represent a continuing financial tie to a 

former employer and may require disqualification under 18 U.S.C. 

§ 208. Pending payments can create conflicts similar to other 

employee benefit plans. 

18 U.S.C. § 209 

Crandon v. United States,

494 U.S. 152 (1990), 

which modifies United 

States v. Boeing Co., 845 

F.2d 476 

(4th Cir. 1988)

Even if the § 208 concern can be remedied by recusal or waiver, a 

severance or other employee benefit that will be received by the filer 

during Government service must still be examined for potential 

violation of 18 U.S.C. § 209. That statute prohibits supplementation of 

the filer's Government salary for performance of official duties. 

Basis for 

Payment 

OGE DAEOgram of 

July 1, 2002

Company severance arrangements and other benefit programs will 

not normally violate § 209 if they are paid for past service to the 

company. The reviewer should examine the specific basis for the 

benefit and discuss with the filer any indication that the benefit has a 

different basis. Often a company has a written plan or past practice 

which clearly determines eligibility for and amount of severance or 

other benefit, based on past service to the company. In those cases, 

§ 209 does not apply, because it specifically permits acceptance of 

such bona fide employee benefits. 

However, if the filer's particular benefit varies from the established 

company plan (which might suggest that his Government position is 

considered beneficial to the firm) or if it is determined in a manner that 

is contingent on Government service, then it could violate 18 U.S.C. 

§ 209. Filers should not accept such payments or benefits. For 

example, a filer who was a university faculty member and is offered 

special tuition benefits for his children should not accept them if 

eligibility or amount will be based in whole or in part on his departure 

for Government service. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-17

Factors to be considered in determining the intent of the parties to 

a severance or other arrangement are: 

Extraordinary 

Payments 

5 C.F.R. § 2635.503 

• the employee's official position, 

• who the payment is coming from, 

• whether similar payments are being made to non-government 

employees, 

• whether the payment is motivated by sympathy or a desire other 

than to compensate the employee for his Government service, 

• whether the payment is a bona fide award for public service, 

• the express intent of the payor, 

• whether the employee is in a position to influence the 

Government on behalf of the payor, and 

• the relationship or pattern of dealings between the employee's 

agency and the payor. 

Some severance payments do not pose either a § 208 or § 209 

problem because they were received prior to entering Government. In 

these cases, filers may still be required to recuse from participating in 

certain official matters if the severance is considered an “extraordinary 

payment” under the Standards of Conduct. 

An extraordinary payment is: 

• any item, including cash or an investment interest, with a value 

of more than $10,000, 

• which is paid on the basis of a determination made by the 

former employer after it becomes known that the filer will serve 

in Government, and

• which is not made pursuant to the employer's established 

compensation or benefit plan. 

For a period of two years following the receipt of such payments, filers 

are required to recuse from participation in official matters in which 

the former employer is or represents a party. The regulation does 

provide criteria to allow the agency to waive this disqualification 

where the amount of the payment was not so substantial as to cause a 

reasonable person to question the employee's ability to act impartially. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-18

Outside Employment 

Should Not Conflict 

With Official Duties 

Continuing Outside Employment

Agency rules vary as to when a Government employee may 

continue outside business and employment ties. Some agencies have 

prohibitions based on statute or policy, but the Standards of Conduct 

provides guidance for all agencies at subparts G and H (see 

Section 11.2: Standards of Conduct Regulations). Agency officials 

must determine whether the outside employment will conflict with 

official duties. In making the determination, they should consider 

whether the outside employment would require recusal from critical 

matters that would materially impair the filer's effective performance 

of her Government duties. If permitted to continue outside 

employment, she should be counseled particularly about avoiding 

misuse of Government time, assets, information, and position. 

For Presidential appointees and other senior noncareer employees, 

there are additional considerations (see Section 11.4: Special 

Limitations on Senior Noncareer Employees). 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-19

6.2 LAW FIRMS

While attorneys sometimes practice alone, they more commonly 

associate with a law firm. These firms create special issues for 

financial disclosure review because they are often general partnerships 

or professional corporations and have a wide variety of clients. Various 

statutory and regulatory restrictions affect an attorney's transition from 

a private law firm into Government service. Normally, resignation and 

severing of all financial linkages is the preferable solution. However, 

apart from income and other restrictions on certain noncareer 

employees, no general prohibition exists on a Federal employee's 

outside practice of law (see Section 11.4: Special Limitations on Senior 

Noncareer Employees and Section 5.5: Divestiture or Resignation). 

Some agencies do, however, require prior approval, or they simply bar 

such practice. 

Just like any other outside activity, an employee may not practice 

law during Government office hours unless he takes annual leave for 

that purpose. An employee may have to discontinue such practice if it 

is incompatible with his Government responsibilities under the 

Employee Standards of Ethical Conduct (see Subparts G & H of 

5 C.F.R. Part 2635). 

Financial Disclosure Requirements

Section 6.1: Business Ownership and Employment Relationships

fully covers the disclosure requirements relevant to typical law firm 

ties, such as positions as general partners, sole practitioners, and 

salaried employees. The following sample SF 278 entries illustrate 

typical disclosures for an attorney who has left practice with a general 

partnership. Entries will be virtually the same for an attorney who 

practiced with a firm which was organized as a professional 

corporation (to limit individual attorney liability), except that some 

descriptive terms may vary. For example, on Schedule D, Part I, the 

position would be described as “member of a professional 

corporation.” 

For reporting a spouse's law practice, Schedule A will contain the 

primary entries, since Schedule C, Part II and Schedule D are not 

applicable to a spouse. 
Public Financial Disclosure: A Reviewer's Reference 

Examples

The following entries illustrate the reporting of employment with a 

law firm. The employee in this case is a partner in the firm. Reviewers

should note how extensive the entries can become. 

Revised 11/04 

Page 6-20
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-21

Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-21
Public Financial Disclosure: A Reviewer's Reference 

Special Issues for 

Attorneys 

18 U.S.C. §§ 208 & 209 

5 U.S.C. App. § 502 

5 C.F.R. §§ 2635.502 &

2636.305

Conflict of Interest Analysis

The discussion in Section 6.1 provides basic guidance on conflicts 

with respect to business and employment ties. The law firm is a 

specialized example, with some unique concerns. Some law firms are 

organized as general partnerships. As with any general partnership, 

18 U.S.C. § 208 imputes the financial interests of the other general 

partners to filers, whether or not those financial interests arise within 

the partnership. This may require recusal or one of the other 

mechanisms outlined in Chapter 5, in order to avoid conflicts. 

Revised 11/04 

Page 6-22
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-23

18 U.S.C. §§ 203 & 205 With some exceptions, Federal employees may not receive any 

legal fees, partnership share, bonuses, or any other form of 

compensation derived from representational services of others in 

matters before the executive branch or the courts (when the United 

States is a party or has a direct and substantial interest). This bar in 

18 U.S.C. § 203 applies to representations while the person is a 

Government employee regardless of whether he receives the funds 

during or after Government service. The bar also extends under § 205 

to the Government employee's own representations of others before the 

Government, and even to pro bono (uncompensated) representations, 

unless they are within exceptions specified in the law (see Sections 6.1: 

Business Ownership and Employment Relationships and 11.1: 

Criminal Conflict of Interest Statutes). 

Segregating Certain 

Legal Fees 

A practical effect of 18 U.S.C. § 203 is that the Federal employee 

may need to ask her former law firm to maintain a bookkeeping 

arrangement that segregates funds received for representations before 

the Government from those in which she lawfully may share under a 

continuing compensation arrangement (such as deferred compensation, 

contingency fee arrangements, and bonuses). The bar on 

supplementation of salary in 18 U.S.C. § 209 has the effect of 

prohibiting firms from circumventing the § 203 bar by making up the 

difference with special benefits based on Government service. 

Contingency Fee 

Cases 

Attorneys who are Government employees are barred by § 203 

from keeping a financial interest in a contingency fee case in which the 

United States is a party or has a substantial interest, regardless of the 

partnership agreement. In addition, the § 209 ban on outside 

supplementation of a Government salary may prevent a Government 

employee who is an attorney from having a continuing interest in any 

other contingency fee case unless the maximum fee or percentage is set 

when he enters Government. 

Using a Partner's 

Name 

5 U.S.C. App. §502(a)(2) 

5 C.F.R. 2636.305(a)(2) 

The Standards of Conduct rule on appearances also requires the 

reviewer to focus on whether a filer should recuse because a former 

client or law partner is or represents a party in a matter before the 

agency (see Section 6.1: Business Ownership and Employment 

Relationships). Finally, a covered noncareer employee may not permit 

her name to be used by any firm, partnership, association, corporation 

or other entity which provides professional services involving a 

fiduciary relationship. In addition, there may be applicable state bar 

rules that an attorney should consider (see Section 11.4: Special 

Limitations on Senior Noncareer Employees). 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-24

A Checklist for 

Counseling Persons 

Leaving Law Firms to 

Enter Public Service 

Given the complexity of these issues, OGE has developed the 

following checklist concerning arrangements individuals should make 

when coming from a law firm into the Government to a full-time 

position. The citations in the margin beside each question suggest 

which statutes and regulations are relevant. Ethics counselors should 

ascertain such information to ensure not only that the disclosures are 

complete but also to resolve conflict of interest issues beyond the 

disclosure limitations. In regard to PAS filers, agencies need not 

formally address each and every one of these questions in their opinion 

letter to OGE. Rather, they should work informally with OGE to 

resolve these issues before preparing the final letter. 

1. Is the individual a sole practitioner, or a general partner or an 

associate/employee (or “of counsel”) with the firm? 

Severance 

Arrangements From 

Firms 

18 U.S.C. §§ 203, 208, & 

209 

5 C.F.R. § 2635.503

2. If the attorney is not a sole practitioner, what are the severance 

arrangements contemplated? 

• Does the firm have a standard severance arrangement in the 

partnership agreement? If so, what is it, and is the firm going to 

follow it in this case? 

• If the firm does not have a standard severance arrangement, 

what severance arrangements are contemplated? 

• Does the severance arrangement entail any discretionary 

payments by the firm? Could those discretionary payments be 

calculated based upon the profitability of the firm after the 

individual becomes a Government employee? What is the basis 

for those discretionary payments? 

18 U.S.C. §§ 203 & 209 • Is there any contemplation of a continued interest in any 

contingency fee case? If so, is the United States a party, or 

does it have an interest? Will the case involve any 

representations to any Federal agency or court (including state 

courts) after the individual becomes a Government employee? 

When she leaves the firm, will it set the maximum amount of 

money she may receive from such a case if a fee is generated 

or will it set her maximum percentage of the firm's fee from 

the case? 

• Over what period of time will the firm pay any severance? 

• Is the individual's name in the firm's letterhead? Has the 

agency counseled the employee about 5 U.S.C. App. § 502(a), 

if applicable? 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-25

18 U.S.C. § 208 

5 C.F.R. § 2635.502 • Is the individual involved as a general partner in any side 

investments with other partners of the firm? Does the 

individual intend to remain involved in those investments? 

Will any recusals that are necessary under 18 U.S.C. § 208 in 

relation to the other interests of the employee's partners, 

including the law firm, cause a problem in performing 

Government duties? 

• Are the clients listed in Schedule D, part II apt to result in any 

recusal under 5 C.F.R. § 2635.502? Are there other clients that 

may cause § 2635.502 recusals, even though below the $5,000 

threshold for disclosure? 

Separation From Sole 

Practice 

3. If the attorney is a sole practitioner, how will she separate from the 

practice? 

18 U.S.C. §§ 203, 208, & 209 • Will she retain any interest in any ongoing cases? Is the United 

States a party or does it have an interest in the cases? Will 

representations be made to a Federal agency or court (includes 

state courts) in the case after she becomes an employee? Will 

any payment for the practice be based on its future 

profitability? 

5 U.S.C. App. § 502 • Will those taking over the practice use her name in any way? 

18 U.S.C. § 208 

5 C.F.R. § 2635.502 

• What will be the time period for any payments due from the 

practice? 

• Will the “purchaser” of the firm cause any substantial recusal 

under 18 U.S.C. § 208 or 5 C.F.R. § 2635.502, which is of 

concern to her agency? 

18 U.S.C. § 208 • Will the buy-out arrangement leave her in the position of a 

general partner under applicable state law? If so, will the 

interests of other general partners cause any substantial 

recusal? 

5 C.F.R. § 2635.502 • Will former clients or cases transferred to another attorney 

cause substantial recusal? (See relevant state bar rules) 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-26

6.3 FARM ASSETS AND INCOME 

Interests in farms may involve ties as owners, employees, or 

investors. Farm employment does not usually present unique 

disclosure issues unless it also entails ownership or investment 

interests. Therefore, this section examines issues of financial 

disclosure and conflicts only with respect to farm ownership and 

investment. 

Reporting of Farms Is 

Similar to Other Forms 

of Business and 

Employment Interests 

Financial Disclosure Requirements

Whether farms are held through individual ownership, cooperative 

ownership, general or limited partnerships, or corporations, the interest 

is normally reported in the same manner. Required disclosures include 

Schedule A for the assets and income, Schedule B for transactions, 

Schedule C for any liabilities not solely incidental to the business of 

the farm, and Schedule D for any positions with the farming interest. 

Schedule A In Block A of Schedule A, the filer must describe the asset clearly 

and with enough detail so that the reviewer (and the public) can 

understand what the asset is. The listing must include: 

• the type of interest in the farm, such as limited partner, general 

partner, sole owner, or corporate shareholder; 

• the name under which the farm does business; 

• the business of the farm, such as corn or livestock; and 

• the location of the farm (city and state). 

The filer need not disclose the exact number of acres or bushels of a 

particular crop or the number (head) of livestock. 

In Block B, filers should list the aggregate market value of the 

assets listed in Block A. For a limited partner or investor, this will be 

the value of all shares held. For a sole owner or general partner, this 

will include land, crops (standing or in storage), livestock, farm 

equipment, buildings, and so on. 

In Block C, filers should list the type and amount of income from 

the farm and related assets. The disclosure will vary with the type of 

interest in the farm. For example, sole proprietors should disclose the 

exact amount of any crop sales as “Business Income”, and partners 

might list the amount of “partnership income.” On the other hand, 

corporate shareholders might simply mark the type of income as 

dividends, and check a category of amount of income. Any farm rents 

or royalties should also be indicated. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

On Schedule B, Part I, the filer must disclose transactions involving real 

estate or investment shares not solely incidental to the business. 

In addition, the filer must list all other connections with the farm, such as any 

benefit and pension plans (Schedule C, Part II), as well as positions on 

Schedule D, part I.

Examples

The following sample 278 entries demonstrate the reporting of common farm

interests. 

Revised 11/04 

Page 6-27
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-28

Conflict of Interest Analysis

When a filer reports a farm, the reviewer needs to be especially 

sensitive to the farm's participation in Federal programs, its geographic 

location in relation to Government activities, and its contracts. If the 

filer's agency administers any subsidy programs, the reviewer should 

inquire whether the farm participates in these programs to ensure that 

no conflict exists. In addition, some agencies may have specific 

prohibitions against operating farms, and other restrictions also apply: 

18 U.S.C. §§ 203 & 205 • If the farm is anything other than a sole proprietorship, a Federal 

employee may violate criminal restrictions on representation of 

others before the Government if the employee applied for any 

USDA or other Federal benefits on behalf of the farm. 

• Senior employees subject to restrictions on outside earned income 

must avoid active management of the farm (see Section 11.4: 

Special Limitations on Senior Noncareer Employees). 

Filers in agriculture-related agencies may have a potential conflict 

when they rent land to sharecroppers. A conflict could arise if the filer, 

through an agency program, could influence the value or quantity of a 

crop that the sharecropper raised. The sharecropping agreement would 

make the success of the crop a financial interest of the filer. To remedy 

this potential conflict, filers could change the land use agreement to 

simple land rent, payable regardless of the success or failure of a crop. 

Agency Operations 

Near the Farm 

Reviewers should also inquire whether the filer's agency has 

operations near the farm or whether it might potentially contract with 

the farm. If the agency does have such connections, the reviewer must 

determine if Government actions in which the filer participates could 

create a real possibility of gain or loss to the filer's interest. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-29

6.4 HONORARIA

National Treasury 

Employees Union v. 

United States, 

 115 S.Ct. 1003 (1995) 

OGE 96x5

An HONORARIUM is defined as a payment of money or anything of 

value for an appearance, speech, or article, less any necessary travel 

expenses. The general ban on receipt of honoraria by Government 

employees, which Congress enacted in 1989, was overturned by the 

Supreme Court in February 1995. That decision initially created 

uncertainty as to whether the ban might still apply to certain senior 

employees and those outside the General Schedule. That uncertainty 

was finally eliminated in February 1996, when the Office of Legal 

Counsel at the Department of Justice determined that the ban was no 

longer enforceable against any Federal employee. Therefore, the 

statutory ban on receipt of honoraria is no longer applicable. 

5 C.F.R. § 2635.807 The Standards of Conduct, however, continue to prohibit most 

compensated teaching, speaking, or writing that “relates to official 

duties.” Ethics officials with specific questions should consult 

appropriate OGE regulations, opinions, and memoranda. 

Information Reported 

on Schedule A 

Financial Disclosure Requirements

Filers must report each honorarium as earned income on 

Schedule A, listing each one as an individual line-item for themselves 

and their spouses. A dependent child's honoraria need not be reported. 

• In Block A, filers must report the source of each honorarium over 

$200. This includes honoraria that their spouses receive, if over 

$200 (instead of the $1,000 threshold used for a spouse's other 

earned income).

• In Block B, filers report “none” as the asset value, unless there are 

sums of money that are due but which the filer has not yet received. 

Reviewers need not question filers about the lack of such an entry 

and may assume the lack of an entry indicates “none.”

• In Block C, the filer should list “honorarium” as the type of income 

in the “Other Income” column and must report the actual amount 

received. The amount listed is the net honorarium after deducting 

amounts received for the reimbursement of necessary expenses and 

agent's fees. Filers must also report actual amounts for their 

spouses' honoraria, unlike other earned income of a spouse.

• Also in Block C, filers must list the date the services were 

provided. 
Public Financial Disclosure: A Reviewer's Reference 

On Schedule B, part II, filers must also report any

reimbursements or travel benefits they received incident to receiving

the honoraria, if greater than $285 from any source (see Section 9.2: 

Travel-Related Gifts and Reimbursements). 

Charitable Donations 

5 U.S.C. App. § 102(a)(l) 

OGE DAEOgram of 

March 15, 2001

Filers must include honoraria received and subsequently donated to 

charity. They must also report payments directed to charities in lieu of

honoraria. In addition to public reporting, the statute requires 

confidential reporting of certain information about payment in lieu of 

honoraria, including the name of the charity and the source, date, and 

actual amount of payment. 

Speaking 

Arrangements 

If a filer has an arrangement to receive honoraria, such as on a

speaking tour, he should list the date, parties, and terms of the 

agreement on Schedule C, part II. This requirement does not cover 

the filer's spouse or dependent children. 

Example

The following sample SF 278 entry demonstrates reporting of 

honoraria received both by the filer and her spouse.

Revised 11/04 

Page 6-30
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-31

Conflict of Interest Analysis

Conflict of interest analysis for honoraria focuses on the person or 

group giving the honoraria. Reviewers should focus on whether: 

• the employee can affect the ability or willingness of the entity 

providing the honoraria to make any anticipated future honoraria 

payments; 

• the group providing the honoraria is supplementing the 

employee's salary through the honoraria for performance of 

Government responsibilities; and 

• the subject of the speech, article or appearance relates to the 

employee's official duties. 

18 U.S.C. §§ 208 & 209 Criminal Sanctions

The primary concern for review of honoraria is the applicability of 

the two main criminal conflict of interest statutes. The criminal 

prohibition on supplementation of Government salary bars the 

employee's receipt of honoraria for performing official duties. 

Likewise, the employee might be barred from taking an action in a 

particular matter that involved an entity with which he has a contract to 

receive honoraria if the matter could affect future payments under the 

contract. 

5 C.F.R. § 2635.502 Standards of Conduct

If the employee received an honorarium under a contract, then she 

would have a covered relationship under the appearance standard with 

the entity that paid the honorarium, which may require recusal from 

matters involving that paying entity. 

The Employee Standards of 

Ethical Conduct provides 

specific guidance at 

5 C.F.R. § 2635.807. 

Generally, an employee should not receive compensation for 

teaching, speaking or writing that is related to the employee's official 

duties. The Standards of Conduct define what is “related to duty.” 

Certain Compensated 

Teaching Is Permissible 

5 C.F.R. § 2635.807(a)(3) 

An employee may, however, receive compensation for teaching 

certain courses, even if the subject matter relates to the employee's 

official duties. These courses must involve multiple presentations and 

be part of a regularly established curriculum at an institution of 

elementary, secondary, or higher learning or part of a Governmentsponsored course. 

Certain noncareer employees are subject to additional restrictions 

and SPECIAL GOVERNMENT EMPLOYEES are subject to less restrictive 

standards (see Chapter 11: Federal Ethics Laws and Regulations in 

Brief). 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-32

6.5 OUTSIDE POSITIONS

5 U.S.C. App. § 102(a)(6) 

5 C.F.R. § 2634.307 

OGE 86 X 19 & 91 X 5 

While employees may fully express their political, religious, and 

moral views, employees who engage in activities outside of their 

Government duties may encounter conflicts of interest with these 

seemingly harmless activities. This section describes how to disclose 

and analyze positions outside the Government that do not create a 

typical employment relationship, including those with non-profits. 

Financial Disclosure Requirements

While Schedule A should show the actual amount of any fee or 

other income over $200 associated with positions outside the 

Government, such positions must also appear on Schedule D. For a 

spouse, the filer need report only the source of fees over $1,000, and 

no amount; also, Schedule D is not applicable. Positions include 

service or status as an officer, director, trustee, general partner, sole 

proprietor, representative, employee, or consultant of any business, 

organization, or institution. Mere membership in an organization is not 

reportable. Schedule D requirements exclude positions held in any 

religious, social, fraternal or political entity, regardless of 

compensation. A filer should also exclude any solely honorary 

positions and any positions filled in the employee's official capacity, 

including official service in outside board positions. 

NOTE: If questions about an organization's nature arise, it may be 

helpful to consult the organization's charter for clues as to its stated 

purpose and activities. Positions such as those with a youth or scouting 

organization would not typically require reporting, since they are 

fraternal or social in nature. Excludable positions with political entities 

will generally be limited to political parties and campaign 

organizations, not special interest and lobbying groups. 

Schedule D, Part I A reported position should indicate: 

• The name and address of the organization with whom the filer 

holds the position. The city and state will suffice for an address. 

For large or well-known organizations, such as the American Bar 

Association, reviewers may assume an address is available to the 

public in general reference works. If the reviewer determines that 

the activity clearly raises no conflict of interest concerns, the 

reviewer need not question the lack of a disclosure of an address.

• The type of organization block should briefly describe it and note 

if it is for-profit or non-profit.
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-33

• A description of the position held is adequate if it clearly 

indicates the employee's role in the organization. 

• Filers must also list the “from” and “to” dates of their position 

with the reported entities. They may use terms such as “present.” 

Other Schedules

On Schedule B, Part II, filers must provide a description, source, 

date, and value for any reportable reimbursements from the outside 

positions (see Section 3.5: Schedule B, Part II for applicable thresholds 

and exclusions). Schedule D, Part II must disclose additional 

information about positions that are the sources of more than $5,000 in 

income, but this applies only to new entrant and nominee filers. 

Special Trust Concerns 

OGE DAEOgram of 

December 19, 2001 

Trustees and Executors

A common outside position is that of trustee. The trustee of a trust 

assumes a FIDUCIARY responsibility for managing its portfolio. 

Trustees have an imputed financial interest in the assets of the trust 

under criminal statute 18 U.S.C. § 208 even if they receive no 

compensation for their services. A trustee does not, however, 

necessarily have a personal financial interest in the assets of the trust. 

The position itself may pose a conflict that a WAIVER, RECUSAL, or 

reassignment could resolve. Reporting requirements for trustees and 

executors include: 

OGE DAEOgram of 

April 24, 2002 

• Schedule A: reporting of the actual amount of fees or other income 

if over $200, using the “Other Income” column (for a spouse, only 

the source and not the amount, for fees over $1,000).

• Schedule D, Part I: reporting of the position (only for the filer) 

regardless of compensation.

• Schedule D, Part II: (for new entrants and nominees only), 

reporting of the position as a source of compensation (only for the 

filer) if the trustee or executor earns over $5,000.
Public Financial Disclosure: A Reviewer's Reference 

Examples

The following sample SF 278 entries demonstrate the reporting of 

outside positions. Reviewers should note the various schedules that can 

cover outside positions. Note that the trustee, her spouse, or dependent 

child do not have a beneficial interest in the trust for which she is 

serving as a trustee. 

Revised 11/04 

Page 6-34
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-35
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 6-36

Conflict of Interest Analysis

Any conflict of interest determination for an outside position must 

focus on understanding the interests and activities of the organization 

and the employee's role in that organization. While the second element 

of this inquiry—the employee's role in the organization—should be 

fairly clear from the description of the position held, the first element 

may prove more difficult. Often, such information about an 

organization will be apparent from its name or the reviewer's general 

knowledge. For smaller organizations, however, the reviewer may 

need to request information from the filer about the organization or 

may wish to research the organization. Information about non-profit 

organizations is available in many libraries or through internet 

research. 

18 U.S.C. § 208 The next step in the conflict analysis is to determine whether the 

position that the filer holds with the outside organization causes the 

financial interests of the organization to be imputed to the employee. 

The criminal financial conflict of interest statute specifically includes 

serving as an officer, director, trustee, general partner, or employee; 

like the disclosure statute, however, it does not refer to mere 

membership in an organization. The distinction does not rest on 

whether the person was compensated by the organization. An 

individual may be an employee of an organization within the meaning 

of the statute even though his service is uncompensated. In line with 

this reasoning, any filer who serves on a Board of Trustees, Executive 

Committee or otherwise as an officer must generally recuse from 

participation in any particular Government matter in which the 

organization has a financial interest. 

OGE DAEOgram 

of April 2,1997 Although service in an official capacity on an outside board is not 

required to be reported, employees serving in such positions are also 

subject to section 208. This section prevents an employee from serving 

on the outside board in the absence of a waiver, explicit statutory 

authority, or a release of fiduciary obligations by the outside 

organization. 
Reviewing Common Entries--Employment, Ownership, and Outside Activities 

Revised 11/04 

Page 6-37

Employee Standards of 

Ethical Conduct 

5 C.F.R. § 2635.502 

Situations also exist, however, in which the statute would not bar 

an employee from taking action, but the Employee Standards of 

Ethical Conduct, especially the appearance standard, would. The 

reason is that an employee has a “covered relationship” with any 

organization, other than political parties, in which she actively 

participates. Active participation includes not only service as an officer 

but extends to such activities as: 

• serving as a committee or subcommittee chair or spokesperson; 

• participating in directing organizational activities; 

• devoting significant time to specific organizational programs; and

• coordination of fundraising. 

Activities such as merely paying dues or soliciting donations, however, 

do not create a covered relationship. 
Revised 11/04 

Page 7-1 

7.0 INVESTMENT VEHICLES 

5 U.S.C. App. §§ 102(a)(l)(B) 

& 102(a)(3) 

5 C.F.R. §§ 2634.301-302

Investment vehicles are arrangements through which a filer may 

hold other investments, such as those described in Chapter 8: 

Investments. Investment vehicles offer convenience, tax advantage, 

risk protection, and other benefits to investors. Full disclosure often 

requires going behind the investment vehicle and listing its underlying 

holdings.

This chapter discusses common investment vehicles: 

• personal retirement accounts (such as IRAs),

• pensions,

• annuities,

• insurance,

• investment clubs,

• trusts,

• estates and

• prepaid tuition plans.

This chapter also examines the statutory reporting concept of the 

EXCEPTED INVESTMENT FUND, or EIF. Investment vehicles must be 

reported for filers, as well as for their spouses and DEPENDENT 

CHILDREN.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 7-2

7.1 EXCEPTED INVESTMENT FUNDS

5 U.S.C. App. § 102(f)(8) 

5 C.F.R. § 2634.310(c) This chapter on investment vehicles focuses on types of plans or 

arrangements that are not in themselves EXCEPTED INVESTMENT FUNDS

(EIFs), but which contain assets that are often EIFs. An EIF is a basic 

concept that reduces the degree of public disclosure of certain 

investments. The concept of the EIF was created by statute and is 

solely a characterization for financial disclosure purposes. An EIF may 

include pooled investments such as MUTUAL FUNDS, common trust 

funds of a bank or other financial institution, unit investment trusts, 

and limited partnerships if they meet all of the following tests. An EIF 

is an investment vehicle which is:

EIF Test

Meaning of Widely 

Held 

Meaning of Publicly 

Available 

1. widely held, 

2. (a) publicly-traded (or available) or (b) widely diversified, 

and,

3. independently managed, that is, arranged so that the filer 

neither exercises control nor has the ability to exercise control 

over the financial interests held by the fund. 

An investment must meet either 2(a) or 2(b), as well as 1 and 3, to 

qualify as an EIF. Many investment funds that focus on particular 

economic sectors are thus EIFs, but they may still present conflicts. 

OGE generally views funds that have more than 100 participants, 

such as private pension plans of medium and large employers, as 

"widely held." Funds which are open to any investor are considered 

publicly available. Net worth or income requirements do not 

disqualify a fund from being publicly available. Widely diversified 

means that the fund: 

Diversification 

Criteria

• holds no more than 5% of the value of its portfolio in the 

securities of any issuer (other than the U.S. Government) 

and 

• holds no more than 20% of the value of its portfolio in any 

particular economic or geographic sector. 
Reviewing Common Entries—Investment Vehicles

Revised 11/04 

Page 7-3

Asset Management 

Accounts Some filers mistakenly assume that ASSET MANAGEMENT 

ACCOUNTS with a brokerage firm qualify as EIFs. These accounts 

conveniently combine a number of features, such as checking 

accounts, money market funds, brokerage services, credit and debit 

card accounts and MARGIN ACCOUNTS (for borrowing to purchase 

securities). Though these accounts may contain EIFs, they do not 

themselves qualify as EIFs because they are individual, rather than 

widely held, accounts.

Chapter 8: Investments discusses funds and other investments that may 

qualify as EIFs and which are held directly by the filer or through the 

types of arrangements that are discussed in this chapter.

Relaxed Reporting 

Requirements

Financial Disclosure Requirements

For investments that qualify as EIFs, the filer must disclose the 

name of the specific fund, along with the value of his (or his spouse's 

or DEPENDENT CHILD's) share and any income. However, he may omit 

reporting:

• the investment's underlying holdings on Schedule A; 

• separate types of income (interest, dividends, capital gains) on 

Schedule A (simply characterizing it all as EIF); and 

• the transactions of underlying securities on Schedule B, part I. 

The filer should, however, report his own purchases and sales of 

shares of the investment fund. For example, filers would report 

buying shares in "The Japan Dividend Fund," but not what the 

fund's managers buy. 

The EIF box should be checked whenever the corresponding asset 

qualifies. Otherwise, each of the underlying holdings of the asset must 

be reported.
 Public Financial Disclosure: A Reviewer's Reference 

Example

The following sample 278 entry demonstrates the reporting of 

several different publicly traded EIFs.

18 U.S.C. § 208

5 C.F.R. § 2640.201(a)

OGE 86x12

Conflict of Interest Analysis

The EIF category frees filers from reporting overly detailed 

information and frees reviewers from wading through pages of 

holdings to look for obscure conflicts. In many cases, EIFs are 

diversified mutual funds, which are exempt from the prohibition at 

18 U.S.C. § 208 (see Section 5.3: Waivers and Exemptions). Reviewers

should be cautioned, however, that not all EIFs are diversified mutual 

funds, and therefore may not be conflict-free. Those EIFs that may not 

be diversified mutual funds are excepted only from detailed reporting, 

not from conflict of interest analysis.

Revised 11/04 

Page 7-4
Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-5

Sector Funds A common type of EIF is a mutual fund that invests in particular 

economic or geographic sectors, known as a SECTOR FUND. Government actions often directly and predictably affect such funds. 

Since sector funds normally do not qualify as diversified funds, agency 

ethics officials should examine whether their sector holdings pose 

either criminal or appearance problems for particular filers in light of 

the filers' areas of responsibility.

There are two exemptions under § 208 that may be applied when 

an employee has an interest in a sector mutual fund:

5 C.F.R. § 2640.201(b) 

OGE DAEOgram of 

3/19/02 

• an employee may participate in a particular matter that affects 

holdings of a sector mutual fund as long as the holdings are not 

in the sector in which the fund concentrates; and 

• an employee may participate in a particular matter that affects 

holdings of a sector mutual fund where the aggregate value of 

interests in any sector fund or funds does not exceed $50,000. 
Public Financial Disclosure: A Reviewer's Reference 

7.2 DEFINED BENEFIT AND DEFINED CONTRIBUTION PLANS

5 U.S.C. App. §§ 102(a)(7) & 

102(f)(8) 

5 C.F.R. §§ 2634.301(a), 

301(b)(8), 302(a)(ii), 

306, & 310(c) 

83 OGE 1 

OGE 88 X 11

Pension plans exist in great variety and may on occasion be tailormade. This section deals with the disclosure requirements and conflict 

of interest concerns that arise from most company-sponsored pension 

plans. In general, pension plans fall into two categories: defined

contribution plans and defined benefit plans. The chart below 

summarizes the key differences between the two plans. Note, however, 

that this distinction is not perfect because some employers offer both 

types of plans or use a defined benefit plan to provide a base level of 

benefits with a supplemental defined contribution plan providing 

additional benefits. 

Both Vested and Nonvested Pensions Are 

Reportable 

Revised 11/04 

Page 7-6

5 C.F.R. § 2634.301(c)(4)

Vested Pensions

Filers need to disclose pensions plans, whether they have vested interests in them or not.

Government Pensions

Filers need not report any interest in the Thrift Savings Plan or 

other retirement system of the United States Government. They must, however, report any interest in state or local government pension 

plans.
Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-7

Each Employee Has an 

Account

Defined Contribution Plans

In a defined contribution plan, the employer or its agent maintains 

a separate account for each participant. The benefits upon retirement 

depend on the amount contributed and the investment performance of 

the plan's assets, which are directed by the employee.

In defined contribution plans, the company has no obligation to 

ensure any amount of retirement income. Reviewers must, therefore, 

look to the employee's financial interest in the plans' underlying 

holdings that the employee chooses from among several investment 

options, such as mutual funds, insurance products or other pooled 

investments. The employee must look to these investments for any 

future retirement benefits. The employer has no continuing financial 

obligation. The reviewer should analyze each investment as if it were 

the filer's direct holding.

Types of Defined 

Contribution Plans Simplified Employee Pensions (SEPs)

Some small employers (with 25 or fewer employees) offer 

employees the opportunity to participate in a tax-deferred Simplified 

Employee Pension (SEP) plan. SEPs, in essence, allow both employers 

and employees to make contributions to accounts similar to IRAs.

While the employer's contributions are discretionary, once a 

company contributes to the SEP, its responsibilities end. Employees 

select the investments for their own accounts. Accordingly, SEPs 

should be treated like IRAs, because they are self-directed. SEPs are 

not a continuing obligation of the company that established them, once 

its contributions are made. Filers must disclose the assets in which the 

SEP is invested, and these assets should be the reviewer's focus.

Keogh Plans

A Keogh plan (HR-10 plan) is a tax-deferred pension account for 

self-employed persons and employees of unincorporated businesses. 

These plans have essentially the same financial disclosure and conflict 

of interest analysis as IRAs because employers have no continuing 

connection with the Keogh after their contributions have been made. 

Like IRAs, an employee may put almost any available investment into 

a Keogh, and the investment earnings grow on a tax-deferred basis. 

Filers must, therefore, report how they invested their Keogh funds. 

Reviewers, likewise, must focus on the underlying investments.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 7-8

401(k)s

401(k) and Similar Plans

A Cash or Deferred Arrangement (CODA), also known as a 401(k) 

plan or a Salary Reduction Plan, is an arrangement in which employees 

place pre-tax earnings, and sometimes matching employer 

contributions, into a tax-deferred retirement account that the employer 

creates and maintains. The employer holds these funds in trust until the 

employee reaches a specified age or leaves the company and rolls the 

account into another tax-deferred plan. The 401(k) plan with an 

employer is similar to the SEP plan held with smaller employers. The 

company fulfills its obligation by making contributions into a fund for 

the employee.

403(b) Plans and the 

Thrift Savings Plan While private industry offers 401(k) plans, state and local 

governments and non-profit organizations offer a very similar type of 

plan, known as a 403(b) plan. The numbers refer to sections of the 

Internal Revenue Code that describe the plans. The Federal 

Government offers an analogous arrangement through the Thrift 

Savings Plan (TSP). (However, filers need not list TSP contributions or 

accounts on their SF 278s because of a special provision of the 

financial disclosure law.) As in the TSP, employees contributing to 

403(b) plans normally have some limited choices of funds in which to 

invest. Examples of options that such plans may offer are:

• company stock; 

• diversified mutual funds (EIFs); 

• bond funds (EIFs); and 

• stable value funds (often EIFs). 

Profit Sharing and Stock Bonus Plans

A profit sharing plan is an agreement between a corporation and its 

employees that allows the employees to share in company profits. 

Contributions to the plan are made by the employer, usually when it 

has profits, to a profit-sharing account for each employee. The plan 

may be invested in stocks, bonds, or cash equivalents.

A stock bonus plan is similar to a profit sharing plan, except that 

the benefits are paid in shares of stock of the company. A type of stock 

bonus plan is the Employee Stock Ownership Plan (ESOP). An ESOP 

invests primarily in the stock of the employer.
Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-9

TIAA-CREF

TIAA-CREF, the Teachers Insurance and Annuity Association—

College Retirement Equities Fund is one of the largest private pension 

funds in the United States. This fund provides retirement, life 

insurance, and disability plans for employees of colleges, universities, 

private schools, and educational associations. It currently has over 

12,000 participating institutions.

Plan participants may allocate their funds among three options:

• TIAA (which consists of a real estate account and a traditional 

annuity), or 

• CREF (which consists of mutual funds) 

Defined Contribution Disclosure Requirements

Retirement accounts often have significant underlying holdings. 

This section describes how filers should explain these holdings for 

themselves, their spouse, and their DEPENDENT CHILD on the SF 278. 

Two basic rules are:

Basic Requirements

• filers must report assets held in a defined contribution plan to 

the same extent as if the assets were held in a taxable account 

not related to retirement, and 

• filers must describe underlying holdings until they have 

reached the specific investments or excepted investment funds 

(EIF) (see Section 7.1.-Excepted Investment Funds). 

Schedule A Employees with defined contribution plans that exceed $1,000 in value or earn more than $200 in a reporting period must report on 

Schedule A:

• the name of the employer and type of plan (e.g. 401(k));

• each asset in the plan, if it meets the reporting thresholds, as 

a separate line item:

• for mutual funds, report the identity of each fund by 

specific name (each may be an EXCEPTED INVESTMENT 

FUND); 

• for a separate portfolio managed for the individual, report 

its holdings; or 

• for insurance products, such as annuities, report the type 

of product and the company. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 7-10

NOTE: Individual assets that are below the reporting thresholds are 

not required to be reported even if the filer's entire interest in the plan 

exceeds the thresholds.

• the category of asset value for each asset listed, and

• the category of amount and the type of income (unless the 

EIF box is checked) accrued for each asset. Income earned by 

the assets in the employee's account is attributed to her.

Report Tax-Deferred 

Income

Some Plans May 

Qualify as EIFs

Withdrawals Not 

Reportable

Brokerage Statements 

5 C.F.R. § 2634.311(c) 

OGE DAEOgram of 

February 22, 2000 

Schedule B 

Filers must disclose the income accruing to each asset despite the deferral of taxes.

In some situations the plan is pooled for a large number of 

employees (widely held) and is also widely diversified. The filer may 

then identify the pool and its independent managers and report the 

entire plan as an EIF.

Any pension benefit payments withdrawn from the plan are not 

reportable; they are merely a distribution from previously reported 

investment income.

For large portfolios managed by a broker, the filer may attach a 

brokerage statement, so long as it clearly, concisely, and readily 

discloses all relevant information in accordance with statutory and 

regulatory reporting requirements.

On Schedule B, Part I, filers must report transactions of assets in 

defined contribution plans to the same extent as they would report 

those transactions if the assets were not in a retirement account (see 

Section 3.4: Schedule B, part I for guidance on reporting transactions 

and Chapter 8 for information on many common investments).

Schedule C On Schedule C, Part II, the filer should report (for himself but not 

his spouse):

• the name of the employer, 

• a statement that it is a defined contribution plan (if not clear 

from the Schedule A entry) and 

• the dates and parties to the agreement. 
Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-11

The Employer Holds a 

Pooled Account 

OGE 91 X 34

Defined Benefit Plans

In a defined benefit plan, the employer makes contributions to a 

pool which it holds and invests for all participating employees 

together, and each employee receives a fixed amount of benefits when 

she retires. Employees know in advance either the amount of their 

future benefits or a certain formula that determines their amount.

These benefits are the employer's liability, regardless of how it 

funds its obligation, so a defined benefit plan will not be reported as an 

excepted investment fund. The plan's assets, that is, how the employer 

invests the funds, are irrelevant to a conflict of interest determination. 

The financial interest involved is the company's obligation to 

guarantee a certain level of benefits. In OGE's experience, even socalled "fully funded" pensions depend on the company's continued 

ability or willingness to provide the funds required. Likewise, the 

existence of a guarantee under the Employee Retirement Income 

Security Act (ERISA), which is administered by the Government's 

Pension Benefit Guaranty Corporation (PBGC) is rarely sufficient to 

protect the employee completely. Accordingly, defined benefit plans 

might indicate a continuing financial interest in matters affecting the 

former employer if the employee's participation in a matter has a direct 

and predictable effect on the company's ability or willingness to make 

future or continued payments.

Defined Benefit Disclosure Requirements

Filers with defined benefit plans must report on Schedule A:

• the name of the employer providing the plan;

• a category of asset value. If filers cannot ascertain an asset 

value, they may report the amount of the benefit they will 

receive and the age at which the pension will begin; and

• the actual amount of any pension benefits received, using the 

"other" type of income column and specifying "pension 

payment." Defined benefit plans are not viewed as EIFs, 

because they represent an obligation of the employer, not an 

interest in a fund.

On Schedule C, Part II, the filer should report (for himself but not his spouse):

• the name of the employer providing the plan; 

• a statement that the plan is a defined benefit plan; and 

• the dates and parties to the agreement. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 7-12

Spouse's Pensions

Filers also need to report pension interests for spouses. While 

Schedule C, part II does not apply to interests of spouses, the 

disclosure requirements of Schedule A do apply. Spouses are required 

to report the name of the employer providing the plan, the type of plan, 

and the value of the pension interest. If the value is unknown, then the 

amount the spouse is currently receiving in benefits may be reported. If 

the spouse is currently employed by the company sponsoring the 

defined benefit plan, only the name of the company and the name of 

the plan is required if the value is unknown. Because of this limited 

reporting for spouses, reviewers may need to seek additional 

information on the terms of such pensions in order to complete a 

conflict of interest analysis.

Examples

The following examples demonstrate reporting of both defined 

benefit and defined contribution plans.
Reviewing Common Entries—Investment Vehicles 

18 U.S.C. § 208 

OGE DAEOgram

of April 14, 1999 

Conflict of Interest Analysis

Individuals who participate in defined benefit plans are guaranteed 

a targeted level of benefits by the sponsor of the plan. This type of

pension poses a conflict of interest if the outcome of an official matter

in which the employee participates could directly and predictably 

affect the sponsoring employer's ability or willingness to pay the 

pension benefit. Ethics officials should not presume that an employee 

has a conflict of interest in matters affecting the sponsor of his defined 

benefit plan. As a practical matter, most governmental matters in 

which an employee participates are unlikely to have a direct and 

predictable effect on the plan sponsors' ability or willingness to pay the 

pension.

The key fact to remember about a defined contribution plan is that 

it is an arrangement for holding other investments on a tax-deferred 

basis. The tax deferred status of assets or income in these accounts 

does not postpone reportability on the SF 278. The sponsoring 

organization has separated itself from the pension (once it ceases 

making contributions on behalf of the employee) because it does not 

guarantee payment. (One exception is when the plan's funds are 

invested or controlled by company representatives, rather than by

independent managers or individual employees.) Therefore, it is the 

underlying investments in a defined contribution plan which must be 

analyzed for potential conflicts.

Note, however, that while defined contribution plans do not have 

the issuer's guarantee of a certain benefit level, some plans offer 

employees an option of investing in the company's stock through the 

plan, which would create a financial interest in the company. 

Nevertheless, the analysis of defined contribution plans is always the 

same--look to the underlying holdings.

Revised 11/04 

Page 7-13
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 7-14

Methods of 

Resolving 

Conflicts

RECUSAL is the preferred method of resolving conflicts involving 

such pension plans because it may be expensive and complicated to 

divest them. Other solutions include § 208(b) WAIVERS or the purchase 

of an independent guaranty for pensions. Reviewers may, of course, 

consider the variety of resolution mechanisms discussed in Chapter 5.

State and Local 

Government Pensions 

5 C.F.R. § 2640.201(c)

State and municipal government-sponsored defined benefit plans 

are unique because of the ability of the sponsoring organizations to 

levy taxes. Nonetheless, official U.S. Government matters may directly 

and predictably affect the state or municipality' ability or willingness to 

fund its obligation. There are two exemptions available to employees 

who have an interest in a state pension plan. One of the exemptions 

permits employees to participate in matters affecting the holdings of a 

pension plan established or maintained by a state government. The 

second exemption permits an employee to participate in matters of 

general applicability affecting a state or local government sponsor of a 

pension plan in which she participates.

18 U.S.C. § 209 As discussed in Section 6.1: Business Ownership and Employment 

Relationships, bona fide pension plans are exempt from the criminal 

ban on supplementation of Federal salary.

Federal law generally requires employers to provide pension and 

profit-sharing plan participants with explanatory documents describing 

the plan's terms, investments, performance, and individual employee 

account. These documents usually provide sufficient information about 

a plan without reference to the plan itself, which is often a lengthy, 

technical document. The existence of these documents also suggests 

that filers do in fact have access to the information about the pensions 

necessary to fulfill the disclosure and conflict of interest process 

outlined in this section.
Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-15

7.3 INDIVIDUAL RETIREMENT ACCOUNTS (IRAs)

All IRAs Are 

Self-Directed

IRAs are retirement accounts that also involve individual accounts 

for its participants. They are discussed separately from defined 

contribution plans because the reporting requirements are different.

An Individual Retirement Account (or Arrangement) (IRA) is 

typically a bank, brokerage, or mutual fund account that a person has 

designated as a tax-deferred retirement account. All IRAs are "selfdirected" because investors choose where to invest their retirement 

funds. While investors may place these funds in relatively simple bank 

accounts, they may also buy stocks and other securities that might 

conflict with their duties. IRAs that hold such securities portfolios 

allow an investor to actively manage the account's investment holdings 

through a custodian who executes investment instructions.

NOTE: Sometimes filers indicate that their IRAs are "roll-overs." This 

phrase simply means that the IRA's holdings were originally in some 

other tax-deferred account, and the filer moved the funds to the present 

account while maintaining their tax-deferred status.

IRAs Are Not EIFs IRAs do not qualify as EIFs, because they are self-directed and not 

widely held (they are individual accounts) (see Section 7.1: Excepted 

Investment Funds). Therefore, it is not enough to enter "T. Rowe Price 

IRA Account," without listing the assets held. The underlying funds 

held in an IRA may, however, be EIFs, requiring no further 

breakdown. Thus, "Fidelity Magellan Fund (IRA)" is a complete 

disclosure because this mutual fund is an EIF.

IRAs Held as 

Deposit Accounts Of special note are IRAs held as deposit accounts in banks and 

other financial institutions (see Section 8.1: Bank and other Cash 

Accounts for details on cash-equivalent accounts). Even though these 

accounts are not EIFs, an entry such as "IRA, Riggs Bank Money 

Market Account" is sufficient. They represent a contractual obligation 

of the bank rather than an interest in underlying assets, so no further 

detail is required. Reviewers may assume that an IRA at a bank or 

other financial institution is a cash account if it is clear that the funds 

are in a deposit account, rather than an investment portfolio.

If any other type of entity, such as a broker, holds IRA assets for a 

filer, the filer must disclose the underlying holdings in the account. 

IRAs not associated with bank accounts may contain a variety of 

investments, such as mutual funds, stocks, and bonds. Reviewers and 

filers should look to these underlying holdings to determine proper 

disclosure and conflict of interest analysis. While specific mutual funds 

may be EIFs, an individual portfolio of stocks does not qualify for the 

reduced disclosure that EIFs allow.
Public Financial Disclosure: A Reviewer's Reference 

IRAs

Financial Disclosure Requirements

Each of the underlying assets in an IRA must be reported on 

Schedule A, if the asset value meets the reporting threshold of $1,000 

or it earned income over $200 during the reporting period. On 

Schedule B, Part I, filers must report transactions of assets held in an

IRA. There is no reporting requirement for Schedule C, Part II.

Example

The following sample SF 278 demonstrates the reporting of some IRAs.

Examine Underlying 

Assets 

Conflict of Interest Analysis

For IRAs, the reviewer should always perform a conflicts of interest 

analysis on each underlying asset of the account, even when reporting

of individual assets in the account is not required. Ethics officials 

should advise their employees about conflict of interest concerns with 

respect to assets that do not meet the threshold in an IRA.

Revised 11/04 

Page 7-16
 Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-17

7.4 ANNUITIES

An annuity is a contract with a life insurance company, though 

sometimes marketed through banks and financial planners. The 

investor (annuitant) pays a premium to the insurance company in either 

a single payment or a series of payments. In return, the insurance 

company makes payments to the investor, beginning at some future 

time, such as retirement or at a specified age. Tax-deferred investment 

income accumulates in the annuity. The two basic types of annuities 

are:

Types of Annuities • fixed annuities: These annuities offer a specified rate of 

return that the issuing company guarantees. Individual 

investors have no direct financial interest in how the 

insurance company invests the premiums. Investors do 

have an interest in the insurance company in that if it 

becomes insolvent, they can lose their money.

• variable annuities: These annuities offer investors a limited 

series of options in which they can invest, typically mutual 

funds. Investors choose how their money is invested and 

receive a return based on the performance of the 

investments they choose.

Deferred Annuities 

Immediate Annuities

Annuities that postpone payments to the recipient until a certain 

age or until retirement are called deferred annuities. Deferred annuities 

have two phases--accumulation and distribution. During the 

accumulation phase, the investor makes set contributions on a periodic 

basis (or in a lump sum payment) to the annuity. At this phase, a 

variable annuity will not have a guaranteed return, while a fixed 

annuity includes a guaranteed rate of interest on the funds 

accumulating. Annuities often have a death benefit or some other form 

of insurance during accumulation that will provide funds upon the 

death of the annuitant. During the distribution or payout phase, the 

insurance company makes periodic (or lump-sum) payments to the 

annuitant, or a named beneficiary, for a lifetime or a certain number of 

years.

Some annuities begin paying out immediately. These annuities are 

often purchased by people who must withdraw funds from a 401(k) or 

other retirement fund. These annuities essentially have only a 

distribution phase. A Single Premium Immediate Annuity (SPIA) has a 

one-payment accumulation phase and then normally begins payment 

distribution immediately, or within a year.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 7-18

Financial Disclosure Requirements

The distinctions between fixed and variable annuities create few 

differences in how filers should report them on the SF 278. Some 

simple guidelines adequately describe the proper disclosure of 

annuities. The filer should report on Schedule A for herself, her 

spouse, and her DEPENDENT CHILDREN:

• the name of the insurance company issuing the annuity in 

Block A;

• the type of annuity (fixed or variable) and any investment 

choices if in a variable account, such as Fidelity Magellan; 

• a category of asset value in Block B. This may be the 

annuity's face value or company's estimate of current value, 

or the value of premiums paid plus accrued income; and 

• the type of income or a check mark in the EIF box and 

category of amount in Block C for any accrued income 

reported to the filer by the insurance company, either from its 

general account or from the assets held in the annuitant's 

variable investment account. This may be interest or dividend 

income from mutual funds, or a pooled investment option in 

a variable annuity. In most cases, however, these interests 

will be EIFs, and the type of income will not be required. 

(The fixed annuity will not qualify as an EIF because it is an 

obligation of the company, not an interest in an asset fund.) 

What Not to Report NOTE: During the distribution phase, the amount of any 

payments received from the annuity need not be reported 

because such payments are merely a distribution from a 

previously-reported investment and its income. Filers must, 

however, report the actual amount of a payment received as a 

beneficiary of someone else's annuity, since it will not have 

been previously reported.

Schedules B & C Filers need not report either type of annuity as an arrangement on Schedule C, Part II, unless it is part of a pension or other employee benefit plan. Filers also need not report transactions involving annuities on Schedule B, Part I, because they are contracts, not security transactions.
 Reviewing Common Entries—Investment Vehicles 

Example

The following sample SF 278 entry demonstrates the reporting of the 

two basic types of annuities.

Annuities Do

Not Normally 

Pose Concerns

Conflict of Interest Analysis

As an insurance product, annuities require a fairly simple conflict 

of interest analysis. In a fixed-rate annuity, the life insurance 

company's guarantee of a specific rate of return creates a financial 

interest for the employee in matters affecting the insurance company. 

Unless the employee can affect the financial soundness of the 

insurance company involved or has access to non-public information 

concerning the company, an annuity should not pose conflict of

interest problems.

For variable annuities, the conflict of interest situation is somewhat 

different. Their rate of return is tied to the performance of an 

underlying portfolio or investment vehicle. Accordingly, the 

underlying investments could create additional conflict of interest 

concerns. These underlying assets, however, are almost invariably 

diversified mutual funds, and the assets of these funds are not viewed 

as requiring disqualification under 18 U.S.C. § 208 (see Section 5.3: 

Waivers and Exemptions).

Revised 11/04 

Page 7-19
Public Financial Disclosure: A Reviewer’s Reference 

Revised 11/04 

Page 7-20

7.5 LIFE INSURANCE POLICIES

To the extent that an insurance policy is purely term life insurance, 

it does not require disclosure and does not create a conflict of interest 

problem. Insurance that has an investment portion, however, must be 

reported. An exception to this rule is term insurance that a former 

employer continues to provide. This benefit represents a continuing 

interest in the employer and should be reported.

Filers Need Not 

Disclose Term 

Insurance

Life insurance policies are issued in two basic varieties: term and 

cash value insurance. Term insurance is purely insurance, whereby 

beneficiaries receive a death benefit if the insured person dies during 

the term of the policy. When the policy expires, no value remains. 

Filers need not ordinarily report term insurance on the SF 278. It does 

not normally pose any conflict of interest problems in itself.

Filers Must Disclose 

Cash Value Policies Cash value insurance is part insurance and part investment. Such 

policies require premiums during the life of the insured person in 

exchange for a fixed sum of money to a beneficiary when the insured 

person dies. While part of these premiums pay for expenses and the 

insurance part of the policy, the remainder goes into a tax-deferred cash 

reserve which is invested and builds the policy's cash value.

Brokers and agents sell several types of cash value life insurance 

under various names. These types differ by whether the premium is 

fixed or varies and how the investment portion is arranged. For whole 

life policies (also called ordinary or straight), the insured person pays 

fixed premiums and has no control over investments, which is left to 

the insuring company. With universal life, the insured person can vary 

her premiums by paying them with some of her accumulated cash 

value under the policy, and she normally receives a minimum 

guaranteed rate of return at money market rates. For variable life, the 

insured person chooses investments from among several company 

options, such as stock, bond, or money market portfolios, and their 

performance dictates its value.

Policy holders can normally tap into their savings in the investment 

portion of their insurance policies in several different ways, depending 

on the policy contract:

• Canceling or surrendering the policy to the company and receiving the value of this investment, called the cash surrender 

value; 

• Using these funds to buy more insurance or reduce premiums; 

or 

• Borrowing the money at a below-market interest rate (any 

loans not repaid before the insured's death reduce the death 

benefit). 
 Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-21

Financial Disclosure Requirements

Filers must disclose cash value policies, including their choice of 

investments, if any. The requirements for the filer, spouse, and 

DEPENDENT CHILDREN on Schedule A are:

• the name of the insurance company issuing the policy in 

Block A;

• the type of insurance policy, such as "whole," and, for 

variable life, the investment option(s) chosen, such as Janus 

Mercury;

• a category of asset value, normally the cash surrender value of 

the policy, in Block B; 

• the type of income accruing to the investment portion of the 

policy in Block C, as reported to the policy holder by the 

insurance company. The type is usually interest or dividends, 

but variable life policies may also pay capital gains. Whole and 

universal life insurance policies are not viewed as EIFs because 

they represent an obligation of the sponsoring company rather 

than an interest in an investment fund. Filers should, however, 

use the EIF category when the underlying assets in the 

investment portion of their variable life policy is invested in an 

EIF; and

• the category of amount of income accruing to the investment 

portion of the policy, also in Block C.

Beneficiary 

Reporting 

Insurance From a 

Former Employer 

NOTE: Filers who are beneficiaries under someone else's policy must 

report the actual amount of any death benefits received as a 

beneficiary.

Sometimes a former employer will allow filers to continue to 

participate in their group employee benefit program which provides 

life or health insurance. Filers should report such continuing ties to a 

former employer on Schedule C, part II.

Filers need not report any transactions involving life insurance 

contracts on Schedule B, Part I. Accordingly, reviewers need not 

inquire about policies that seem to disappear from one report to the 

next.

Filers also need not report any amount that they borrow against the 

cash value of their policies on Schedule C, Part I. These loans are not 

reportable because the filers are borrowing against the cash value of 

their policies. They are, in effect, borrowing from themselves.
Public Financial Disclosure: A Reviewer's Reference

Example

The following sample SF 278 demonstrates reporting of the three types 

of cash value insurance:

Conflict of Interest Analysis 

Except for variable life insurance, none of the varieties of cash 

value life insurance pose significant conflict of interest problems

beyond those with the issuing insurance company. Actions in 

Government matters that affect the financial stability of the issuer or its 

willingness or ability to support the policy may create a conflict of 

interest.

The policy's structure dictates further concerns. When filers do not 

control how their money is invested, an interest exists only in the

insurer. Filers who control their premiums' investment, however, also 

have an interest in that investment. Such funds are often diversified 

mutual funds, and the assets of these funds are not viewed as requiring 

disqualification under 18 U.S.C. § 208 (see Section 5.3: Waivers and 

Exemptions).

Revised 11/04 

Page 7-22
 Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-23

7.6 INVESTMENT CLUBS

OGE 86 X 3 Individual investors often join together, either formally or 

informally, to form investment clubs. They form clubs for a variety of 

reasons, including limiting each individual's risk, assisting each other 

with investment decisions and advice, or participating in larger 

investments at lower commissions. To form an investment club, a 

group of persons pool limited or stated amounts of funds to invest 

together. Each member of the club contributes a certain amount of 

capital, with additional money added each month or quarter. 

Investment decisions are usually made by majority vote.

These collaborations range from small, informal investment clubs 

to large groups with written agreements, charters, and bylaws. Despite 

this variety, disclosure of interests in clubs is simple. Each asset in the 

club's portfolio is attributable to the entire membership. The filer, 

however, need only report her proportionate share of these assets. That 

disclosure is also sufficient for conflict of interest review.

Holdings Are 

Attributed to 

The Filer

Use of Account 

Statements

Financial Disclosure Requirements

Filers must list each of the club's holdings as a separate line item, as 

if they (or their spouse or DEPENDENT CHILD) held it directly as long as 

that item meets the reportable threshold. Under generally accepted 

principles, a private investment pool never constitutes the active 

conduct of a trade or business. Thus, the assets of the club cannot be 

excluded from disclosure, like incidental assets of businesses discussed 

in Section 6.1: Business Ownership and Employment Relationships.

Filers should report only their share in the club; that is, they need to 

disclose only the value that corresponds to their percentage share of 

each asset and its income. Alternatively, filers may simply report the 

full value of each of the club's holdings and income and indicate what 

overall percentage they own.

Filers often use statements from the club to fulfill the reporting 

requirement. The statement is acceptable so long as it clearly, 

concisely, and readily discloses all relevant information in accordance 

with statutory and regulatory reporting requirements.

Regardless of the valuation method used, filers must disclose the 

entire list of the club's holdings on Schedule A and transactions of 

those assets on Schedule B, Part I. Because such clubs can hold 

virtually any investment, reviewers should refer to Chapter 8 for 

details on how to report specific assets.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 7-24

Not Normally EIFs

Investment clubs will rarely qualify as EIFs because the members 

of the club usually make the investment decisions for the club, and 

because the portfolio will not normally be considered "widely-held" if 

there are fewer than 100 club members.

Threshold Rules

The threshold for reporting the investment club itself applies to the 

overall amount that filers have invested in the club, not to the value of 

their shares in particular assets. The threshold for reporting the 

underlying assets of the club is based on the filer's interest in that asset.

Example: A club of five equal partners owns 

$50,000 worth of each of the following 

stocks: IBM, AT&T, GM, ITT, and GE. 

The filer reports a $10,000 holding in 

each of the five stocks and one fifth of 

the income the stocks generated.
 Reviewing Common Entries—Investment Vehicles 

Examples

The following sample Schedule A and Schedule B entries

demonstrate how to report two possible investment clubs.

Revised 11/04 

Page 7-25
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 7-26

Conflict of Interest Issues 

Unlike mutual funds, which have independent managers and statutorily 

defined portfolio characteristics, investment clubs vary widely in 

organization and investment policy. There are no generally accepted or 

imposed standards for their investment decisions. In fact, the clubs often 

develop as social groups. Typically, investment clubs involve fewer than 

100 participants, so their portfolio will not normally be considered "widely 

held." Thus, investment clubs will not generally qualify as EIFs, so all the 

assets held by the pool must be disclosed.

Filers involved in investment clubs have all of the pool's holdings 

imputed to them, despite the fact that many of these holdings may be small. 

Agency ethics officials, in consultation with OGE, may wish to grant a 

WAIVER under 18 U.S.C. § 208(b)(l) if certain specific conditions exist:

• the portion of the club's equity attributable to the employee is 

insignificant; 

• the club's security portfolio is independently managed by a licensed 

broker; and

• the portfolio is diversified. 

See Section 5.3: Waivers and Exemptions for detailed information 

on the waiver process. See Chapter 5: Resolving Conflicts of Interest in 

general for descriptions of alternative solutions.
 Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-27

7.7 TRUSTS AND ESTATES

5 C.F.R. §§ 2634.301 

& 2634.310 

OGE DAEOgrams of 

December 19, 2001 

June 11, 2002 

April 12, 2002 

5 C.F.R. § 2634.302(a) 

Estates of deceased persons and private trusts form a relatively 

small part of financial disclosure. This section orients reviewers to 

simple estates and trusts. Reviewers analyzing a complex trust or estate 

may wish to seek specific guidance from OGE. The trust's holdings 

and the relevant financial disclosure and conflict of interest issues 

include a wide variety of investments and arrangements discussed in 

other sections of this chapter and in Chapter 8. Also see Chapter 8 for 

treatment of publicly-traded unit investment trusts. 

Generally, filers need to report holdings and income from any trust 

or estate in which they, their spouse or dependent children hold a 

vested beneficial interest in principal or income. Income received in 

the form of a distribution from a trust is required to be reported by the 

filer in actual amount if a filer does not have a beneficial interest and 

the trust holdings have not been individually reported. Distributions to 

spouses and dependent children are not required to be reported. 

Vested Interests The concept of a vested interest is extremely important--if an 

interest is not vested, a filer need not report it and will not have a 

financial interest under the conflict statute. For example, merely being 

named as an heir in a will by someone who is still living does not 

create a financial interest in the estate, because the will can be 

changed. Similarly, persons do not have a vested beneficial interest in 

a trust when their legal right is conditioned on some uncertain future 

event. A person has a vested interest in a trust or estate if he has a 

present legal right to its property or income (including the authority to 

dispose of the property or income), even if that right is defeasible 

(subject to being revoked or voided). It does not matter when he will 

actually receive the property or income, or whether it will be received 

only after someone else's interest, prior or intermediate, ceases 

(remainder interest).

Uncertainty as to when property will be received does not establish 

that it is non-vested. Rather, uncertainty as to whether the person is 

presently entitled to the property indicates that it is non-vested.
Public Financial Disclosure: A Reviewer's Reference 

The chart below provides common examples of when beneficial

interests are reportable.

Estates 

As the chart above notes, persons named in wills of living persons

do not have legally recognized interests. They need not report any 

interest in the estate until the person who created the estate dies, and

the estate's property and income has been distributed directly or in 

trust.

Heirs Financial Disclosure Requirements

Once filers or their spouse or dependent children have received a 

distribution from an estate or acquired a vested interest in a trust, they 

must report the assets and income on Schedule A and transactions 

among those assets on Schedule B, Part I.

Executors Filers or their spouses serving as executors or administrators for 

estates must report any fees they or their spouse receive on 

Schedule A, using the "other" type of income and reporting the actual 

amount of the fees (for the spouse, only the source). They must also list 

their position (but not their spouse's) on Schedule D, Part I, but only 

after the will becomes operative (that is, after the person who made the 

will dies).

Revised 11/04 

Page 7-28
 Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-29

The Basic 

Organization of a 

Trust 

Trusts

A private trust is a formal, legal arrangement by which legal title 

and management responsibility for a person's property is given to a 

fiduciary, known as the trustee. The person who creates the trust is 

known as the grantor, settlor or donor. The property put into the trust is 

called the corpus (the body, literally), trust res (the thing in trust, 

literally), trust fund, or trust estate. Those who are designated to 

receive income from or ultimately the corpus of the trust are known as 

beneficiaries.

The structures of trusts are often specialized. Trusts are established 

and interpreted under state law. Although the controlling laws may 

vary from state to state, there are some common features among 

certain types of trusts. The following discussion describes, generally, 

the features of some trusts. If you require additional information, you 

may need to conduct additional research or contact OGE for 

assistance.

Generation-Skipping 

Trust

Generation skipping trusts are designed to transfer assets to 

persons who are two or more generations below the donor. Usually, 

the assets are placed in trust for the benefit of the first generation, the 

donor's children, then passed to the next generation at the children's 

deaths. These trusts are established to take advantage of the 

generation-skipping tax exemption.

Living Trust A living trust is one that is created during the settlor's lifetime. 

The settlor may act as trustee of the trust. One of the reasons these 

trusts are established is to avoid probate.

Charitable Trusts A charitable trust is a trust that is created to benefit an 

educational, scientific, religious or other similar purpose. In a 

charitable lead trust, the trust pays a sum to the charity for a specified 

period of time, then distributes the assets to non-charitable 

beneficiaries. A charitable remainder trust pays income first to noncharitable beneficiaries and the remaining assets to the charity.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 7-30

Financial Disclosure Requirements

Because of the many types of trusts, this section provides general 

guidance only. The filer must disclose his own, his spouse's, or his 

dependent child's interest in any trust, if they are currently receiving 

income or have a vested beneficial interest). If however, the remainder 

interest is in or the distribution from a revocable living trust and the 

grantor of the trust is not the filer, filer's spouse or his dependent child, 

then no information on trust assets is required to be reported.

For reportable interests, a filer must ordinarily disclose all property 

held under the trust arrangement and its income on Schedule A, plus 

any transactions of the trust's assets on Schedule B, Part I. Filers need 

only report their own, their spouse's, or their dependent child's 

proportional share. Since a private trust's portfolio is not "widely held," 

it will not qualify as an EXCEPTED INVESTMENT FUND (EIF). Holdings 

within the trust's portfolio, however, could qualify as EIFs, such as 

shares of a MUTUAL FUND or a bank's common trust fund.

Filers must also report on Schedule A any fees they receive as 

trustee and must report their position on Schedule D, Part I. (However, 

a filer need not report the amount of fees earned by a spouse as trustee 

or the spouse's position as trustee.) A filer, spouse or dependent child 

that serves as a trustee but has no beneficial interest in the trust is not 

required to disclose the trust's assets and income unless they are 

receiving fees based on the performance or value of the portfolio, (see 

Section 6.5: Outside Positions for more information on trustees).

Individual Interests 

Below the Reporting 

Thresholds 

Threshold Rules

The threshold for reporting applies to the overall amount of the 

filer's interest, not to the value of her shares of particular assets. 

Underlying assets of the trust must be reported if they individually 

meet the reporting thresholds.

Remainder Interests A filer must report remainder interests in property as a beneficiary 

of a trust. Contingent or conditional interests need not be reported. A 

contingent or conditional interest is one for which the receipt of a 

benefit is contingent on future events or conditions that may never 

happen, such as a marriage or the birth of a child.

Example: A filer's parent establishes a trust which grants the parent a 

life estate in property, and upon the parent's death, the filer will 

receive the corpus. The filer has a reportable remainder 

interest, even before the parent's death.
 Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-31

Blind Trusts

5 C.F.R. § 2634.310(b)(l) 

Reduced Disclosure for Blind or Excepted Trusts

Qualified blind trusts and excepted trusts reduce disclosure 

requirements and the need for conflict assessments, since filers will 

have little or no knowledge of the underlying holdings.

Filers with blind trusts for financial disclosure purposes, known as 

qualified blind and qualified diversified trusts, will have worked 

extensively with OGE and agency officials to establish their trusts (see 

Section 5.6: Qualified Trusts for more information). On their SF 278s, 

filers should not report any information about these holdings but 

merely check the category of value, "qualified trust" and aggregate 

income attributed to them and their spouse and dependent children.

Excepted Trusts 

5 C.F.R. § 2634.310(b)(2) 

The financial disclosure statute created the concept of an "excepted 

trust" to refer to certain trusts in which filers have a vested interest, but 

little or no knowledge of the holdings. A trust is an excepted trust if it 

has both of the following characteristics:

• the filer, the filer's spouse or dependent children did not create 

the trust and

• the filer, the filer's spouse or dependent children have no 

specific knowledge of the trust's holdings or sources of income 

through a report, disclosure, or constructive receipt, whether 

intended or inadvertent. Constructive receipt occurs when a 

person is considered to have received information, even though 

she may not have actual possession, such as when legal 

requirements for delivery have been satisfied. Filers may never 

blind themselves from trusts by simply avoiding information 

that is made available to them. 

For these types of trusts, the filers must indicate the general 

type of holdings to the extent known, but need not report any further 

information about the holdings. The filer would only check the 

"excepted trust" and the appropriate category of amount of income 

from the trust. No reporting of transactions on Schedule B, part I, is 

possible because the filer does not know the trust's assets.
Public Financial Disclosure: A Reviewer's Reference 

Examples

The following sample SF 278 entries demonstrate how to 

report several possible interests in trust and estates. 

Revised 11/04 

Page 7-32
 Reviewing Common Entries—Investment Vehicles 

Revised 11/04 

Page 7-33 

7.8 PREPAID TUITION PLANS

All states and some institutions have established prepaid college 

tuition or savings plans known as 529 plans. These are education 

savings plans to help families save for college costs. Prepaid tuition 

plans are contracts with a state or institution that allow a person to lock 

in today's tuition rates. Prepaid savings plans are investment accounts 

in which an individual chooses among offered investment options, 

usually mutual funds. The participant relies on the growth of these 

funds to pay for education expenses in the future. If an employee, 

spouse or dependent child has an interest in either one of these plans, 

the plan must be disclosed on the financial disclosure report.

Financial Disclosure Requirements

For prepaid tuition plans, the name of the plan and sponsor, the value (the cost the individual paid for the contract may be used) and 

income value, which will usually be none, should be reported on 

Schedule A.

For prepaid savings plans, each of the underlying investment 

choices should be broken out as a separate item, with value and 

income category checked. Most of the investment choices offered by 

these plans will be EIFs. 

Conflict of Interest Analysis

An interest in a prepaid tuition plan, for purposes of 18 U.S.C. 

§ 208 is a contractual interest in the plan sponsor's ability or 

willingness to honor its future obligation.

For prepaid savings plans, each of the underlying investment 

funds is an interest for purposes of 18 U.S.C. § 208. Most of these 

funds will be exempt. (See Section 5.3: Waivers and Exemptions).
Revised 11/04 

Page 8-1

8.0 INVESTMENTS 

5 U.S.C. App. §§ 102 

(a)(l)(B) & (a)(3) 

5 C.F.R. §§ 2634.301 & 

302 

This chapter discusses some of the more common investments that 

filers must report, which they or their spouse or DEPENDENT CHILDREN

hold. The sections of this chapter cover: 

• cash deposit accounts in banks and similar financial 

institutions;

• corporate stocks, bonds, and stock OPTIONS; government 

obligations; 

• MUTUAL FUNDS and unit investment trusts; 

• limited partnerships;

• FUTURES and options on commodities and financial 

instruments; 

• real property and mortgage investments; and 

• collectibles, precious metals and intellectual property. 

Of these investments, the following are considered securities: 

corporate stocks, bonds, and stock options; government obligations; 

mutual funds and unit investment trusts; limited partnerships; futures 

and options; and mortgage-backed instruments. 

NOTE: Some statutes and regulations may define “securities” more 

narrowly, but the term is broadly construed for purposes of financial 

disclosure. The significance of the term “security” for financial 

disclosure is that filers must report transactions involving securities (as 

well as real estate) on Schedule B, Part I. However, transactions 

involving T-bills, notes, and bonds are not reportable. 

Description of 

the Investment

Each section begins with a brief description of the general nature 

and distinctive characteristics of a particular investment. These 

descriptions are intended only as an elementary introduction or 

framework from which to pursue financial disclosure review and 

conflict of interest analysis. Ethics officials should consult financial 

reference manuals or research on the internet for a more definitive 

explanation of each investment.

Disclosure 

Requirements

Following the descriptive treatment of each investment type is a 

discussion of the financial disclosure requirements, with one or more 

graphic examples. See Section 2.2: Reporting Forms for use of 

brokerage statements as attachments in lieu of separately listing each 

item on an SF 278.

Conflicts 

Analysis

Finally, each section pinpoints conflict of interest considerations. 

See Chapter 5: Resolving Conflicts of Interest for different methods of 

conflict avoidance, such as RECUSAL, WAIVER or exemption, and 

divestiture. Some agencies may have additional statutory, regulatory, 

or policy restrictions which ethics officials must apply.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 8-2

Related Information 

in Chapter 7

In reviewing the adequacy of investment disclosures and 

analyzing them for potential conflicts, reviewers should also consult 

Chapter 7: Investment Vehicles, for assets held in investment 

vehicles.
Reviewing Common Entries - Investments 

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Page 8-3

8.1 BANK AND OTHER CASH ACCOUNTS

5 U.S.C. App. §§ 102(a)(l) 

& (a)(3) 

5 C.F.R. §§ 2634.301(b)(7) 

& (b)(9); § 2634.302(b) 

Generally, cash in the form of paper currency and coins need not 

be reported on an SF 278, as it is not held for investment or the 

production of income. In contrast, cash deposit accounts in financial 

institutions, as well as cash equivalents, such as money market mutual 

funds with investment firms, ordinarily must be reported because they 

are held as an investment or for income production. In addition, rare 

coins held for investment and foreign currency held for exchange rate 

speculation must be reported.

Types of Cash Accounts 

5 C.F.R. § 2634.301(c)(2)

Cash Deposit Accounts

Banks, credit unions, and savings and loan associations offer 

various types of cash deposit accounts, most of which bear INTEREST

(or DIVIDENDS). The financial disclosure statute and regulation refer to 

them collectively as PERSONAL SAVINGS ACCOUNTS. The most 

common types that reviewers will see reported are checking accounts, 

passbook and other savings accounts, money market accounts, CDs 

(certificates of deposit), and IRAs (individual retirement accounts) 

held in the form of savings accounts or CDs. (For a discussion of 

IRAs generally, see Section 7.3: Individual Retirement Accounts 

(IRAs).)

Account Differences 

Unimportant

Cash accounts vary as to the depositor’s purpose (check-writing, 

duration of investment, deferral of income tax), withdrawal notice 

requirements (upon demand or at a specified maturity), interest or 

dividend rates, and minimum balance requirements. These differences 

are not significant for purposes of financial disclosure and conflict 

analysis.

Underlying Holdings Not 

Usually Relevant A filer must report the existence of an account and the specific 

financial institution. No matter how these underlying investments 

perform, the institution is contractually obligated to return the 

PRINCIPAL and pay a fixed rate of interest. A depositor is, in effect, a 

creditor of the financial institution, not an equity holder. Therefore, 

the underlying investments are not normally important for disclosure 

purposes or conflicts analysis.

Most filers have no power to influence an account’s value, except 

for employees of agencies that regulate financial institutions, so cash 

accounts rarely present conflict of interest concerns.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-4

Money Market Funds

Like deposit accounts in financial institutions, shares in money 

market funds (MM funds) managed by investment firms are 

considered cash equivalents because of their relative security and 

liquidity. A money market fund is actually a type of MUTUAL FUND

with low-risk investments (Government securities, CDs, and high 

quality bank or corporate obligations) which yields dividends and 

CAPITAL GAINS. Its rates are responsive to fluctuations in the market for 

these investments. MM funds often operate much like cash deposit 

accounts, providing such privileges as check-writing.

Treat MM Funds Like 

Cash Accounts

The name of the specific MM fund needs to be disclosed, but not 

the underlying assets because MM funds will qualify as EXCEPTED 

INVESTMENT FUNDS (EIFs). These funds do not generally present 

conflict of interest concerns. Most filers have no power to influence a 

fund’s value because the rate of return is set on the open market. One 

exception is an employee who works for an agency that regulates 

mutual funds.

Non-Cash Accounts Asset Management Accounts

Some filers and reviewers mistakenly believe that ASSET 

MANAGEMENT ACCOUNTS held at brokerage houses and financial 

institutions maybe treated as cash deposit accounts or cash equivalents 

for reporting purposes, particularly because they are sometimes 

referred to as cash management accounts (CMAs). In fact, asset 

management accounts may offer not only cash accounts, money market 

funds, and checking privileges, but also credit and debit card accounts, 

brokerage accounts (which may hold securities), and MARGIN 

ACCOUNTS (arrangements that permit customers to borrow in order to 

cover the cost of securities purchases). Therefore, the underlying 

investments in an asset management account must be separately 

reported. 
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-5

Financial Disclosure Requirements

5 C.F.R. § 2634.301(c) Cash accounts are reportable if at the close of the reporting period:

• they aggregate over $5,000 in a single financial institution (in 

contrast to the normal $1,000 threshold for assets); or 

• they have accrued more than $200 in INCOME at a single 

financial institution during the reporting period. 

For money market funds, these thresholds apply to each fund. When 

aggregating, filers must include all holdings in a single financial 

institution or money market fund for themselves, their spouse, and 

their DEPENDENT CHILDREN.

Identifying Cash 

Accounts

A cash account should be identified on Block A of Schedule A as 

follows:

• the name of the financial institution; 

• the types of accounts held (optional); and 

• the city and state where the institution is located (not required 

for recognized national and regional financial institutions). 

Identifying MM Funds MM funds should simply be identified in Block A with their full 

name. Underlying assets of MM funds need not be disclosed because, 

as publicly-traded funds, they qualify as EIFs.

Account Numbers 

Not Required

Filers should not list their account numbers. This private 

information is not necessary for conflict of interest review, and it could 

be misused by a person who requests the report.

Valuation For Block B, filers must report the category of VALUE for the 

account or fund at the close of the reporting period. Block C must 

contain both the type and the category of amount of income that has 

accrued. While cash accounts normally pay interest, money market 

funds usually yield dividends and capital gains. For MM funds, filers 

should mark EIF instead of dividends and capital gains. The asset 

value and type and amount of income can be determined from periodic 

statements issued by the institution or fund. IRS Form 1099 will also 

reflect the type and amount of income (for use on annual reports). All 

income must be reported as it accrues, even if it is not withdrawn or 

not available without penalty, such as for an IRA or a CD.
Public Financial Disclosure: A Reviewer's Reference 

If an account or fund was closed before the end of the reporting 

period (or dropped below the $5,000 threshold) but generated more

than $200 in income, the filer must identify it in Block A, report it as 

an EIF (if it is a money market fund) or indicate the type of income (if 

it is a money market account or other cash account), and indicate the 

category of amount of income in Block C. The asset value in Block B 

should be marked “None.”

Transaction Reporting 

not Required 

5 C.F.R. § 2634.303(b)

Filers need not report transactions (deposits/purchases and 

withdrawals/sales) involving cash accounts (personal savings 

accounts) or money market funds.

Examples

The following graphic examples demonstrate reporting of cash 

accounts.

Revised 11/04 

Page 8-6
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-7

Conflict of Interest Analysis 

Conflicts Unlikely 

For Cash Accounts 

and MM Funds 

18 U.S.C. § 208

For most filers, cash accounts rarely present conflicts of interest. A 

cash account could only pose a conflict of interest if a filer could affect 

the security of her deposit or the bank’s ability to pay the promised rate 

of interest. The deposit’s security and the payment of interest depend 

on the solvency of the bank, which few filers could influence. Even if 

they could affect their deposits, Federal deposit insurance may mitigate 

the extent of potential loss. Money market funds also rarely present 

conflicts because most filers are not in a position to influence a fund’s 

value or rate of return.

Banking/Financial 

Agency Employees

It is primarily for employees of agencies that examine or regulate 

financial institutions or investment companies that cash accounts and 

money market funds may create conflict concerns. For example, when 

an entity is experiencing financial difficulties and may not be able to 

maintain its accounts or pay interest when due, an employee of the 

Department of the Treasury or the Federal Deposit Insurance 

Corporation may have duties that conflict. Similarly, an employee of 

the Securities and Exchange Commission might have matters before 

her that could affect the value of her money market fund shares.

In any case where filers will be working on matters that could have 

a direct and predictable effect on their cash account or money market 

fund shares, reviewers should consult the discussion in Chapter 5: 

Resolving Conflicts of Interest.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-8

8.2 CORPORATE SECURITIES

5 U.S.C. App §§ 102(a)(l) 

& (a)(3)

5 C.F.R. §§ 2634.301(b)(2) 

& 2634.302(b)

Securities issued by corporations include:

• shares of stock, which represent an ownership interest; 

• bonds, which evidence a creditor interest; and 

• rights to buy or sell stock, such as OPTIONS, subscriptions 

and warrants. 

Stocks Are Ownership 

Shares

Stocks

Stock shares represent an equity (ownership) interest in a 

corporation and entitle the holder to a claim on corporate assets and 

earnings. Normally, a company pays a portion of its earnings to 

shareholders as DIVIDENDS. Shareholders may also receive CAPITAL 

GAINS when they sell their stock.

Corporations issue two basic types of stock, common and 

preferred. Differences between the two types involve shareholder 

voting rights and the priorities for payment of dividends and 

liquidation claims. For financial disclosure and conflict analysis, these 

differences are ordinarily not significant, and there is no requirement 

to specify the type of stock on a disclosure report.

Bonds Are Debt 

Obligations

Bonds

Bonds constitute a debt owed by the corporate issuer to the 

bondholder, usually with the promise to pay a specified rate of 

INTEREST over a fixed period of time. Alternatively, bonds may be 

issued at a discount, with interest income being the difference between 

the discount (purchase) price and redemption value. Filers sometimes 

report discounted bonds as zero coupon or original issue discount 

(OID).

Corporations issue bonds to borrow money. As corporate debt 

obligations rather than equity interests, bonds do not provide corporate 

ownership privileges, like stock. They do, however, promise a return of 

the PRINCIPAL plus interest income, regardless of the company’s 

earnings. Some bonds are secured by collateral, while others, such as 

debentures, are backed only by the company’s good faith and credit 

standing.

Many investors hold bonds until their maturity, simply to earn the 

interest that accrues from them. Other investors choose to actively 

trade bonds for the potential capital gains income.
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-9

Options Are Rights To 

Buy or Sell

Stock Options

Corporate securities also encompass stock options (including 

subscriptions and warrants), which are rights to buy or sell stocks at 

specified quantities and prices within a certain time period. Like stocks 

and bonds, options are investments that may produce capital gains 

income when sold. Some options are a form of employee benefit. 

These types of options are not purchased and sold over an exchange. 

They are granted by a company to its employees as part of an incentive 

and compensation plan.

Schedule A 

Financial Disclosure Requirements

Corporate securities must be disclosed on Schedule A if they are:

• valued above $1,000 from any single issuer at the close of the 

reporting period; or 

• if they produce INCOME in excess of $200 from any single 

issuer during the reporting period. 

As with other assets, filers must aggregate values of all securities from 

each source for themselves, their spouse, and their DEPENDENT 

CHILDREN.

Identifying the Asset

Disclosure of a corporate security should include in Block A:

• identification of the security as a stock, bond, or option; 

• the name of the corporate issuer; and 

• for non-publicly traded stock, a description of the issuer’s trade 

or business and geographic location, since this information is 

not listed in investment manuals (see Section 6.1: Business 

Ownership and Employment Relationships for further 

discussion of private corporations). 

NOTE: Filers need not specify the number of stock shares or bond units; 

the type of stock (common or preferred) or bond (secured or unsecured); 

the terms for income and maturity of a bond; or the terms of a stock 

option on Schedule A unless the options are under water. Vested and 

unvested options received as compensation must be reported on Schedule 

C, Part II and Schedule D, Part II (if applicable). 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-10

While private companies may issue stock directly to those who 

form the company or provide capital, securities of publicly traded 

corporations are mostly bought and sold through investment firms. 

Filers must disclose each security held in their portfolio that meets the 

asset or income thresholds. If the securities are held through an 

investment firm, it will normally provide periodic statements from 

which a filer may obtain the necessary information.

Determining Asset 

Value

In Block B, the filer should report the category of VALUE for the 

security at the close of the reporting period. To determine the value of 

a security, filers may use current market value of a share or unit as 

shown in daily indexes, face value of a bond, book or exchange value 

of stock, or any good faith estimate if the exact value is unknown or 

not easily ascertainable. They may wish to use the value shown on a 

brokerage account statement that is current at the end of the reporting 

period. See Section 3.3: Schedule A for further discussion of valuation 

methods. A shorthand method to value stock options is the difference 

between the fair market value of the stock and the exercise or strike 

price of the options, multiplied by the number of options held. If the 

fair market value is less than the exercise or strike price, the terms of 

the option should be disclosed. This includes number of shares, strike 

price and expiration date.

Stock and Bond Income Block C should contain the category of income amount received or 

accrued from the security during the reporting period, along with an 

indication of each type of income. Stocks normally produce dividends, 

while bonds usually yield interest, and both may produce capital gains 

when sold. Characterization of income from securities as dividends, 

interest, and/or capital gains, as well as the amount, should be the same 

as shown on IRS Form 1099 (for annual reports). Alternatively, the 

amount and type of income for the reporting period may be determined 

in accordance with periodic statements from the security issuer or 

broker, or with other standard financial accounting practices.

Dividends and interest must be reported when accrued. This 

includes dividends automatically reinvested under a dividend 

reinvestment plan. Similarly, in the case of zero coupon or other bonds 

purchased at a discount, the growth in value must be reported as 

accrued interest income at the end of each reporting period, rather than 

waiting until maturity or sale.

NOTE: For “S” corporations, if income is paid as a net distributive 

share, the actual amount must be reported. See Section 6.1: Business 

Ownership and Employment Relationships.
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-11

Stock Option Income For stock options purchased on the open market that are exercised, 

there will be no reportable income. Even though the option holder may 

be obtaining stock at a price below the current market value, this 

difference is included in the stock’s cost basis. An option may, 

however, produce reportable capital gains income if it is sold rather 

than exercised.

Schedule B, Part I

Transactions

Corporate securities must be reported on Schedule B, Part I, when 

they are purchased, sold, or exchanged if the amount of the transaction 

exceeds $1,000. It is the value of a transaction, not the extent to which 

there are profits or losses, which determines its reporting. The exercise 

of a stock option is not a sale or exchange of the option, but the 

purchase or sale of the underlying stock must be reported as a 

transaction.

Non-Reportable 

Transactions

Filers need not report the following:

• stock splits or reissues; 

• bonds that mature or are redeemed early by the issuer (called); 

or 

• options that expire. 

These events are not reportable transactions because the law only 

requires disclosure of purchases, sales or exchanges. See Section 3.4: 

Schedule B, Part I, for other exceptions, as well as information on how 

to report exchanges, recurring transactions, and sales pursuant to a 

CERTIFICATE OF DIVESTITURE.

Margin Accounts

Investors sometimes maintain a MARGIN ACCOUNT with their 

broker, from which they can borrow funds to purchase securities. 

Filers must disclose margin account liabilities on Schedule C, Part I, 

if the aggregate amount owed to any single broker exceeds $10,000 

during the reporting period.
Public Financial Disclosure: A Reviewer's Reference 

Examples

The following graphic examples demonstrate reporting of different 

types of corporate securities. 

Revised 11/04 

Page 8-12
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-13

18 U.S.C. § 208

Conflict of Interest Analysis

Corporate securities represent financial ties to a corporation, so 

they may present conflicts for Government employees who hold them 

and participate in official matters that could affect the issuing 

corporation. This includes securities held by the filer’s spouse or 

dependent children. The primary focus of conflict analysis is whether a 

Government employee has a financial interest in an official matter in 

which he participates.

Stocks and Stock 

Options

A Government employee who holds corporate stock or stock 

options will ordinarily have a financial interest in an official matter in 

which he participates if the corporation that issued those securities 

could itself be affected financially. Since stocks represent an ownership 

interest in a company, any matter that affects the issuing company’s 

prosperity is presumed to directly and predictably affect the financial 

interests of its stockholders. Stock options present the same concern, 

because their values are closely related to the underlying stock. In 

some cases, filers have been able to accelerate the vesting of options 

acquired through an employment arrangement. In some cases, the 

acceleration might be an extraordinary payment, see Section 6.1: 

Business Ownership and Employment Relationship.

Bonds

57 FR 35023 (August 7, 

1992, Preamble to 

Standards of Conduct)

Bonds, on the other hand, evidence a corporation’s fixed debt 

obligation, which is not normally tied to the corporation’s prosperity. 

Thus, the question of whether a particular matter that affects the 

corporation will have a direct and predictable effect on the financial 

interests of the bondholder (the employee) is less certain than it is for 

stocks.

In deciding whether a matter will have such an effect, a reviewer 

should analyze the matter’s potential to alter either:

• the market resale value of a bond (by affecting market interest 

rates or the corporation’s credit rating, for example); or 

• the corporation’s ability or willingness to repay the debt (by 

affecting its financial stability). 

One factor to consider is the bond’s quality rating, as reported by 

investment services.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-14

Corporate Affiliates 

5 C.F.R. § 2635.402(b) note 

In assessing the potential for conflict between an employee’s 

official duties and her ownership of a corporation’s securities, 

reviewers must focus not only on the corporate issuer but also on its 

affiliates. While not all matters that directly and predictably affect a 

given corporation will similarly affect its parent company or 

subsidiaries, that possibility must, nonetheless, be recognized. Even 

though the particular company in which a Government employee holds 

securities is not a party in an official matter, she would be precluded 

from participating if the matter could directly and predictably affect 

her financial interests through the affiliate company. Reviewers may 

need to consult corporate reference manuals to ascertain affiliates of 

public companies disclosed on financial disclosure reports, and then 

apply the tests discussed above in determining whether affiliate 

securities are disqualifying.

Prohibited Financial 

Interests

Employees may be barred by statute or agency supplemental 

regulations from having certain interests in corporate entities.

In any situation where filers may have a potential conflict of 

interest with corporate securities, reviewers should consult the 

discussion in Chapter 5: Resolving Conflicts of Interest.
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-15

8.3 GOVERNMENT SECURITIES

5 U.S.C. App. §§ 102(a)(l) & 

102(a)(3)

5 C.F.R. §§ 2634.301(b) & 

2634.302(b)

Federal, state, and local governments issue securities in the form of 

debt obligations to help finance their programs and operations. 

Government securities are attractive to investors because they may 

offer safety and tax advantages. This section will discuss:

• U.S. Treasury securities; 

• agency securities which are issued by Federal agencies and 

U.S. Government-sponsored corporations; and 

• municipal securities issued by state and local governments. 

NOTE: Some regulations may define the term “government securities” 

more narrowly, but in this chapter it includes each of the above items.

Treasuries

Treasury Securities

United States Treasury securities, often simply called TREASURIES, 

are debt obligations issued by the Federal Government and secured by 

the full faith and credit (the power to tax and borrow) of the United 

States. Treasuries include:

• Treasury bills, also called T-bills-short-term obligations having 

maturities of one year or less; issued at a discount from their 

maturity value;

• Treasury notes -- intermediate-term obligations with maturities of 

1 to 10 years;

• Treasury bonds -- long-term obligations with maturities of 10 

years or more;

• U.S. savings bonds -- issued in smaller denominations than 

Treasury bonds and not traded on the secondary market like other 

Treasuries; issued either at a discount from maturity value (Series 

EE) or at face value with periodic INTEREST (Series HH);

STRIPS (Separate Trading of Registered Interest and Principal of 

Securities) -- created by the Treasury when it strips the coupons 

(interest) from Treasury bonds and sells the coupons and the PRINCIPAL

separately, at a discount from face value.

Commercially 

Marketed Treasuries

NOTE: Investment firms also strip Treasury bonds and market them 

under acronyms such as CATS (Certificates of Accrual on Treasury 

Securities) and TIGRS (Treasury Investors Growth Receipt). Though 

these strips represent ownership interests in Treasuries, the investment 

firm becomes the obligor for repayment, rather than the U.S. Treasury.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-16

Government Agency Securities

Agency securities, often simply called “agencies,” are debt 

obligations issued by Federal agencies and U.S. Governmentsponsored corporations to help finance their operations. In addition to 

bonds, agency securities include mortgage and loan pass-through 

certificates. The certificate issuer holds pools of MORTGAGES or loans 

as the underlying assets, and passes income from them to investors. 

See also Section 8.7: Real Estate and Mortgage Investments.

Except for issues of the Government National Mortgage 

Association, agency securities are not generally backed by the full faith 

and credit of the United States government, like Treasuries. They are, 

however, indirect obligations of the U.S. that are backed by the 

sponsoring agency or corporation.

In addition to issuing debt obligations, U.S. Governmentsponsored corporations such as the Federal National Mortgage 

Association may also sell equity shares.

Common Issuers of 

Agency Securities

Examples of some common agency security issuers are:

• Government National Mortgage Association (GNMA or Ginnie 

Mae);

• Federal National Mortgage Association (FNMA or Fannie 

Mae); 

• Federal Agricultural Mortgage Corporation (Farmer Mac);

• Federal Home Loan Mortgage Corporation (FHLMC or 

Freddie Mac);

• Export-Import Bank of the United States (ExImBank);

• Farmers Home Administration (FmHA);

• Small Business Administration (SBA); and 

• Tennessee Valley Authority (TVA).

“Munis”

Municipal Securities

Municipal securities, often called munis, are debt obligations 

(bonds and notes) of U.S. states, cities, counties, or other political 

subdivisions of states. Two common types are:

Two Types • General obligations (GOs), used for general expenditures and 

backed by the issuer’s full faith and credit (taxing and borrowing 

power); and

• Revenue bonds (REVs), used to finance specific public service 

projects and backed by cash flow from those projects. Examples 

are bonds to finance bridges, turnpikes, tunnels, water and sewer 

systems, schools, power plants, prisons, transportation systems, 

hospitals, sports complexes, and airports.
Reviewing Common Entries - Investments 

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Page 8-17

Industrial Development 

Bonds

NOTE: As a means of attracting business to a community, a local 

government may issue a type of revenue bond called an industrial 

development bond (IDB), to finance construction of facilities for lease 

to a private corporation. The private company backs these securities, 

so the bond holder has a financial tie to that company, as well as the 

issuing government authority.

Muni Variations Other varieties of municipals include tax bonds, tax anticipation 

notes (TANs), and revenue anticipation notes (RANs), which are 

obligations sold in anticipation of general or specific tax receipts or 

other income that the issuing government entity expects to collect.

Like other debt obligations, municipal securities may be issued at a 

discount as zero coupons. They may also be stripped like Treasuries, 

and sold and backed by investment brokers.

Schedule A

Financial Disclosure Requirements

Filers must disclose on Schedule A government securities that 

exceed the threshold for either the asset VALUE ($1,000 at the close of 

the reporting period) or INCOME ($200 during the reporting period) 

from any one source. Filers must aggregate values from each source for 

themselves, their spouse, and their DEPENDENT CHILDREN in 

determining whether these thresholds are met.

Reporting of a government security should include in Block A 

identification of the issuing government authority and the type of bond 

or other obligation, such as “Dade County, FL, school bonds” or “U.S. 

savings bonds.” For U.S. Government agency securities, a standard 

representation such as GNMA or Ginnie Mae, is sufficient. There is no 

requirement to specify the number of bond units held, the interest rate, 

or the maturity date for any government security.

Asset Value In Block B, filers must report the category of asset value for a 

government obligation at the close of the reporting period. This may be 

a bond’s maturity value. Filers who hold bonds or certificates through 

a broker may use the value shown on their account statement at the end 

of the reporting period. They may also use current market value as 

reported in daily newspapers or a good faith estimate if the exact value 

is unknown or not easily determined. See Section 3.3: Schedule A for 

further discussion of valuation methods.
Public Financial Disclosure: A Reviewer's Reference 

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Page 8-18

Income Block C must indicate the type of income which has been paid or 

accrued during a reporting period, and the category of amount. The 

type of income will usually be interest. It may also include CAPITAL 

GAINS when an obligation has been sold.

In reporting the amount of income in Block C, it is not sufficient to 

state a bond’s series or interest rate, because the law requires that a 

category of amount be reported explicitly. For interest paid 

periodically, filers should have no difficulty in determining the amount 

received. For interest which accrues on a zero coupon or other 

discounted bond, filers should use the amount shown on either their 

IRS Form 1099 (for annual reports) or a brokerage account statement. 

Otherwise, they should estimate the amount of accrued interest during 

a reporting period, such as by apportioning the difference between 

purchase price and maturity value over the bond’s term.

Tax-Deferred or 

Tax-Exempt Income

Filers must report income from government obligations even if it is 

eligible for tax-deferred treatment (for example, Series EE U.S. 

savings bonds) or is tax-exempt (as with some municipals, for 

example). The disclosure law requires investment assets and their 

income to be reported, regardless of tax treatment.

Transactions 

5 C.F.R. § 2634.303(b) 

Filers need not report transactions of U.S. Treasuries on 

Schedule B, Part I. Purchases, sales and exchanges of all other 

government securities (U.S. Government agency securities and 

municipal obligations) must be reported if the amount of the 

transaction exceeds $1,000. It is the value of the transaction, not the 

amount of gain or loss, which must be evaluated.

Non-Reportable 

Transactions No reportable transaction occurs when bonds and certificates 

mature or are redeemed early (called) by the issuer. For general 

exceptions to transaction reporting, as well as how to report exchanges 

and recurring transactions, see Section 3.4: Schedule B, Part I.
Reviewing Common Entries - Investments 

Examples

The following graphic examples demonstrate reporting of different 

types of government securities. 

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Page 8-19
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-20

Treasuries & Agency 

Securities 

18 U.S.C. § 208

Conflict of Interest Analysis

U.S. Government securities rarely present conflicts for Federal 

employees. Few employees work on matters that could directly and 

predictably affect the value of Treasury or U.S. Government agency 

securities. Possible exceptions are filers who work for Federal 

agencies that issue agency or Treasury securities or that regulate them 

(such as the Federal Reserve).

Note that for Treasury bonds which private investment firms have 

stripped (separated interest coupons from the principal) and sold, such 

as CATS, the investment firm is obligated, so the conflict analysis 

must also focus on the private investment firm.

Munis For municipal securities, employees at some agencies may be 

working on matters such as grants and fund allocations to states and 

local communities that could affect these securities’ value. In deciding 

whether a matter will have a direct and predictable effect on the 

financial interests of an employee who holds municipal bonds, 

reviewers should analyze the matter’s potential to affect either:

• the market resale value of the bonds (by affecting market 

interest rates or the sponsor’s credit rating); or 

• the issuer’s ability or willingness to repay its debt obligations 

(by affecting its financial stability). 

Industrial 

Development 

Bonds

One factor to consider is the bond’s quality rating, as reported by 

investment services.

Municipal industrial development bonds may present additional 

conflict concerns. The private company to which the bond issuer 

expects to lease the facilities that are being financed is responsible for 

backing the bonds. Reviewers must, therefore, focus their conflict 

analysis on both the municipal issuer of industrial development bonds 

and the private company involved.

In any case where filers could have a potential conflict of interest 

with government securities, reviewers should consult the discussion in 

Chapter 5: Resolving Conflicts of Interest.
Reviewing Common Entries - Investments 

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Page 8-21

8.4 MUTUAL FUNDS AND UNIT INVESTMENT TRUSTS

5 U.S.C. App. §§ 102(a)(l) & 

102(a)(3)

5 C.F.R. §§ 2634.301(b)(9) & 

2634.302(b)

Stocks, bonds, and other securities may be grouped together by 

investment companies or brokers and sold as MUTUAL FUNDS or unit 

investment trusts (UITs). Shares of mutual funds and units of UITs are 

themselves considered securities. These funds and trusts offer diversity 

(a broad range of holdings), a professionally selected portfolio, and 

liquidity which the individual investor might not otherwise enjoy. 

These two forms of investment are quite similar for purposes of 

financial disclosure and conflict analysis. Their primary difference is 

that UIT portfolios are not managed (no additional purchases and sales 

are made) after the initial portfolio has been selected, while mutual 

funds may continue to buy and sell portfolio assets. The following 

discussion highlights other distinguishing characteristics. 

Mutual Funds

Investment companies establish mutual funds by pooling money 

from individual investors and managing portfolios of securities with 

various objectives, such as regular income, long-term growth, 

diversity, focus on specific industries, tax protection, and balance 

between stocks and bonds. Investors purchase shares in the fund, and 

they receive DIVIDENDS and CAPITAL GAINS as a return on their 

investment.

Funds Have Various 

Investment Strategies

The portfolio of a mutual fund may specialize in such investments 

as U.S. Government bonds or agency securities, municipal bonds, 

corporate stocks and bonds, international stocks and bonds, diversified 

holdings that are representative of major stock indexes, commodity 

FUTURES, OPTIONS, securities of a specific industry or geographic 

sector, money market debt instruments, or various combinations and 

subsets of these categories. For more information about mutual funds 

that specialize in money market instruments, see Section 8.1: Bank and 

Other Cash Accounts.

Open and Closed Funds Mutual funds that are open-ended have a fluctuating number of 

shares, which the investment company sells and redeems on a 

continuing basis at net asset value (daily fluctuating market value of 

one fund share). Closed-end funds have a finite number of shares, 

which are not issued and redeemed on a continuing basis by the issuing 

investment company, though they are often traded on an exchange.

REITs NOTE: Closely related to mutual funds are Real Estate Investment 

Trusts (REITs), discussed in Section 8.7: Real Estate and Mortgage 

Investments. REITs manage a portfolio of real estate equity or 

mortgages and sell shares to individual investors.
Public Financial Disclosure: A Reviewer's Reference 

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Page 8-22

Unit Investment Trusts

Brokerage firms create unit investment trusts (UITs) by 

establishing fixed portfolios of securities with similar maturity dates, 

such as corporate bonds, U.S. Government or municipal bonds, money 

market debt instruments, or mortgage-backed securities. They may 

also hold equities, such as preferred stock. A UIT offers a 

professionally selected portfolio, a diverse range of holdings, and 

various investment objectives, much like a mutual fund. Unlike mutual 

funds, UITs are not managed on a continuing basis -- the portfolio 

investments are fixed when it is established, and they remain 

unchanged until the underlying holdings mature or are redeemed.

Individual investors buy units of the trust, and they receive 

periodic INTEREST or dividends in proportion to their investment, as 

well as capital gains. The trust sells a fixed number of units and 

redeems them when the trust assets have been liquidated. Individual 

investors may also buy and sell units on the secondary market.

Exchange Traded Funds

An exchange traded fund (ETF) is a type of fund whose objective 

is to achieve the same return as a particular market index, like the S&P 

500, or an economic sector, like the healthcare sector. ETFs, similar to 

index mutual funds and sector mutual funds, allow investors to buy 

and sell shares in the collective performance of an entire stock or bond 

portfolio as a single security. However, unlike mutual funds, ETFs are 

listed on an exchange and can be traded intraday. Also, investors can 

buy ETFs on margin and sell ETFs short. Generally, an ETF only sells 

its securities to reflect changes in the underlying index or sector. 

Dividends paid by companies and interest paid on bonds held in an 

ETF are distributed to ETF holders.

Schedule A

Financial Disclosure Requirements

Filers must disclose on Schedule A their interests in mutual funds, 

UITs, and exchange traded funds if the VALUE of their shares or units 

exceeds $1,000 in any one mutual fund or UIT at the close of the 

reporting period, or if the INCOME from any one of those investments 

exceeds $200 during the reporting period. Values must be aggregated 

from each source for the filer, spouse, and their DEPENDENT CHILDREN.
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-23

Full Name Required In Block A, the filer must identify the mutual fund, UIT, or ETF 

by its full name, but need not indicate the number of shares or units 

held. Listing only the family of funds or trusts is insufficient, as it does 

not permit reviewers and the public to ascertain the specific nature of 

the holdings by consulting investment service guides. For example, 

“Fidelity Funds” is not sufficient, but “Fidelity Magellan Fund” is a 

proper entry. Similarly, a UIT must be fully identified, including its 

series number, such as “Nuveen Tax-Exempt Unit Trust, Ohio Trust 

9.” The proper reporting of an ETF might be Standard & Poor’s 500 

Index Depositary Receipts (Spiders or SPDRs).

Most Funds & 

UITs are EIFs

The underlying assets of mutual funds, UITs, and ETFs do not 

ordinarily need to be reported, as most will fit the definition of 

EXCEPTED INVESTMENT FUND (EIF) for financial disclosure purposes. 

See Section 7.1: Excepted Investment Funds for further guidance.

Asset Value Block B should contain the category of asset value at the close of 

the reporting period. This may be based on the net asset value or 

current market value as shown in daily indexes, or any good faith 

estimate if the actual value is unknown or not easily ascertainable. 

Filers may use the value shown on a statement of their account from 

the issuing investment company or broker, if that value is current at the 

end of the reporting period. See Section 3.3: Schedule A for further 

discussion of valuation methods.

Type of Income If a mutual fund or UIT, or ETF is an EIF, filers may simply mark 

the EIF column. They may choose to show the specific types of 

income in Block C (and they must do so if the fund is not an EIF), 

such as dividends for mutual funds, interest or dividends for UITs, and 

capital gains for either of the two, as reported to them by the issuer or 

indicated on IRS Form 1099 (for annual reports).

Amount of Income In Block C, filers must also report the category of income amount 

received or accrued during the reporting period. That value should be 

as shown on IRS Form 1099 (for annual reports) or on statements from 

the investment company or broker, if they are current as of the end of 

the reporting period. Income from mutual funds and UITs must be 

reported when accrued, whether or not it has been withdrawn, is taxexempt, or has been automatically reinvested.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-24

Transactions Purchases, sales, or exchanges of mutual fund or ETF shares and 

UIT units that occur during the reporting period must be shown on 

Schedule B, Part I, if the value of the transaction exceeds $1,000. 

This includes funds holding TREASURIES, even though Treasuries 

would be exempt from transaction reporting if held separately. It is 

the value of the transaction, not the amount of gain or loss, which 

must be evaluated.

For money market mutual funds, no transactions need to be 

reported, because they are treated like cash accounts. See Section 8.1: 

Bank and Other Cash Accounts. Also, redemption of UIT units at 

maturity is not a sale and therefore not a reportable transaction.

Transactions occurring within a fund or UIT portfolio are not 

reportable, as it is only those transactions involving the holder’s units 

or shares which must be reported. This does not apply to buying and 

selling funds within a family of funds but does apply to portfolio 

transactions within a fund. See Section 3.4: Schedule B, Part I, for 

other exceptions and additional information about transactions.
Reviewing Common Entries - Investments 

Examples 

The following graphic examples demonstrate reporting of mutual

funds and unit investment trusts. 

Revised 11/04 

Page 8-25
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-26

Conflict of Interest Analysis

18 U.S.C. § 208 

OGE 86 x 12

Reviewers need not examine the underlying portfolios of mutual 

funds, ETFs and UITs that are diversified in accordance with the 

exemption at 5 C.F.R. § 2640.201(a).

Sector Fund 

Exemption

Many more funds may qualify under the exemption rules, as 

SECTOR FUNDS.

Conflicts with 

Fund Holdings

The underlying holdings, or at least the focus, of any fund or UIT 

that is not exempt must be evaluated for possible conflicts with the 

filer’s agency responsibilities. Reviewers may be able to determine 

from the name of a fund or UIT that its holdings will not present 

conflicts for the filer, or they may need to consult investment service 

guides. See other sections of this chapter that discuss conflict concerns 

for the various investments held in portfolios of funds and UITs.

As with any other asset, the focus is whether the filer’s (or his 

spouse or dependent child’s) financial interest could be directly and 

predictably affected by an agency matter in which he participates.

Conflicts with 

the Issuer

Even if there is no conflict with the underlying holdings of mutual 

funds, ETFs or UITs, filers at some agencies may have a potential 

conflict with the issuing investment company or brokerage. This will 

most likely occur if the filer is employed by an agency that regulates 

securities, such as the Securities and Exchange Commission.

Resolving Potential 

Conflicts

In any situation where filers could have a potential conflict of 

interest with mutual fund, ETF or UIT holdings, reviewers should read 

Chapter 5: Resolving Conflicts of Interest.
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-27

8.5 LIMITED PARTNERSHIPS

5 U.S.C. App. §§ 102(a)(l) & 

102(a)(3) 

5 C.F.R. §§ 2634.301 & 

2634.302(b)

Partnerships may be formed when two or more persons join 

together for the purpose of conducting or investing in a trade or 

business. For a general partnership, such as a law firm (see 

Section 6.2: Law Firms), each general partner holds a managing 

position, is individually liable for the organization’s debts, and 

receives a proportionate share of the partnership’s income. In contrast, 

a limited partnership (LP) usually has only one general partner, who 

organizes and manages its operations. Investment capital for LPs 

comes from a group of limited partners, and the LP offers them 

reduced liability exposure, investment income, and tax advantages. 

This section focuses on the limited partnership.

Investment 

Objectives

Typically, LPs invest in real estate, speculative securities pools, oil 

and gas, equipment for leasing, corporate assets, agricultural products, 

commodity and financial FUTURES, and research and development for 

new products and services. The nature of these investments will 

determine whether limited partners can expect current income or longterm CAPITAL GAINS.

Examples For example, a real estate LP might purchase shopping malls, 

apartment houses, or office buildings, from which it will receive 

INTEREST on loans, rents from tenants, and capital gains when it sells 

its holdings. An LP that operates as a hedge fund will engage in shortterm, high-risk stock trades. An oil and gas LP finances exploration 

and marketing of energy resources, with the expectation of sharing in 

profits from sales or royalties. An equipment leasing LP may purchase 

computers, airplanes, or cable television equipment for lease to 

industry, and it will receive rents in return.

Development, production, and marketing of goods and services 

also offer a source of investment for LPs. Some finance new product 

research and development, from which they receive a portion of sales 

profits. Other LPs invest in movie production for royalty income. An 

agriculture LP invests in the production of crops or livestock, with the 

expectation of sharing in the profits from sales.

May Be Public 

or Private Limited partnerships may be comprised of private investors, or 

they may sell shares publicly. As discussed below and in Section 6.1: 

Business Ownership and Employment Relationships, this difference is 

a primary determinant of the type and extent of information about the 

partnership that must be disclosed on a financial disclosure report.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-28

Financial Disclosure Requirements

Unlike general partners, limited partners are strictly investors. 

Therefore, with respect to the partnership, limited partners will not 

have an outside position or fees for services to report, as do general 

partners. See Section 6.1: Business Ownership and Employment 

Relationships.

Assets & Income Limited partners must report on Schedule A their partnership 

investment if the asset VALUE exceeds $1,000 at the close of the 

reporting period, or if any INCOME derived from the partnership 

exceeds $200 during the reporting period. Asset and income values 

from each partnership must be aggregated for the filer, spouse, and 

DEPENDENT CHILDREN.

Public LPs Are 

Usually EIFs

Publicly traded or offered LPs will ordinarily meet the definition of 

EXCEPTED INVESTMENT FUND (EIF), which reduces the financial 

disclosure detail required. See Section 7.1: Excepted Investment Funds.

Identifying Public LPs In Block A of Schedule A, the filer must simply identify a publicly 

traded LP by its full name, such as “Jones Intercable Investors, LP.” 

This is sufficient for reviewers and the public to discover more about 

the organization and its underlying holdings through investment 

service guides.

Identifying Private LPs If the LP is not publicly traded, filers must report:

• the name or identification of the LP; 

• its location; and 

• a brief description of its purpose or operation. For example, 

“Oil and gas exploration in Oklahoma and Texas,” “Office 

building rental in Portland, Oregon,” “TV equipment leasing to 

Channel 99 in Oshkosh, WI,” or “Investment partnership.” If 

the partnership is a non-EIF investment partnership each 

underlying asset must be disclosed as a separate line item as 

long as that item meets the reporting threshold. Non-disclosure 

of underlying assets will only be permitted if the fund manager 

demonstrates that the underlying assets will not be provided 

and the filer agrees to divest. 
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-29

Reporting LP Values Block B must contain the category of asset value for LP shares 

held at the close of the reporting period. For LP shares held through a 

broker, this will be the value shown on a statement that is current at the 

end of the reporting period. Filers may also use any of the valuation 

methods described in Section 3.3: Schedule A. For investment 

partnerships that are not EIFs, each underlying asset must be disclosed 

as a separate line item with a Block B category of value for each asset.

Reporting LP Income Filers must specify the exact amount of partnership income in 

Block C. This may be accomplished by writing “Partnership Income” 

and the actual amount in the “Other Income” column of Block C. 

There are four exceptions to the requirement for disclosing the exact 

amount of partnership income:

• For a publicly traded partnership that is an EIF, the filer may 

check a type and a category of income in Block C. 

• For a non-EIF investment partnership for which all the 

underlying assets must be disclosed, the filer may check a type 

and category of income in Block C for each of the underlying 

assets. 

• For a partnership that holds rental property, the filer may check 

”rent and royalties,” for type of income and category of value 

for income. 

• For a partnership interest for which there was no net 

distributive share, the filer may check the “none” box for 

income. 

Accrued Income Income from LPs must be reported when realized, whether or not it 

is available for withdrawal or is tax-deferred.

For annual reports, the types of income and the amount should 

match information provided to the filer by a broker or on Schedule K-l 

of the partnership’s IRS Form 1065.

LPs Often 

Incur Losses

NOTE: Limited partnerships are sometimes used as tax shelters and 

post losses rather than capital gains. Therefore, it is not uncommon to 

see an LP reported as an investment asset with no income.

Transactions Purchases, sales, or exchanges of shares or units held in a limited 

partnership must be reported on Schedule B, Part I, if the value of the 

transaction exceeds $1,000. It is the value of the transaction, not the 

amount of gain or loss, which must be evaluated. See Section 3.4: 

Schedule B, Part I, for exceptions and additional information about 

transactions.
Public Financial Disclosure: A Reviewer's Reference 

Examples

The following graphic examples demonstrate reporting of limited 

partnerships. 

Revised 11/04 

Page 8-30
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-31

Conflict of Interest Analysis

Reviewers Must Look 

to Underlying Holdings 

18 U.S.C. § 208

Even though an LP may qualify as an EIF for reduced disclosure 

purposes, the underlying holdings must still be examined for possible 

conflicts with the filer’s agency responsibilities. See Section 7.1: 

Excepted Investment Funds.

Conflict analysis of an LP requires the reviewer to focus first on 

the general nature of an LP’s holdings, such as real estate, oil and gas, 

TV equipment leasing, the movie industry, or pharmaceutical research 

and development, in order to determine whether there is any potential 

for conflict.

Seeking Additional 

Information

If this general analysis reveals that the filer might be involved in 

official matters that could affect the type of investments which the LP 

holds, the reviewer should seek a more specific listing of the 

underlying holdings. For publicly traded LPs, this information may be 

found in investment service guides; for private LPs, consult the 

investment manager.

Conflicts for 

Regulators

Employees of agencies that regulate publicly-traded LPs, such as 

the Securities and Exchange Commission, will have additional conflict 

of interest concerns.

The reviewer must analyze the potential for a conflict and fashion 

preventive steps. The focus of the conflict analysis should be whether 

the filer’s (or his spouse or dependent child’s) limited partnership 

financial interest could be directly and predictably affected by an 

agency matter in which he participates. See the discussion in 

Chapter 5: Resolving Conflicts of Interest, for further guidance.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-32

8.6 FUTURES AND OPTIONS

5 U.S.C. App. §§ 102(a)(l) & 

102(a)(3) 

5 C.F.R. §§ 2634.301(b)(2) & 

2634.302(b)

A FUTURES contract (or future) is an agreement to buy or sell a 

commodity (such as agricultural products) or a financial instrument at 

a stipulated price, quantity, and time. It is a method of speculating 

about or hedging against future prices for the underlying commodity or 

instrument. Hedgers use futures as a means of protecting themselves 

against losses resulting from market price changes on underlying 

commodities or financial instruments that they may own or trade. 

Speculators buy and sell futures for potential profits from the change in 

value of the futures themselves.

Futures and Options 

Contrasted

Investors in futures are obligated to buy or sell the underlying 

commodity or instrument, unless the investor has offset his obligation 

with an opposite trade prior to the settlement (delivery) date. In 

contrast to a futures contract, an OPTION contract does not obligate the 

purchaser. It grants him the right, but not a legal obligation, to buy or 

sell on specified terms. He may choose not to exercise the option, 

depending on market price fluctuations. For stock options, see the 

discussion in Section 8.2: Corporate Securities.

Examples Traditionally, futures and options have been bought and sold on 

agricultural commodities (crops, products, and livestock), as well as 

precious metals and energy fuels. There is also an active futures and 

options market in the INTEREST rates of financial instruments such as 

TREASURIES and Ginnie Mae agency certificates (see Section 8.3: 

Government Securities), and in the values of foreign currencies and 

stock indexes. Because futures and options are pinned to the price 

fluctuations of other investments and commodities, they are sometimes 

referred to as derivatives.

Financial Disclosure Requirements

A future or option must be reported if its fair market VALUE

(unrealized gain) exceeds $1,000 at the close of the reporting period or 

if the INCOME from it exceeds $200 during the reporting period. Asset 

and income values from each source must be aggregated for the filer, 

spouse, and DEPENDENT CHILDREN.
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-33

Schedule A In Block A of Schedule A, the filer must identify the future or 

option by name, such as “soybean futures.” There is no requirement to 

specify the contract’s terms unless the holding is under water. Block B 

should contain the category of asset value of the contract at the close of 

the reporting period. Value can normally be determined from a daily 

newspaper’s financial section or from a brokerage account statement. 

Other valuation methods are discussed in Section 3.3: Schedule A.

Futures and Options 

Are Not EIFs

Income from futures or options will be CAPITAL GAINS, which 

should be reported by marking the capital gains column in Block C. 

Filers will not be able to use the EXCEPTED INVESTMENT FUND column, 

as futures and options do not meet the definition of an EIF.

Also in Block C, filers must indicate the category of amount for 

any reportable income. Though actually realized when the future or 

option is traded or settled, gains or losses are evaluated each year on 

paper for tax purposes. Filers should use the capital gains value that is 

provided to them by their broker or investment firm for tax purposes.

Futures and Options 

Often Lose Value

NOTE: It is not uncommon for a future or option to result in losses 

rather than gains; therefore, the reviewer may expect to encounter 

entries on a financial disclosure report with income marked as “none.” 

Purchases, sales, or exchanges of futures and options must be reported 

as transactions on Schedule B, Part I, if the value of the transaction 

exceeds $1,000. It is the value of the transaction, not the gain or loss, 

which triggers this requirement.

Transactions No reportable transaction of the future or option itself occurs when 

a future is settled by delivery of the underlying commodity or 

instrument, or when an option expires. See Section 3.4: Schedule B, 

Part I, for other exceptions and additional discussion. The purchase or 

sale of any underlying security (to settle a future or option) must, 

however, be reported as a transaction.

NOTE: For guidance on disclosure of corporate stock options, see 

Section 8.2: Corporate Securities.
Public Financial Disclosure: A Reviewer's Reference 

Examples

The following graphic examples demonstrate reporting of futures 

and options. 

Revised 11/04 

Page 8-34
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-35

Look to the Underlying 

Commodity or Financial 

Instrument 

18 U.S.C. § 208

Conflict of Interest Analysis

Reviewers should examine the underlying commodity or financial 

instrument of a future or option for possible conflict with the filer’s 

agency responsibilities. The general nature of the commodity or 

financial instrument, as described on a financial disclosure report, 

should be sufficient to determine whether there is a potential conflict, 

since futures and options are ordinarily contracts for generic types of 

commodities or instruments, not specific holdings. For guidance on 

conflicts analysis for stock options, see Section 8.2: Corporate 

Securities.

The conflict potential for futures and options is of concern 

primarily for agencies that have responsibilities affecting the value of 

agricultural or energy products or interest rates. Filers who work for 

agencies that could affect the futures and options market itself, such as 

the Commodity Futures Trading Commission or the Securities and 

Exchange Commission, will have an additional conflict focus.

As with any conflict analysis, the question is whether the filer’s 

financial interest could be directly and predictably affected by an 

official matter in which she may participate. For potential conflicts of 

interest with futures and options, reviewers should consult the 

discussion in Chapter 5: Resolving Conflicts of Interest for further 

guidance.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-36

8.7 REAL ESTATE AND MORTGAGE INVESTMENTS

5 U.S.C. App. §§ 102(a)(l) & 

102(a)(3)

5 C.F.R. §§ 2634.301(b) & 

2634.302(b)

This section will discuss real estate, mortgage-backed securities, 

and real estate investment trusts (REITs), which are described as 

follows:

• Real estate includes land, the buildings and structures on it, 

and rights within the land, such as minerals.

• Mortgage-backed securities are issued when Government 

agencies (including U.S. Government-sponsored corporations) 

or private investment firms pool mortgages and pay out income 

from them to investors. A MORTGAGE is a loan to finance 

construction or purchase of real estate, whereby the borrower 

gives the lender a lien (a claim against the real estate) as 

security for repayment.

• REITs hold diversified portfolios or real estate and mortgages, 

and they sell shares, much like MUTUAL FUNDS.

Real Estate

Real estate investments typically include residential property, such 

as homes, apartment buildings, and hotels; commercial property, such 

as office buildings, business sites, and shopping malls; and land which 

is held for agricultural use or mineral exploration. Real estate as an 

investment also includes a vacant lot if held for the production of 

income, such as appreciation in value. Owners of real estate receive 

rents from tenants, with the potential for CAPITAL GAINS if they sell the 

property.
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-37

Types of MortgageBacked Securities

Mortgage-Backed Securities

Mortgages are discussed in Chapter 10: Liabilities and Funds 

Receivable. This section examines securities that are backed by 

mortgages held by a creditor (lender) or investment manager. Three 

common types are:

• Mortgage Pass-Throughs--Pass-throughs are created by pooling 

mortgages and selling share certificates backed by the pools. 

Monthly INTEREST and PRINCIPAL on these mortgages is “passed 

through” by the share issuer from the lending institution to 

certificate holders until the underlying mortgages mature or are 

paid off early. In addition to interest, shareholders may realize 

capital gains when they sell their certificates.

NOTE: Most mortgage pass-throughs are issued by the 

Government National Mortgage Association (GNMA or Ginnie 

Mae), the Federal National Mortgage Association (FNMA or 

Fannie Mae), and the Federal Home Loan Mortgage Corporation 

(FHLMC or Freddie Mac). See discussion in Section 8.3: 

Government Securities. They may also be issued by private 

lenders.

• Collateralized Mortgage Obligations (CMOs) -- CMOs are 

mortgage-backed bonds (debt instruments) that pass income 

through as periodic interest. The mortgage pool portfolios are 

grouped by maturities as short, medium, or long-term, for better 

predictability as to full return of principal. 

• Real Estate Mortgage Investment Conduits (REMICs) -- REMICs 

are partnerships, corporations, or trusts that issue securities backed 

by mortgage pools and that serve as income pass-throughs. 

REMICs may issue both bonds (debt) and ownership certificates 

(equity), from which an investor may receive income, usually as 

interest and capital gains. Issuers include U.S. Government 

agencies and private investment firms. 

REITs Are Similar to 

Mutual Funds

Real Estate Investment Trusts

REITs manage diversified portfolios of real estate and mortgages, 

sell shares, and are usually publicly traded, much like mutual funds. 

Shareholders receive income as rents, interest, DIVIDENDS, and capital 

gains. See also Section 8.4: Mutual Funds and Unit Investment Trusts.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-38

Financial Disclosure Requirements

Investment real estate and mortgage-backed securities, as well as 

shares in REITs, are assets held for the production of INCOME. Filers 

must report these assets if their fair market VALUE exceeds $1,000 at 

the close of the reporting period, or if the income from any asset 

exceeds $200 during the reporting period. Values must be aggregated 

from each source for filers, their spouse, and their DEPENDENT 

CHILDREN.

Personal Residence 

Not Reportable

One notable exception to the reporting requirement for real estate 

is a PERSONAL RESIDENCE. This includes one or more private dwellings 

(e.g., a vacation home if it is used as a second personal residence 

and/or vacation homes used as timeshares) of the filer or spouse that 

are not rented out during any portion of the reporting period.

Schedule A In Block A of Schedule A, the filer must identify these assets as 

follows:

Real Estate • For real estate, describe its nature and location, such as 

“residential real estate, Wapakoneta, OH,” or “farmland in 

Lincoln County, IA (corn crop and natural gas royalties).” 

There is no requirement to report the specific address or the 

acreage. If the real estate is held in connection with a business 

operation, the business name, type, and location must be 

indicated, such as “Davis and Covaleski, Polled Herefords, 

Limited Partnership, Yreka, CA.” See also Section 6.3: Farm 

Assets and Income.

Mortgage Securities • For mortgage-backed securities that are publicly traded or 

available, list the issuer and full name of the specific portfolio, 

including any series number. Examples are “The Prudential 

Home Mortgage Securities Pass-Through Certificates, Series 

2004-19,” “Paine Webber CMO Trust, Series 0,” or 

“Residential Funding Mortgage Securities I, Inc. Series 2003-

S30 REMIC II.” The number of units held need not be 

reported.

NOTE: For bonds and certificates of U.S. Government 

agencies or Government-sponsored corporations, a standard 

representation such as Ginnie Mae or FNMA is sufficient. See 

Section 8.3: Government Securities.

REITs • For shares of a publicly traded or available REIT, identify the 

specific name of the trust, such as “Consolidated Capital 

Properties VII.” The number of shares need not be reported.”
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-39

Some REITs and 

Mortgage Securities 

Are EIFs

Mortgage-backed securities and REIT shares that are publicly 

traded or available will fit the definition of EXCEPTED INVESTMENT 

FUND (EIF), so the underlying mortgages or other assets need not be 

listed. See Section 7.1: Excepted Investment Funds. Reviewers should 

ensure that the full name of the particular portfolio is reported 

(except for U.S. Government agency or Government-sponsored 

corporation issues, as noted above). The name of the issuer alone 

does not permit adequate conflict review of the specific underlying 

mortgage pool or real estate portfolio in investment service guides.

Mortgage-backed securities and REITs that are not publicly 

traded or available will not likely qualify as an EIF (because they will 

not meet the alternative requirement of WIDELY DIVERSIFIED), so the 

underlying type of properties and their city and state must be detailed 

on the financial disclosure report.

Asset Value In Block B, the filer must report the category of value of the asset 

at the close of the reporting period. Real estate may be valued by 

using a tax assessment, recent appraisal, purchase price, or a good 

faith estimate. For the value of mortgage-backed securities and shares 

of REITs, filers may use a brokerage statement (if current at the end 

of the reporting period), or they may consult daily newspaper listings 

for publicly traded assets. See the various valuation methods 

described in Section 3.3: Schedule A.

Income In Block C, the filer must mark the appropriate column to indicate 

the type of income. For real estate, this will be rents, royalties, and/or 

capital gains. For mortgage-backed securities and REIT shares, filers 

should indicate rents, interest, dividends, and/or capital gains, as 

reported to them on IRS Form 1099 (for annual reports) or a 

brokerage account statement. Alternately, in the case of an EIF, as 

described above, they may simply mark the EIF column instead of the 

type of income.

Filers must also report in Block C the category of income value 

which has accrued, whether or not it is actually available for 

withdrawal or is tax-deferred. For real estate, this will be gross 

amounts of rents and royalties (before expenses), as well as capital 

gains which are calculated for tax purposes at the time of sale. For 

mortgage-backed securities and REITs, the income value may be as 

shown on IRS Form 1099 or on a brokerage account statement.
Public Financial Disclosure: A Reviewer's Reference 

Transactions Schedule B, Part I, must reflect transactions of real estate (other

than a personal residence, as described above), mortgage-backed 

securities, and REIT shares, if the value of the transaction exceeds

$1,000. It is the value of the transaction, not the amount of gain or 

loss, which is the focus. Transactions occurring within a mortgage

pool or REIT portfolio are not reportable; it is only transactions 

involving the individual’s shares or units that must be reported. No 

reportable sale occurs when mortgage-backed securities mature. See 

Section 3.4: Schedule B, Part I, for other exceptions and additional 

information.

Liabilities For real estate, there must be an entry on Schedule C, Part I, for

any corresponding mortgage liabilities. Mortgages and home equity 

loans associated with a personal residence are exempt.

Examples

The following graphic examples demonstrate reporting of real estate 

assets. 

Revised 11/04 

Page 8-40
Reviewing Common Entries - Investments 

Real Estate 

18 U.S.C. § 208

Conflict of Interest Analysis

For real estate, reviewers must consider its location and use (such 

as farming, mineral exploration or extraction, residential, or a 

particular type of business). From this information, they should be able 

to determine whether the value of the real estate could be directly and 

predictably affected by agency programs in which the filer will be

participating.

Mortgage-Backed 

Securities

For most mortgage-backed securities (particularly those issued by

U.S. Government agencies), it is unlikely that a security holder could

affect his financial interest, as income is tied to the fixed payments 

made by borrowers. If matters on which an employee works could 

directly and predictably affect those payments, however, then the 

reviewer should examine the underlying mortgages by consulting 

investment service guides or the securities issuer.

Revised 11/04 

Page 8-41
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-42

REITs 

Potential Conflict with 

the Issuer

For REITs, if the filer’s agency responsibilities could directly and 

predictably affect real estate, then the reviewer should evaluate the 

underlying holdings for potential conflicts. Investment service guides 

provide information on the holdings of publicly-traded REITs. See also 

the conflict of interest discussion in Section 8.4: Mutual Funds and 

Unit Investment Trusts, as REITs are similar to mutual funds that are 

not widely diversified.

Reviewers must also consider whether a conflict might exist with 

the issuer of mortgage-backed securities and REITs, if the agency’s 

functions could affect that entity.

If a potential conflict of interest exists, see the discussion in 

Chapter 5: Resolving Conflicts of Interest for guidance.
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-43

8.8 COLLECTIBLES, METALS, AND INTELLECTUAL PROPERTY

5 U.S.C. App. §§ 102(a)(l) & 

102(a)(3) 

5 C.F.R. §§ 2634.301(b)(5) &

2634.302(b)

This section discusses items of personal (physical) property, 

including collectibles, precious metals, and intellectual works, which 

must be reported if held for investment or the production of income.

Collectibles Collectibles include virtually any items of personal property that 

are unique, limited in quantity, antique, or hold special quality or 

personal significance. Works of art, vintage automobiles, stamps, 

jewelry, gemstones, antique furniture, rare coins, and books are but a 

few examples.

Only Report Collections 

Held for Investment

Collections may serve a variety of purposes, such as enjoyment (a 

hobby or display), utility, and the expectation of an increase in value. 

They are only relevant for financial disclosure and conflict analysis, 

however, if they are held for investment or the production of income. 

For example, antique household furnishings and paintings displayed 

for decorative or artistic purposes would not be collectibles held for 

investment, while periodic sales from a collection would indicate an 

investment purpose.

Precious Metals Precious metals, such as gold, silver, and platinum, may be held as 

a hedge against inflation or foreign exchange fluctuations. Other than 

coin collections or jewelry held strictly for enjoyment or utility, 

precious metals are ordinarily reportable because they are held for 

investment. Some investors take physical possession of precious 

metals in the form of ingots, jewelry, or coins, but metals are often 

held as warehouse certificates issued by brokers, bankers, and dealers. 

They may also be held indirectly through shares in metals MUTUAL 

FUNDS and FUTURES. See other sections of this chapter for treatment of 

these related securities investments.

Intellectual Property Finally, filers may hold investments in intellectual property and 

related rights. Examples include original manuscripts, patents, 

copyrights, and publication contracts for literary works, musical 

scores, computer software, and similar creative or artistic endeavors.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 8-44

Schedule A

Financial Disclosure Requirements

A collection, precious metal, or intellectual property interest that is 

held for investment or the production of income must be reported as an 

asset if it is valued above $1,000 at the close of the reporting period, or 

if it produces INCOME over $200 during the reporting period. Filers 

must aggregate values from each source for themselves, their spouse, 

and their DEPENDENT CHILDREN.

Transactions Are Not 

Reportable

Disclosure of purchase and sales transactions is not required for 

collectibles, precious metals, or intellectual property (except when 

precious metals are held through securities such as mutual fund shares 

or futures).

Collectibles

For collectibles held as investments, filers must describe their 

nature in Block A of Schedule A, such as “rare books,” “impressionist 

oil paintings,” or “classic cars.” The category of VALUE must be 

indicated in Block B. Purchase price, a recent appraisal for insurance 

purposes, a published price guide, the recent sale price of similar items, 

or a good faith estimate are common methods of determining the fair 

market value of collectibles.

Block C should contain the type of any income and the category of 

amount. This will ordinarily be “none” until items from the collection 

are sold, at which time there may be CAPITAL GAINS.

Precious Metals

For precious metals that are held as investments, the filer should 

specify in Block A the type of metal owned. For clarity, she may also 

wish to indicate whether it is held as ingots, jewelry, coins, or 

warehouse certificates. There is no requirement to disclose the 

quantity. (For metals held indirectly through securities such as a metals 

mutual fund or future, see other relevant sections of this chapter for 

disclosure requirements.)

Block B should show the category of value, which will ordinarily 

be the published current market price. Block C must reflect the type of 

any income and the category of amount; this will ordinarily be “none” 

until the metals or their warehouse certificates are sold, at which time 

there may be capital gains.
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-45

Both Earned and 

Investment Income

Intellectual Property

Intellectual property produces EARNED INCOME (compensation for 

services) when the work itself is sold to a publisher, and it may yield 

INVESTMENT INCOME in the form of royalties as individual copies are 

sold. In Block A, intellectual property should be described by 

indicating its nature and any contractual arrangements, particularly for 

earned income.

Examples: “Elements of Accounting textbook; all advances previously 

received from Harcourt Brace Jovanovich” and “Screenwriting 

Royalties, Pocahontas, Disney Studios.”

OGE 82 x 18 In Block B, the filer must indicate the category of value. This will 

include any advances and contract payments in the form of earned 

income that have not yet been received for transfer of the intellectual 

property to the publisher, as well as any royalties currently due from 

the publisher for completed sales. When an interest in future royalties 

cannot be ascertained it is acceptable to indicate in Block B that the 

value is unascertainable.

Actual Amount of 

Earned Income 

Required

In Block C, earned income payments received during the reporting 

period must be described in the “other” column, such as “advances and 

contract payments from publisher,” and the actual amount must be 

reported. As royalties are paid, the filer must mark the box for royalty 

as the type of income, along with the category of amount.
Public Financial Disclosure: A Reviewer's Reference 

Examples

The following graphic examples demonstrate reporting of 

collectibles and intellectual property.

Collectibles and 

Metals Rarely Pose 

Conflicts 

18 U.S.C. § 208

Conflict of Interest Analysis

Collectibles rarely present conflict of interest concerns, as the 

filer’s Government duties seldom involve matters that could directly 

and predictably affect these interests. Likewise, precious metals do not 

ordinarily present a potential for conflict. The value of these items and 

their potential for producing capital gains upon resale are controlled 

primarily by market forces of supply and demand, as well as popular 

fads for certain types of collections, and interest and foreign exchange 

rates for precious metals.

Revised 11/04 

Page 8-46
Reviewing Common Entries - Investments 

Revised 11/04 

Page 8-47

A few agencies may have missions that could affect the value of 

specific types of collectibles or precious metals because of their roles 

concerning taxes or interest rates. Even when this possibility exists, it 

is unlikely that a filer would be acting in a particular matter that could 

have a direct and predictable effect on his financial interests. See 

Chapter 5: Resolving Conflicts of Interest.

18 U.S.C. § 209 

5 C.F.R. Part 2635, 

Subpart H 

5 C.F.R. Part 2636, 

Subparts B & C

Intellectual property is more likely to present conflict concerns, 

particularly if the subject matter of the work-product relates to the 

agency’s mission or the employee’s responsibilities, or if the publisher 

could be affected. Additionally, to the extent that advances and 

contract payments (other than continuing royalties) will be earned 

during Government employment, some classes of senior employees are 

subject to special restrictions. See Chapter 11: Federal Ethics Laws 

and Regulations in Brief, particularly the discussions of 18 U.S.C. 

§ 209, outside activities, and earned income restrictions.

Employee-Inventors

OGE DAEOgram of 

September 7, 2000

In cases where the Government waives any interest in 

commercializing an invention and permits the employee-inventor to 

pursue patent rights, section 209 ordinarily does not preclude outside 

royalty payments to the employee-inventor.
 

Revised 11/04 

Page 9-1

9.0 GIFTS 

The servants of the nation are to render their services 

without any taking of presents.... The disobedient shall, if 

convicted, die without ceremony. 

-- Plato, Laws

While some may admire Plato for his direct and strict rule, public 

attitudes about the acceptance of gifts by Government employees have 

become considerably more reasonable since Plato's time. The criminal 

restrictions on bribery and supplementation of salary are still quite 

stringent, as are the Standards of Conduct rules on gifts from outside 

sources, though a variety of exclusions and exemptions allow the 

receipt of gifts in certain specified circumstances. Under these 

statutes, gifts are improper if demanded, solicited, or given to 

employees in connection with the performance of their duties. Such 

improper gifts undercut the efficient operation of Government by 

providing the donor with undue influence. Public disclosure and 

scrutiny of the receipt of these gifts is designed both to detect 

inappropriate gifts and to deter their initial acceptance.

Quotation found at: 

1978 U.S. CODE CONG. & 

ADMIN NEWS 4216, 

4333 (Senate Report No. 95-170)

When Congress passed the provisions for public disclosure of 

gifts, the Senate report specifically noted:

the primary purpose for reporting gifts received is to disclose 

any gift that might have been given to influence the official 

performance of a government employee's responsibilities. 

Part II of Schedule B on the SF 278 pursues this goal within the 

confines of the reporting periods and thresholds discussed in 

Section 3.5: Schedule B, Part II. That section also explains the 

reporting exclusions for gifts that are less likely to create conflicts of 

interest, including gifts received by a spouse or dependent child totally 

independent of his relationship to the filer.

See also 41 U.S.C. § 423 for 

procurement integrity provisions 

of the Office of Federal 

Procurement Policy Act.

This chapter discusses the financial disclosure requirements and 

conflict of interest analysis necessary for tangible gifts, entertainment 

gifts, travel and reimbursements. It does not discuss procurement 

integrity restrictions on gratuities. Reviewers may wish to ascertain 

whether employees are procurement officials and analyze their 

disclosures with this knowledge and applicable procurement 

regulations in mind.

OGE recommends that agencies encourage filers to seek guidance 

from an ethics official prior to receiving gifts that are reportable on 

the SF 278. This procedure allows persons to avoid having to pay for, 

to return, or otherwise to dispose of improperly received gifts.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 9-2

9.1 NON-TRAVEL GIFTS

5 U.S.C. App. § 102(a)(2) 

5 C.F.R. § 2634.304

Gifts discussed in this section include anything of monetary value 

(other than travel-related expenses), such as tangible items, services, 

gratuities, favors, entertainment, hospitality, loans, payments, and 

advances (see Section 9.2: Travel-Related Gifts and Reimbursements

for travel-related gifts and reimbursements).

Gifts That Are Not 

Reportable

Reviewers should note that, in addition to anything for which fair 

market value is paid, certain items are not viewed as gifts for purposes 

of financial disclosure (see Section 3.5: Schedule B, Part II ). For 

example, anything accepted by the Government under specific 

statutory authority or contract is not reportable. Gifts from RELATIVES

and gifts received by the spouse or dependent child totally independent 

of their relationship to the filer, are also not reportable.

Financial Disclosure Requirements

Filers need to disclose gifts from a single source to themselves, 

their spouse or dependent child, on Schedule B, Part II, if they exceed 

the $285 reporting threshold and do not fall within recognized 

exclusions. Filers may disregard gifts with a fair market value of $114 

or less when aggregating gifts from a single source. OGE may grant a 

waiver of the reporting requirement in special cases (see Section 3.5: 

Schedule B, Part II, for discussions of the exclusions and the reporting 

waiver). A complete disclosure of a gift provides:

• the identity of its source; 

• the address of the source (city and state); 

• a brief description; and 

• its market VALUE. 

Identity of Source The identity of the source must include the person(s) or 

organization that presented the gift (and the person or group for whom 

they acted as an agent, if any). A gift from a group of individuals is 

considered a gift from a single source for purposes of the $285 

threshold; however, for effective conflict analysis, the filer should list 

all donors to a group gift. (Ordinarily, filers need not identify the 

individual members of an organization that gave them a gift, unless that 

organization formed for the purpose of giving the gift.) This 

identification may be very brief, such as "Tom Mack," but it speeds 

review if filers explain the nature of their relationship with the giver, 

such as, "Tom Mack, personal friend." They may also want to note any 

ethics official's prior approval for receipt of the gift.
 Reviewing Common Entries - Gifts

Description The description of the gift also need only be detailed enough to 

indicate each item that was given, such as "vase." Further explanation 

may, however, help the report to withstand public scrutiny.

Market Value

5 U.S.C. App. § 109(19) 

5 C.F.R. § 2534.304(e)

 5 C.F.R. § 2635.203(c)

Filers must disclose the fair market value of gifts received from 

any single source that meet the $285 reporting threshold. (A gift from a 

group of individuals is considered a gift from a single source.) If a gift

is available in the market, its value is the retail price. If an item is not 

generally available in the local area, the filer should use a good faith 

estimate of market value. Note that OGE has deemed the market value 

of a ticket for food and entertainment to be its face value, regardless of 

its value in secondary markets, such as to a ticket scalper.

The date of receipt is not a required element for disclosure of 

gifts. Filers may list a date of receipt if they so choose. The date 

requirement on the form refers only to gifts of travel or 

reimbursements for travel (see Section 9.2: Travel-Related Gifts and 

Reimbursements).

Examples

The following sample SF 278 demonstrates reporting of different gifts.

Revised 11/04 

Page 9-3
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 9-4

Questions a Reviewer 

Should Answer Before 

Certifying a Report

Conflict of Interest Analysis

After determining that gift disclosure information is complete, the 

reviewer should:

• consider the application of the bribery and supplementation of 

Government salary statutes (18 U.S.C. §§ 201 & 209); 

• analyze the circumstances to determine whether the gift may have 

been given because of the filer's official position; and 

• determine whether the donor was a PROHIBITED SOURCE by 

consulting the agency's listing of contractors, grantees, and similar 

listings. 

If the donor gave the gift because of the employee's official position or 

the donor is a prohibited source, the reviewer should then examine 

whether the Standards of Conduct gift exceptions allow receipt of the 

item.

18 U.S.C. §201 The strongest sanction on gifts is the criminal prohibition against 

bribes and gratuities (see Section 11.1: Criminal Conflict of Interest 

Statutes). An important element of this statute is that the gift must be 

intended to influence official action or be in return for such action for 

the gift to be prohibited. In addition, the Emoluments Clause of the 

Constitution restricts the acceptance of foreign gifts (see Section 11.3: 

Other Conflict of Interest Provisions for more information on foreign 

gifts).

18 U.S.C. §209

5 C.F.R. § 2635.201 to 

§ 2635.205

Another important consideration for gift acceptance analysis is 

whether the item received is a supplementation of salary in violation of 

a criminal statute. The criminal statute does not prohibit giving gifts to 

employees, but it does prohibit gifts given or received as compensation 

for Government service as a supplement to the employees' salaries. The 

difference is whether the giving of the item is connected to 

Government service. Also, some gift donors are considered prohibited 

sources of gifts under the Standards of Conduct, which allows the 

receipt of gifts from such donors only if they fit within certain 

exceptions. These rules help prevent any actual or apparent misuse of 

Government position for private gain or loss of impartiality in an 

employee's performance of Government duties.
 Reviewing Common Entries - Gifts

Revised 11/04 

Page 9-5

The Employee 

Standards of Ethical 

Conduct fully lists 

these exceptions.

5 C.F.R. § 2635.204

The Standards of Conduct bans receipt of gifts given by 

PROHIBITED SOURCES or because of one's official position. The 

following list summarizes the exceptions to this gift prohibition:

• Gifts clearly motivated by a family relationship or private 

friendship; 

• Commercial discounts and similar benefits offered to groups in 

which membership is not related to Government employment 

or, if membership is related to Government employment, where 

the same offer is broadly available to the public through similar 

groups; and certain benefits offered by professional associations 

or by persons who are not prohibited sources; 

• Certain awards and honorary degrees;

NOTE: Such awards greater than $200 require approval, in 

writing, by the agency ethics official. When such a gift is 

reported on an SF 278 that is forwarded to OGE for 

certification, the written approval should be included with the 

form. 

• Gifts resulting from the outside business activities of employees 

and their spouses (totally independent of the relationship to the 

filer); 

• Gifts in connection with political activities permitted by the 

Hatch Act Reform Amendments of 1993 (5 U.S.C. § 7323); 

• Free attendance that the sponsor of a conference or other event 

provides for the day on which an employee is speaking or 

presenting information officially; 

• Free attendance provided by the sponsor of a widely-attended 

gathering of mutual interest to a number of parties where the 

ethics official has made any necessary agency-interest 

determinations; 

• Certain gifts of food and entertainment in foreign areas; 

• Gifts accepted by the employee under a specific statute, such as 

the Government Employees Training Act (5 U.S.C. § 4111) 

with agency approval, or the Foreign Gifts and Decorations Act 

(5 U.S.C. § 7342);

or

• Gifts permitted by a supplemental agency standards of conduct 

regulation.

Note that an employee may not use any of the exceptions listed 

above to solicit or coerce the offering of a gift. Nor may an employee 

accept gifts:

• for being influenced in the performance of official duties or 

• so frequently as to appear to be using public office for private 

gain. 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 9-6

If the gift is received because of official position or is from a 

prohibited source and does not fit an allowed use of the exceptions, the 

reviewer should consider the gift improper and ensure that the 

employee disposes of it properly.

Acceptance 

versus Reporting

Note that filers must still report gifts on the SF 278 that fall within 

these exceptions (unless reported separately under the Foreign Gifts 

and Decorations Act). The exceptions allow the receipt of a gift, but 

that receipt must still be reported (see Section 3.5: Schedule B, Part II

for gift reporting exclusions).

Further Inquiries If the filer's disclosures are insufficient to determine the propriety 

of a gift, reviewers should seek more information to determine whether 

the gift is proper. It is especially important to note again in this context 

that reporting the gift does not constitute or imply any authority to 

retain the gift (see Section 4.3: Obtaining Additional Information for 

guidance on obtaining and recording additional information about gift 

disclosures).

Disposal Options

5 C.F.R. § 2635.205

Disposition of Prohibited Gifts

If a gift received in a private capacity poses a conflict of interest 

problem, the ethics counselor should ensure that the employee follows 

any of the several options listed below.

• The employee may pay the donor market value. The item is no 

longer a gift.

• The employee may return the gift. 

• The employee's supervisor or ethics counselor may also 

approve donating the item to a charity, destroying it, or sharing 

it within the office when a perishable item is involved. 

The agency may wish to pursue disciplinary action against an 

employee if she does not promptly comply with the requirements of 

the Standards of Conduct for disposal of prohibited gifts.

Referral For 

Prosecution

If the disclosure reviewer has information indicating that the 

employee has received a bribe, gratuity, or supplementation of salary, 

the reviewer must refer the matter to the Department of Justice for 

possible prosecution (see Section 5.8: Processing Ethics Violations).
Reviewing Common Entries - Gifts 

Revised 11/04 

Page 9-7

Reviewing Common Entries - Gifts 

Revised 11/04 

Page 9-7
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 9-8

9.2 TRAVEL-RELATED GIFTS AND REIMBURSEMENTS

Sources outside of the Government often provide transportation 

and related food, lodging, and entertainment to employees, either inkind or through reimbursement of expenses. A conflict of interest 

analysis should treat reimbursement the same as an in-kind gift (but 

they are measured against separate thresholds for reporting purposes). 

Reimbursement merely refers to the payment mechanism, not to the 

value exchanged.

Financial Disclosure Requirements

Filers must report any travel reimbursements or gifts that they, 

their spouse, or their dependent child personally receive, if they exceed 

the $285 threshold (from a single source) and do not fall within the 

exclusions (see Section 3.5: Schedule B, Part II). Filers may disregard 

gifts and reimbursements with a fair market value of $114 or less when 

aggregating from a single source.

NOTE: Based on statutory changes effective in 1993, reimbursements 

from a single source are measured against a $285 threshold separate 

from the threshold for all other gifts (items discussed in Section 9.1: 

Non-Travel Gifts, as well as travel-related in-kind gifts).

The description of the gift or reimbursement must include:

• the identity of its source; 

• the address of the source (city and state); 

• a brief description; and 

• its market value. 

Filers must indicate the identity of the source, including the entity 

that presented the gift or reimbursement (and the entity for whom the 

donor acted as an agent, if any). This identification may be brief, such 

as "Rock Collectors Association." Reviewers may wish to suggest that 

filers explain the nature of their relationships with the sources of gifts 

and other relevant information on the form itself, such as, "Rock 

Collectors Association, private activity unrelated to duties, prior 

approval from ethics official Jane Jones received for trip." Filers may 

also wish to note any prior agency approval for receipt.

The description of the gift or reimbursement for transportation, 

food, and lodging must include more information than for gifts 

described in Section 9.1, because of the law's requirements.
Reviewing Common Entries - Gifts 

Descriptions of travel gifts must include:

• the travel itinerary, 

• the dates of travel, and 

• the nature of expenses provided. 

This information must be disclosed on the SF 278 or in an attached memo, 

and it is available to the public along with the rest of the form. 

Filers must disclose the fair market value of travel gifts and

reimbursements received, which is usually the actual amount received.

If the filer's disclosures are insufficient to determine the propriety of a 

gift, reviewers should seek more information to determine whether the gift

is proper. It is especially important to note again in this context that 

reporting the gift does not constitute or imply any authority to retain the 

gift (see Section 4.3: Obtaining Additional Information for guidance on 

obtaining and recording additional information about gift disclosures).

Example

The following sample SF 278 demonstrates reporting of travel gifts, both 

for official and personal trips.

Revised 11/04 

Page 9-9
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 9-10

Gathering Sufficient 

Information 

Conflict of Interest Analysis

The analysis of travel-related gift and reimbursement acceptances 

requires very specific information. Reviewers often need to ask a 

series of questions such as:

• Was the travel in the filer's official or private capacity? 

• Was the sponsor a non-profit organization under IRS Code 

§ 501(c)(3)? 

• What was the subject of the event/speech/meeting? 

• Was the event related to official business or position by the 

nature of the invitation? 

• Was the offer extended to the filer because of her current 

Government position? 

An important initial determination in analyzing any gift of travel or 

reimbursement is whether the traveling employee is on official duty or 

is acting in a private capacity. In general, filers must report only travel 

and reimbursements they received in a private capacity, but there are 

some major exceptions, as noted below in the official duty travel 

discussion.

Official Duty Travel

When a private entity offers a reimbursement or gift of travel to an 

executive branch employee who is carrying out official duties, the 

general rule is that only the employing agency, not the employee, can 

accept the payment. Even the agency can accept the gift only under 

specific statutory authorities. When the agency accepts such payments, 

they are not reportable on the employee's SF 278. However, when the 

agency permits the employee to accept such payments under the 

Government Employees Training Act (5 U.S.C. § 4111), they are 

reportable on the employee's SF 278.

Agencies Need 

Specific Statutory 

Authority 

Comptroller General's 

Decision B-128527, dated 

March 7, 1967 (46 Comp. 

Gen. 689) 

Agency acceptance of reimbursed or in-kind travel from nonGovernmental sources poses problems because agencies may not 

receive any funds without explicit authority to do so. Otherwise, the 

agency will be improperly augmenting its appropriations and violating 

Comptroller General decisions.
Reviewing Common Entries - Gifts 

Revised 11/04 

Page 9-11

Three major authorities allow the agency to use outside travel 

payments for official duty—general statutory authority (implemented 

by the General Services Administration [GSA]), agency-specific 

statutes, and the Government Employees Training Act. While financial 

disclosure reviewers should only see Government Employees Training 

Act acceptances on SF 278s, as discussed below, filers often 

mistakenly disclose the first two, as well. Reviewers should amend 

disclosure reports that improperly report travel and reimbursements 

accepted by the agency, in order to avoid the impression that the 

employee improperly accepted a gift for official travel.

The GSA Travel 

Authority

31 U.S.C. § 1353 

41 C.F.R. Part 304-1

The GSA authority and agency-specific statutes are the two ways 

in which the agency, not the filer, accepts the payment. Since the 

agency accepts, filers should not report such payments on the SF 278. 

The GSA authority is statutory, and is implemented through an 

executive branch-wide regulation. It allows the head of each agency 

(or her delegate) to accept payments for travel, subsistence, and related 

expenses from non-Federal sources for attendance at a meeting or 

similar function. On a semi-annual basis, each agency reports each 

acceptance of $250 or more (or the absence thereof) to OGE.

Agency Specific 

Gift Acceptance 

Authorities 

Certain agencies also have statutory gift acceptance authority, 

generally found in their organic statute. These authorities often limit 

the acceptance to gifts for specific purposes. The agency must have a 

process to determine which offers of gifts it can accept under that 

authority. An agency's authority to accept gifts, including travel 

expenses, must stem from a statute, not a regulation.

Government Employees 

Training Act

5 U.S.C. §4111

5 C.F.R. §§ 410.701-706

26 U.S.C. § 501(c)(3) 

describes eligible nonprofit donors

The Government Employees Training Act permits agencies to 

authorize an employee to accept travel expenses from certain non-profit 

organizations for training or meetings, even though the trip is for 

official duty. Because the employee personally accepts the travel or 

reimbursement, it is reportable on his SF 278. Filers or reviewers 

should note on the form that the employee received the travel or 

reimbursement under this authority.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 9-12

Reviewers should ensure that the trip meets each of the following 

conditions on such acceptances:

• The funds must be for travel-related expenses to attend a 

meeting or training; 

• The funds must come from a non-profit organization that the 

Internal Revenue Code describes at § 501(c)(3); 

• The employee must have received prior written authorization 

for acceptance of such travel expenses; 

• The agency must have certified that acceptance of the expenses 

does not create an actual or apparent conflict; and 

• The agency must follow all other provisions of the 

implementing regulations (cited in the margin). 

Reviewers should also note two important, but sometimes 

overlooked, considerations: 

Two Important 

Considerations: Nonprofit Status and 

Conflicts of Interest

• Some tax-exempt, non-profit organizations, such as political action 

committees, do not fall under subsection (c)(3). The IRS reading 

room can confirm the status of the organization if you provide the 

exact name of the organization and the state of incorporation. Its 

phone number is (202) 622-5164. 

• The fact that the organization is non-profit as categorized under 

section 501(c)(3) does not mean that the offered travel expenses are 

always acceptable. If the organization is a PROHIBITED SOURCE, 

especially if its staff deals directly with the employee involved, the 

agency may decide to decline such reimbursements. 

Summary for Official Travel

Employees should disclose on their SF 278s official travel and 

reimbursement only if they accept it under the Government Employees 

Training Act. When an agency has a specific statute that allows it to 

accept gifts or if it is accepting funds for a meeting or similar function 

under the GSA travel authority, the agency, not the employee, receives 

the gift. Accordingly, the employee should not disclose such 

payments.
Reviewing Common Entries - Gifts 

Revised 11/04 

Page 9-13

Analysis of Private 

Acceptances is Similar 

to Non-Travel Gifts 

Analysis

18 U.S.C. §§201&209 

5 C.F.R. § 2635.201 to 205

Private Capacity Acceptances

As with other gifts, if a filer receives a travel gift or reimbursement 

in a private capacity, the reviewer should first consider the criminal 

prohibitions on bribes, gratuities and supplementation of salary. 

Assuming no criminal issues are present, the reviewer should:

• analyze the circumstances to determine whether the gift may 

have been given because of the filer's official position, and 

• determine if the donor was a PROHIBITED SOURCE by consulting 

the agency's listings of contractors, grantees or other similar 

listing. 

Standards of Conduct

If the gift or reimbursement was given because of official position 

or received from a PROHIBITED SOURCE, the reviewer should determine 

if the exceptions in the Standards of Conduct listed below allow its 

receipt:

The Employee Standards of 

ethical conduct fully lists 

these exceptions.

5 C.F.R. § 2635.204

• Gifts based on a family relationship or a personal friendship; 

• Commercial discounts and similar benefits offered to groups in 

which membership is not related to Government employment 

or, if membership is related to Government employment, where 

the same offer is broadly available to the public through similar 

groups; and certain benefits offered by professional 

associations or by persons who are not prohibited sources; 

• Gifts resulting from the outside business activities of employees 

and their spouses (totally independent of the relationship to the 

filer); 

• Customary travel and entertainment in connection with 

employment discussions; 

• Gifts in connection with political activities permitted by the 

Hatch Act Reform Amendments of 1993 (5 U.S.C. § 7323); 

• Free attendance that the sponsor of a conference or event 

provides for the day on which an employee is speaking or 

presenting information officially; 

• Free attendance provided by the sponsor of a widely-attended 

gathering of mutual interest to a number of parties where the 

necessary determination of agency interest has been made; or 

• Gifts accepted by the employee under a supplemental agency 

standards of conduct regulation or a specific statute, such as 

5 U.S.C. §§ 4111 (Government Employee Training Act) or 

5 U.S.C. § 7342 (Foreign Gifts and Decorations Act). 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 9-14

If the Employee 

Should Not Have 

Received the Travel

An employee may not solicit or coerce a gift or use any of the 

exceptions to accept a gift or reimbursement in return for being 

influenced in the performance of official duties; so frequently as to 

appear to be using public office for private gain; or in violation of any 

conflict of interest statute.

Filers must still report travel-related gifts and reimbursements that 

fall within one of the above exceptions (unless reported separately 

under the Foreign Gifts and Decorations Act). The exceptions are from 

the gift receipt prohibition, not the disclosure requirements (see 

Section 3.5: Schedule B, Part II for reporting exclusions).

If the travel or reimbursement is given because of official position 

or by a prohibited source and the exceptions do not allow it, the 

reviewer should consider the gift or payment prohibited and ensure 

that the employee promptly repays its full value. The agency should 

pursue any appropriate disciplinary action, as discussed in Section 9.1.
Revised 11/04 

Page 10-1 

10.0 LIABILITIES AND FUNDS RECEIVABLE 

This chapter discusses how filers should report debts, such as loans, 

which they, their spouse, or their dependent child have as a borrower 

(their liabilities), and how they should report receivable assets, such as 

loans, for which they, their spouse, or their dependent children are the 

lender. It then suggests conflict of interest analyses.

A loan is a transaction in which one entity, the lender, allows 

another, the borrower, to use property. In return, the borrower 

customarily promises to return the lender's property after a specified 

period and to pay a finance charge. The property, often cash, is called the 

principal. The finance charge is usually based on an interest rate, which 

is a percentage of the principal. In addition, borrowers must often 

commit some valuable property to the lender as collateral that becomes 

the lender's if the borrower does not repay the loan (or defaults).

A receivable asset might include money loaned by the filer, spouse, 

or dependent child, or compensation owed by a former employer, for 

example. 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 10-2 

10.1 LIABILITIES

5 U.S.C. App. § 102(a)(4) 

5 C.F.R. § 2634.305

A liability is a claim on the assets of an individual. It includes 

debts and loans such as promissory notes, MORTGAGES, credit card or 

revolving charge balances, student or investment loans, and consumer 

loans. Filers must report such liabilities on Schedule C, Part I, of the 

SF 278. They need to report loans exceeding $10,000 during the 

reporting period for which they, or their spouses or dependent 

children, are personally responsible, unless those loans meet any of the 

exclusions noted in Section 3.6: Schedule C, Part I, including:

• loans from a Government employee's TSP Account 

• automobile loans (for collectibles, see also Section 8.8:

Collectibles, Metals, and Intellectual Property) ;

• household furniture loans; 

• mortgages on PERSONAL RESIDENCES (if not rented to another 

person); 

• loans from certain relatives (spouse, parent, sibling, or 

dependent 

child of the filer or spouse) 

Business Loans Owners of businesses need not list business loans that directly 

relate to their trade or business.

Example: A filer operates a sports card shop as an outside business. He 

need not report any loans that the business assumes if those loans 

are related to sports cards. If that business decides to stop renting 

retail space and to buy the space it uses, the loan used to finance 

the purchase is also not reportable. If, however, the company then 

buys the unit next door and rents it to another company, the loan on 

the other unit is reportable, because it is unrelated to the business 

of sports cards.

Margin Accounts Filers must disclose MARGIN ACCOUNT liabilities if the aggregate 

amount owed to any single broker exceeds $10,000 during the 

reporting period (See Section 8.2: Corporate Securities). 

Installment Loans 

versus Lines of 

Credit

Types of Commercial Loans

Two general types of commercial loans are installment loans and 

lines of credit. In an installment loan, the borrower receives a set 

amount and must repay it in regular, often monthly, payments that end 

at a certain time. Car loans, mortgages, student loans and most 

consumer loans are installment loans. A line of credit, in contrast, is an 

agreement under which liabilities may be created. A borrower writes 

checks or makes charges to a credit card up to a preset limit and pays 

interest on the amount borrowed. He then has the option of repaying 

the entire balance at once or making monthly payments. For purposes 

of this section, a liability is created if the filer has actually borrowed 

money or exercised the borrowing authority under the line of credit.
 The Review Process-Liabilities and Funds Receivable

Revised 11/04 

Page 10-3 

Loans often have other distinctions in their key terms such as a 

fixed or an adjustable (variable) interest rate. Some loans have a 

security (collateral) that guarantees them, such as a house does for a 

mortgage. Other loans have no security except the borrower's 

promise or contractual agreement to repay, such as a credit card 

balance.

Financial Disclosure Requirements 

Full disclosure of a reportable loan requires six elements on 

Schedule C, Part I:

Elements that Filers 

Must Disclose

Report Loan's 

Highest Value

• The lender's identity should include the name and address of 

the person, financial institution, or other entity to whom the 

filer owes the liability. A change in the name of a lender 

should not concern reviewers if the description of the loan is 

similar to the old one. Such changes usually indicate that a 

filer refinanced the loan, which is a common but nonreportable transaction. 

• The type of liability should describe the purpose of the loan, 

such as mortgage on rental property, student loan or 

promissory note. 

• The date incurred is the date of the beginning of the 

liability. Filers may also use the date on which they 

refinanced the liability. For lines of credit, filers may indicate 

the date when they first exercised their borrowing authority 

above the $10,000 reporting threshold. 

• The interest rate should record the rate the filer pays on the 

loan at the date of filing. Describing the rate in reference to a 

prime rate, such as "prime + 1," or noting that the rate is 

"variable" or "floating" is also sufficient. 

• The term of the loan is the total number of years or months 

that the loan allows for repayment. Describing the term as 

"on demand," "open-ended," "revolving" (credit cards) or 

something similar is also adequate. 

• The category of value of the loan must be reported within 

the listed categories. Unlike Schedule A, which requires 

values as of the close of the reporting period, this schedule 

requires reporting the highest value of the liability during the 

reporting period. Credit cards or other revolving charge 

accounts, however, only require disclosure of their values at 

the close of the reporting period (if over $10,000).
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 10-4 

Filers may find it helpful to note when loans have been paid off 

in the description of the loan. This practice eliminates the need to ask 

about the disappearance of some loans when comparing current and 

past reports. Reviewers should assume that loans formerly in the 

$10,000-15,000 category that fail to appear on the next report 

dropped below the reporting threshold during the reporting period.

Common Rental 

Property Errors

If a filer reports a mortgage on a rental property, she should list 

the rental asset on Schedule A, because it will usually be worth more 

than $1,000 at the close of the reporting period unless it is no longer 

held. A common mistake is for filers to fail to list the property on 

Schedule A because they had a tax loss on it. Reviewers should 

remind such filers that for rental property, Schedule A of the SF 278 

requires the reporting of

• gross, not net, income, and

• property that has a fair market value in excess of $1,000 if 

held for investment or the production of income at the close 

of the reporting period, regardless of the amount of income it 

produced.

Co-signed Loans Reportable liabilities include loans for which a legal obligation 

results from co-signing a promissory note. The filer should disclose 

the identity of the person for whom she co-signed. Conversely, if a 

filer is a guarantor no present liability exists; therefore, disclosure is 

not required.

Tax Deficiencies 

OGE 90 x 2 

Also reportable are overdue tax liabilities, payments owed for 

goods and services, and any other debtor obligation which represents 

a legal claim (liability) on personal assets.

Loans versus Gifts A factor to examine in analyzing borrowed money is whether it is 

strictly a loan or also a gift. Money loaned on better than market-rate 

terms or to a non credit-worthy entity may have the characteristics of 

a gift. Similarly, if the lender decides to delay enforcement of a filer's 

debt when due (forbearance), that may represent a gift. The filer 

receiving such a loan would disclose it as a gift on Schedule B, part 

II and as a liability on Schedule C, Part I, to the extent appropriate for 

each. Both disclosures should receive a conflict of interest review.

Example: A filer receives a loan that requires repayment of principal 

but no interest. The principal is a reportable liability on Schedule 

C, Part I. The interest foregone is a reportable gift (subject to 

normal thresholds and exclusions).

5 C.F.R. § 2634.105(h) & (j) If a lender decides to discharge (forgive) indebtedness, this 

creates reportable income on Schedule A for the filer who owed the 

debt.
 The Review Process-Liabilities and Funds Receivable

Examples

The following SF 278 entries demonstrate reporting for liabilities 

(including an asset listing that is a common indicator of a liability). 

Revised 11/04 

Page 10-5 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 10-6 

Two Primary 

Elements

Conflict of Interest Analysis

When an employee reports a loan, the reviewer should focus on 

two key items:

• the terms of the loan and 

• the identity of the parties involved. 

As noted above, if a loan appears to have been made on terms not 

available to the general public, reviewers should treat the discounted 

loan as a gift and should inquire about the reasons why these special 

terms were available to the filer. The special terms could possibly 

reflect normal economic motives on the part of the lending institution, 

such as offering a lower rate to a customer with very large deposits or 

exceptional credit-worthiness. Terms to be examined include the 

finance charge, repayment period, and collateral required. 

Commercial Loans

Like other routine consumer transactions, loans from banks and 

other financial institutions on terms generally available to the public 

normally do not give rise to significant financial conflict of interest 

concerns. The $10,000 reporting threshold also eliminates most minor 

debts from conflict scrutiny. Debts such as mortgages on rental 

property, student loans, and revolving credit accounts normally do not 

warrant further inquiry unless the filer's duties could affect the 

creditor.

Person-to-Person 

Loans Need 

Special Scrutiny

Loans From Non-Commercial Sources

Loans between two individuals deserve special scrutiny when the 

lending party does not normally make such loans. Such a loan can 

easily be a gift, either if the terms are better than market rates, or if the 

borrower could not get a loan on the market. Reviewers should 

analyze such a loan as if it were a gift from the lender to the borrower, 

and ensure against violations of the criminal prohibitions of bribes, 

gratuities, or salary supplements. Loans from relatives or personal 

friends, however, normally do not pose conflict of interest concerns 

unless special circumstances entangle the employee's personal and 

official capacities.

5 C.F.R. Part 2635, 

Subpart B

Reviewers should also scrutinize carefully any loans from 

PROHIBITED SOURCES of gifts under the Standards of Conduct. Such 

loans should be made on customary terms, with no hint of favoritism.
 The Review Process-Liabilities and Funds Receivable

Revised 11/04 

Page 10-7 

18 U.S.C. § 208 

5 C.F.R. § 2635.502 

5 C.F.R. Part 2635, Subpart B

Example: A Federal employee's spouse is starting a business but can't 

get a bank loan because of her bad credit rating. If she accepts a 

loan from a business entity that her spouse inspects or regulates, 

this may require his recusal under the criminal conflict of interest 

statute or the Standards of Conduct. It may also be an indirect gift 

to him prohibited by the Standards of Conduct.

An important element of any financial conflict of interest case is 

the real possibility of gain or loss. Unless a proposed Government 

action is significant enough to affect the lender's financial well-being 

in a manner which could change the loan's terms or which could 

otherwise affect the repayment of the loan, reviewers need not 

consider it a conflict of interest. Appearance issues may broaden the 

area of concern, but reviewers should note that loans made at armslength on customary terms do not normally require an ethics 

agreement for RECUSAL, WAIVER, or other remedial action.

5 C.F.R. Part 2635, 

Subpart C

Loans Between Government Employees

The terms of the loan are especially important when Government 

employees receive loans from subordinates. In these cases, lenient 

terms of the loan may constitute an unauthorized gift to a superior. In 

this situation, reviewers should consult Subpart C of the Employee 

Standards of Ethical Conduct for further analysis.

5 C.F.R. § 2635.809 

OGE 91 X 15

Fulfilling Just Obligations

Reviewers should also be aware that the Employee Standards of 

Ethical Conduct regulation requires employees to satisfy their just 

financial obligations, especially tax liabilities. The obligations in 

question include those that employees acknowledge and those that a 

court has ordered them to pay. Agencies need not and should not 

intervene in cases where the obligation is a matter of dispute between 

the employee and the alleged creditor.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 10-8 

10.2 FUNDS RECEIVABLE

5 U.S.C. App. §§ 102(a)(l)(B) 

(a)(3)

5 C.F.R. §§ 2634.301 & 

2634.302

Filers and their spouses and dependent children may also serve as 

the lender for a loan, and this receivable account must be disclosed as 

an asset on Schedule A, not as a liability on Schedule C. Additionally, 

they may have other receivable accounts which must be reported, such 

as compensation owed by a former employer, and money owed to 

them for goods or services or as refunds, if income-producing. Filers 

should disclose such receivables valued at more than $1,000 or 

producing more than $200 in income. The subjective purpose behind 

the loan is not important--the controlling factor is whether the loan is 

made for the production of income.

Filers Need Not 

Disclose Loans 

to Certain 

Relatives

By statute, a loan to certain close relatives is not reportable. 

Accordingly, a filer need not disclose any personal liability owed to 

her, her spouse, or her dependent children if the liability is owed by 

her spouse, or by the parents, siblings, or children of the filer or her 

spouse.

Elements of a 

Complete Disclosure

Financial Disclosure Requirements

Because filers report notes and accounts receivable on Schedule A, 

as opposed to Schedule C, part I, they do not publicly disclose the 

terms of the loan on the form. They must, however, disclose:

• In Block A the identity of the borrower. This should include 

the name of the person(s) or other entity who owes the liability, 

and may include any relationship to the filer, as well as the 

purpose of the loan, for clarity. It should also include any cosigners who are legally obligated on the loan. 

• Block B should list the category of value of the loan. Note 

that, unlike loans reported on Schedule C, Part I, filers should 

report the value of a receivable asset at the close the reporting 

period, not its highest value during the reporting period. 

• Block C should list the type and amount of income. The type 

would almost always be "interest." The amount of income 

would be the interest earned on the loan during the reporting 

period. Return of principal or capital is not reportable income. 

Filers need not report any transactions on Schedule B, Part I for notes 

or other receivable assets.
 The Review Process-Liabilities and Funds Receivable

Examples 

The following SF 278 entries demonstrate the reporting of 

receivable assets. 

Reviewers May Seek 

the Loan's Terms for 

Conflict Analysis

Conflict of Interest Analysis

Even though employees do not disclose the terms of a loan 

publicly, ethics counselors may need to know these terms to determine 

the nature of the linkage between the filer and debtor. Depending on 

the circumstances, that information may include:

• whether the debtor is a Government employee, and, if so, any 

supervisory or superior/subordinate relationships involved; 

• whether the debtor is a PROHIBITED SOURCE of gifts under 

Standards of Conduct rules; 

• the security or collateral on the loan; and 

• the term and interest rate. 

Revised 11/04 

Page 10-9 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 10-10 

If the borrower is a relative or personal friend, then the reviewer 

may not need to obtain this information. For example, in the sample 

SF 278 entry above, the loan to a cousin would normally not warrant 

further questions. On the other hand, a reviewer might inquire as to the 

fields in which Smith, Jones, & Harris practice and possibly the clients 

they represent. If one of these parties has matters pending before the 

Government employee, then an analysis will be necessary under 

18 U.S.C. § 208 and 5 C.F.R. § 2634.502. Reviewers should retain 

information they receive in response to such questions. This procedure 

eliminates the need for repetitious questioning upon each successive 

filing, and records the factual basis on which they certified the reports.

Whether a loan made by the filer or money due from a former 

employer creates a § 208 financial interest or appearance concern will 

depend on the circumstances. Since the debtor has a legal obligation to 

make payments to the filer, it is less likely that the filer's financial 

interest may be directly and predictably affected by the outcome of an 

official matter in which he is participating. The question is whether the 

matter may have such an effect on the debtor's ability or willingness to 

repay the debt.

5 C.F.R. Part 2635, 

Subpart C

Loans Between Government Employees

Loans between Government employees deserve scrutiny, 

especially if the debtor is the superior of the filer. In this case, lenient 

terms of the loan may constitute an unauthorized gift to a superior. 

When faced with this situation, reviewers should consult Subpart C of 

the Employee Standards of Ethical Conduct for further analysis.
PART III: 

APPENDIXES 
Revised 11/04 

Page 11-1 

11.0 FEDERAL ETHICS LAWS AND REGULATIONS IN BRIEF 

This chapter summarizes the legal provisions most relevant to 

executive branch financial disclosure review. Reviewers must ensure 

that interests reported on the financial disclosure report comply with 

the following two requirements:

• Disclosure Requirements: The statute and regulations view 

disclosure of assets to the public as an end in itself. A financial 

disclosure report must disclose all of the information that the 

statute and OGE guidance require. 

• Conflict of Interest Requirements: Disclosure also facilitates a 

conflict of interest analysis. The certifying official must 

consider the information disclosed on a public financial 

disclosure report in light of Federal ethics laws and 

regulations. 

A satisfactory review involves, at a minimum, examination of a 

report for compliance with key Federal ethics laws and regulations. 

Because this section is merely a summary for quick reference, it 

should not be construed as a formal interpretation of any statute. 

Reviewers must consult the statutory language, along with any 

regulatory guidance and interpretive opinions. Also, reviewers 

should consider any special statutes applicable to their agency.

Interpretive Opinions

See OGE’s web site at 

www.usoge.gov to view 

the letters and opinions.

As a means of interpreting ethics-related statutes, the Office of 

Government Ethics (OGE) periodically publishes a supplement to The 

Informal Advisory Letters and Memoranda and Formal Opinions of the 

United States Office of Government Ethics. In addition to OGE’s letters 

and opinions and, of course, Federal court opinions, the Office of Legal 

Counsel of the Department of Justice, the Merit Systems Protection 

Board, and the Comptroller General of the United States (General 

Accounting Office) also issue opinions relevant to the ethics area.

Enforcement of Ethics Laws

When an employee has a potential conflict of interest, ethics 

officials must help her resolve the conflict (see Chapter 5: Resolving 

Conflicts of Interest). When an ethics official finds evidence that an 

employee has already violated an ethics criminal statute or regulation, 

she must refer that evidence to the appropriate authority for action (see 

Section 5.8: Processing Ethics Violations for information on taking 

action against an employee).
Public Financial Disclosure: A Reviewer's Reference

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Applicability 

For employees who are appointed as SPECIAL GOVERNMENT 

EMPLOYEES the impact of some of the ethics statutes and regulations is 

reduced. Restrictions imposed upon their private activities are less 

extensive than those applied to regular employees because their limited 

time and authority as an employee make them less subject to improper 

influence. Each section of this chapter makes reference to any reduced 

impact of statutes and regulations on SGEs.
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-3

11.1 CRIMINAL CONFLICT OF INTEREST STATUTES

The criminal restrictions against conflicts of interest are found in 

chapter 11 of Title 18 of the United States Code (§§ 201-209). This 

section summarizes two statutes dealing with representations before 

the Government (§§ 203 and 205), the basic financial conflict of 

interest statute (§ 208) and the prohibition against outside 

supplementation of Government salary (§ 209). Additionally, this 

section briefly discusses § 201 (bribery and gratuities) and § 207 (postemployment restrictions). Pursuant to a Memorandum of 

Understanding with the Department of Justice, the Office of 

Government Ethics can provide interpretive guidance on Sections 202 

through 209. The agreement does not allow OGE to render advice on 

Section 201. 

Enlisted Members of 

the Armed Forces

These statutes, except for 18 U.S.C. § 201, do not apply directly to 

enlisted members of the armed forces, because they are excluded from 

the definition of employee in 18 U.S.C. § 202.

Compensation for Representational Services

18 U.S.C. § 203 This statute bars an employee from seeking or accepting 

compensation for representing another before the executive branch or 

the courts. It is not limited to matters before the employee’s agency. 

This proscription includes the following elements:

• the employee must seek, accept, or agree to receive or accept 

compensation; 

• the compensation must be for representational services 

(designed to influence rather than information-seeking or 

behind-the-scenes assistance) which are provided during his 

Federal employment, whether or not the employee renders the 

services personally or through another; 

• the representational services must be in relation to a particular 

matter in which the United States is a party or has a direct and 

substantial interest; and 

• the representation must be before any department, agency, court 

or other specified entity (not including Congress). 
Public Financial Disclosure: A Reviewer's Reference

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Outside positions, such as with a Government contractor, could lead to 

violations of the statute, depending on how the employee is compensated. 

A salaried contractor employee may be less likely to violate § 203 than 

one who shares in fees the company accepts for representations before the 

Government. Attorneys entering Government service from a law firm that 

practices before Federal entities should be especially aware of this statute. 

They may violate it if they receive partnership shares or contingency fees 

for cases that the firm handles before the Government while the attorney 

in question is a Government employee. This can be avoided by ensuring 

that any continuing compensation from the firm excludes income from 

these cases. 

The statute contains exceptions for representation as part of official 

duty, testimony under oath, and certain representations of the employee’s 

spouse, child, parent, or persons or estates served as a FIDUCIARY.

Section 203 also contains less restrictive standards for SPECIAL 

GOVERNMENT EMPLOYEES (SGEs). For SGEs, the § 203 ban applies only 

in relation to a particular matter involving specific parties:

• In which the employee participated personally and substantially as 

a Government employee; or 

• which is pending in the employee’s agency, if he has served more 

than 60 days as an employee with that agency during the preceding 

365 days. 

Additionally, the § 203 ban does not prevent SGEs from representing 

someone in the performance of work under a Government grant or 

contract if the agency head certifies in the Federal Register that it is 

required in the national interest.
Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-5

Representation with or without Compensation

18 U.S.C. §205 This statute in many respects parallels the previously discussed 

statute (§ 203) but extends to situations where the employee does not 

receive any compensation. This proscription includes the following 

elements: 

• the employee must be acting as agent or attorney for anyone, 

other than himself, whether or not for compensation; 

• services must be representational (designed to influence rather 

than information-seeking or behind-the-scenes assistance); 

• the employee’s representations must be made before any 

department, agency, court or other specified entity (not 

including Congress); and

• the employee’s representation must be made in relation to a 

particular matter in which the United States is a party or has a 

direct and substantial interest. 

The law also prohibits receipt of any gratuity, or any share of or 

interest in a claim against the United States, in consideration for 

assisting in the prosecution of such claim.

Representational services for a friend or acquaintance are banned 

by the statute. Activities undertaken in order to carry out the 

responsibilities of outside positions can also lead to violations of the 

statute, such as when employees serving on boards of organizations 

represent them in seeking Government grants or other action. The 

statute precludes pro bono representation by Government attorneys 

before any Federal agency or any court in cases where the United 

States is a party or has a direct and substantial interest.

The statute contains exceptions for representation as part of official 

duty, testimony under oath, representation in certain personnel 

administration proceedings, representation of certain nonprofit 

organizations, and certain representation of the employee’s spouse, 

child, parent, or persons or estates served as a fiduciary. It also limits 

the scope of the restriction for SGEs in the same manner as 18 U.S.C. 

§203.
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Official Acts Affecting Financial Interests

18 U.S.C. § 208 This law bars an employee, including an SGE, from participating 

personally and substantially in an official capacity in any particular 

Government matter that would have a direct and predictable effect on 

his own or his imputed financial interests. The law imputes to the 

employee the financial interests of the following, if he has knowledge 

of these interests:

• his spouse; 

• his MINOR CHILDREN; 

• his general partner; 

• any organization with which he serves as an officer, director, 

trustee, general partner or employee; and 

• any person or organization with whom he is negotiating or has 

any arrangement concerning future employment. 

Key elements of this statute include:

• participation that is personal and substantial; 

• participation in an official capacity; 

• participation in a particular matter, such as a proceeding, 

application, request, contract, claim, controversy, charge, or 

accusation; and 

• the outcome of the matter would directly and predictably affect 

the employee’s personal or imputed financial interests. 

Unless an employee divests the interest causing disqualification or 

qualifies for a statutory waiver, she must avoid participating in any 

matter affecting her own financial interests or those imputed to her. An 

agency may require her to divest an interest if it determines that a 

conflict exists between the financial interest and her duties or the 

accomplishment of the agency’s mission (see Chapter 5: Resolving 

Conflicts of Interest).

The statute provides for four types of waivers or exemptions: 

1) agency determination that a financial interest is not so 

substantial as to affect integrity of the employee’s services; 

2) regulatory exemptions issued by OGE; 

3) agency determination that the need for an SGE’s services on an 

advisory committee outweighs potential for conflict with an 

interest; 

4) certain financial interests arising from native American 

birthrights. 

See 5 C.F.R. Part 2640 for more guidance on 18 U.S.C. § 208 and for a 

listing of regulatory exemptions. 
Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-7

18 U.S.C. § 209

Supplementation of Government Salary

This statute is designed to prevent the divided loyalties that result 

from the receipt of private payments during Government service. It 

prohibits an employee, other than a SPECIAL GOVERNMENT EMPLOYEE

(SGE), from receiving any salary or any contribution to or 

supplementation of salary from any source other than the United States 

as compensation for services as a Government employee. Reviewers 

should look for possible violations of this prohibition when a filer 

reports certain payments or gifts that appear to be related to official 

duties or when a filer reports severance or other payments that he 

receives from a former employer after entering the Government.

Key elements of Section 209 include:

• receiving salary or any contribution to or supplementation of 

salary as a Government employee, if it is provided: 

1. by any source other than the United States; and 

2. to compensate for services as an employee of the United 

States. 

While the first two elements are often relatively straightforward, 

the focus of a section 209 inquiry usually is on the last element--

whether the compensation in question is for services as an employee of 

the United States. In many cases, the answer depends largely upon the 

intent of the parties.

The statute contains an exception for participation in bona fide 

pension, retirement, group insurance, and other employee welfare or 

benefit plans maintained by a former employer. The statute also 

contains exceptions for payments received under the Government 

Employees Training Act, for contributions from state or local 

governments, and for payments in certain other situations of more 

limited applicability.
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Bribery and Gratuities

18 U.S.C. §201

This statute is solely 

interpreted by the 

Department of Justice

The bribery statute prohibits public officials (a term even more 

inclusive than “Government employee”) from corruptly seeking, 

receiving, or agreeing to accept anything of value for themselves or 

others, in return for:

• being influenced in the performance of an official act; 

• being influenced to aid in the commission of a fraud on the 

United States; or 

• being induced to do or omit any act in violation of official 

duty. 

This statute also prohibits current and former public officials from 

seeking, receiving, or agreeing to accept anything of value as a gratuity 

for or because of any official act which they have performed or are to 

perform, unless provided by law for the proper discharge of official 

duty.

Post-Employment Restrictions

18 U.S.C. § 207 

5 C.F.R. Parts 2637 & 2641

A criminal statute prohibits or restricts all former employees, 

including former SGEs, from switching sides to represent someone 

back to the Government on particular matters involving specific 

parties in which they have personally and substantially participated or 

which were under their official responsibility. Additional restrictions 

apply for trade or treaty negotiators, senior employees and very senior 

employees. Because this statute is not directly related to financial 

disclosure issues, its full details have not been summarized here. For 

purposes of counseling departing employees, agencies should refer to 

the regulatory guidance which contains extensive discussion and 

examples.
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-9

Penalties

18 U.S.C. § 216

18 U.S.C. §§ 3571 & 3559

With the exception of § 201, the criminal offenses discussed in this 

section are punishable as follows:

• for willful violations (felony), imprisonment not to exceed 5 

years and a fine of up to $250,000 or two times the amount of 

an employee’s gain or the Government’s loss; 

• for other violations (misdemeanor), imprisonment not to 

exceed 1 year and a fine of up to $100,000 or two times the 

amount of an employee’s gain or the Government’s loss. 

In addition, the Attorney General may bring a civil action in 

United States district court, where a civil fine may be imposed of up to 

$50,000, or the amount of compensation received, whichever is 

greater, and she may seek injunctive relief in United States district 

court to order cessation of conduct which violates these statutes.

Section 201 carries its own separate penalties, ranging up to 15 

years imprisonment, a fine up to three times the value of any bribe, and 

disqualification from holding any “U.S. office of honor, trust, or 

profit.”
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11.2 STANDARDS OF CONDUCT REGULATIONS

E.O. 12674

5 C.F.R. Part 2635

5 U.S.C. §§ 7351 & 7353

The Standards of Ethical Conduct for Employees of the Executive 

Branch replaced each agency’s standards of conduct regulations with a 

uniform set of regulations applicable to all Executive branch 

employees including SPECIAL GOVERNMENT EMPLOYEES (SGEs). The 

following synopsis provides only a shorthand reference to lengthier 

provisions in the regulations. Readers must refer to the regulations 

themselves in resolving ethical issues or they may seek the advice of 

an agency ethics official.

THE PRINCIPLES OF ETHICAL CONDUCT

SUBPART A:

GENERAL 

PROVISIONS

The following principles of ethical conduct apply to all officers 

and employees of the executive branch and many form the basis for 

specific standards set forth in the regulation.

General 

Principles

• Public service is a public trust, requiring employees to place 

loyalty to the Constitution, the laws and ethical principles above 

private gain. 

• Employees shall not hold financial interests that conflict with the 

conscientious performance of duty. 

• Employees shall not engage in financial transactions using 

nonpublic Government information or allow the improper use of 

such information to further any private interest. 

• An employee shall not, except pursuant to the exceptions in 

subpart B, solicit or accept any gift or other item of monetary 

value from any person or entity seeking official action from, doing 

business with, or conducting activities regulated by the employee’s 

agency, or whose interests may be substantially affected by the 

performance or nonperformance of the employee’s duties. 

• Employees shall put forth honest effort in the performance of their 

duties. 

• Employees shall make no unauthorized commitments or promises 

of any kind purporting to bind the Government. 

• Employees shall not use public office for private gain. 
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-11

• Employees shall act impartially and not give preferential treatment 

to any private organization or individual. 

• Employees shall protect and conserve Federal property and shall 

not use it for other than authorized activities. 

• Employees shall not engage in outside employment or activities, 

including seeking or negotiating for employment, that conflict with 

official Government duties and responsibilities. 

• Employees shall disclose waste, fraud, abuse, and corruption to 

appropriate authorities. 

• Employees shall satisfy in good faith their obligations as citizens, 

including all just financial obligations, especially those -- such as 

Federal, State and local taxes -- that are imposed by law. 

• Employees shall adhere to all laws and regulations that provide 

equal opportunity for all Americans regardless of race, color, 

religion, sex, national origin, age, or handicap. 

Appearance 

Standard

• Employees shall endeavor to avoid any actions creating the 

appearance that they are violating the law or these Standards of 

Ethical Conduct.

Employees shall apply the principles stated above in weighing the 

propriety of conduct not otherwise addressed in the regulations.

Employees shall judge whether circumstances will violate the 

appearance principle, the last principle set forth above, from the 

perspective of a reasonable person with knowledge of the relevant 

facts.

There are special rules for determining which standards apply to 

employees detailed to other agencies, to other branches of the Federal 

Government, to State or local governments or to international 

organizations.

Enforcement 

5 C.F.R. § 2635.106

A violation of the regulatory standards may be cause for corrective 

action or for disciplinary action against an employee. There are 

criminal penalties for violations of criminal statutes referred to in the 

regulations.
Public Financial Disclosure: A Reviewer's Reference 

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Page 11-12

Employees are urged to seek the advice of agency ethics officials. 

Disciplinary action for violation of regulatory standards will not be 

taken against an employee who relies in good faith on such advice. 

However, employees may still be subject to prosecution for criminal 

violations, although the Department of Justice will take that advice in 

into consideration.

Definitions Note that the terms used throughout the Standards of Ethical 

Conduct, such as “agency designee” and “special Government 

employee,” are defined in subpart A. Terms of more limited 

applicability are defined in the subparts or sections to which they 

apply.

BASIC PROHIBITION ON GIFTS FROM OUTSIDE SOURCES

SUBPART B: GIFTS 

FROM OUTSIDE 

SOURCES

An employee shall not solicit or accept a gift given because of his 

official position or from a prohibited source. A prohibited source is 

defined as any person, including any organization more than half of 

whose members are persons:

• Seeking official action by his agency; 

• Doing or seeking to do business with his agency; 

• Regulated by his agency; or 

• Substantially affected by the performance of his duties. 

Exclusions from the 

Definition of a Gift The term “gift” includes almost anything of monetary value. It 

does not, however, include:

• Coffee, donuts and similar modest items of food and 

refreshments when offered other than as part of a meal; 

• Greeting cards and most plaques, certificates and trophies; 

• Prizes in contests open to the public; 

• Commercial discounts available to the general public or to all 

Government or military personnel; 

• Commercial loans on standard terms, and pensions and similar 

benefits; 

• Anything paid for by the Government, secured by the 

Government under Government contract or accepted by the 

Government in accordance with a statute; or 

• Anything for which the employee pays fair market value. 
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-13

Exceptions to the Gift 

Restrictions

Subject to the limitations noted below, there are exceptions which will 

permit an employee to accept:

• Unsolicited gifts with a market value of $20 or less per 

occasion, aggregating no more than $50 in a calendar year from 

any one source (this exception does not permit gifts of cash or 

investment interests); 

• Gifts clearly motivated by a family relationship or personal 

friendship; 

• Commercial discounts and similar benefits offered to groups in 

which membership is not related to Government employment 

or, if membership is related to Government employment, where 

the same offer is broadly available to the public through similar 

groups and certain benefits offered by professional associations 

or by persons who are not prohibited sources. 

• Certain awards and honorary degrees; 

• Gifts resulting from the outside business activities of employees 

and their spouses; 

• Travel and entertainment in connection with employment 

discussions; 

• Certain gifts from political organizations; 

• Free attendance provided by the sponsor of an event for the day 

on which an employee is speaking or presenting information at 

the event; 

• Free attendance provided by the sponsor of a widely-attended 

gathering of mutual interest to a number of parties where the 

necessary determination of agency interest has been made; 

• Invitations to certain social events extended by persons who are 

not prohibited sources, provided no one is charged a fee to 

attend the event; 

• Certain gifts of food and entertainment in foreign areas; or 

• Gifts accepted by the employee under a specific statute, such as 

5 U.S.C. 4111 and 7342, or pursuant to a supplemental agency 

regulation. 
Public Financial Disclosure: A Reviewer's Reference 

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Limits on the Use of 

the Exceptions

None of the exceptions noted above allow an employee to solicit or 

coerce the offering of a gift or to accept gifts:

• In return for being influenced in the performance of official 

duties; 

• In violation of any statute; 

• So frequently as to appear to be using public office for private 

gain; or 

• In violation of applicable procurement policies regarding 

participation in vendor promotional training. 

Disposition of Gifts When an employee cannot accept a gift, the employee should 

normally decline the gift or pay the donor its market value. If the gift is 

a tangible item, the employee may instead return the gift. Subject to 

approval, perishable items may be donated to a charity, destroyed or 

shared within the office.
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-15

BASIC PROHIBITION ON GIFTS BETWEEN EMPLOYEES

SUBPART C: GIFTS 

BETWEEN 

EMPLOYEES

An employee shall not:

• Give or solicit for a gift to an official superior; or 

• Accept a gift from a lower-paid employee, unless the donor 

and recipient are personal friends who are not in a superiorsubordinate relationship. 

Definitions “Gift” has the same meaning as in subpart B. Carpooling and 

similar arrangements are excluded where there is a proportionate 

sharing of the cost and effort involved.

“Official superior” includes anyone whose official responsibilities 

involve directing or evaluating the performance of the employee’s 

official duties or those of any other official superior of the employee. 

The term is not limited to immediate supervisors but applies to 

officials who are higher in the supervisory chain.

Exceptions An employee may accept gifts that fit the following exceptions 

(unless he coerced a subordinate into giving the gift):

1 . On an occasional basis, including birthdays and other occasions 

when gifts are traditionally exchanged, given and accepted:

• Items other than cash aggregating $10 or less per occasion;

• Food and refreshments shared in the office;

• Personal hospitality at a residence;

• Appropriate hostess gifts; and

• Leave sharing under OPM regulations;

2. On infrequent occasions of personal significance, such as marriage, 

and on occasions that terminate the superior-subordinate 

relationship, such as retirement, giving and accepting gifts 

appropriate to the occasion; and 

3. Voluntary contributions of nominal amounts to be made or solicited 

for gifts of food and refreshments to be shared in the office or for 

group gifts on occasions described in the preceding paragraph, such 

as a marriage. 
Public Financial Disclosure: A Reviewer's Reference 

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DISQUALIFYING FINANCIAL INTERESTS

SUBPART D: 

CONFLICTING 

FINANCIAL 

INTERESTS

and 

5 C.F.R. Part 2640 

Under the criminal conflict of interest statute, 18 U.S.C. § 208, an 

employee is prohibited from participating personally and substantially 

in an official capacity in any particular matter in which, to his 

knowledge, he or certain other persons have a financial interest, if the 

particular matter will have a direct and predictable effect on his own or 

that person’s financial interests. In addition to matters that affect his 

own financial interests, this prohibition applies to particular matters 

that affect the financial interests of the employee’s spouse, MINOR 

CHILD or general partner, or any person the employee serves as officer, 

director, trustee, general partner or employee. (The prohibition also 

applies to particular matters that affect the financial interests of a 

person with whom the employee is negotiating for or has an 

arrangement concerning future employment. However, this aspect of 

the statute is addressed more specifically in subpart F.)

Disqualification An employee may disqualify herself by not participating in the 

matter. Although an employee should notify the person responsible for 

his assignment of the need to disqualify, a written disqualification 

statement is necessary only if an ethics agreement with the Senate 

confirming committee requires it or an agency ethics official or the 

person responsible for the employee’s assignment requests it.

Other Solutions Disqualification is not required if the financial interest is the 

subject of one of the statutory waivers or exemptions described in 

5 C.F.R. Part 2640 or if the employee has sold or otherwise divested 

the conflicting interest (see Section 5.3: Waivers and Exemptions for 

more information).

Prohibited Interests In general, employees may acquire and hold financial interests 

subject only to the disqualification requirement imposed by 18 U.S.C. 

§ 208. However, some agencies have statutes that prohibit employees 

from acquiring or holding particular interests. In addition, agencies 

have the authority, by supplemental regulation, to prohibit employees 

from acquiring or holding certain financial interests. Agencies also 

may prohibit an individual employee from holding financial interests 

where disqualification would impair the employee’s ability to perform 

the duties of his position or adversely affect the agency’s mission. An 

employee directed to divest a financial interest may be eligible for 

special tax treatment of the transaction.
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-17

CERTAIN PERSONAL AND BUSINESS RELATIONSHIPS

SUBPART E: 

IMPARTIALITY IN 

PERFORMING 

OFFICIAL DUTIES 

Even though Subpart D may not require disqualification, an 

employee should not participate in an official capacity in certain 

matters without first obtaining specific authorization if, in his 

judgment, persons with knowledge of the relevant facts would question 

his impartiality in those matters. The matters covered include a 

particular matter involving specific parties if the employee knows that 

the matter is likely to affect the financial interests of a member of his 

household or that one the following persons is a party or represents a 

party in the matter:

• A person with whom the employee has or seeks a business or 

other financial relationship; 

• A member of the employee’s household or relative with whom 

the employee has a close personal relationship; 

• A person the employee’s spouse, parent or child serves or seeks 

to serve as officer, director, trustee, general partner, agent, 

attorney, consultant, contractor or employee; 

• A person the employee has, in the past year, served as officer, 

director, trustee, general partner, agent, attorney, consultant, 

contractor or employee; or 

• An organization, other than a political party, in which the 

employee is an active participant. 

Disqualification 

and Authorization

An employee may disqualify himself or herself in the same manner 

as when required under subpart D for disqualifying financial interests. 

Notwithstanding the employee’s determination that his impartiality 

would be questioned, the agency designee can authorize the employee 

to participate in the matter based on a determination that the 

Government’s interest in the employee’s participation outweighs the 

concern that a reasonable person would question the integrity of 

agency programs and operations. The authorization permitted by 

subpart E cannot be given, however, if the employee’s disqualification 

is also required by subpart D. Employees should use the process set 

forth in subpart E to decide whether they should or should not 

participate in matters not highlighted above in which their impartiality 

is likely to be questioned.

Extraordinary 

Payments from 

Former Employers

An employee is disqualified for 2 years from participating in any 

PARTICULAR MATTER in which his former employer is a party or 

represents a party if, prior to entering Federal service, that employer 

gave him an extraordinary payment in excess of $10,000. Note that a 

routine severance or other payment made under an established 

employee benefits plan is not an extraordinary payment. There is 

authority to waive all or part of this disqualification requirement.
Public Financial Disclosure: A Reviewer's Reference 

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DISQUALIFICATION WHILE SEEKING EMPLOYMENT

SUBPART F: 

SEEKING OTHER 

EMPLOYMENT

An employee is prohibited from participating in an official 

capacity in any particular matter that, to his knowledge, has a direct 

and predictable effect on the financial interests of a person with whom 

he is seeking employment. For this purpose, “employment” means any 

form of non-Federal employment or business relationship involving 

the provision of personal services.

Definitions “Seeking employment” includes bilateral negotiations with 

another, mutually conducted with a view to reaching an agreement 

regarding possible employment. It also includes conduct short of 

negotiations, such as sending an unsolicited resume or other 

employment proposal. It can include employment contacts by or 

through an agent or intermediary. It does not include simply:

• Rejecting an unsolicited employment overture; 

• Requesting a job application; or 

• Sending an unsolicited resume or other employment proposal to 

a person affected by performance of the employees duties only 

as a member of an industry or other discrete class. 

Having begun to seek employment, an employee generally 

continues to be seeking employment until he or the prospective 

employer rejects the possibility of employment and all discussions end. 

An employee is no longer seeking employment with the recipient of 

his unsolicited resume or other employment proposal after two months 

have passed with no indication of interest in employment discussions 

from the prospective employer.

Disqualifications 

and Other Solutions

Disqualification during negotiations can be accomplished in the 

same manner as when required under subpart D for disqualifying 

financial interests. If the employee’s conduct in seeking employment 

amounts to negotiations, the employee can participate in the matter 

affecting his prospective employer only if granted an individual waiver 

described in subpart D. If his conduct falls short of negotiations, the 

employee may be authorized to participate using the procedures in 

subpart E.

Application of Criminal 

Restrictions An employee may not participate in a particular matter that, to his 

knowledge, has a direct and predictable effect on the financial interests 

of anyone with whom he has an arrangement concerning future 

employment. In this case, an employee may be able to participate in a 

particular matter affecting a future employer only if he has received an 

individual waiver described in subpart D.
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-19

USE OF PUBLIC OFFICE FOR PRIVATE GAIN

SUBPART G: 

MISUSE OF POSITION

An employee shall not use his public office for his own private 

gain or for the private gain of friends, relatives or persons with whom 

he is affiliated in a non-governmental capacity, or for the 

endorsement of any product, service or enterprise. In particular, an 

employee shall not use his Government position, title or authority:

• In a manner intended to induce another to provide any benefit 

to himself or to friends, relatives or affiliated persons; 

• In a manner that could be construed to imply that his agency 

or the Government sanctions or endorses his personal 

activities or those of another; or 

• To endorse any product, service or enterprise except in 

furtherance of statutory authority to do so, in accordance with 

agency programs to give recognition for achievement or to 

document compliance with agency standards or requirements. 

Nonpublic Information An employee shall not engage in a financial transaction using 

nonpublic information, or allow the improper use of nonpublic 

information to further his own private interests or those of another. 

Information that is “nonpublic” includes information the employee 

knows or reasonably should know:

• Is routinely exempt from disclosure under the Freedom of 

Information Act or protected from disclosure by statute; 

• Is designated as confidential by an agency; or 

• Has not actually been disseminated to the general public and is 

not authorized to be made available to the public on request. 

Government Property An employee has a duty to protect and conserve Government 

property and to use Government property only for authorized purposes. 

Authorized purposes are those for which Government property is made 

available to the public or those purposes authorized in accordance with 

law or regulation.

Official Time Unless authorized in accordance with law or regulation to use such 

time for other purposes, an employee shall use official time in an 

honest effort to perform official duties. And, an employee shall not 

encourage, direct, coerce or request a subordinate to use official time 

to perform activities other than those required in the performance of 

official duties or those authorized in accordance with law or 

regulation.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 11-20

OUTSIDE POSITIONS

SUBPART H: 

OUTSIDE 

ACTIVITIES

In addition to the standards set forth in subpart H, an employee’s 

outside employment and other activities must comply with all ethical 

requirements set forth in the subparts A through G of the regulation, 

including the requirement to avoid even the appearance of using public 

office for private gain. For example, the prohibition against use of 

Government property for unauthorized purposes would prohibit an 

employee from using the agency photocopier to promote an outside 

speaking tour.

Restrictions Imposed 

by Other Laws

An employee’s outside employment and other activities must 

comply with applicable laws other than the Standards of Ethical 

Conduct. Several are listed in subparts H and I. Outside activities 

frequently raise questions about the following:

• The restrictions in 18 U.S.C. 203 and 205 on employees 

engaging in representational activities before the United States; 

• The constitutional prohibition against accepting any office, title 

or compensation from a foreign government; and 

• The Hatch Act, which prohibits most employees’ participation 

in certain partisan political activities. 

Prior Approval for 

Outside Activities

When supplemental agency regulation require it, an employee must 

obtain approval before engaging in outside employment or activities.

Conflicting Outside 

Activities An employee shall not engage in outside employment or activities 

prohibited by statute or by supplemental agency regulation, or that 

would materially impair the ability to perform his official duties by 

requiring his disqualification under subpart D or E.

Restrictions on 

Receipt of 

Compensation

With certain exceptions, Presidential appointees to full-time 

noncareer positions shall not receive any outside earned income for 

outside employment or other outside activities performed during that 

appointment. Higher-level noncareer employees may not, in any 

calendar year, receive outside earned income which exceeds 15 percent 

of the rate of pay for Level II of the Executive Schedule. These 

noncareer employees also may not receive any compensation for 

teaching without prior approval, serve as officers or board members of 

outside entities, practice certain professions that involve a fiduciary 

relationship or be affiliated with entities that practice them.
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-21

Expert Witnesses In the absence of specific authorization, an employee shall not 

represent anyone other than the United States as an expert witness in 

any proceeding before a court or agency of the United States if the 

United States is a party or has a direct and substantial interest. The 

restriction applies even though no compensation is received. A less 

restrictive standard applies to special Government employees.

Teaching, Speaking 

and Writing

An employee shall not receive compensation, including 

transportation, lodging and meals, for teaching, speaking or writing 

that is related to his official duties. Teaching, speaking or writing is 

“related to an employee’s official duties” if:

• The activity is undertaken as part of his official duties; 

• The invitation to engage in the activity was extended primarily 

because of his official position; 

• A person whose interests may be affected by the employee’s 

official duties extends the invitation or the offer of 

compensation; 

• The information draws substantially on nonpublic information; 

or 

• For most employees, the subject of the teaching, speaking or 

writing deals in significant part with any matter presently 

assigned to the employee, any matter to which the employee 

had been assigned in the previous one-year period, or to any 

ongoing or announced agency policy, program or operation. 

Additional restrictions apply to certain noncareer employees. 

SPECIAL GOVERNMENT EMPLOYEES are subject to less restrictive 

standards. 

Teaching Exception An employee may receive compensation for teaching certain 

courses, notwithstanding that the subject matter is related to his official 

duties and notwithstanding that he may have been offered the 

opportunity because of his official position.

Fundraising Provided that he does not otherwise violate the Standards of Ethical 

Conduct, an employee may engage in charitable fundraising activities in 

a personal capacity if he does not use his official title, position or 

authority to further that effort or personally solicit funds or other 

support from subordinates or from anyone known to him to be a 

prohibited source for purposes of the gift restrictions in subpart B. A 

SPECIAL GOVERNMENT EMPLOYEE, however, may solicit charitable 

contributions from a prohibited source as long as that person does not 

have interests affected by the performance of his official duties.

Financial Obligations Employees shall satisfy in good faith all just financial obligations.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 11-22

11.3 OTHER CONFLICT OF INTEREST PROVISIONS

Honoraria Ban

National Treasury 

Employees Union 

v. United States, 

115 S.Ct. 1003(1995)

OGE DAEOgram of 

February 28,1996

The general ban on receipt of HONORARIA by Government 

employees, which Congress enacted in 1989, is no longer applicable. 

The Supreme Court overturned the ban in February 1995, and the 

Department of Justice clarified its total nullification in February 1996 

(see Section 6.4: Honoraria). Therefore, the statute no longer applies.

The Standards of Ethical Conduct, however, continue to prohibit 

most compensated teaching, speaking or writing that relates to official 

duty. See Subpart H of the Standards of Conduct Summary in Section 

11.2: Standards of Conduct Regulations.

Foreign Gifts and Foreign Agents

U.S. Constitution, Article I, 

Section 9, Clause 8 

5 U.S.C. § 7342 

18 U.S.C. §219 

22 U.S.C. §611 et seq.

The U.S. Constitution prohibits a Government employee from 

accepting any gift, office, title, or emolument, including salary or 

compensation, from any foreign government except as authorized by 

Congress. The Foreign Gifts and Decorations Act provides 

implementation. In addition, under a criminal statute, an employee 

may not act as an agent of a foreign principal, including a foreign 

government, corporation, or person, if the employee would be required 

to register under the Foreign Agents Registration Act.

Agency-Specific Conflict of Interest Statutes

In addition to the laws and regulations listed above, some 

employees may be subject to agency-specific statutes which ban or 

restrict their financial interests and affiliations.
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-23

Post-Employment Restrictions

18 U.S.C. § 207

5 C.F.R. Parts 2637 & 2641

41 U.S.C. § 423(f)

In addition to reviewing a departing employee’s termination 

financial disclosure report, an ethics official should advise her of the 

key laws that may restrict post-Government employment activities, 

including any laws that are specific to the department or agency (see 

Section 11.1: Criminal Conflict of Interest Statutes for a brief 

discussion of 18 U.S.C. § 207). The Office of Federal Procurement 

Policy Act and the implementing Federal Acquisition Regulations 

contain additional post-employment restrictions for former 

procurement officials.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 11-24

11.4 SPECIAL LIMITATIONS ON SENIOR NONCAREER EMPLOYEES

Statutory Restrictions

5 U.S.C. App. §§ 501-505 

5 C.F.R. § 2635.804 

5 C.F.R. §§ 2636.301-307 

OGE 90 X 20, & 90 X 24

Noncareer employees, other than SPECIAL GOVERNMENT 

EMPLOYEES (SGEs), whose rate of basic pay is at or above 120% of the 

rate of basic pay for GS-15-01 are subject to several special 

restrictions, if serve in positions such as the Senior Executive Service 

(or SES-type positions), SCHEDULE C (or similar political-type) 

positions, or Presidential appointment to an Executive Schedule 

position. The regulation should be consulted for specific “covered 

positions.” These provisions are enforced through agency disciplinary 

or corrective action, and there are Federal civil penalties up to $11,000 

or the amount of any improperly received compensation. Agencies 

should refer violations of these statutes to the Civil Division, Federal 

Programs Branch, Department of Justice, Washington, DC.

15% Outside Earned Income Limitation

Persons who are covered noncareer employees may not have 

outside earned income attributable to a calendar year which exceeds 15 

percent of the annual rate of basic pay for Level II of the Executive 

Schedule. These restrictions apply on a pro rata basis to persons who 

enter into covered noncareer positions after January 1st of any calendar 

year. Outside earned income means wages, salaries, honoraria, 

commissions, professional fees, and any other form of compensation 

for services other than salary, benefits, and allowances paid by the U.S. 

Government. The regulation defines several exclusions.

Acceptance of Compensation for Specified Activities

A covered employee is prohibited from receiving compensation for:

• Practicing a profession which involves a fiduciary relationship; 

• Affiliating with or being employed to perform professional 

duties by a firm, partnership, association, corporation, or other 

entity which provides professional services involving a 

fiduciary relationship; or 

• Serving as an officer or member of the board of any association, 

corporation, or other entity. 

Use of Name

Covered employees may not permit their names to be used by any 

firm, partnership, association, corporation, or other entity which 

provides professional services involving a fiduciary relationship.

Advance Approval for Teaching

A covered employee may receive compensation for teaching only 

when the DAEO specifically authorizes it in advance.
 Appendix—Federal Ethics Laws and Regulations in Brief

Revised 11/04 

Page 11-25

Executive Order Restrictions

E.O. 12674, § 102 

5 C.F.R. § 2635.804

Outside Earned Income Ban

Additional restrictions apply to full-time, noncareer Presidential 

appointees. They are prohibited from receiving any earned income for 

outside employment or activity performed during their Presidential 

appointment. Outside earned income is defined in the same manner as 

for the 15% restriction on outside earned income discussed above. 
Revised 11/04 

Page 12-1

12.0 PROCESSING PRESIDENTIAL NOMINEE REPORTS 

5 C.F.R. § 2634.201(c) Most individuals nominated by the President, or individuals for 

whom the President-elect has stated an intent to nominate, to a position 

requiring the advice and consent of the Senate (a PAS POSITION) must 

file an SF 278. Foreign Service officers, and all officers in the 

uniformed services are exempt from filing, unless otherwise specified 

by the assigned Senate Committee. In addition to being subject to the 

conflict of interest criminal statutes and regulations, PAS appointees 

also have special outside earned income and outside position 

restrictions (see Section 11.4: Senior Noncareer Employees).

Reviewers should analyze nominee reports especially thoroughly, 

given the increased public trust in and scrutiny of these positions. 

These reports go through an expedited review process.

The Administration needs to discover if a nominee has any 

investment, financial, or employment linkages with the private sector 

that could raise issues involving conflicts of interest or the appearance 

of such conflicts. The White House, OGE, and agency ethics officials 

work together to identify and resolve issues internally before they 

become the unfortunate subject of a news media or Congressional 

inquiry. The White House, OGE, and agency ethics officials share the 

responsibility for educating nominees about full disclosure and 

substantive matters relating to their reports.

The Expedited Nominee Review Process

PHASE ONE: 

Before Nomination 

5 C.F.R. § 2634.605(c)

The Presidential nominee financial disclosure process has three 

distinct phases. It begins before formal nomination. At this point, all 

information relating to the nominee is strictly confidential.

1. The Office of Presidential Personnel and the Office of the White 

House Counsel request that prospective nominees who will serve 

full-time complete a public financial disclosure report. Those who 

will serve less than 60 days in a calendar year file an SF 278 if the 

Senate confirming committee requires that they do so. (See Section 

2.1: Officials Required to File). 

2. The White House forwards copies of the report to the agency's 

DESIGNATED AGENCY ETHICS OFFICIAL (DAEO) prior to 

nomination, and to OGE. Potential nominees to be U.S. 

Ambassadors, U.S. Attorneys, U.S. Marshals, and some 

Department of Defense positions file reports directly with the 

DAEO. (If a report is filed directly with an agency, the agency is 

responsible for getting a copy of the draft to OGE and a copy to the 

White House. However, U.S. Attorney and U.S. Marshal reports 

are only provided to OGE.) 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 12-2

3. OGE and the agency ethics official review the report for 

technical completeness and conflict of interest issues, in 

consultation with the White House Counsel's Office.

PHASE TWO: 

After Formal 

Nomination 

Next, the President formally nominates the person. After the 

nomination is forwarded to the Senate, the review process may 

proceed very rapidly.

1. Within three working days, the DAEO makes certain that the 

final version of the report is complete and submits the certified 

report to OGE. With the report, the DAEO must include an 

opinion letter which states that the information in the attached 

SF 278 discloses no conflict of interest under applicable laws 

and regulations and that discusses any issues raised.

In addition to the DAEO's certification, there must be some 

written documentation from the prospective employee 

providing details on any ethics agreements into which she plans 

to enter. These letters constitute the ethics agreement between 

the agency and the filer and may be publicly releasable.

2. If OGE finds no unresolved conflict, OGE certifies the report 

and forwards it to the appropriate Senate confirmation 

committee. OGE includes, with the report and any ethics 

agreements for the particular nominee, an opinion letter stating 

that, on the basis of the information reported, the nominee is in 

compliance with applicable laws and regulations governing 

conflicts of interest.

Prior to the date of the first Senate committee hearing to consider a 

PAS nomination:

PHASE THREE: 

Five Days before 

the Confirmation 

Hearing 

5 C.F.R. § 2634.606

1. The nominee must make the report current with respect to earned 

income and honoraria received by him or his spouse as of five days 

before the date of the first hearing. The filer accomplishes this by 

sending a letter to the Chairman of the Senate committee 

considering the individual's nomination. 

2. The filer should submit copies of this five-day update letter to the 

relevant DAEO and to OGE. 
 Appendix--Processing Presidential Nominee Reports

Revised 11/04 

Page 12-3

Responsibilities of the DAEO

While other ethics officials may review the report, the DAEO's 

certification responsibilities are nondelegable with respect to 

nominees. The DAEO personally, or the alternate DAEO in the 

DAEO's absence, must certify the SF 278. The DAEO is also 

responsible for transmitting to OGE evidence of compliance with the 

nominee's ethics agreements, within three months after confirmation. 

Part-time PAS Nominees and Additional Financial Information

Congress May 

Require More 

Information

Some Congressional committees request, as a condition of 

confirmation, that nominees who serve less than 60 days complete an 

SF 278. In addition, Congressional committees may require additional 

financial information from any Presidential nominee referred to that 

committee. If requested by confirming committees, OGE will also 

review reports for positions in other branches of the Government.

Schedule B

Nominees Already 

Subject to Annual 

Filing May Wish 

to Complete 

Schedule B

The statute does not require nominees to complete Schedule B 

(transactions and gifts). If, however, nominees who already serve in a 

position covered by the public financial disclosure requirements do not 

complete Schedule B then they must file separate annual reports for 

their pre-existing positions. OGE recommends that nominees complete 

Schedule B if they already serve in covered positions. This 

Schedule B, however, should not go forward to the Senate. Rather, the 

agency should insert a blank Schedule B for nominee purposes and 

then insert the filled out Schedule B into their own records to create an 

annual report.

Consulting Other Forms

In addition to the SF 278, nominees also complete a White House 

Personal Data Statement, an FBI personal history form, and separate 

questionnaires required by the Senate committees. These forms call 

for some of the same information, but each form approaches it in a 

different way. Before returning to filers with SF 278 questions, 

DAEOs should review any of the other forms available to them to 

ensure consistency and to answer questions with the information 

already supplied. 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 12-4

Notification of Ethics Agreements

5 C.F.R. § 2634.803 In addition to the DAEO's opinion letter outlining the ethics 

agreements, the DAEO must promptly inform OGE of any ethics 

agreements made after submission of the disclosure report, including 

any made between the Senate committee and the nominee. Likewise, 

OGE must inform the Senate committee and the DAEO of any ethics 

agreements it makes with the nominee.

Committee Practices

The various Senate committees that consider confirmation of 

Presidential nominees have slightly different procedures concerning 

public financial disclosure reports and resolving conflicts of interest. 

For example, the Senate Armed Services Committee has had an 

informal rule that generally requires divestiture, rather than waiver or 

recusal, in the case of a conflicting holding. Individual committees 

should be consulted for their current practices. 
Revised 11/04 

Page 13-1

13.0 SF 278 CASE STUDIES

This chapter provides the reviewer with an opportunity to practice 

reviewing reports. It contains two case studies that emphasize the 

basics of reviewing an SF 278.

In the first study, you adopt the filer's perspective and complete 

an SF 278 based on a listing of financial interests. Your goal is to 

complete the form correctly and completely. A sample form follows 

immediately after the statement of filer's interests.

The second study shifts to the perspective of the reviewer. You 

must review an incorrectly completed SF 278 and seek any needed 

additional information. This study tests your understanding of how to 

review a completed SF 278 for technical accuracy and for conflicts of 

interest.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 13-2

13.1 CASE 1: YOU ARE THE FILER -- ALBERT A. ALPHA

Thanks to your outstanding career as a private-sector attorney, you have been nominated by 

the President to be the Associate Commissioner for Regulatory Affairs for the Food and Drug 

Administration, Department of Health and Human Services. You were officially nominated on 

September 15, 2003, and your position will not require confirmation by the Senate.

You were formerly a member of the law firm of Alpha and Omega, (7541 Lancelot Ln., Short 

Hills, NJ 20305; (212) 589-2983), where you had been a partner since 1990. Pursuant to a 

partnership agreement, you received a lump sum payment from your capital account. The firm 

also paid you your partnership share, calculated on service performed through 09/1/03 and valued 

at $180,000 (with a breakdown of $103,000 for calendar year 2002 and $77,000 for eight months 

of service in 2003). Your 401(k) from the firm is valued at $75,000, and it is invested in the 

Fidelity Dividend Growth Fund. Your 401(k) earned $7,200 in interest, dividends, and capital 

gains in 2002 and $10,100 in 2003 up through September 1st. 

In addition to your 401(k) plan, you have three IRAs. One is invested in the Liberty High 

Income Bond Fund, worth $10,000; the second is in the Fidelity Magellan Fund and worth 

$11,500; and the third is in the Fidelity Retirement Growth Fund and worth $10,980. In 2002, the 

funds earned $210, $0, and $510 in dividends respectively, but no capital gains were made. In 

2003, through September 1st, the funds generated $300, $250 and $10 in dividends and $1000, 

$450 and $750 in capital gains respectively. You also hold $75,000 worth of stock in Pfizer, 

which generated $1,240 of dividends in 2002 and $725 of dividends as of September 1, 2003.

In June 2001 you became one of four general partners equally invested in a bio-tech 

research company called Obelesk Research located in Princeton, NJ. The company's assets were 

estimated at $1.2 million as of September 1, 2003. In addition, your partnership income for 2002 

was $3,750, and you estimate $4,200 for January 1 through September 1, 2003.

Your spouse earns $65,000 annually as an employee of the Ford Foundation in New York 

City and has a TIAA/CREF retirement plan, all invested in the CREF Variable Annuity, Bond 

Market fund. It has a fair market value of $200,000 and accrued $5,600 in interest. Jointly you 

and your spouse own a $285,000 rental house at 45 Longwood Drive, Alexandria, VA. You've 

collected $42,000 in rents during the reporting period but had a net loss because of $50,000 in 

expenses. You carry a 30-year mortgage on the rental property. You acquired the mortgage from 

Citicorp, Washington, DC in 1995 at 9% interest. In January of 2002, the amount owed on the 

loan was $255,000. Your statements show the amount owed dropped to $228,000 by August 

2003.

While a partner at the law firm of Alpha and Omega, you represented the following clients 

between January 2001 and August 31, 2003, and the firm billed the indicated amount for services 

you rendered to each client: Jansen Pharmaceuticals, Inc. of Trenton, NJ ($8,750 [1/01-11/01]); 

Alliance Pharm. Corp., New Haven, CT ($6,150 [2/01-5/01]; Bluefield Medical School, 

Bluefield, NJ ($10,740 [3/02-8/03]); AmeriHealth Systems, Atlanta, GA ($4,500 [9/02-9/03]); 

and Muehlenberg Hospital, Plainfield, NJ ($15,950 [2/03-7/03]).
 Appendix--Case Studies

Revised 11/04 

Page 13-3

You should now obtain a blank SF 278 and complete it as if you were this filer. 

After you are satisfied with your work, examine the completed SF 278 on the 

following pages and compare it to the form you completed. If you do not 

understand the differences between your form and the form on the following pages, 

look to sections in part II of this Guide that explain the disclosure requirements. 
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 13-4
Appendix--Case Studies 

Revised 11/04 

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Revised 11/04 

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Appendix--Case Studies 

Revised 11/04 

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Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 13-10

13.2 CASE 2: YOU ARE THE REVIEWER

This exercise gives the reviewer practice in analyzing a completed form and in following up 

with questions to the reviewer. For this review exercise, your goals are:

• to generate a list of questions for the filer that would clarify the report; 

• to spot the issues that require conflict of interest analysis; and 

• to understand how you would counsel the employee. 

You should follow these steps:

1. Check to see if each entry is complete. For entries that are incomplete, write a question 

that will assist in clarifying the entry; 

2. Analyze the entries for any conflict of interest. Draft a cautionary or a disqualification 

letter if necessary; 

3. Compare your questions/conflict warnings to the model provided; 

4. Given the filer's response, repeat the analysis process and draft any further questions or 

necessary notices for the filer; 

5. Compare your second round of questions to the model, and annotate the report as 

needed; and

6. Compare your annotated report with the model. 

The materials for this study are arranged in the following order:

• Incorrectly completed SF 278

• Model initial questions to the filer

• Response from the filer, based on the model questions

• Correctly annotated SF 278

• Model final response to filer
Appendix--Case Studies 

Revised 11/04 

Page 13-11

Appendix--Case Studies 

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Public Financial Disclosure: A Reviewer's Reference 

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Appendix--Case Studies 

Revised 11/04 

Page 13-17

Case 2 Model Questions to the Filer

October 11, 2003

MEMORANDUM

TO: Beringer Dogfield, Assistant Director, Pollution Prevention

FROM: Stimpson J. Katt, Designated Agency Ethics Official

SUBJECT: Resolutions to Financial Conflicts of Interest and Questions Concerning technical 

Problems on your SF 278

Here is a summary of the issues that we discussed in the meeting on October 10, 2003. 

Please look over it carefully, and if you have any questions, contact me.

1. Your ownership of Pollution Control Systems, Corp. (PCS) poses a potential conflict of 

interest. Under 18 U.S.C. § 208(a), Federal employees are barred from participating in any 

particular matter which would directly and predictably affect their financial interest. Upon review 

of your duties, you are disqualified from taking any official action relating to PCS including 

making policy decisions that could affect PCS unless a waiver is issued. Under 

18 U.S.C. 208(b)(l), the prohibition can be waived if it is determined that the financial interest is 

found to be not so substantial as to likely affect the integrity of the employee's services. Please 

supply us with details of your investment including the exact value of the investment and the 

percentage of outstanding shares you hold so a determination can be made. If granted, the waiver 

would be applied to rulemaking and policy matters and would not be extended to any matter that 

would involve PCS as a specific party. A notice of your disqualification has been sent to your 

director. 

2. Your position as a member of the advisory board of the National Association of 

Environmental Engineers (NAEE), a non-profit organization, may conflict with your official 

duties as Assistant Director for Pollution Prevention. Under § 2635.502 of the Standards of 

Conduct, you should consider whether to recuse from matters in which the NAEE has an interest 

or is or represents a party. The NAEE deals with many of the areas that would fall within your 

official duties as Assistant Director; as a result, please consult with me prior to any official 

involvement in these matters. 

3. Your position as president of Citizens for the Prevention of Cruelty to Dogs appears at the 

outset not to conflict with your official duties. You are advised, however, that you cannot 

represent this organization in any way before a Government agency. Title 18 U.S.C. §203 and 

§205 prohibit a Federal employee from such representations before any agency or court, even if 

they are without compensation. 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 13-18

In addition to these issues, I have found a number of technical errors and substantial 

discrepancies on the financial disclosure report that you submitted to this office on 

September 20, 2003. A description of the problems are discussed below. Without full disclosure, 

I cannot analyze your report for potential conflicts of interest.

Please respond to these questions by October 25, 2003. If the issues are unclear or if you 

are having difficulty obtaining the requested information, please stop by the ethics office or call 

me at extension xxxx. I cannot certify your report until all the questions are addressed.

A copy of the report has been sent back to you so that it may be easier to address these 

questions.

Cover Page

1. You need to fill in the date of your appointment on the cover sheet.

Schedule A

1. Please disclose the underlying assets of the Dogwood Family Trust (p.l, #1) on Schedule A 

since your dependent child has a beneficial interest in the trust (as reported on Schedule D). 

2. What is the amount of income from the Value-Wide Insurance annuity (p.l, #5)? You need to 

report all accrued income over the $200 threshold, even if deferred for tax purposes. 

3. What is the specific name of the Fidelity mutual fund (p.2, #1)? 

4. Do you have a pension plan with GAIA magazine? If so, are you keeping it, or will you roll it 

over into some other investment vehicle? Whatever your plans, it must be reported on Schedule A 

and C, part II. If you expect to receive any more severance from GAIA, it should be reported as 

receivable.

Schedule B

1. Transactions do not need to be reported on Schedule B for new entrant reports. If you made 

more than $200 in dividends from IBM or in capital gains from the sale, however, then it must be 

reported on Schedule A.
Appendix--Case Studies 

Revised 11/04 

Page 13-19

Schedule C

1. You listed a rental property on Schedule A (p.2, #5). If you have a mortgage on that property, 

then it must be reported on part I of this schedule. 

2. If you have a continuing agreement with GAIA for a severance payment, the terms of the 

severance payment must be reported on Part II of this schedule. The amount and the date of the 

agreement must be disclosed along with whether the payment is a part of an established company 

plan. 

Schedule D

1. Your position as a consultant with Brechtel should be shown on Part I. 

2. You must list your job at GAIA and your consulting for Brechtel on part II of the Schedule.

3. Do you receive compensation from the National Association for Environmental Engineers or 

Citizens for the Prevention of Cruelty to Dogs? If you did and if the compensation from either 

entity was greater than $200, it must be reported on Schedule A.

Over-reporting

There are a few items of over-reporting to bring to your attention that will help protect your 

privacy on future reports. 

• term life insurance (p.2,# 3) is not considered an investment vehicle and does not need to 

be reported 

• the amount of your spouse's salary (p.l, #4) is not required to be disclosed 

• the threshold for bank accounts (p.2, #4) is $5,000 (or $200 in income) 

I look forward to hearing from you shortly.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 13-20

Case 2: Response from the Filer

October 29, 2003

MEMORANDUM

To: Stimpson J. Katt, DAEO

From: Beringer Dogfield, Assistant Director for Pollution Prevention

Subject: Corrections on the SF 278 report

Here are the answers to questions you raised on my SF 278 report. I hope I adequately 

addressed them. If you have any further questions, please give me a call at extension xxxx.

Schedule A

1. The underlying holdings of the Beringer Dogfield, Sr. Trust: 

The earnings disclosed are from January 2002 to August 30, 2003.

a. First Washington Bank, money market account, $16,350, which earned $230 in interest.

b. First Washington Bank, Certificates of Deposit, $6,823, which earned $202 in interest.

c. U.S. Saving Bonds, $24,000, which earned $570 in interest.

d. Southern Bell stock, $28,570, which earned $2,140 in dividends and capital gains.

2. The Value Wide annuity earned $300 in tax-deferred income. 

3. The mutual fund's specific name is Fidelity Select Environmental Services. 

4. I had a 401(k) pension plan at GAIA which held shares of the Janus Income and Growth 

mutual fund (see page 2, #6). On September 10, 2003, I rolled the interest over into a CD at First 

Federal Bank in New York. The value of the CD is $100,001 to $250,000, and it earned no 

interest during the reporting period.

Schedule B

I sold all my IBM stock in July 2003, earning $1,300 in capital gains. I did not receive any 

dividends during the reporting period.
Appendix--Case Studies 

Revised 11/04 

Page 13-21

Schedule C

1. I do have a mortgage on the rental property I listed. The mortgage is with Riggs Bank, 

Washington, DC which I received in 1991 at 10% interest rate. The amount owed on January 1, 

2002 was $78,000. 

2. The severance payment was a part of a bona-fide company policy; many previous employees 

received similar payments upon termination. It was given for my years of service at GAIA. I was 

paid $8,000 on August 15, 2002. 

Schedule D

1. I did not receive any compensation from the National Association of Environmental 

Engineers or Citizens for the Prevention of Cruelty to Dogs. 

2. The dates of my consultant position with Brechtel are May 8, 2001 through July 21, 2002. 

Thank you for bringing these matters to my attention.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 13-22

Case 2: Model Final Response to the Filer

November 9, 2003

MEMORANDUM

To: Beringer Dogfield, Assistant Director, Pollution Prevention

From: Stimpson J. Katt, Designated Agency Ethics Official

Subject: Resolution of a conflict of interest identified on corrected SF 278 report

Here is a summary of the issue we discussed via telephone on November 1, 2003. Please 

call me at extension xxxx if you have further questions.

You disclosed that the specific Fidelity fund in your IRA is the Fidelity Select 

Environmental Services (p.2, #1). Sixty-five percent of the holdings of the fund are companies 

that can be affected from policy decisions in your office. It is determined that a recusal from 

matters involving these companies would hinder the performance of your official duties, and, 

therefore, it will be necessary for you to divest of Fidelity Select Environmental Services. 

However, you could retain up to $50,000 of the fund under a regulatory exemption for interests in 

sector mutual funds at 2640.201(b). As we discussed, you may request a Certificate of Divestiture 

from the Director of the Office of Government Ethics to ease the burden of selling the amount not 

covered by the exemption or all of the shares of this asset. If you choose to sell the fund down to 

the exemption amount, OGE will not issue additional CDs if the value of the fund goes above 

$50,000 again. Please send your request to me, and I will then forward it to OGE. Remember that 

you must first obtain a CD before you roll over the fund.

Until you divest the fund, also remember that you are disqualified from taking any 

official action, including policy decisions, that could affect the companies in the fund. Your 

director has been sent a copy of the recusal along with a list of the prohibited companies.
Appendix--Case Studies 

Revised 11/04 

Page 13-23

Appendix--Case Studies 

Revised 11/04 

Page 13-23
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 13-24
Appendix--Case Studies 

Revised 11/04 

Page 13-25

Appendix--Case Studies 

Revised 11/04 

Page 13-25
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 13-26
Appendix--Case Studies 

Revised 11/04 

Page 13-27

Appendix--Case Studies 

Revised 11/04 

Page 13-27
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 13-28

Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 13-28
Appendix--Case Studies 

Revised 11/04 

Page 13-29

Appendix--Case Studies 

Revised 11/04 

Page 13-29
Revised 11/04 

Page 14-1

14.0 MODEL DOCUMENTS 

Agencies may wish to use the model letters in this chapter to:

• inform filers of the filing requirement, 

• provide cautionary advice, 

• document recusals, and 

• grant waivers under 18 U.S.C. § 208(b)(l). 

The use of these letters, while helpful, is optional. Larger agencies may 

wish to adapt these letters to their particular structures, while small 

agencies might use them without modification.

This chapter also contains a model for agency written procedures on 

collection and review of SF 278s, a useful SF 278 review checklist, and 

suggested procedures for following up on the collection of delinquent 

termination reports. 
Public Financial Disclosure: A Reviewer's Reference

14.1 NOTIFICATION OF FILING REQUIREMENT

Agencies often send a letter to filers to transmit a blank SF 278

and remind them of the filing requirements. Following is an

example of standard language for such notification letters. The 

language should be tailored to meet the individual context.

The Ethics in Government Act of 1978, as amended, requires 

employees who hold certain senior-level positions to file a public 

financial disclosure report (SF 278). Since you [hold / have held] 

such a position, you must file a [New Entrant / Annual / 

Termination] report. The report is due [May 15 (for annual filers) 

OR within thirty days of [date of entrance / termination] (for new 

entrant and termination filers)].

If you are not able to submit your report on time, you may 

request an extension of this due date for good cause. To receive

such an extension, you must request it before the due date of the 

report. This Office must receive the report by the due date or 

extended due date for it to be filed on time. If you file your report 

more than thirty days after the due date, or extended due date you 

will incur a $200 fee for late filing, as required by law.

Enclosed is a blank SF 278 for your use in filing your report. 

Be advised that your completed report is available to the public 

without notification to you. This public availability lends urgency 

to your complete and accurate reporting. You do have a right to 

request a list of persons who obtain copies of, or otherwise inspect, 

your report.

[New Entrant Filer]

Use Either 

the New Entrant or 

Annual/Termination 

Paragraph 

As a new entrant filer, you must complete all of the report's 

schedules except for Schedule B. You should also note that 

Schedules A and C cover only the previous calendar year as well as 

the current year up to the date of filing. Schedule D, however, 

covers the previous two years in addition to the current year up to

the date of filing. This Office recommends that you retain copies of

your completed report to aid your future filings, which will occur 

annually on May 15 and upon your exit from your filing position.

OR

Revised 11/04 

Page 14-2
Appendix--Model Documents

Revised 11/04 

Page 14-3

[Annual/Termination Filer]

This Office recommends that, during the preparation of your report, 

you refer to copies of your previously-filed reports in order to simplify 

the task and to ensure consistency in your reporting. In addition, you 

should reconcile your previous report with your current one in order to 

avoid questions that may arise from inadvertent omissions. As you 

complete your report, remember that, as an [annual / termination] filer, 

you must complete all schedules except for Schedule D, part II.

AND 

If you have any questions about public financial disclosure or your 

requirement to file a [new entrant / annual / termination] report, please 

contact this Office at [number].
Public Financial Disclosure: A Reviewer's Reference

14.2 CAUTIONARY LETTER

An agency should immediately bring to the filer's attention assets 

that either do present or possibly could present a conflict of interest. 

These letters should not imply any accusation of wrongdoing on the 

part of the filer. They should instead identify the conflict or possible 

conflict for quick resolution. Any possible violations of criminal or 

regulatory standards should be separately pursued (see Section 5.8: 

Processing Ethics Violations and Chapter 11: Federal Ethics Laws 

and Regulations in Brief).

Following is standard language for such letters to the filer. The 

first letter is optional, as it simply informs a filer that his disclosures 

revealed no conflict. Where actual or apparent conflicts do exist, OGE 

strongly recommends a letter similar to the second or third example, in 

order to document clearly necessary ethics agreements.

The Ethics in Government Act of 1978, as amended, requires that 

you, due to your position as [position], file a public financial

disclosure report. This Office reviews these reports in accordance with 

applicable statutes and regulations. The reviewers examine the reports

for possible conflicts of interest, completeness and consistency with 

previous reports.

[No conflict exists]

First Option: No 

Problems Exist

Our review of your report, dated [date], has not revealed any 

conflicts of interest. Official matters may come before you in the 

future, however, that create a conflict of interest where none

previously existed. If you have reason to question whether an interest 

creates a conflict in a particular situation, you should disqualify 

yourself from that situation and call your ethics counselor for further 

guidance.

[Conflict of an Asset/Position]

Second Option: An Asset 

Clearly Poses a Conflict

We have carefully reviewed the report you filed on [date of filing],

and our analysis indicated that you hold [an asset / a position] that

conflicts with your official duties.

Revised 11/04 

Page 14-4
 Appendix--Model Documents

Revised 11/04 

Page 14-5

Accordingly, you are hereby disqualified from taking any official 

action relating to [the entity with which the filer holds the asset or 

position]. Furthermore, you must provide written notification of this 

disqualification to your superior and to your immediate subordinates, 

instructing them to shield you from any matter involving [conflicting 

holding or organization]. A sample letter is attached (see Section 14.5: 

Screening Arrangements for a sample). In addition, you must forward 

a copy of that notification to this office. This disqualification may be 

rescinded should you subsequently resolve the conflict.

or

Ordering 

Divestiture/Resignation

After consulting with your supervisor, we have determined that 

recusal from the conflicting interest would not allow you to fulfill your 

Government duties. Accordingly, you are hereby directed to divest 

yourself of/resign from [the conflicting interest]. You must provide 

written evidence of your compliance to this Office within 60 days of 

your receipt of this letter.

Optional Language 

on Certificates of 

Divestiture

In order to ease the burden of ordered divestiture, you may ask us 

to request a Certificate of Divestiture (CD) from the Office of 

Government Ethics. This certificate will enable you to defer 

recognition of any capital gains tax that you may owe from the ordered 

sale of an asset. To qualify, you must request and receive a CD before 

you sell the asset. You should note, however, that the IRS only allows 

deferment if you invest the funds in permitted property within a 

specific period.

[Potentially Conflicting Asset]

Third Option: Assets 

that may Pose a Conflict

We have carefully reviewed the report that you filed on [date of 

filing]. Our review revealed no conflicts of interest; however, it did 

indicate that you have a potentially conflicting [holding / position]. 

This conflict stems from the possibility that a matter involving the 

entity in which you have an interest, or one of its subsidiaries, could 

come before you in your official capacity. You are barred by criminal 

statute from involvement in such a matter where you have an interest. 

If such a matter does arise, you must immediately disqualify yourself 

from any involvement in it and report it to your superior for action.

If you would like to discuss your financial disclosure report 

further, please feel free to contact your ethics counselor, [name of 

counselor].
Public Financial Disclosure: A Reviewer's Reference

14.3 MODEL ETHICS AGREEMENT

OGE DAEOgram of 

March 28, 2001

The following ethics agreement covers a number of the more common 

actions that may need to be addressed. Although written ethics 

agreement are not required for all employees, they are required for 

PAS employees.

(Date)

John H. Burns

Designated Agency Ethics Official 

Department of XXX Washington, 

DC XXXXX

Dear Mr. Burns:

The purpose of this letter is to describe the steps that I intend to

take to avoid any actual or apparent conflict of interest in the event that

I am confirmed for the position of Deputy Secretary, Department of 

XXX.

As required by 18 U.S.C. § 208(a), I will not participate 

personally and substantially in any particular matter that has a

direct and predictable effect on my financial interests or those of

any other person whose interests are imputed to me, unless I first 

obtain a written waiver, pursuant to section 208(b)(l), or qualify for 

a regulatory exemption, pursuant to section 208(b)(2). I understand 

that the interests of the following persons are imputed to me: my 

spouse, minor children, or any general partner; any organization in 

which I serve as officer, director, trustee, general partner or

employee; and any person or organization with which I am

negotiating or have an arrangement concerning prospective

employment.

In order to avoid potential conflicts of interest under section 

208, I agree to divest my holdings in the following companies 

within 90 days of my confirmation: Forest Enterprises, Inc.; 

General Electric Co.; Fidelity Select Utilities Fund; Dow 

Chemical Co. Furthermore, I agree, as custodian for my minor 

children, that I will divest their holdings in the same entities. My 

spouse also agrees to divest her holdings in the same entities. 

Until these divestitures have been completed, I will not participate 

personally and substantially in any particular matter that

Revised 11/04 

Page 14-6
Appendix--Model Documents 

Revised 11/04 

Page 14-7

will have a direct and predictable effect on these entities, unless I first 

obtain a written waiver or qualify for a regulatory exemption.

I also understand that the following stock or limited partnership 

holdings present a potential conflict of interest under section 208(a), 

although it has been determined that it is not necessary at this time for me 

to divest these interests: Merck, Inc.; Browning Real Estate LP; and IBM. 

I will not participate personally and substantially in any particular matter 

that will have a direct and predictable effect on the financial interests of 

these entities, unless I first obtain a written waiver or qualify for a 

regulatory exemption.

Upon confirmation, I will resign my position as Vice President of 

Springfield Corporation. Furthermore, pursuant to 5 C.F.R. § 2635.502, 

for one year after I terminate my position with Springfield, I will not 

participate in any particular matter involving specific parties in which 

Springfield is a party or represents a party, unless I am authorized to 

participate. I will continue to participate in Springfield's defined benefit 

pension plan, and therefore, pursuant to 18 U.S.C. § 208, I will not 

participate personally and substantially in any particular matter that will 

have a direct and predictable effect on the ability or willingness of 

Springfield to provide this contractual benefit, unless I first obtain a 

written waiver or qualify for a regulatory exemption.

Upon confirmation, I will resign my position as President of the 

Forest Enterprises, Inc. I also will receive a payment of $250,000 from 

Forest prior to my appointment, in consideration of my contributions as 

the founder of the company. I understand that this constitutes an 

"extraordinary payment," under 5C.F.R. § 2635.503, and, therefore, for 

two years after this payment is received, I will not participate in any 

particular matter in which Forest is or represents a party, unless I receive 

a written waiver pursuant to section 2635.503(c).

Upon confirmation, I will resign my positions on the boards of 

directors of the following for-profit or non-profit organizations: The 

Charity Foundation; Smith Corp.; and QRS, Inc. Pursuant to 5 C.F.R. 

§ 2635.502, for a period of one year after the termination of these 

positions, I will not participate in any particular matter involving specific 

parties in which any one of these organizations is a party or represents a 

party, unless I am authorized to participate.

I will remain on the board of directors of Nonprofit, Inc., for which I 

do not receive any compensation. I also will retain my position as 

Secretary of Jones Family Farm, Inc., a business run by my family; with 

respect to this position, I agree to receive no compensation for 
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 14-8

services as Secretary and to limit my income to passive investment 

income. Furthermore, pursuant to 18 U.S.C. § 208, I will not participate 

personally and substantially in any particular matter that will have a 

direct and predictable effect on the financial interests of either of these 

organizations, unless I first obtain a written waiver or qualify for a 

regulatory exemption.

My spouse is employed as an associate by the law firm of Collins & 

Green, from which he receives a fixed annual salary. Pursuant to 

5 C.F.R. § 2635.502, I will not participate in any particular matter 

involving specific parties in which Collins & Green is or represents a 

party, unless I am authorized to participate. Furthermore, pursuant to 

section 2635.502, I will not participate in any particular matter involving 

specific parties in which any client of my spouse is or represents a party, 

unless I am authorized to participate. In addition, my spouse has agreed 

not to represent any client with respect to any particular matter before the 

Department of XXX during my tenure. 

Sincerely, 

Jane S. Jones
Appendix--Model Documents 

14.4 RECUSAL LETTER

OGE DAEOgram of 

April 26, 1999

To fulfill ethics agreements, employees often execute written

disqualifications or recusals. The following is a sample recusal. 

Employees should consult with their ethics counselor before executing 

a recusal to ensure that it is an appropriate remedy to the ethics

problem. If the employee's recusal prohibits him from full job 

performance, the supervisor, the employee, and the ethics counselor 

should consider divestiture and other methods of resolving conflicts 

(see Chapter 5: Resolving Conflicts of Interest).

MEMORANDUM

TO: [Immediate Supervisor]

FROM: [Employee name and title of position]

SUBJECT: Notification of Commitment to Recuse

This memorandum is to provide you with written notification of 

my commitment to refrain from participation in certain matters in 

which I have a financial interest or a personal or business relationship 

and to describe the steps that I am taking to implement this 

commitment to recuse.

Recusal under 18 U.S.C. § 208

Description of 

Conflicting Interest

This recusal arises because [I own stock, own property, expect a 

payment, am an officer, am negotiating for employment, etc.] in, of or

with [identify by name the asset or other interest that gives rise to the

disqualifying financial interest, for example, 500 shares of XYZ 

Company stock or the ABC Foundation].

Disqualification from

Certain Particular 

Matters

Under 18 U.S.C. § 208, I am prohibited from participating 

personally and substantially in any particular matter that would have a

direct and predictable effect on my own financial interests or those of

certain other persons or organizations identified in section 208. In my

position of [identify position] in the [identify name of office] of the

[identify name of agency], I may be called upon to participate in 

certain particular matters that could affect [identify the disqualifying 

financial interest]. These matters may include the following: [provide a

Revised 11/04 

Page 14-9
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 14-10

description of the particular matter or matters.] Until further notice, I 

will not participate officially in such matters.

Screening Mechanisms In order to help ensure that I do not participate officially in these 

matters, I have taken or will take the following steps: (1) [delegation to 

subordinate language]. I have instructed [name and position] to handle 

any particular matter that could come before me that would affect [the 

name or description of the interest or entity causing the 

disqualification] and have arranged for [name of alternate supervisor] 

to serve as his or her supervisor for this matter; (2) I have provided 

[name of person who will act] and [names of any other persons that are 

to help with a screening arrangement] with a copy of this 

memorandum {unless there is an objection to disclosure of the 

information } and have asked [him/her/them] to [retain] [or refer to 

name of substitute actor] any matters which [he/she/they] believe are 

covered by my commitment to recuse; and (3) I have advised my 

immediate subordinates [and the name of any other group that 

typically sends the employee work directly] of this recusal. If you 

would prefer to act in these matters yourself or to select someone other 

than an individual under my general supervision to act in my stead, 

please notify me of your determination so that I might provide the 

appropriate information to my subordinates [and colleagues, if 

appropriate].

Provision for Changes 

in the Future

In order to ensure that this commitment to recuse continues to be 

effective, I will take the following steps in the future: (1) I will revise 

and update this memorandum whenever that is warranted by changes 

in my financial interests or the nature of my duties, or other changed 

circumstances, and provide you, the person exercising my authority 

and [any screening individuals] with a copy; and (2) I will advise my 

immediate subordinates and colleagues of any such changes.

Recusal under 5 C.F.R. § 2635.502

I also have the following covered relationship [or financial 

interest of a member of my household]. [Give a full description of the 

covered relationship or financial interest].

Appearance Standard Under 5 C.F.R. § 2635.502(e), unless I am specifically authorized 

to do so by the agency designee, I must not participate in any 

particular matter involving specific parties where I or the agency 

designee have concluded that the financial interest of a member of my 

household, or the role of a person with whom I have a covered 

relationship, is likely to raise a question in the mind of a reasonable 

person about my impartiality.
Appendix--Model Documents 

Revised 11/04 

Page 14-11

Matters Covered 

by the Recusal

In my position of [identify position] in the [identify name of 

office] of the [identify name of agency], I may be called upon to 

participate in certain particular matters involving specific parties that 

could affect [identify the covered relationship or financial interest]. 

These matters may include the following: [identify relevant specific 

party matters]. I have consulted with the agency designee and have 

been advised that I should not participate in specific party matters 

affecting [the covered relationship or financial interest]. Until further 

notice [or "for a period of one year" in the case of certain terminated 

relationships], I will not participate officially in such matters, unless 

authorized by the agency designee.

Screening Mechanisms In order to help ensure that I do not participate officially in these 

matters, I have taken or will take the following steps: (1) [delegation to 

subordinate language]. I have instructed [name and position] to handle 

any particular matter involving specific parties that could come before 

me that would affect or involve as a party [the name or description of 

the interest or entity causing the disqualification] and have arranged for 

[name of alternate supervisor] to serve as [his or her] supervisor for 

this matter; (2) I have provided [name of person who will act] and 

[names of any other persons that are to help with a screening 

arrangement] with a copy of this memorandum {unless there is an 

objection to disclosure of the information} and have asked 

[him/her/them] to keep [or refer to]--[name of substitute actor] any 

matters which [he/she/they] believe are covered by my commitment to 

recuse; and (3) I have advised my immediate subordinates [and the 

name of any other group that typically sends the employee work 

directly] of this recusal. If you would prefer to act in these matters 

yourself or to select someone other than an individual under my 

general supervision to act in my stead, please notify me of your 

determination so that I might provide the appropriate information to 

my subordinates [and colleagues, if appropriate].

Provision for Changes 

in the Future

In order to ensure that this disqualification continues to be 

effective, I will take the following steps in the future: (1) I will revise 

and update this memorandum whenever that is warranted by changes 

in my covered relationships, the financial interests of a member of my 

household, the nature of my duties, or other changed circumstances, 

and provide you, the person exercising my authority [and any 

screening individuals] with a copy; and (2) I will advise my immediate 

subordinates and colleagues of any such changes.

cc: [Agency ethics official (where appropriate), person exercising 

delegated authority, and any screening individuals]
Public Financial Disclosure: A Reviewer's Reference 

14.5 SCREENING ARRANGEMENTS

OGE DAEOgram of 

June 1, 2004

When employees enter into recusal agreements under 18 U.S.C. § 208, 

5 C.F.R. § 2635.502 or 5 C.F.R. 2635.503, they should have a 

screening arrangement to ensure that all parties understand the 

recusals. The following screening arrangement demonstrates the type 

of evidence that OGE requires for PAS employees who have recusals.

MEMORANDUM

To: [Employee's Supervisor]

From: [Employee's Name, Title] [Employee's signature]

Date:

Re: Screening Arrangement

This memorandum is to provide you with written notification of 

the screening arrangement I have implemented to ensure that I comply 

with my obligation to recuse myself from certain matters with which I

have a financial interest, or a personal or business relationship. These 

recusal obligations are set forth in the Ethics Agreement I executed on 

[date] (copy attached), prior to my confirmation as [title, agency].

I am disqualified from participating personally and substantially 

in any particular matter that would have a direct and predictable effect 

on:

[List each asset, entity or other interest that gives rise to a 

disqualifying interest under 18 U.S.C. § 208, e.g., XYZ 

Company or ABC Foundation].

Unless I am authorized to participate, I [also] am disqualified

from participating in any particular matter involving specific parties in 

which any of the following entities is a party or represents a party:

[List each entity with which the employee has a covered

relationship or is otherwise covered by 5 C.F.R. § 2635.502, and 

any entity from which the employee received an extraordinary

payment under 5 C.F.R. §2635.503].

Revised 11/04 

Page 14-12
Appendix--Model Documents 

Revised 11/04 

Page 14-13

In order to help ensure that I do not participate in matters 

relating to any of the entities listed above, I have taken or will take 

the following steps:

1. I have instructed [gatekeeper's name, title], to screen all 

[agency] matters directed to my attention that involve outside 

entities or that require my participation, to determine if they 

involve any of the entities or organizations listed above.

2. If [gatekeeper's name, title] determines that a matter 

involves any of these entities or organizations, directly or 

indirectly, [he] will refer them to [name and title of the person 

with authority to act on behalf of the employee] for action or 

assignment, without my knowledge or involvement.

3. I will provide [names and titles of gatekeeper(s) and 

persons who will act on behalf of the employee] with a copy of 

this memorandum so that they may fully understand the 

purpose and scope of my recusal obligations and this screening 

arrangement. In order to help ensure that I do not inadvertently 

participate in matters from which I should be recused, I am 

directing [name and title of gatekeeper] to seek the assistance 

of an agency ethics official if [he/she] is ever uncertain 

whether or not I may participate in a matter.

4. I will provide a copy of this memorandum to my principal 

subordinates [or, advise my principal subordinates of my 

recusal obligations and screening arrangement, as set forth in 

this memorandum]. I also will instruct my principal 

subordinates that all inquiries and comments involving any of 

the entities listed above should be directed to [name and title or 

the person(s) who will act on behalf of the employee], without 

my knowledge or involvement. 

5. In consultation with an agency ethics official, I will revise 

and update my ethics agreement and/or this memorandum 

whenever that is warranted by changed circumstances, 

including changes in my financial interests, my personal or 

business relationships, or the nature of my official duties. 
Public Financial Disclosure: A Reviewer's Reference 

6. In the event of any changes to this screening arrangement, I 

will provide a copy of the revised screening arrangement

memorandum to [or, advise] you, [name and title of gatekeeper], 

[name and title of person or office acting in my stead, if known], 

and my principal subordinates.

Attachment [the employee's ethics agreement] 

cc: Office of Government Ethics

Designated Agency Ethics Official

[Gatekeeper's name, title, e.g., confidential assistant, scheduler,

or other administrative personnel]

[Person(s) who are authorized to act on behalf of the official]

[Additional supervisors or subordinates, as appropriate]

Revised 11/04 

Page 14-14
Appendix--Model Documents 

14.6 MODEL 18 U.S.C. § 208(b)(l) WAIVER

The main financial conflict of interest statute (18 U.S.C. § 208) 

authorizes the agency appointing official or a designee to grant 

waivers of its prohibition after consultation, where practicable, with 

OGE. These waivers permit employees who would otherwise have a 

disqualifying financial interest to participate in certain Government 

matters without fear of violating § 208. The waiver must specify the 

financial interest involved and include a written determination that that 

financial interest is not so substantial as to be likely to affect the

employee's integrity in acting officially in a matter.

This section provides a model that an agency might use to grant a 

waiver under 18 U.S.C. § 208(b)(l). Although the letter is focused on 

waivers for general policy matters, it includes an outline of the 

information that is useful for a thorough examination of any waiver 

request (see Section 5.3: Waivers and Exemptions for further 

information on waiver processing and analysis).

Letter or Memorandum Granting a Waiver Request

This letter [or memorandum] responds to your request for a

waiver pursuant to 18 U.S.C. § 208(b)(l) to allow you to participate in 

a particular matter(s) affecting a financial interest you have in the 

matter(s). [You may wish to include the following language to 

emphasize to the employee that the issuance of the waiver is dependent 

on the information provided by the employee: This waiver is being

issued based upon the information you have provided to me regarding 

the nature and circumstances of the particular matter(s) involved and 

your full disclosure of your financial interest in the matter(s).]

Identify Position and Duties

You are a [title of position] in the [name of office] of the [name of

agency]. In your position, you are required to [insert general 

description of duties].

Identify particular matter

You have been assigned to work on [or as part of your duties, you 

will be working on] a particular matter(s) in which you have a 

financial interest. The particular matter(s) is (are) [describe particular 

matter(s)].

Revised 11/04 

Page 14-15
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 14-16

NOTE: the note following § 2640.30l(a) states that the disqualifying 

financial interest, the particular matter or matters to which the waiver 

applies, and the employee's role in such matters do not need to be 

described with any particular degree of specificity, but that the waiver 

should provide a clear understanding of

• the nature and identity of the disqualifying financial interest,

• the matters to which the waiver will apply, and

• the employee's role in such matters.

For example, an agency may wish to waive all matters which an employee 

would undertake as part of his official duties; in such an instance, the 

agency would not be expected to specifically describe each particular 

matter. Instead, the waiver should make clear the nature of the employee's 

role and disqualifying interest in the class of matters.

Describe role of employee in matter

With respect to this (these) particular matter(s), you will be expected 

to [describe role of employee in particular matter(s)].

Describe disqualifying financial interest in matter

To promote an understanding of why the waiver is necessary, you 

may wish to preface the analysis of disqualifying financial interest with 

an opening sentence like the following: You have a disqualifying 

financial interest in the particular matter(s) described above because, in 

connection with the Governmental action on the particular matter(s), 

there is a potential for gain or loss to you [or your spouse, minor child, 

general partner, organization in which you are serving as officer, director, 

trustee, general partner or employee, or any person with whom you are 

negotiating or have any arrangement concerning prospective 

employment].] You [or other such person] [own, possess, are entitled to, 

or otherwise describe nature of rights] [identify what it is that is the 

subject of the ownership or other rights . . . stocks, real estate, an interest 

in a contract, or etc]. This interest is likely to be affected by the particular 

matter described above as [describe how the matter will affect the interest 

including why it is that there is a potential for gain or loss to the interest 

and a general analysis of the magnitude of the potential gain or loss to the 

interest.]
Appendix--Model Documents 

Revised 11/04 

Page 14-17

Determination Required by 18 U.S.C. § 208(b)(l)

As the official responsible for appointing you to your position [or 

other Government official to whom authority to issue such a waiver has 

been delegated], I have determined that the disqualifying financial 

interest in the particular matter(s) is not so substantial as to be deemed 

likely to affect the integrity of the employee's services to the 

Government. You may wish to provide here a summary of the analysis 

pursuant to which the determination to issue the waiver was made, 

including the application of the factors listed in 5 C.F.R. § 2640.301(b).

Identification of Any Limitations on the Waiver

[If appropriate, the agency should further identify matters to which 

the waiver will and will not extend. Example: This waiver shall apply 

only to general policy matters and does not extend to any matters 

involving parties or which will specifically and uniquely affect (subject 

of ownership interest or other rights). If appropriate, the waiver could 

be limited by the value of the ownership interest that creates the 

disqualifying financial interest. Example: This waiver shall not apply if 

the value of the interest in XYZ exceeds $50,000.]

OGE Consultation

[Should the agency want to mention a consultation regarding the 

waiver with OGE, the waiver can indicate: I have consulted with the 

Office of Government Ethics on this waiver and will provide them with 

a copy of it.]
Public Financial Disclosure: A Reviewer's Reference 

14.7 AGENCY PROCEDURES FOR THE COLLECTION AND REVIEW OF SF278s

5 C.F.R. § 2634.103(a) Note Each agency is required by Section 402(d)(l) of the Ethics in 

Government Act to have written procedures for both the public and

confidential financial disclosure systems regarding the collection, 

review, and evaluation of reports, as well as their public availability, 

as appropriate. Following is a model for such written procedures 

concerning the public disclosure system. Agencies may wish to issue 

separate written procedural guidance for the confidential disclosure

system, or they may combine it with their guidance for the public 

system.

Agencies should be guided in issuing their written procedures by 

the OGE DAEOgram dated September 3, 1992, which is reprinted in 

this section. There is no particular format which is required; it should 

be an internal, utilitarian document, designed to inform filers and

reviewers of their responsibilities under the law, and how those 

requirements have been implemented within the agency. Agency 

written procedures may include more or less information than the 

model in this section, but should address the minimum requirements 

specified in the DAEOgram.

The following model may be especially helpful for small to

medium-sized agencies in creating a set of procedures that addresses 

their individual needs. Larger agencies may need to alter this model

significantly, in order to adapt it to their unique structure, geographic 

dispersement, greater number of filers and reviewers, and other special 

characteristics.

Revised 11/04 

Page 14-18
Appendix--Model Documents 

[AGENCY] CIRCULAR XX-XX [DATE] 

PROCEDURES FOR PUBLIC FINANCIAL DISCLOSURE 

Background

Each agency is required by Section 402(d)(1) of the Ethics in Government Act to have internal 

written procedures for collecting, reviewing, evaluating, and making publicly available the public 

financial disclosure reports (SF 278) of those senior employees required to file. The governing 

regulation, 5 C.F.R. part 2634, should be consulted for the uniform requirements of the public 

disclosure reporting system, such as who files reports, what information is required to be reported,

when reports are due, what agreements filers need to eliminate conflicts of interest, and what steps 

are required for ethics officials in reviewing and releasing reports to the public. This circular adds 

special information and procedures which are unique to [agency].

Identification and Notification of Filers

Statutory and regulatory criteria determine which positions require filing a public financial 

disclosure report (see 5 U.S.C. App § 101 & 5 C.F.R. § 2634.202). Employees who hold these

positions must submit an SF 278 within 30 days of entering their position, annually by May 15, 

and within 30 days after leaving their position. (Presidential nominees should consult an ethics 

official for special filing requirements.) For [agency], the [ethics or personnel] office will maintain 

and update semiannually a master list of those positions that require filing. That office will also 

stock an adequate supply of SF 278 forms and distribute a blank copy, with [agency]’s

supplementary guidance letter, to each filer. This distribution should normally be accomplished not 

later than10 [or other number] working days after an individual enters a position, not later than

[March 1 or other date] each year thereafter, and at the time he leaves the position. Failure to make

that distribution, however, does not relieve filers of the requirement to file reports at the times

required by law.

Filing Instructions

All filers of the SF 278 at [agency] will submit their reports to the Designated Agency Ethics

Official's office, Room XX, [Name of Building], [Street address], Washington, DC 20000. Reports 

must be received and date stamped in that office not later than the due date specified in the

supplementary guidance letter, unless an extension has been granted in writing, in accordance with 

procedures herein. Filers should bring their reports to that office personally or mail them with 

sufficient lead-time to ensure their timely receipt. Failure to file on time may result in disciplinary 

or personnel action. Additionally, for a report which is filed more than 30 days late, a late filing fee 

of $200 is required by law, unless the Designated Agency Ethics Official finds "extraordinary 

circumstances" led to the late filing, and, therefore, issues a waiver of the fee.

Revised 11/04 

Page 14-19
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 14-20

Assistance

Printed instructions which are attached to the SF 278 provide detailed guidance to filers about 

what types of information they must report, the nature and extent of each disclosure, any 

permissible exclusions, and the extent to which information is required about a spouse and 

dependent children. Filers who have additional questions about how to complete their SF 278, who 

wish to request due date extensions, or who need more information about the public disclosure 

process should contact [name of individual], the Designated Agency Ethics Official, or one of the 

following persons [names], who are deputy ethics officials for [agency]. Any of these officials can 

be reached at (202) xxx-xxxx, or fax (202) xxx-xxxx. They can also provide assistance for filers who 

need advice about resolving conflicts of interest which a financial disclosure report may reveal.

Due Date Extensions

[Agency] has authority to grant due date extensions of up to 45 days, for "good cause." 

[Agency] can grant an additional extension of up to 45 days. All extensions must be requested in 

advance of the due date, and must allow sufficient processing time prior to the due date. 

Requests must be in writing and addressed to the ethics office at the address indicated above. 

Requests should state the reasons which support good cause for granting an extension, and should 

specify the number of days which are being requested beyond the due date. It is suggested that 

filers call one of the officials listed above to alert them that an extension request will be submitted. 

Any report submitted late without a properly granted due date extension may subject the filer to 

disciplinary or personnel action. Reports filed more than 30 days after a due date or extended due 

date will also result in a $200 late filing fee, unless waived by the Designated Agency Ethics 

Official or Alternate Designated Agency Ethics Official. See Penalties section below.

Requests for Special Exclusions

In rare cases, the financial disclosure statute provides for exclusion of certain information 

from public disclosure, such as gifts of a personal nature (from a fiancee or in connection with a 

wedding or baby shower, for example). Also, in rare cases, some special Government employees 

(serving less than 130 days a year) who meet specific criteria may be permitted under the statute to 

report confidentially all information required by the SF 278. These exceptions can only be 

approved by the Office of Government Ethics and must meet specific guidelines contained in the 

Ethics in Government Act. Filers should contact the ethics office at the above phone number if 

they believe they may qualify for a special exception. In general, however, the statute requires full 

public disclosure of all financial information specified (see the instructions to the SF 278 for 

specific disclosure requirements).
Appendix--Model Documents 

Revised 11/04 

Page 14-21

Ethics Review

One of the basic principles of financial disclosure is that reports should be reviewed by ethics 

officials to insure their completeness and to help resolve any conflicts of interest which are 

revealed. The Designated Agency Ethics Official or her ethics staff must review and certify (by 

signing and dating) each SF 278 which is required to be submitted at [agency]. All persons named 

in the section on Assistance above have been delegated to assist in that review process. [NOTE: 

Some agencies may wish to specify a tiered review process, depending on their resources and the 

number of filers.]

At the time an SF 278 is received by the ethics office, it will be date-stamped in the box in the 

lower right corner of the cover page which is labeled "Agency Use Only." The ethics office will 

maintain a log which lists all filers, due dates, dates of receipt of SF 278s, and the status of the 

review or any extensions or late filing fee collections.

SF 278 reports will be reviewed in accordance with 5 C.F.R. § 2634.605. That regulation 

requires an ethics official to certify that the report is complete and that the disclosed interests do 

not violate or appear to violate a conflict of interest statute, the Ethics in Government Act and 

implementing regulations, Executive Order 12674, as modified by Executive Order 12731, and 

implementing regulations, or agency-specific statutes and regulations. It may be necessary to 

contact the filer or his supervisor for additional information concerning the report or the potential 

for conflict in relation to the filer's duties. This may include requests for clarification or 

notification of a filer that she will be required to eliminate a conflict by divestiture, resignation 

from an outside position, recusal from certain agency matters, or other means. In order to conclude 

the review process as promptly as possible, the filer may be asked to comply with such requests by 

a specified due date. This due date will be set by the reviewer, depending on the nature and extent 

of information being sought and any logistical or procedural difficulties.

The review process will normally be completed within 60 days after receipt of an SF 278 by 

the ethics office, unless the reviewer has to contact the filer or her supervisor for more information. 

Copies of reports from Presidential nominees will be forwarded to the Office of Government 

Ethics, in accordance with 5 C.F.R. § 2634.602.

Resolving Conflicts of Interest

Actual or apparent conflicts of interest in a filer's performance of Government duties may be 

revealed during the review of an SF 278. Filers may be required by ethics officials to enter an 

ethics agreement, as discussed at 5 C.F.R. § 2634.802. These agreements do not imply any 

impropriety on the part of a filer; rather, they help to avoid conflicts and the public's legitimate 

perception of a conflict. Filers may be asked to agree to recuse from participation in certain 

Government matters; to divest of a conflicting asset; to resign from an outside position; to seek a 

waiver/exemption under the criminal conflict of interest statute; or to consider other means 

appropriate to the circumstances which will eliminate or ameliorate a conflict.
Public Financial Disclosure: A Reviewer's Reference 

Penalties

The Ethics in Government Act requires agencies to refer to the Attorney General the names of

filers when there is reasonable cause to believe that they have knowingly and willfully failed to file 

an SF 278 report or any information required on that report, or have knowingly and willfully

falsified any information required to be reported. Civil penalties in a Federal court are authorized 

up to $11,000. Criminal charges may also be instituted for supplying false information on an 

SF 278. Additionally, this agency may take appropriate personnel or other action in accordance 

with applicable laws and regulations in the case of an SF 278 filer who fails to file a report, or 

omits required information, files late, or falsifies information. Delinquent filers will be advised of

any such action which may be pursued.

Finally, the statute provides for a late filing fee of $200 for reports filed more than 30 days late. 

Filers will be notified in writing, in accordance with 5 C.F.R. § 2634.704, and advised of the

procedures for paying the fee or requesting a waiver based on extraordinary circumstances. 

Requests for waiver of the fee can be granted only by the Designated Agency Ethics Official or 

Alternate Designated Agency Ethics Official.

Custody of and Access to Reports

The Ethics in Government Act requires that agencies make copies of an SF 278 available to the 

public upon written request, beginning 30 days after its receipt. (The established procedure for this

is found at 5 C.F.R. § 2634.603.) OGE Form 201 will normally be used, because it contains a

statement that the law requires the requestor to sign. That form will be available from the ethics 

office. Filers may obtain copies of any requests for their SF 278 reports, by using the same form.

All SF 278s at this agency will be maintained in the ethics office at the address indicated 

above, for a period of six years. Requests to examine or copy a report should be directed to that 

office. The ethics office will accept signed, written requests in person, by mail, or by fax. Copying 

fees may be charged, depending on the number of reports requested by any one person, in 

accordance with this agency's guidelines for public release of any other documents.

Following is the DAEOgram that OGE issued on September 3,1992, to give guidance to 

the agencies on establishing their internal procedures for financial disclosure.

Revised 11/04 

Page 14-22
 Appendix--Model Documents 

Revised 11/04 

Page 14-23

September 3, 1992

MEMORANDUM FOR DESIGNATED AGENCY ETHICS OFFICIALS

FROM: STEPHEN D. POTTS 

DIRECTOR

SUBJECT: Developing written procedures for the public and confidential 

financial disclosure systems

Pursuant to Section 402(d) (1) of the Ethics in Government Act of 1978, as amended, the 

Director of OGE is required to ensure that each executive branch agency establish written 

procedures for collecting, reviewing, evaluating, and where applicable, making publicly available, 

financial disclosure reports filed by the agency's officers and employees. This memorandum 

provides guidelines for developing written procedures required by that section.

Written procedures must be consistent with the new uniform regulation on financial disclosure 

(57 FR 11800-11830, of April 7,1992). Agencies may develop a single set of procedures covering 

the public and confidential financial disclosure systems, or separate procedures for each system. 

The procedures should also cover any alternative or supplemental reporting formats approved by 

OGE. Additionally, agencies should describe any special procedures to be used by component 

organizations, bureaus, regional and field offices. Agencies should address the following topics in 

these written procedures:

► Identifying incumbent, new entrant and termination (public reports only) report filers, 

including a determination of who will be responsible for identifying filers and maintaining and 

updating master listings of filers. For the confidential system, identifying officials who will 

designate positions for filing and how the designations will be documented.

► Distributing blank report forms (SF 278 and SF 450).

► Filing instructions. (Where and when to file reports, including any internal agency due dates).

► Identifying who filers should contact for assistance in completing the reports.

► Requesting and granting individual filing extensions from the agency and announcing blanket 

extensions for groups of employees or the entire agency.

► Granting exclusions from the filing requirements, including how to obtain approval from OGE 

for exclusions from the public financial disclosure requirements.

► Designating officials authorized to review and certify reports.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 14-24

► Reviewing process (i.e. for completeness, conflicts of interest, violations of law, regulation or 

executive order).

► Levels of review and approval.

► Obtaining additional information from the filer when the report is incomplete, ambiguous, or 

raises conflict of interest issues and establishing an allowable timeframe within which the filer 

must provide the additional information.

► Amending and revising reports based on additional information obtained from the filer.

► Maintaining custody of reports.

► Providing for public access to public financial disclosure reports and security for confidential 

financial disclosure reports.

► Requiring remedial actions to resolve conflicts of interest or violations of laws, regulations or 

executive orders.

► Pursuing administrative or disciplinary actions where appropriate. 

► Following-up on delinquent reports.

► Collecting the $200 late filing fee and requesting waivers of the $200 late filing fee (public 

reports only).

Agencies are not required to submit these procedures for OGE review or approval. 

Additionally, because these written procedures should establish the agency's internal procedural 

guidance, they should not be submitted to OGE as part of any agency supplemental regulations to 

the uniform financial disclosure regulation to be codified at 5 C.F.R. Part 2634 (57 FR 11800-

11830, April 7,1992) or the standards of conduct to be codified at 5 C.F.R. Part 2635 (57 FR 

35006-35067, August 7,1992). In most cases, these written procedures should eliminate the need 

for supplemental regulations.

Please note that each agency's written procedures will be examined during OGE's agency ethics 

program reviews in order to ensure that they are in conformance with all applicable laws, 

regulations and executive orders as required by the Act. However, each agency will determine who 

will issue these procedures, the format that will be used and who should receive them. You may 

direct any questions on developing these internal written procedures to your OGE desk officer.
 Appendix--Model Documents 

Revised 11/04 

Page 14-25

14.8 SF 278 REVIEW CHECKLIST

The following is a checklist of some basic points to remember 

when filling out or reviewing an SF 278. The items address common 

errors and omissions. Chapter 3: Report Contents provides more 

detailed information on the contents of the various schedules. Various 

chapters of this Reference are cited next to elements that they address.

The Basic Rule

The basic rule when filling out or reviewing an SF 278 is that an 

entry should disclose all required information and be sufficiently 

detailed to allow a full conflict of interest analysis. Anything more 

than that basic requirement is unnecessary; anything less is inadequate. 

For example, a filer should not list the series numbers of Government 

securities or the account number for a bank deposit; merely identifying 

the asset as a Government security or providing the bank name and 

type of account allows a full conflict of interest analysis. On the other 

hand, a filer must report more than simply "Merrill Lynch Account," 

because that does not describe the nature of his assets and because 

conflicts of interest may arise from the underlying holdings in the 

account.

Schedule A

 Identify assets currently held, and specify the asset value, and the 

type and amount of income.

 Assets sold during the reporting period that earned more than $200 

in income, including capital gains must also be reported. The asset 

value would be zero.

 Accrued income, even if tax-deferred, must be fully reported.

 Any "other" type of income, such as a salary, must include an 

actual amount instead of a category of amount (except that the 

amount may be left blank for a spouse's earned income).

 Any asset that meets the following three criteria may be listed as 

an "Excepted Investment Fund," and is eligible for reduced 

disclosure: 1) independently managed, 2) widely held and 3) 

publicly traded (or available) or widely diversified. EIFs may 

include mutual funds, unit investment trusts, and many public 

limited partnerships, for example.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 14-26

 Investment clubs, brokerage accounts, or private trusts usually are 

not EIFs.

 For all business entities that are not publicly traded, filers must 

list the nature of the business as well as any assets or liabilities 

that are not incidental to the business.

 Any honoraria entries must include the date of the event.

Chapter 6 Employment, 

Ownership, and Outside 

Activities 

 Filers who retain interests in a law partnership or similar entity 

must list an asset value for any capital accounts.

Chapter 7 Investment 

Vehicles 

 For IRAs, 401(k) plans, Keogh plans, defined contribution 

pensions, and other investment vehicles, the underlying assets are 

listed as individual line-item entries, complete with asset values, 

types and categories of amount of income.

Chapter 8 Investments  Real estate entries must include the address (city and state) of the 

property.

Schedule B. part I

 All entries should include a date of transaction. For frequent or 

periodic purchases or sales of a security, the filer may enter 

"periodic" or "monthly" instead of the exact dates.

 Exchanges must indicate two assets -- the asset originally held and 

the asset for which the filer exchanged it.

 If bank or brokerage statements are included in lieu of reporting 

transactions on the SF 278, the statements should include all 

transactions for the entire reporting period, not simply the last 

month or quarter.

Chapter 9 Gifts Schedule B. part II

 In addition to personal gifts, gifts accepted from a non-profit 

organization under the Government Employee Training Act (5 

U.S.C. § 4111) must be listed. Gifts accepted under agency gift 

acceptance authorities or under GSA travel authority (31 U.S.C. § 

1353) need not be reported, because they are accepted by the 

agency, not the filer.
 Appendix--Model Documents 

Revised 11/04 

Page 14-27

 Each listing of a gift of travel should include the dates and itinerary 

of travel, the nature of the gift (tickets, hotel), and the overall value 

of the gift.

Schedule C. part I

 The reported amount for a liability should be the highest amount

wed during the reporting period except for revolving accounts such 

as credit cards.

Schedule C. part II

 Any arrangement with a past or future employer, including 

pensions, stock options, severance agreements, leaves of absence, 

or promises of employment, should be listed. Income generated 

from or any equity held in these sources should be reported on 

schedule A.

Chapter 6 Employment, 

Ownership and Outside 

Activities 

Schedule D. part I

 All entries must include the address (city and state) and the nature 

of the outside organization.

 New entrants from outside the Government must list their former 

employer as well as any other compensated or uncompensated 

position.

 Filers must report any positions held during the reporting period, 

not only those held at the end of the period.

Schedule D. part II

 Lawyers and other filers with clients must list individual clients for 

whom they personally provided services valued at more than 

$5,000.

 Any entry must include the address (city and state) of the source of 

the income.

 Positions held should also be reported on Schedule D, part I.

 A new entrant's former employer should be included if the $5,000 

threshold is met, even though also reported on Schedule D, part I.
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 14-28

Overall Check

Internal Consistency

Since many of the reporting requirements for the various schedules 

overlap, filers should perform an internal consistency check. This 

check ensures that the listings on the various schedules agree.

 Non-Federal pensions must be reported on Schedule A, 

including asset and income information, and also on Schedule 

C, part II, including the terms, dates and parties of the 

agreement (except for a spouse).

 Earned income from outside positions should be listed on 

Schedule A, and (except for a spouse) the outside position 

should be on Schedule D, part I (and on Schedule D, part II, for 

new entrants and nominees if the income for direct personal 

services was over $5,000).

 Any positions on Schedule D which are sources of income 

(other than clients of a business) must also be listed on 

Schedule A.

See "Review Assumptions" in 

Section 4.3: Obtaining 

Additional Information

Consistency with Previous Filings

 The current filing must reconcile with previous filings. Each 

entry should normally either:

• Continue on the next report, 

• Disappear (or appear) because of a reported transaction or 

• Disappear because it slipped below a threshold or 

dissipated. 
Revised 11/04 

Page 15-1

15.0 SAMPLE FORMS 

This chapter contains copies of sample forms that are related to 

financial disclosure. 

These forms can be found on OGE’s website at www.usoge.gov. 

• Standard Form 278: Public Financial Disclosure Report

• OGE Form 201: Request to Inspect or Receive Copies of SF 278 

Executive Branch Personnel Public Financial Disclosure 

Report or Other Covered Report 

• OGE Form 202: Notification of Conflict of Interest Referral 
Revised 11/04 

Page 16-1 

16.0 REFERENCE MATERIALS 

This chapter contains reference materials that reviewers of 

SF 278s may find useful. These materials include an index of common 

abbreviations, a simple glossary of terms used in public financial 

disclosure, and an index for this Reference.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-2

This Page Intentionally Left Blank 
 Appendix--Reference Materials

Revised 11/04 

Page 16-3

16.1 ABBREVIATIONS

A

ADAEO Alternate Designated Agency Ethics Official

APR Annual Percentage Rate

ARM Adjustable Rate Mortgage 

C 

CD Certificate of Deposit

 Certificate of Divestiture

CFR Code of Federal Regulations

CODA Cash or Deferred Arrangement

CREF College Retirement Equities Fund

D 

DAEO Designated Agency Ethics Official

DEC Deputy Ethics Counselor (same as DEO)

DEO Deputy Ethics Official (same as DEC)

E 

EIF Excepted Investment Fund

F 

FOIA Freedom of Information Act

G 

GSA General Services Administration

GAO General Accounting Office

I 

IRA Individual Retirement Account

IRS Internal Revenue Service, Department of the Treasury
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-4

M 

MM(M)F Money Market (Mutual) Fund

MSPB Merit Systems Protection Board

MSPR Merit Systems Protection Reporter

O 

OGE Office of Government Ethics

OPM Office of Personnel Management

P 

PA Presidential Appointee

PAS Presidential Appointee, Senate Confirmed

S 

SEP Simplified Employee Pension Plan

SF Standard Form

SF 278 Public Financial Disclosure Report

SF 450 Confidential Financial Disclosure Report

SGE Special Government Employee

T 

TIAA Teachers Insurance and Annuities Association

TIAA-CREF TIAA - College Retirement Equities Fund

U 

USC United States Code
 Appendix--Reference Materials

Revised 11/04 

Page 16-5

16.2 GLOSSARY

OGE intends the following definitions for use in understanding financial disclosure and 

conflicts of interest. These definitions are not intended for use in legal interpretations without 

further specification and research.

Alternate 

Designated Agency 

Ethics Official

Alternate Designated Agency Ethics Official (ADAEO) means the official 

selected by the agency head to act in the capacity of the Designated 

Agency Ethics Official in the event of her absence. Subpart B of 5 C.F.R. 

part 2638 provides information on the appointment and additional 

responsibilities of the ADAEO.

Agency Agency includes any executive agency as defined in 5 U.S.C. § 105-any 

executive department, Government corporation, or independent 

establishment in the executive branch; any military department as 

defined in 5 U.S.C. § 102; and the Postal Service and the Postal Rate 

Commission. It does not include the General Accounting Office.

Asset Management 

Account

An asset management account, offered by a brokerage house, bank, or 

savings and loan, combines a number of financial services, such as 

checking, money market, brokerage, and margin accounts, or a revolving 

line of credit. These accounts allow a person to receive one statement 

that covers all of their finances. Customers sometimes use these 

accounts to shift assets and income automatically or as needed. For 

example, a person might have excess funds in a checking account 

automatically transferred to a money market account. Several variants 

of this account exist, with brand names like Cash Management Account, 

Active Assets Account, and Financial Management Account.

Capital Gain The difference between an asset's basis (usually the cost) and sale price. 

In appropriate cases, a Certificate of Divestiture allows a financial 

disclosure filer to defer paying taxes on capital gain.

Certificate of 

Divestiture

The certificate of divestiture (CD) was created by the Ethics in 

Government Act of 1978 to reduce the tax burden of divestiture that can 

occur when an employee is ordered to comply with ethics restrictions. 

It allows an employee to defer the payment of capital gains tax after a 

sale of a conflicting asset (see Section 5.5: Divestiture or Resignation for 

a description of the process of obtaining a CD).

Defined Benefit 

Pension Plan

A pension plan by which an employer holds and invests pooled funds for 

all participating employees together, and the employer guarantees a 

fixed amount of benefits to employees after retirement.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-6

Defined Contribution 

Pension Plan

A pension plan by which an employer or its agent maintains a separate 

account for each participating employee. Benefits at retirement depend 

upon the amount contributed and the investment performance of the 

plan's assets, which are selected by the employee or an independent 

manager.

Dependent Child When used with respect to any reporting individual, a son, daughter, 

stepson, or stepdaughter who --

(1) Is unmarried and under age 21 and is living in the household 

of the reporting individual, or 

(2) Is a dependent of the reporting individual within the meaning 

of 26 U.S.C. § 152. 

See also the narrower term "minor child," as used in the conflict of 

interest statute.

Designated Agency 

Ethics Official

Designated agency ethics official means the primary officer or employee 

who is designated by the head of an agency to administer the provisions 

of title I of the Ethics in Government Act of 1978 and 5 C.F.R. part 2634 

within an agency, and in his absence the alternate who is designated by 

the head of the agency. The term also includes a delegate of such an 

official, unless otherwise indicated. Subpart B of 5 C.F.R. part 2638 

provides information on the appointment and additional responsibilities 

of a designated agency ethics official and alternate.

Dividend A distribution of money or other property made by a corporation or other 

entity to its shareholders or investors out of its earnings and profits.

Earned Income Earned income is contrasted with investment income. It includes wages, 

salaries, honoraria, commission, professional fees, and other forms of 

compensation for services.

 Ethics Agreement An ethics agreement is an arrangement that an employee or nominee 

makes with her agency to alleviate an actual or potential conflict of 

interest. It usually involves a promise to perform or seek one of the 

following: recusal, waiver, divestiture, resignation, reassignment, or 

qualified trust.
 Appendix--Reference Materials

Revised 11/04 

Page 16-7

Excepted Investment 

Fund

An EIF is a widely held investment fund (whether a mutual fund, 

regulated investment company, common trust fund maintained by 

a bank or similar financial institution, pension or deferred 

compensation plan, or any other investment fund), if:

A. The filer does not exercise control over and does not have the ability 

to exercise control over the fund; and

B. Either: The fund is publicly traded or available;

or The assets of the fund are widely diversified.

A fund is widely diversified if it holds no more than 5% of the value 

of its portfolio in the securities of any one issuer (other than the 

United States Government) and no more than 20% in any particular 

economic or geographic sector. The significance of an EIF is that 

it permits reduced financial disclosure information, as indicated in 

Section 7.1: Excepted Investment Funds.

Fiduciary A person such as a trustee or executor who holds a special trust 

and confidence to act in good faith for another's benefit. A fiduciary 

can be held legally liable for breaches of her fiduciary duty.

Futures Contracts or agreements obligating the holder to buy or sell a 

commodity (such as agricultural products, metals, and energy fuels) 

or a financial instrument at a stipulated price, quantity, and time.

Honorarium A payment of money or anything of value for an appearance, speech, 

or article, less any necessary travel expenses.

Income Income includes but is not limited to the following items: earned 

income such as compensation for services, fees, commissions, 

salaries, wages and similar items; gross income derived from 

business (and net income if the individual elects to include it); 

gains derived from dealings in property including capital gains; 

interest; rents; royalties; dividends; annuities; income from the 

investment portion of life insurance and endowment contracts; 

pensions; income from discharge of indebtedness; distributive share 

of partnership income; and income from an interest in an estate or 

trust. The term includes all income items, regardless of whether 

they are taxable for Federal income tax purposes, such as interest 

on municipal bonds. Generally, income means "gross income" as 

determined in conformity with the Internal Revenue Service 

principles.

Interest Compensation for the use of money, usually stated as an annual rate.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-8

Investment 

Income 

Investment income is contrasted with earned income. It includes 

returns on investments, rather than compensation for personal services. 

Common forms of investment income are dividends, interest, capital 

gains, rents, royalties, and distributive shares. The financial disclosure 

reporting system also allows characterization of certain investment 

income as EIF (excepted investment fund) income.

Margin Account Arrangement with a broker or financial institution permitting a 

customer to borrow in order to cover the cost of investment purchases.

Minor Child A son or daughter who is under a state's age of legal competence, which is 

age 18 in most states. Prior to reaching a state's age of majority (legal 

competency), a minor cannot legally enter contracts, give legal consent, or 

otherwise transact business. Minor child is used in the conflict of interest 

statute (18 U.S.C. § 208) to describe those whose financial interests are 

attributed to a Government employee. See also the broader term 

"dependent child," as used in the financial disclosure law.

Mortgage A loan to finance construction or purchase of real estate, whereby the 

borrower gives the lender a lien (a claim against the real estate) as 

security for repayment.

Mutual Fund A portfolio of stocks, bonds, futures, options, money market instruments, or 

other securities, that is created and managed as an investment 

company and registered with the Securities and Exchange Commission. 

The mutual fund sells shares to investors and pools their money to 

purchase its investments.

Options Contracts or agreements giving the holder the right (but not the legal 

obligation as with futures contracts) to buy or sell a commodity (such as 

agricultural products, metals, and energy fuels) or a financial 

instrument or stock at a stipulated price, quantity, and time.

PAS Employee A PAS Employee is one who holds a senior noncareer position that 

requires nomination by the President and confirmation by the Senate.

Personal Hospitality of 

any Individual

Hospitality extended for a nonbusiness purpose by an individual, not a 

corporation or organization, at the personal residence of or on property or 

facilities owned by that individual or his family (see the gift reporting 

exclusions in Section 3.5: Schedule B, Part II).
 Appendix--Reference Materials

Revised 11/04 

Page 16-9

Personal Residence Any real property used exclusively as a private dwelling by the 

reporting individual or his spouse, which is not rented out during 

any portion of the reporting period. The term is not limited to one's 

domicile; there may be more than one personal residence, including 

a vacation home (see asset, transaction and liability reporting 

exceptions in Chapter 3: Report Contents).

Personal Savings 

Account

Prohibited 

Source 

(1) Is seeking official action by the employee's agency; 

Any form of deposit in a bank, savings and loan association, credit 

union or similar financial institution (5 C.F.R. § 30l(c)(2)). These 

accounts carry a higher reporting threshold than other assets.

Principal The basic amount of an investment, upon which the investor may 

accrue interest or other income.

In the Standards of Conduct, a prohibited source for gifts is any 

person (including an individual or entity) who:

(2) Does business or seeks to do business with the 

employee's agency; 

(3) Conducts activities regulated by the employee's agency; 

(4) Has interests that may be substantially affected by 

performance or nonperformance of the employee's 

official duties; or 

(5) Is an entity a majority of whose members are described 

in (1) through (4). 

Qualified Trusts Blind or diversified trusts authorized by the Ethics in Government 

Act as a means of avoiding conflicts of interest for employees with 

extensive financial holdings. A qualified blind or diversified trust 

will insulate an employee from the criminal provisions of 18 U.S.C. 

§ 208. Qualified trusts require approval by the Office of 

Government Ethics and must follow specific statutory guidelines. 

See Section 5.6: Qualified Trusts.

Recusal A recusal is an ethics agreement in which an employee disqualifies 

himself from acting in official matters involving entities that present 

a financial conflict of interest for him.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-10

Relative An individual who is related to the reporting individual, as father, 

mother, son, daughter, brother, sister, uncle, aunt, great uncle, great 

aunt, first cousin, nephew, niece, husband, wife, grandfather, 

grandmother, grandson, granddaughter, father-in-law, mother-in-law, 

son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, 

stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, 

half sister, or who is the grandfather or grandmother of the spouse of 

the reporting individual, or who is the fiance or fiancee of the reporting 

individual. See the gift reporting exclusions in Section 3.5: Schedule B, 

Part II.

Reporting Individual 5 C.F.R. § 2634.202 defines "reporting individual." The term is 

synonymous with "filer." Section 2.1 offers further guidance.

Reviewing Official The designated agency ethics official or his delegate, the Secretary 

concerned, the head of the agency, or the Director of the Office of 

Government Ethics, who has the responsibility of examining and 

certifying an SF 278.

Debt obligations, such as U.S. Treasury bills, notes and bonds, issued by 

the Federal Government and secured by the full faith and credit (power 

to tax and borrow) of the United States.

Sector Fund A mutual fund that concentrates its investments in any industry, 

business, single country other than the United States, or bond of a 

single state within the United States rather than maintaining a 

diversified portfolio.

Schedule C Employee One who holds a Federal appointment for a position that is excepted 

from the competitive service because of its policy-determining nature or 

because it involves a close and confidential working relationship with 

the agency head or other top appointed official. Persons with this type 

of appointment range from secretaries and chauffeurs to policy advisors.

Special Government 

Employee

The term has the meaning given in 18 U.S.C. § 202(a): an officer or 

employee of an agency who is retained, designated, appointed, or 

employed to perform temporary duties, with or without compensation, 

for not to exceed 130 days during any period of 365 consecutive days, 

either on a full-time or intermittent basis.

Strike Price The strike price, or exercise price, refers to the price at which a person 

who holds a stock option may purchase the stock.

Treasuries 
 Appendix--Reference Materials

Revised 11/04 

Page 16-11

Value In determining the monetary equivalent for assets and gifts, value is a 

good faith estimate of the fair market value if the exact value is neither 

known nor easily obtainable by the reporting individual without undue 

hardship or expense. In the case of any interest in property, see the 

alternative valuation options in 5 C.F.R. § 2634.30l(e). For gifts and 

reimbursements, see 5 C.F.R. § 2634.304(e).

Waivers Under the conflict of interest statute, 18 U.S.C. § 208, a waiver permits 

an employee to participate in specified Government matters which 

would otherwise conflict with private financial interests. 

Section 208(b)(l) and (b)(3) of the statute details the conditions under 

which a waiver may be granted. It must be issued in writing by the 

employee's appointing official or delegate. (The statute also provides, in 

section 208(b)(2), for exemptions by OGE regulation, for certain remote 

or inconsequential financial interests common to a large number of 

employees.) See Section 5.3: Waivers.

Widely Diversified Widely diversified is a central element of the definition of an 

Excepted Investment Fund (see Section 7.1: Excepted Investment 

Funds) and of a Qualified Trust (see Section 5.6: Qualified Trusts). 

A fund (or a qualified trust) is widely diversified if it holds no more 

than 5% of the value of its portfolio in the securities of any one 

issuer (other than the United States Government) and no more than 

20% in any particular economic or geographic sector.
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-12

This Page Intentionally Left Blank
 Appendix--Reference Materials

Revised 11/04 

Page 16-13

16.3 INDEX

Statutes and Constitutional Provisions

Constitution of the United States 

Emoluments Clause......................................................................................... 9-4, 11-20, 11-22

Statutes 

18 U.S.C. § 201........................................................................................................... 9-4, 9-13, 11-8

18 U.S.C. § 202.................................................................................................................... 2-6, 11-3

18 U.S.C. § 203.................................................................................... 6-12, 6-16, 6-23, 6-28, 11-3-4

Contingency Fee Cases................................................................................................... 6-23-25

Segregating Legal Fees ....................................................................................................... 6-23

Special Government Employees.......................................................................................... 11-4

18 U.S.C. § 205 .......................................................................................6-12, 6-16, 6-23, 6-28, 11-5

Pro Bono Representation..................................................................................................... 11-5

Special Government Employees.......................................................................................... 11-5

18 U.S.C. § 207 ............................................................................................................... 11-8, 11-23

18 U.S.C. § 208 ........................... 3-7, 3-14, 3-15, 5-1, 5-6, 5-11, 6-12, 6-13, 6-14, 6-24, 6-33, 6-36, 

11-6, 11-16, 14-6, 14-9

Ability or Willingness Standard...................................................... 7-13, 8-7, 8-13, 8-20, 10-10

Bonds ......................................................................................................................... 8-13,8-20

Cash Accounts ....................................................................................................................... 8-7

Defined Benefit Plans ......................................................................................................... 7-13

Defined Contribution Plans ............................................................................................... 7-13

Direct and Predictable Effect .............................................................................. 5-1, 6-12, 11-6

Ethics Agreements ............................................................................... See Ethics Agreements

Excepted Investment Funds.................................................................................................. 7-4

Exemptions under § 208(b)(2) ............................ See Exemptions under 18 U.S.C. §208(b)(2)

Financial Interest in a Particular Matter............................................................................. 5-1

Former employer ................................................................................................................. 6-14

Futures & Options.............................................................................................................. 8-35

Government Securities ...................................................................................................... 8-20

Honoraria............................................................................................................................. 6-31

Imputed Interests ........................................................................................................ 3-7, 6-14

Limited Partnerships ......................................................................................................... 8-31

Loans ................................................................................................................................... 10-7

Mutual Funds ...................................................................................................................... 8-26

Pensions ......................................................................................................................... 7-13-14

Public Availability of Waivers ................................................................................... 4-15, 5-10

Qualified Trusts................................................................................................................... 5-19

Real Estate .......................................................................................................................... 8-41

Real Estate Investment Trusts (REITs) ............................................................................ 8-42

Real Possibility Test .................................................................................................... 5-1, 6-13

Regulatory Agency Employees ................................................. 8-7, 8-20, 8-31, 8-35, 8-41, 8-47
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-14

Seeking Employment ........................................................................................................ 11-18

Severance Payments ............................................................................... 6-12, 6-14, 6-16, 6-24

Stock & Stock Options ....................................................................................................... 8-13

Third Party Guarantors ............................................................................................ 5-21, 7-14

Treasuries............................................................................................................................. 8-20

Unit Investment Trusts (UITs)........................................................................................... 8-26

Waivers................................................................................................................... See Waivers

18 U.S.C. § 209 ........................................................................................ 6-12, 7-14, 9-4, 9-13, 11-7

Contingency Fee Cases ................................................................................................. 6-23-25

Employee Benefits............................................................................................. 6-16, 7-14, 11-7

Employee-Inventors ............................................................................................................ 8-47

Gifts ....................................................................................................................................... 9-4

Honoraria ............................................................................................................................ 6-31

Intellectual Property........................................................................................................... 8-47

Pensions .............................................................................................................................. 7-14

Severance Payments ................................................................................ 6-5, 6-12, 6-16, 6-24

18 U.S.C. § 216.......................................................................................................................... 11-9

18 U.S.C. § 219......................................................................................................................... 11-22

18 U.S.C. § 1001 ....................................................................................................................... 2-20

31 U.S.C. § 1353 ....................................................................................................................... 9-11

Employee Retirement Income Security Act.............................................................................. 7-11

Ethics in Government Act..................................................................................................... 1-6, 4-1

Ethics Reform Act of 1989 .......................................................................................................... 1-6

Foreign Gifts and Decorations Act............................................................................ 9-5, 9-6, 11-22

Freedom of Information Act (FOIA).......................................................... 2-6, 4-4, 4-13, 4-15, 5-10

Government Employees Training Act ....................................................... 3-24, 9-5, 9-10-13, 11-7

Hatch Act ................................................................................................................ 9-5, 9-13, 11-20

Office of Federal Procurement Policy Act........................................................................ 9-1, 11-23

Judicial Decisions

Connett v. Department of Navy ............................................................................................... 2-20

Crandon v. United States ........................................................................................................ 6-16

Duplantier v. United States ....................................................................................................... 3-7

NTEU v. United States ................................................................................................. 6-29, 11-22

United States v. Boeing ............................................................................................................ 6-16

United States v. Gorman ............................................................................................................ 5-1

Executive Orders

E.O. 12674 .................................................................................................... 5-7, 5-14, 11-10, 11-25
 Appendix--Reference Materials

Revised 11/04 

Page 16-15

OGE Opinions & DAEOgrams

OGE DAEOgrams 

September 3, 1992 ............................................................................................................ 14-19

February 28, 1996 ............................................................................................................ 11-22

April 2, 1997 ...................................................................................................................... 6-36

April 14, 1999 ........................................................................................................... 5-21, 7-13

April 26, 1999 .................................................................................................... 5-4, 5-15, 14-9

February 15, 2000 ........................................................................................................ 2-3, 2-5

February 22, 2000 .................................................................................................... 2-10, 7-10

September 7, 2000 .............................................................................................................. 8-47

March 15, 2001 ................................................................................................................... 6-30

March 28, 2001 ........................................................................................................... 5-2, 14-6

December 19, 2001 .................................................................................................. 6-33, 7-27

March 8, 2002 ..................................................................................................................... 5-3

March 19, 2002 ........................................................................................................... 5-11, 7-5

April 12, 2002 ..................................................................................................................... 7-27

April 24, 2002 .................................................................................................................... 6-33

April 26, 2002 ........................................................................................................................ 5-7

June 11, 2002 ...................................................................................................................... 7-27

July 1, 2002 ....................................................................................................................... 6-16

August 8, 2002 ................................................................................................. 2-14, 2-16, 2-18

September 27, 2002 ............................................................................................................ 3-21

August 25, 2003 .................................................................................................................. 2-10

October 23, 2003 ................................................................................................................. 2-5

June 1, 2004 ...................................................................................................... 5-3, 5-4, 14-12

July 19, 2004 ....................................................................................................................... 2-8

Opinions 

83 OGE 1 ............................................................................................................................... 7-6

OGE 79x2 .................................................................................................................. 4-11, 4-15

OGE 79x7 ............................................................................................................................. 2-6

OGE 81x3 ............................................................................................................................. 2-8

OGE 81x22 ........................................................................................................................... 2-2

OGE 82x18 ......................................................................................................................... 8-45

OGE 82x22 ........................................................................................................................... 2-8

OGE 85x8 ........................................................................................................................... 4-15

OGE 86x3 ............................................................................................................................ 7-23

OGE 86x12 .................................................................................................................. 7-4, 8-26
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-16

OGE 86x19.......................................................................................................................... 6-32

OGE 87x9 .............................................................................................................................. 6-5

OGE 88x11 ............................................................................................................................ 7-6

OGE 90x2 .................................................................................................................. 3-27, 10-4

OGE 90x14 .......................................................................................................................... 5-18

OGE 90x20 ........................................................................................................................ 11-24

OGE 90x24 ........................................................................................................................ 11-24

OGE 91x5 ............................................................................................................................ 6-32

OGE 91x15 .......................................................................................................................... 10-7

OGE 91x30 ............................................................................................................................ 5-7

OGE 91x34 .......................................................................................................................... 7-11

OGE 92x10 ............................................................................................................................ 5-8

OGE 92x11 .......................................................................................................................... 5-15

OGE 92x12 ............................................................................................................................ 5-4

OGE 92x14 .......................................................................................................................... 5-18

OGE 96x5 ............................................................................................................................ 6-29

OGE 99x6 ............................................................................................................................ 5-21

OGE 00x1 .............................................................................................................................. 2-8

Charts

Gift Acceptance Flowchart........................................................................................................ 9-7

OGE Organizational Chart ....................................................................................................... 1-5

General Entries

40l(k) & 403(b) Plans ................................................................................................................ 7-8

60 Day Filing Threshold ............................................................................. 2-3, 2-5-7, 2-11, 2-12

Accounts Receivable............................................................................................................ 10-8-10

Accrued Income ......................................................................................................................... 3-9

Acting in a Position ........................................................................................................... 2-3, 2-8

Administrative Law Judges ..................................................................................................... 2-2

Administrator of an Estate .......................................................................................... 6-33, 7-28

Advisory Committees.......................................................................................................... 2-8, 5-6

Agency Prohibitions ........................................................................................... 8-14, 11-16, 11-22

Agency Securities .................................................................................................................... 8-16

Agreements or Arrangements ................................................................................................ 3-28

Alternative Reporting Formats................................................................................................. 2-10

Annotating the SF 278 .................................................................................... 2-15, 3-5, 4-8, 4-11

Annual Reports ......................................................................... See Incumbent/AnnualReports

Annuities ............................................................................................................................ 7-17-19

Exemptions under 18 U.S.C. § 208(b)(2) ......................................................................... 7-19

Antiques ............................................................................................................... See Collectibles

Appearance Standard .......................................................................... 5-5, 6-12, 6-15, 6-31, 6-37, 

 10-7, 10-10, 11-11, 11-17, 14-7, 14-8, 14-10
 Appendix--Reference Materials

Revised 11/04 

Page 16-17

Clients......................................................................................................................... 6-23, 6-25

Covered Relationship ............................................................................... 6-12, 6-15, 6-31, 6-37

Organizations in which One Actively Participates............................................................. 6-37

Severance Payments ............................................................................................................ 6-5

Armed Forces .................................................................................................................. 2-15, 11-3

Art Collections .................................................................................................................... 8-43-47

Asset Management Accounts ..................................................................................... 7-3, 8-4, 16-5

Assets 

Aggregating .......................................................................................................................... 3-8

Basic Reporting Test............................................................................................................. 3-7

Exceptions .......................................................................................................................... 3-13

Reporting Thresholds ........................................................................................................... 3-8

Valuing................................................................................................................................ 3-12

Attachments to the SF 278 ............................................................................................. 2-10, 4-15

Attorney-Client Confidentiality .............................................................................................. 3-31

Attorneys..................................................................................................................... 6-19-25, 11-4

Contingency Fee Cases .................................................................................................. 6-23-25

Leaving Law Firms to Enter Government .......................................................... 6-22-25, 11-4

Listing Former Clients ....................................................................................... 3-31, 6-9, 6-25

Pro Bono Representation ........................................................................................... 6-23, 11-5

Restrictions on the Outside Practice of Law....................................................................... 6-19

Use of a Partner's Name...................................................................................... 6-23-25, 11-24

Awards ...................................................................................................................................... 3-10

Bank Accounts ................................................................................................. See Cash Accounts

Beneficiaries or Beneficial Interests 

Estates .................................................................................................................. 3-22, 7-27-32

Life Insurance ............................................................................................. See Life Insurance

Trusts ............................................................................................................................ 7-27-32

Wills ...................................................................................................................... 3-22, 7-27-32

Benefits from a Former Employer .......................... See under Outside Activities & Employment

Bequests ..................................................................................................................... 3-22, 7-27-32

Blind Trusts ............................................................................................................... 5-19-20, 7-31

Bonds............................................................................................... 3-7, 3-17, 3-18, 8-8-14, 8-15-20

Ability or Willingness ............................................................................................... 8-13, 8-20

Debentures ............................................................................................................................ 8-8

General Obligations ............................................................................................................ 8-16

Mutual Funds...................................................................................................................... 8-21

Industrial Development ..................................................................................................... 8-17

Maturity of ................................................................................................. 3-18, 8-8, 8-10, 8-17

Original Issue Discount......................................................................................................... 8-8

Revenue Anticipation Notes................................................................................................ 8-17

Revenue Bonds.................................................................................................................... 8-16

Tax Anticipation Notes ....................................................................................................... 8-17
Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-18

Treasury Bonds ................................................................................................................. 8-15

U.S. Savings Bond ............................................................................................................ 8-15

Zero Coupon ................................................................................................................ 8-8, 8-18

Brokerage Statements .................................................................................. 2-10, 4-7, 4-15, 7-10

Business Interests ............................................................................................................... 6-4-18

Public vs. Private ........................................................................................................... 6-4, 6-6

Assets Solely Incidental to a Business ..................................................... 3-18, 6-6, 6-8, 6-27

Liabilities Solely Incidental to a Business ......................................... 3-26, 6-6, 6-8, 6-26, 10-2

Residual Interests ............................................................................................................. 6-16

Sole Proprietorships ........................................................................................................... 6-7

Capital Gains ................................................................ 3-9, 3-11, 7-21, 8-8-10, 8-18, 8-21, 8-23, 

8-27, 8-33, 8-36, 8-39, 8-44, 16-5

Certificates of Divestiture .................................................... See Certificates of Divestiture

Case Study Exercises ........................................................................................................ 13-2-29

Cash Accounts .............................................................................................. 3-7, 3-13, 3-18, 8-3-7

Account Numbers ................................................................................................................ 8-5

Aggregating ....................................................................................................................... 3-13

Brokerage Statements ...................................................................................................... 2-10

Cash or Deferred Arrangements ........................................................................................ 7-8-10

CATS................................................................................................................................ 8-15, 8-20

Cautionary Letter (Model) ..................................................................................................... 14-4

Certificates of Deposit ............................................................................................. 3-13, 8-3, 8-5

Certificates of Divestiture............................................................. 3-11, 3-17, 4-15, 5-15-18, 16-5

Eligible Persons ................................................................................................................ 5-17

Permitted Property............................................................................................................ 5-17

Public Availability ................................................................................................... 4-15, 15-1

Requesting .................................................................................................................... 5-15-18

Trusts ................................................................................................................................. 5-18

Certification of Reports .................................................................................... 2-1, 4-2, 4-3, 4-12

Delegation of DAEO's Certification Authority ...................................................... 4-12, 12-3

Timeframes for Review & Certification ............................................................................. 4-3

Charitable Donations ....................................................................................................... 6-30, 9-6

Citations................................................................................................................................... 1-3-4

Collectibles .......................................................................................................................... 8-43-47

College Tuition......................................................................................................................... 7-33

Combined Reports ................................................................................................. 2-12, 2-13, 3-6

Due Dates ........................................................................................................................... 2-12

Reporting Periods ................................................................................................................. 3-6

Commodity Futures ................................................................................................. 8-32-35, 16-7

Common Stock ............................................................................................................... See Stock

Comptroller General Decisions............................................................................................... 9-10

Confidentiality & Privacy ............................................................................................... 3-1, 3-31

Attorney Client Confidentiality.......................................................................................... 3-31

Privacy Rights & Public Disclosure...................................................................................... 3-1
 Appendix--Reference Materials

Revised 11/04 

Page 16-19

Contingency Fees.............................................................................................................. 6-23-25

Copyrights ......................................................................................................................... 8-43-45

Corporate Affiliates ............................................................................................................... 8-14

Corporate Securities........................................................................................................... 8-8-13

Cover Page ............................................................................................................................. 3-2-5

Covered Relationship ......................................................................See Appearance Standard

Designated Agency Ethics Officials & Other Ethics Officials ........................................ 16-6

Access to SF 278s............................................................................................................. 4-15

ADAEO..................................................................................................................... 4-16, 16-5

Annotating the SF 278 ................................................................ See Annotating the 278

Certifying Reports.................................................................. See Certification of Reports

Delegation of Authority ................................................................................................... 4-12

Ethics Agreements ........................................................................ See Ethics Agreements

Letters, Notices, and Requests to OGE ...................................... 2-1, 2-4, 2-7, 2-13, 3-25

5-3, 5-7, 5-15, 5-22, 14-6

Referral for Prosecution ................................................... 4-3, 5-22, 9-6, 11-1, 11-24, 15-1

Reviewing SF 278s ........................................................................ See Review Procedures

Day Trading ........................................................................................................................... 3-18

Debentures ............................................................................................................................... 8-8

Defined Benefit Plans .............................................................................................. 7-6, 7-11-14

Defined Contribution Plans............................................................................... 7-7-10, 7-12-14

Excepted Investment Funds .......................................................................................... 7-10

Underlying Holdings ......................................................................................................... 7-9

Department of Justice

Interpretive Authority for Conflict of Interest Statutes ............................................. 11-3

Referral of Violations to .................................................................... 4-3, 5-22, 11-24, 15-1

Dependents

Dependent Child Defined ..................................................................................... 3-15, 16-6

Minor Child ................................................................................................. See Minor Child

Prepaid Tuition Plans...................................................................................................... 7-33

Separateness of Dependent Child's Interests ............................................... 3-14-15, 3-18

Destruction of SF 278s ......................................................................................................... 4-15

Detailees .................................................................................................................................... 2-8

Disciplinary Action............................................ 2-16, 2-20, 4-3, 5-22, 9-6, 9-14, 11-11, 11-24

Disqualification ........................................................................................................ See Recusal

Diversification Test

Excepted Investment Fund .............................................................................................. 7-2

Diversified Investment Fund ......................................................................................... 5-17

Diversified Mutual Fund ................................................................................................ 5-11

Qualified Diversified trust ............................................................................................. 5-19

Divestiture ................................................................................................................... 5-2-3, 5-14

Certificates of Divestiture ................................................. See Certificates of Divestiture

Requiring Divestiture ..................................................................................................... 11-6

Dividends................................................................................................................ 3-9, 3-10, 16-6

, 
 Public Financial Disclosure: A Reviewer's Reference

Revised 11/04 

Page 16-20

Dividend Reinvestment Plans .................................................................................... 3-17, 8-10

Divorce..................................................................................................................... 3-13, 3-14, 3-26

Due Dates 

Due Dates for SGEs ............................................................................................................. 2-5

Exemption requests ............................................................................................................. 2-4

Summary of Due Dates ....................................................................................................... 2-19

Weekends & Holidays ......................................................................................................... 2-19

Earned Income .............................................................................................................. 3-9-10, 16-6

Government Benefits .......................................................................................................... 3-9

Honoraria ............................................................................................................................ 6-29

Outside Earned Income........................................................................................... 11-24, 11-25

Reporting Thresholds ...................................................................................................... 3-9-10

Restrictions on Senior Noncareer Employees ......................................... 5-14, 6-23, 6-28, 6-31, 

11-20, 11-24, 11-25

Retirement Benefits .............................................................................................................. 3-9

Spouse's Earned Income ..................................................................................... 3-10, 6-7, 6-29

Teaching, Speaking, Writing .................................................. . 6-31, 8-45, 11-21, 11-22, 11-24

Trustee Fees ................................................................................................................ 6-33, 7-30

Unemployment Benefits ...................................................................................................... 3-9

Employee Stock Ownership Plans (ESOP)................................................................................. 7-8

Employment ....................................................... See generally Outside Activities & Employment

Equities ........................................................................................................................... See Stock

Estates......................................................................................................................... 3-22, 7-27-32

Ethics Agreements .................................................................................................................. 5-2-3

Compliance timeframe ...................................................................................................... 5-2-3

Disqualification ..................................................................................................... See Recusal

Divestiture ........................................................................................................ See Divestiture

Documenting ...................................................................................................................... 12-2

Evidence of Compliance ....................................................................................................... 5-3

Forwarding to Senate ................................................................................................ 12-2, 12-4

Model.................................................................................................................................... 14-6-8

PAS Employees ........................................................................................ See PAS Employees

Public Availability............................................................................................................... 12-2

Qualified Trusts ....................................................................................... See Qualified Trusts

Reassignment............................................................................................................... 5-3, 5-13

Recusals ................................................................................................................. See Recusal

Resignation................................................................................................................... 5-3, 5-14

Ethics Officials...................................................................... See DAEOs & Other Ethics Officials

Excepted Investment Funds.................................................................................................... 7-2-5

Defined Contribution Plans ............................................................................................... 7-10

Exchange Traded Funds .................................................................................................... 8-22

Prepaid Tuition plans ........................................................................................................ 7-33

REITs .................................................................................................................................. 8-39

Excepted Trusts ....................................................................................................................... 7-31
 Appendix--Reference Materials

Revised 11/04 

Page 16-21

Exchange Traded Funds .......................................................................................................... 8-22

Exchanges ................................................................................................................................. 3-19

Executors ........................................................................................................................ 6-33, 7-28

Exemptions from Filing 

Employees Serving 60 days or less .................................................................................... 2-3

Schedule C Positions............................................................................................................ 2-4

Special Government Employees .......................................................................................... 2-5

Exemptions under 18 U.S.C. § 208(b)(2) ..................................................... 5-1, 5-6, 5-11, 11-16

Employee Benefit Plans .................................................................................................... 5-11

Excepted Investment Funds........................................................................................ 7-4, 7-5

Mutual Funds ..................................................................................................................... 5-11

Sector Funds ......................................................................................................................... 7-5

Securities............................................................................................................................. 5-11

State and Local Government Pensions ............................................................................ 7-14

Unit Investment Trusts ..................................................................................................... 5-11

Extension of the Filing Due Date .................................................................... 2-1, 2-13, 2-14, 2-15

Combined Reports .................................................................................................... 2-12, 2-13

Armed Forces ..................................................................................................................... 2-15

Extraordinary Payments ....................................................................................... 6-12, 6-17, 6-24

Fair Market Value ........................................................................................... 3-12, 3-22, 9-3, 9-9

Farms ................................................................................................................................. 6-26-28

Federal Advisory Committee ........................................................................................... 2-8, 5-6

Federal Bureau of Investigation 

Access to SF 278s ............................................................................................................... 4-15

Fiduciary Relationship ...................................................................... 7-28, 7-30, 7-31, 11-24, 16-7

Filing of Reports 

30-day Grace Period ........................................................................................................... 2-18

60-Day Determination........................................................................ 2-3, 2-5, 2-7, 2-11, 4-17

Additional Designation for Filing ......................................................................................... 2-4

Brokerage Statements........................................................................................................ 2-10

Combined Reports ............................................................................................. 2-12, 2-13, 3-6

Date of Receipt.............................................................................................................. 2-1, 4-2

Day-Counting Rules ............................................................................................................. 2-3

Detailees............................................................................................................................... 2-8

Due Dates.................................................................................................... 2-4, 2-5, 2-11, 2-19

Exemption of PAS Employees ............................................................................................. 2-3

Exemption of Schedule C Positions ..................................................................................... 2-4

Extension of the Due Date ...................................................................... 2-1, 2-13, 2-14, 2-15

Filing a False Report ........................................................................................................ 2-20

Forwarding Reports to OGE...................................................................................... 2-1, 4-16

Incumbent Reports ............................................................................................................ 2-11

Late Filing Fee.......................................................................................... See Late Filing Fee

Master List of Filers ........................................................................................................... 2-9

New Entrant Reports ........................................................................................................ 2-11
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 16-22

Penalties..................................................................................................................... 2-16, 2-20

Recess Appointees .............................................................................................................. 4-16

Reporting Periods ................................................................................................................ 3-6

Schedule C Positions............................................................................................................ 2-4

Special Government Employees...................................... 2-3, 2-5, 2-6, 2-7, 2-12, 4-14, 16-10

Status as an Employee ......................................................................................................... 2-8

Termination Reports ........................................................................................................... 2-12

Transfer Between Covered Positions.................................................................................. 2-12

Forms 

IRS Form 8824 ................................................................................................................... 5-15

OGE Form 201................................................................................................. 4-13, 4-15, 15-1

OGE Form 202........................................................................................................... 5-22, 15-1

OGE Form 450 ........................................................................................ 1-1, 2-3, 2-5, 2-8

SF 278............................................................................................................... 2-10, 4-15, 15-1

Forwarding Reports to OGE ........................................................................................... 2-1, 4-16

Frequent Flyer Accounts........................................................................................................... 3-13

Fundraising.............................................................................................................................. 11-21

Funds Receivable ............................................................................................. 6-25, 10-1, 10-8-10

Honoraria............................................................................................................................ 6-29

Future Employment Agreements .......................................................... 3-28, 6-5, 6-8, 6-14, 6-30

Futures ..................................................................................................................... 8-32-35, 16-7

Gay & Lesbian Partners ......................................................................................................... 3-15

General Obligation Bonds....................................................................................................... 8-16

General Partnerships....................................... 3-29, 6-4, 6-6, 6-12, 6-19, 6-22-25, 6-32, 8-27, 8-28

Contrasted with Limited Partnerships ...................................................................... 8-27, 8-28

Interests of General Partner Imputed to Filer ................. 5-1, 5-11, 6-14, 6-22, 11-6, 11-16

Law Firms ........................................................................................................... 6-19, 6-22-25

Partnership Income.................................................................................................... 6-6, 6-23

Gifts and Reimbursements .................................................................................. 3-21-25, 9-2-14

Agency-Accepted Travel .......................................................................................... 3-24, 9-10

Aggregating Gifts ........................................................................................................ 3-21, 9-2

Date of Receipt .............................................................................................................. 9-3, 9-9

Disposing of Prohibited Gifts .................................................................................... 9-6, 11-14

Exceptions to Gift Prohibition .......................................................................... 9-5, 9-13, 11-13

Exclusions from Definition of Gift ................................................................................... 11-12

Exclusions from Reporting ......................................................................... 3-22-24, 9-2, 9-14

Gift Acceptance Flowchart ................................................................................................. 9-7

Gifts Between Employees................................................................................................ 11-15

Hospitality ......................................................................................................................... 3-22

Inheritance.......................................................................................................................... 3-22

Loans vs. Gifts .................................................................................................................... 10-4

Prohibited Source ............................................................................................ 9-4, 11-12, 16-9

Repayment of Prohibited Gifts of Travel.......................................................................... 9-14

Reporting Thresholds ........................................................................................... 3-21, 9-2, 9-8
Appendix--Reference Materials 

Revised 11/04 

Page 16-23

Subscriptions ..................................................................................................................... 3-22

Suitable Mementos of an Honoring Function .................................................................. 3-23

Travel ........................................................................................................................... 9-10-13

Valuation ............................................................................................................ 3-22, 9-3, 9-9

Waiver of Reporting Requirements .......................................................................... 3-25, 9-2

Government National Mortgage Association (GNMA)................................................ 8-16, 8-36

Government Securities ...................................................................................................... 8-15-18

GSA Travel Authority ............................................................................................................. 9-11

Guarantors .............................................................................................................................. 5-21

Health Insurance...................................................................................................................... 6-14

Heirs ......................................................................................................................................... 7-28

Honoraria ............................................................................... 3-9, 3-10, 6-7, 6-29-31, 11-22, 16-7

Honoraria Ban ........................................................................................................ 6-29, 11-22

Honoraria Donated to Charity ......................................................................................... 6-30

Restriction on Outside Earned Income ......................................................................... 11-24

Speaking Engagements.............................................................................................. 6-7, 6-30

Teaching, Speaking, and Writing Related to Official Duties ......................................... 6-29

Imputed Interests ..................................................................................................... 3-7, 5-1, 11-6

Income................................................................................................................................ 3-9, 16-7

Accrued Income ................................................................................................................... 3-9

Aggregating ......................................................................................................................... 3-8

Capital gains ......................................................................... 3-9, 3-11, 8-8-10, 8-18, 8-22-23, 

8-27, 8-33, 8-36, 8-39, 8-44, 16-5

Dividends ........................................................................................................................... 3-10

Earned Income.................................................................................. 3-9, 3-10, 6-5, 6-29, 6-32

Government Benefits .......................................................................................................... 3-9

Gross vs. Net ................................................................................................................ 3-9, 6-6

Honoraria ............................................................................................................................ 6-29

Interest ................................................................................................................................ 3-10

Investment Income ......................................................................................................... 3-10-11

Partnership Share ...................................................................................................... 3-9, 3-10

Rent ........................................................................................................................... 8-36, 8-39

Reporting Thresholds ................................................................................................. 3-8, 3-9

Royalties ............................................................................................................................. 8-45

Salary .............................................................................................................................. 3-9-10

Spouse & Dependent's Income ........................................................................ 3-9, 3-10, 3-14

Unemployment Benefits .............................................................................................. 3-9, 3-13

Using Amount of Income Reported on IRS Form 1099 ...................... 8-5, 8-10, 8-18, 8-23, 8-39

Veteran's Benefits ..................................................................................................... 3-9, 3-13

Income Taxes ................................................................................................................. See Taxes

Incumbent/Annual Reports..................................................................................................... 2-11

Combined with Termination Reports ............................................................................... 2-12

Due Dates............................................................................................................................ 2-11

Forwarding Reports to OGE.............................................................................................. 4-16
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 16-24

Reporting Periods ................................................................................................................ 3-6

Independent Counsel 

Exemptions from Public Release of SF 278s ...................................................................... 4-14

Reports Certified by OGE.................................................................................................... 4-16

Individual Retirement Accounts (IRAs) ....................................................................... 7-15-16, 8-3

Industrial Development Bonds........................................................................................ 8-17, 8-20

Inheritance ................................................................................................................. 3-22, 7-27-32

Insurance ......................................................................................................................... 3-13, 6-14

Health Insurance................................................................................................................. 6-14

Benefits from a Former Employer ..................................................................................... 6-14

Claims .................................................................................................................................. 3-13

Life Insurance ............................................................................................. See Life Insurance

Intellectual Property ............................................................................................................ 8-43-47

Intelligence Officials 

Exemptions from Public Release of SF 278s ...................................................................... 4-14

Interest ............................................................................................................ 3-9, 3-10, 10-3, 16-7

Interest Rate.............................................................................................................................. 10-3

Investment Clubs ................................................................................................................. 7-23-26

Account Statements............................................................................................................. 7-23

Reporting Thresholds ......................................................................................................... 7-23

Joint Ownership ........................................................................................................................ 3-15

Joint Ventures .................................................................................................................... 6-4, 6-15

Keogh Plans ............................................................................................................................... 7-7

Late Filing Fee .............................................................................................................. 2-1, 2-16-19

30-Day Grace Period ........................................................................................................... 2-18

Collection of the Fee ...................................................................................................... 2-16-17

Extraordinary Circumstances.................................................................................... 2-17, 2-18

Notices to Filers................................................................................................................... 2-17

Waiver.................................................................................................................................. 2-18

Law Firms .......................................................................................................................... 6-19-25

Leaves of Absence....................................................................................................... 6-5, 6-8, 6-14

Lesbian & Gay Partners .......................................................................................................... 3-15

Liabilities ............................................................................................................ 3-26, 3-27, 10-2-7

Commercial Loans............................................................................................................... 10-6

Co-Signed Loans ................................................................................................................. 10-4

Loans Between Employees....................................................................................... 10-7, 10-10

Loans from Prohibited Sources ........................................................................................... 10-6

Loans vs. Gifts ..................................................................................................................... 10-4

Margin Accounts ................................................................................................................. 10-2

Mortgages ............................................................................................................................ 10-2

Non-Reportable liabilities .................................................................................................. 3-26

Personal Loans ..................................................................................................................... 10-6

Promissory Notes................................................................................................................. 10-2

Reporting Thresholds ................................................................................................ 3-26, 10-3
Appendix--Reference Materials 

Revised 11/04 

Page 16-25

Tax Liabilities ................................................................................................................... 3-27

Life Insurance...................................................................................................................... 7-20-22

Continuing Benefit From a Previous Employer .............................................. 6-5, 6-14, 7-21

Exemptions under 18 U.S.C. § 208(b)(2) ......................................................................... 7-22

Cash Value Insurance ....................................................................................................... 7-20

Reporting as a Beneficiary ............................................................................................... 7-21

Term Insurance ................................................................................................................. 7-20

Universal Life ..................................................................................................................... 7-20

Variable Life........................................................................................................................ 7-20

Whole Life ........................................................................................................................... 7-20

Limited Partnerships........................................................................................... 3-9, 6-4, 8-27-31

Contrasted with General Partnerships .................................................................. 8-27, 8-28

Income ......................................................................................................................... 3-9, 8-29

Public and Private.................................................................................................... 8-28, 8-29

Valuation ........................................................................................................................... 8-29

Margin Accounts .......................................................................................... 8-4, 8-11, 10-2, 16-8

Liabilities ............................................................................................................................ 10-2

Marriage During Reporting Period.......................................................................................... 3-14

Military Officers .............................................................................................................. 2-15, 11-3

Minor Child..................................................................................................... 3-15, 5-1, 11-6, 16-8

Dependent vs. Minor Child ..................................................................................... 3-15, 6-13

Eligible for Certificates of Divestiture.............................................................................. 5- 17

Model Documents 

208(b)(l) Waiver............................................................................................................... 14-15

Agency Procedures for the Collection and Review of SF 278s ..................................... 14-18

Cautionary Letter ............................................................................................................... 14-4

Ethics Agreement .............................................................................................................. 14-6

Notification of Filing Requirement .................................................................................. 14-2

Recusal letter ..................................................................................................................... 14-9

Screening Arrangements .................................................................................................. 14-12

Money Market Accounts ........................................................................................ 3-13, 3-18, 8-3

Money Market Funds........................................................................................... 3-13, 3-18, 8-4-7

Mortgage-Backed Securities .............................................................................. 8-16-18, 8-36-42

Collateralized Mortgage Obligations (CMOs) ................................................................. 8-37

Mortgage Pass-Throughs .................................................................................................. 8-37

REITs ........................................................................................................................... 8-37-42

Mortgages .............................................................................................................. 3-27, 10-2, 16-8

Municipal Securities ............................................................................................................ 8-16-17

Mutual Funds ................................................................................................. 3-17, 7-2, 8-21, 16-8

Diversified ....................................................................................................... 5-17, 7-19, 7-22

Excepted Investment Funds ............................................................................................ 7-2-5

Money Market Funds ................................................................................... 3-13, 3-18, 8-4-7

Open and Closed................................................................................................................. 8-21

Sector Funds .................................................................................................... 7-5, 8-26, 16-10
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 16-26

Net Distributive Share ............................................................................................................ 8-10

New Entrant Reports ............................................................................................................... 2-11

Applicable Schedules ........................................................................................................... 3-6

Combined with Termination Reports .............................................................................. 2-12

Due Dates.................................................................................................................... 2-11, 3-2

Exclusion from Schedule B ...................................................................................... 3-19, 3-24

Reporting Periods ................................................................................................................ 3-6

Nominee Reports ................................................................................................. 2-1, 2-2, 2-10-12

Applicable Schedules............................................................................................................. 3-6

Destroying SF 278s of Unconfirmed Nominees .................................................................. 4-15

Due Dates...................................................................................................................... 2-11, 3-2

Exclusion from Schedule B ...................................................................................... 3-19, 3-24

Extension ............................................................................................................................ 2-14

Presidential Nomination Process.................................................................................. 12-1-4

Public Availability...................................................................................................... 2-1, 4-15

Reporting Periods ................................................................................................................ 3-6

Notification Letter (Model) ..................................................................................................... 14-2

Office of Government Ethics 

Certificate of Divestiture ............................................................................................. 5-15-18

Interpretive Authority ....................................................................................................... 11-3

Opinions .............................................................................................................................. 11-1

Organizational Chart .......................................................................................................... 1-5

Regulations ........................................................................................................................... 1-6

Reports Certified by OGE ............................................................................................ 4-16-17

Public Availability & Retention of Reports................................................................ 4-13-15

OGE Form 201 ...................................................................................................... 4-13, 4-15, 15-1

OGE Form 202 ................................................................................................................. 5-22, 15-1

OGE Form 450 ............................................................................................................ 1-1, 2-3, 2-5

OGE Opinions........................................................................................................................... 11-1

Options ............................................................................................ 8-9, 8-11, 8-13, 8-32-35, 16-8

Exercise or Expiration ............................................................................... 3-18, 8-11, 8-32-33

Strike Price........................................................................................................................ 16-10

Outside Activities & Employment .......................................................................... 6-5, 11-20-21

Agreements for Future Employment................................................ 3-28, 4-9, 6-5, 6-8, 6-14

Former Employers ............................................................... 3-28, 6-5, 6-7, 6-8, 6-14, 7-21, 11-7

Continuing Outside Employment........................................................................................ 6-18

Exceptions ........................................................................................................................... 3-29

Fundraising ...................................................................................................................... 11-21

General Partnerships .............................................................................................. 8-27, 8-28

Honorary Positions ............................................................................................................ 3-29

Income from Outside Positions.......................................................................................... 6-32

Intellectual Property ........................................................................................... 8-43-45, 8-47

Joint Ventures .............................................................................................................. 6-4, 6-15

Leaves of Absence ............................................................................................... 6-5, 6-8, 6-14
Appendix--Reference Materials 

Revised 11/04 

Page 16-27

Misuse of Government Time or Property ............................................................................ 6-18

Negotiation for Future Employment .................................................................... 6-5, 6-8, 6-14

Outside Positions................................................................................... 6-18, 11-20-21, 6-32-37

Political Positions ............................................................................................................... 3-29

Positions with Religious, Social, or Fraternal Organizations ................................. 3-29, 6-32

Restrictions on PAS Employees ...................................................... 5-14, 6-18, 11-20-21, 11-25

Restrictions on Senior Noncareer Employees................................. 5-14, 6-18, 6-23, 6-28, 8-47, 

11-20, 11-21, 11-24

Practice of Law..................................................................................................................... 6-19

Seeking Employment......................................................................................................... 11-18

Severance Payments .................................................................................... 6-5, 6-7, 6-9, 6-12

Spouse's Outside Positions ........................................................................................ 3-29, 6-13

Trusteeship .......................................................................................................................... 3-29

PAS Employees.......................................................................................................... 2-5, 12-1, 16-8

60-Day Filing Threshold............................................................................................... 2-3, 4-17

Certification ............................................................................................................... 4-12, 4-16

Destroying SF 278s of Unconfirmed Nominees................................................................... 4-15

Ethics Agreements.............................................................................................................. 5-2-5

Exemption from Filing........................................................................................................... 2-3

Expedited Review Process for Nominees............................................................................. 12-1

Nominee Reports...................................................................................... 1-1, 2-1, 2-2, 2-5, 2-11

Part-Time or Short Term Nominees .................................................................................... 12-3

Public Availability of Reports ..................................................................................... 4-14, 4-15

Restrictions on Holding Outside Positions ......... See Senior Noncareer Employee Restrictions 

Patents ....................................................................................................................... 8-43-45, 8-47

Penalties 

Civil Penalties ................................................................................................. 2-20, 11-9, 11-24

Criminal Penalties............................................................................................. 2-20, 5-22, 11-9

Filing Penalties ................................................................................................... 2-16, 2-20, 4-3

Standards of Conduct Violations ............................................................................. 5-22, 11-11

Pensions ......................................................................................................................... 3-7, 7-6-14

Defined Benefit Plans ............................................................................................. 7-6, 7-11-14

Defined Contribution Plans .............................................................................. 7-6-10, 7-12-14

Keogh Plans ........................................................................................................................... 7-7

Simplified Employee Pensions .............................................................................................. 7-7

Spousal Pensions ................................................................................................................. 7-12

State and Local Government Pensions ....................................................................... 7-6, 7-14

Vested vs. Non-Vested........................................................................................................... 7-6

Permitted Property .................................................................................................................... 5-17

Personal Hospitality ........................................................................................................ 3-22, 16-8

Personal Residence ....................................................................... 3-13, 3-18, 3-27, 8-38, 10-2, 16-9

Political Positions ..................................................................................................................... 3-29

Post-Employment Restrictions....................................................................................... 11-8, 11-23
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 16-28

Precious Metals .................................................................................................................. 8-43-47

Preferred Stock (See also Stock) ............................................................................................... 8-8

Prepaid Tuition Plans ............................................................................................................ 7-33

Presidential Nominee Process ............................................................................................. 12-1-4

Principal ................................................................................................................. 8-3, 10-1, 16-9

Prizes ........................................................................................................................................ 3-10

Pro Bono Representation................................................................................................. 6-23, 11-5

Procedures for the Collection and Review of SF 278s (Model) ........................................... 14-18-28

Processing Ethics Violations ............................................................................................ 5-22, 11-1

Professional Corporations......................................................................................................... 6-19

Profit-Sharing Plans .......................................................................................................... 6-5, 7-8

Prohibited Holdings................................................................................................................. 8-14

Prohibited Source..................................................... 9-4, 9-5, 9-12, 9-13, 10-6, 10-9, 11-12, 16-9

Public Availability of 18 U.S.C. § 208 Waivers ................................................. 4-15, 5-10, 15-1

Public Availability of SF 278s................................................................ 2-1, 2-5-6, 4-13-15, 15-1

Fees ..................................................................................................................................... 4-13

Client's Names ................................................................................................................... 3-31

Documents Released with the Report ............................................................................. 4-15

Ethics Agreements ............................................................................................................. 12-2

Exemptions from Release ................................................................................................. 4-14

Notifying Filers of Requests for their Reports ............................................................... 4-15

Request for Copies of SF 278s.................................................................................. 4-13, 15-1

Restrictions on the Public Use of SF 278s ....................................................................... 4-14

Retention of Reports ........................................................................................................ 4-15

Storing Publicly Available Documents ................................................................................. 4-4

Timeframe for Public Availability ..................................................................................... 4-13

Where to Obtain Reports................................................................................................... 4-14

Public Filers ........................................................................................................................... 2-2-9

Additional Designations ........................................................................................................ 2-4

Detailees ............................................................................................................................... 2-8

Exclusions.............................................................................................................................. 2-4

Serving 60 days or less ........................................................................................................ 2-3

SGE's.................................................................................................................................. 2-5-6

Public Financial Disclosure 

Purpose ................................................................................................................... 1-1, 1-7, 9-1

Qualified Trusts........................................................................................ 5-2, 5-3, 5-18, 7-31, 16-9

Public Availability of Waivers ........................................................................................... 4-15

Blind Trusts .......................................................................................................... 5-19-20, 7-31

Diversified Trusts .......................................................................................................... 5- 19-20

Qualifying Previously Established Trusts ....................................................................... 5-20

Rare Books ............................................................................................................................... 8-43

Rate of Basic Pay ............................................................................................................... 2-2, 2-4

Real Estate ................................................................................................................ 8-36, 8-38-41

Real Estate Investment Trusts (REITs) ................................................................. 8-36-40, 8-42
Appendix--Reference Materials 

Revised 11/04 

Page 16-29

Real Estate Mortgage Investment Conduits (REMICs) ...................................................... 8-37

Reasonable Person Standard ................................................................................................... 6-15

Reassignment ..................................................................................................................... 5-3, 5- 13

Receipt of Reports ...................................................................................................................... 2-1

Receivables ................................................................................................. See Funds Receivable

Records Systems....................................................................................................................... 4-13

Referring to Reports .......................................................................................................... 2-13

Tracking System .................................................................................................................. 2-9

Recusal ...................................................................................................... 5-3-5, 7-14, 11-16, 16-9

Appearance Standard ..................................................................................................... 11-17

Elements .............................................................................................................................. 5-4

Following an Extraordinary Payment.............................................................................. 6-17

Model Recusal Letter.................................................................................................. 14-9-11

Public Availability ............................................................................................................. 4-15

Screening Mechanisms ...................................................................................... 5-4, 14-10-11

When Seeking Employment ........................................................................................... 11-18

Referring to Reports................................................................................................................. 2- 13

Reimbursements ....................................................................... See Gifts and Reimbursements

Relative 

Defined ............................................................................................................................. 16-10

Gifts from...................................................................................................................... 3-22, 9-2

Remainder Interests ........................................................................................................... 7-28-30

Rent ............................................................................................................................ 8-36-39, 10-4

Reporting Periods ..................................................................................................................... 3-6

Reporting Thresholds 

Assets ................................................................................................................................... 3-8

Bank Accounts...................................................................................................................... 3-8

Funds Receivable................................................................................................................ 10-8

Gifts and Reimbursements............................................................................ 3-21, 9-2, 9-8-14

Income ............................................................................................................................ 3-8, 3-9

Liabilities.................................................................................................................. 3-26, 10-3

Spouse's Earned Income ................................................................................................... 3-10

Transactions ....................................................................................................................... 3-17

Residual Interests ................................................................................................................... 6-16

Resignation......................................................................................................................... 5-3, 5- 14

Retention of Reports........................................................................................................ 4-13, 4-15

Retirement Accounts (See also Pensions) ........................................................................ 7-15-16

Defined Benefit Plans ........................................................................................... 7-6, 7-11-14

Defined Contribution Plans ............................................................................ 7-6-10, 7-12-14

IRAs .............................................................................................................................. 7-15-16

Keogh Plans .......................................................................................................................... 7-7

Simplified Employee Pensions ............................................................................................ 7-7

Spouse's Accounts ............................................................................................................. 7-12

TIAA-CREF ......................................................................................................................... 7-9
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 16-30

Retirement Benefits.................................................................................................. 3-9, 3-13, 3-28

Revenue Bonds ......................................................................................................................... 8-16

Review Procedures................................................................................................................... 4-1-4

Amending Reports .............................................................................................................. 4-11

Case Study Exercises...................................................................................................... 13-2-29

Cautionary Letters ............................................................................................................. 14-4

Certifying Reports......................................................................................................... 2-1, 4-12

Extension of the Filing Due Date .................................. See Extension of the Filing Due Date

Filing Penalties .......................................................................................................... 2-16, 2-20

Forwarding Reports to OGE......................................................................................... 2-1, 4-16

Model Written Procedures .......................................................................................... 14-18-24

Notification of Filing Requirement............................................................................... 2-1, 14-2

Processing Ethics Violations....................................................................................... 5-22, 11-1

Public Release of Reports ...................................................................................................... 2-1

Referral for Prosecution .............................................................................................. 4-3, 5-22

Review Assumptions.......................................................................................................... 4-6-8

Review Checklist........................................................................................................... 14-25-28

Review Timeframes ....................................................................................................... 2-1, 4-3

Reviewing Official ............................................................................................................. 16-10

Seeking Additional Information .................................................................... 4-5, 4-10-11, 8-31

Supervisor's Review ............................................................................................................ 4-12

Termination Review ............................................................................................................. 4-9

Tools of Review ...................................................................................................................... 4-4

Tracking System ................................................................................................................... 2-9

Reviewing Official ................................................................................................................... 16-10

Roll-over ........................................................................................................................... 5-17, 7-15

Royalties .......................................................................................................................... 8-43, 8-45

S Corporations ..................................................................................................................... 6-4, 6-6

Salary .......................................................................................................................... 2-2, 3-9, 3-10

Savings Accounts................................................................................................................ 3-13, 8-3

Savings Bonds............................................................................................................ 3-9, 3-18

Schedule A: Assets and Income ........................................................................................... 3-7-16

Schedule B, Part I: Transactions......................................................................................... 3-17-20

Schedule B, Part II: Gifts, Reimbursements, and Travel .................................................. 3-21-25

Schedule C Positions ............................................................................ 2-2, 2-4, 5-14, 11-24, 16-10

Schedule C, Part I: Liabilities ............................................................................................ 3-26-27

Schedule C, Part II: Agreements or Arrangements ................................................................. 3-28

Schedule D, Part I: Positions Held Outside U.S. Government .......................................... 3-29-30

Schedule D, Part II: Compensation in Excess of $5,000 ......................................................... 3-31

Scholarships .............................................................................................................................. 3-10

Screening Arrangements (Model)............................................................................................ 14-12

Sector Funds ................................................................................................... 5-11, 7-5, 8-26, 16-10

Securities .......................................................................................................................... 5-11, 8-1
Appendix--Reference Materials 

Revised 11/04 

Page 16-31

Senate Committees ..................................................................................... 2-3, 4-17, 5-3, 5-5, 12-4

Senior Executive Service......................................................................................................... 11-24

Senior Noncareer Employee Restrictions ............................ 5-14, 6-28, 11-20, 11-21, 11-24, 11-25

Separation from a Spouse .................................................................................................... 3-13-14

Severance Payments ............................................... 3-28, 6-5, 6-7, 6-9, 6-12, 6-14, 6-16, 6-17, 6-24

Established Past Practice or Written Plan ............................................................... 6-16, 6-24

Extraordinary Payments ................................................................................. 6-12, 6-17, 11-17

Waiver of Recusal Requirement ......................................................................................... 6-17

SF 278...................................................................................................................... 2-10, 4-15, 15-1

Simplified Employee Pensions .................................................................................................... 7-7

Sole Proprietorships .................................................................................................... 6-4, 6-7, 6-25

Special Government Employees ................................................................. 2-5, 11-2, 11-4-7, 16-10

60-Day Filing Threshold.......................................................................................... 2-3, 2-5, 2-7

Day Counting Rules........................................................................................................ 2-3, 2-5

Exemption from Filing ......................................................................................................... 2-3

Exemptions from Public Release of SF 278s....................................................................... 4-14

Filing of Reports.................................................................................................... 2-3, 2-5, 2-12

Not Eligible for Certificates of Divestiture ........................................................................ 5-17

Public Release of Reports ......................................................................................... 2-5-7, 4-14

Standards of Conduct ............................................................................................ 11-10, 11-21

Waivers ......................................................................................................................... 5-6, 11-6

Spouse ................................................................................................................................ 3-7, 3-15

Aggregation ..................................................... 3-8, 3-22, 8-9, 8-17, 8-22, 8-28, 8-32, 8-38, 8-44

Assets ........................................................................................................................... 3-7, 3-14

Business Interests ........................................................................................................ 6-5, 6-13

Covered Relationship........................................................................................................... 6-15

Earned Income....................................................................................................... 3-10, 6-5, 6-7

Exclusions......................................................................................................... 3-23, 3-29, 3-31

Honoraria........................................................................................................................ 6-29-30

Interests Imputed to the Filer .......................................................... 3-7, 5-1, 6-13, 11-6, 11-16

Pension Interests ................................................................................................................ 7-12

Reporting Threshold ...................................................................................... 3-8, 3-10, 6-5, 6-7

Separateness of Spousal Interests .................................................................... 3-14, 3-18, 3-26

Separation & Divorce.................................................................................................. 3-13, 3-14

Spouse's Law Practice ......................................................................................................... 6-19

Trusts & Estates ........................................................................................................... 7-28-29

Stamp Collections...................................................................................................................... 8-43

Standards of Conduct.............................................................................................................. 11-10

Appearance Standard ..................................................................... See Appearance Standard

Conflicting Financial Interests.......................................................................................... 11-16

Covered Relationship........................................................................................................... 6-15

Ethics Agreements ............................................................................... See Ethics Agreements

Expert Witnesses............................................................................................................... 11-21

Extraordinary Payments ........................................................................ 6-12, 6-17, 6-24, 11-17
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 16-32

Fulfilling Just Financial Obligations.................................................................................. 10-7

Fundraising ....................................................................................................................... 11-21

Gifts Between Employees............................................................................... 10-7, 10-10, 11-15

Gifts from Outside Sources .......................................................................................... 11-12-14

Misuse of Government Time or Property................................................................. 6-18, 11-19

Misuse of Nonpublic Information ...................................................................................... 11-19

Misuse of Position ..................................................................................................... 9-4, 11-19

Outside Activities & Employment .................................................................. 6-18, 6-19, 11-20

Principles of Ethical Conduct ............................................................................................ 11-10

Prohibited Source ................................................................................... See Prohibited Source

Seeking Employment ......................................................................................................... 11-18

Severance Payments .......................................................................................................... 6-12

Special Government Employees ............................................................................. 11-10, 11-21

Teaching, Speaking, and Writing..................................... 6-29, 6-31, 8-45, 11-21, 11-22, 11-24

Use of Public Office for Private Gain......................................................................... 9-5, 11-19

Violations ................................................................................................................ 5-22, 11-11

State or Local Governments 

General Obligation Bonds................................................................................................... 8-16

Industrial Development Bonds........................................................................................... 8-17

Municipal Securities ............................................................................................ 8-15-18, 8-20

Pensions ....................................................................................................................... 7-6, 7-14

Revenue Bonds.................................................................................................................... 8-16

Stock .................................................................................................................... 3-17, 8-8-14, 8-21

Common ................................................................................................................................ 8-8

Day Trading ........................................................................................................................ 3-17

Mutual Funds............................................................................................... See Mutual Funds

Non-public ............................................................................................................................ 8-9

Options ......................................................................................................... 8-8, 8-9, 8-11, 8-13

Preferred................................................................................................................................ 8-8

Stock Bonus Plans................................................................................................................. 7-8

Stock Splits.......................................................................................................................... 3-18

Stock Options ........................................................................................ 6-14, 8-8-11, 8-13, 8-32-35

Exercise or Expiration ................................................................................. 3-18, 8-11, 8-32-33

Strike Price......................................................................................................................... 16-10

Strike Price............................................................................................................................... 16-10

STRIPS ............................................................................................................................ 8-15, 8-20

Supplemental Regulations ................................................................. 1-6, 5-14, 8-14, 11-16, 11-20

Taxes 

Certificates of Divestiture ........................................................ See Certificates of Divestiture

Fulfillment of Tax Liabilities .............................................................................................. 10-7

Income Reportable on SF 278 versus Taxable Income......................................................... 3-9

Income Tax Deficiencies ...................................................................................................... 10-4

IRS Form 1099 ............................................................................3-9, 8-5, 8-10, 8-18, 8-23, 8-39

Joint Tax Returns .............................................................................................................. 3-14
Appendix--Reference Materials 

Revised 11/04 

Page 16-33

Roll-Over of Tax-Deferred Assets ..................................................................................... 7-15

Tax Liabilities ................................................................................................................... 3-27

Tax-Deferred Accounts ................................................................................................ 7-7, 7-8

Tax-Deferred Income ............................................................. 7-10, 8-5, 8-18, 8-23, 8-29, 8-39

Taxable Status........................................................................................................... 7-15, 8-18

Teaching, Speaking, and Writing ...................................... 6-29, 6-31, 8-45, 11-21, 11-22, 11-24

Termination Reports .............................................................................................................. 2-12

Applicable Schedules ........................................................................................................... 3-6

Combined Reports.............................................................................................................. 2-12

Due Dates........................................................................................................... 2-11, 2-12, 3-2

Review Standards ............................................................................................................... 4-9

Third Party Guarantors ................................................................................................. 5-21, 7-14

Thrift Savings Plan ................................................................................ 3-13, 5-11, 7-6, 7-8, 10-2

TIAA-CREF................................................................................................................................ 7-9

TIGRs ....................................................................................................................................... 8-15

Timeshares ............................................................................................................................... 3-13

Tools of Review .......................................................................................................................... 4-4

Tracking System ......................................................................................................................... 2-9

Transactions...................................................................................................................... 3-17, 8-11

Aggregating ........................................................................................................................ 3-17

Bond Calls or Maturity...................................................................................................... 8-11

Day Trading........................................................................................................................ 3-18

Dividend Reinvestment....................................................................................................... 3-17

Exceptions........................................................................................................................... 3-18

Exchanges........................................................................................................................... 3-19

Exercise or Expiration of Options ....................................................................................... 8-11

Redemption of UIT Units ................................................................................................. 8-22

Reporting Thresholds ......................................................................................................... 3-17

Splits ................................................................................................................................... 8-11

Travel ............................................................................................................ 3-21-22, 3-24, 9-8-14

Accepted by the Agency............................................................................................ 3-24, 9-11

Government Employees Training Act.................................................... 9-5, 9-10, 9-11, 11-7

GSA Travel Authority........................................................................................................ 9-11

Political Trips............................................................................................................ 3-22, 9-13

Reporting Reimbursements Incident to Receipt of Honoraria ........................................... 6-30

Treasuries .................................................................................................... 3-18, 5-17, 8-15, 16-10

CATS .......................................................................................................................... 8-15, 8-20

Savings Bonds ................................................................................................................... 8-15

STRIPS................................................................................................................................ 8-15

T-Bills.................................................................................................................................. 8-15

TIGRs.................................................................................................................................. 8-15

Treasury Bonds.................................................................................................................. 8-15

Treasury Notes................................................................................................................... 8-15

Trustees ..................................................................................................................... 6-33, 7-29-31
Public Financial Disclosure: A Reviewer's Reference 

Revised 11/04 

Page 16-34

Eligibility for Certificates of Divestiture ................................................................... 5-17, 5-18

Trustee Fees.............................................................................................................. 6-33, 7-30

Trusts ............................................................................................................. . 5-18, 7-27, 7-29-33

Blind Trusts ........................................................................................................................ 7-31

Certificates of Divestiture ................................................................................................. 5-18

Charitable Trusts ............................................................................................................... 7-29

Contingent or Conditional Interests ................................................................................ 7-30

Excepted Trusts.................................................................................................................. 7-31

Generation-Skipping Trusts .............................................................................................. 7-29

Living Trusts ...................................................................................................................... 7-29

Qualified Blind Trusts ...................................................................................................... 5-19

Qualified Diversified Trusts ............................................................................................. 5-19

Remainder Interests ......................................................................................................... 7-30

Reporting Thresholds ....................................................................................................... 7-30

Vested Beneficial Interests ............................................................................................... 7-27

Tuition 

Prepaid Tuition Plans ......................................................................................................... 7-33

Scholarships......................................................................................................................... 3-10

U.S. Attorneys 

Access to SF 278s ............................................................................................................... 4-15

Referral of Violations ................................................................................................ 4-3, 5-22

U.S. Savings Bonds ................................................................................................ 3-9, 5-17, 8-15

Unemployment Benefits ................................................................................................. 3-9, 3-13

Unit Investment Trusts (UITs) ................................................................................ 5-11, 8-21-22

Vacation Homes ...................................................................................................................... 3-13

Vested Interests ................................................................................................................. 7-6, 7-27

Veterans' Benefits ........................................................................................................... 3-9, 3-13

Waivers................................................................................................................................... 5-6-10

Exemption from Filing .................................................................................................. 2-3, 2-4

Exemptions from Public Release ....................................................................................... 2-6-7

Late Filing Fee.................................................................................................................... 2-18

Model 18 U.S.C. § 208(b)(l) Waiver........................................................................... 14-15-17

Public Availability of § 208 Waivers ............................................................ 4-15, 5-10, 15-1

Reporting of Personal Gifts ............................................................................................... 3-25

Substantiality Test for § 208 Waivers ................................................................................ 5-9

Under 18 U.S.C. § 208 .............................................. 5-3, 5-6-10, 7-26, 11-6, 14-15-17, 16-11

Waivers for Native American/Alaskan Birthrights ............................................................. 5-6

Widely Diversified ......................................................................................... 5-11, 5-19, 7-2, 16-11

Widely Held ................................................................................................................................ 7-2

Wills........................................................................................................................................... 7-28

Zero Coupon Bonds ......................................................................................................... 8-8, 8-18