essential advice: ethics in the government workplace€¦ · essential advice: ethics in the...

Essential Advice: Ethics in the Government Workplace

Association of Government Accountants – Montgomery Chapter Spring Seminar April 11, 2014

Presented by: Wells Robinson

J. Wells Robinson, P.C., Attorneys at Law

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Essential Advice: Ethics in the Government Workplace 2

Topics for Today 1. How Did We Get Here? A Historical Overview 1. The Ethics Framework: An Overview 1. Ethics for Government Accountants 1. Ethics for Government Officials 1. What’s New? 1. Practical Advice 1. Closing Remarks and Questions


But First…


The following contains copyrighted materials that have been copied under fair use provisions for the purpose of education. Any further copying or use may not qualify as fair use and may be a violation of copyright law resulting in criminal or civil penalties.

And Second…


Information contained in this presentation should not be understood to imply specialization and/or certification inconsistent with any rules promulgated by the Alabama State Bar Board of Legal Specialization, including the Alabama State Bar Rules of Specialization.

And Finally…


No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.

How Did We Get Here?


Ethics in Ancient Law


Egyptian Ma’at Legal Philosophy

3000 BC


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Code of Urukagina Legal Code

2360 BC


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Code of Ur-Nammu Legal Code

2100 BC


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Code of Hammurabi Legal Code

1760 BC


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Law of the Twelve Tables Roman Law

450 BC


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Ethics in Ancient Literature


Epic of Gilgamesh 18th Century BC


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Aristotle Greek Philosopher

322 BC


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Marcus Tullius Cicero Roman Philospher

55 BC


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Development of Modern Ethics


Luca Pacioli Father of Accounting Ethics

1494 AD


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Leonardo da Vinci Illustrated Pacioli’s Book, “De divina proportione”

1497 AD


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American Association of Public Accountants

Established December 22, 1886


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1916: Institute of Public Accountants

1917-57: American Institute of Accountants 1921-36: American Society of Certified Public Accountants 1957-Present: American Institute of Certified Public Accountants

Association of Government Accountants

Established September 14, 1950


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The Ethics Framework


Who? What? When? Where? Why?

To Whom Do Ethics Apply?


Short Answer: Everyone Long Answer: AGA’s Code of Ethics applies to Association members and Certified Government Financial Managers (CGFMs).

What Are Ethics?


eth·ics ˈeTHiks/ Noun 1. Moral principles that govern a person's or group's behavior. 1. The moral correctness of specified conduct. 1. The branch of knowledge that deals with moral principles.

When Do Ethics Apply?


Short Answer: Always Long Answer: The Code of Ethics applies to any conflicting actions regardless of when or where it is performed.

Why Are Ethics Important?


1. Ethics are a requirement for human existence. 1. Outline broad moral values in the community. 1. Allows us to organize actions to accomplish our most important goals.

2. Flawed ethics will reduce our ability to be successful in our endeavors.

The Power of “It”


1. Is it legal? 1. Does it comply with established policy? 1. Does it comply with our values and culture? 1. Will it harm anyone? 1. Would it harm our organization if everyone did it? 1. Would anyone be concerned if it appears as a news headline?

Ethics for Government Accountants


AGA’s Code of Ethics


General Statement of Purpose: First and foremost, AGA Members serve the public interest in accordance with the highest ethical principles. The Code is both a standard of behavior to aspire to and a guide for making ethical decisions.

Types of Ethics Pronouncements


Standards: Published in the Code of Ethics Interpretations: Guidelines as to scope and application Rulings: Application of Code to certain facts

Personal Responsibilities


1. Awareness: Must learn and practice ethical guidelines. 1. Motivation: Being prepared to engage with ethical guidelines. 1. Action: Must make consistent ethical decisions.

But Why?!?


1. Professionalism: You represent the gov’t financial management profession. 1. Public Interest: You are responsible for looking after the public’s resources. 1. Credibility: We all need it, and it’s easy to lose. 1. Standards: Consistency throughout the profession is key. 1. To Keep Your Job.

What’s Your Duty?


CODE OF ETHICS, ARTICLE IV, SECTION 9: “It is the duty and responsibility of members to: a. Endorse the purpose and objectives of the Association; b. Uphold and be guided in their professional conduct by the Association’s Code of Ethics; and c. Cooperate with the Professional Ethics Board in any investigations of violations of the Code of Ethics.”

Duties Owed to Clients


1. Duty to preserve client’s property 2. Duty to preserve client’s confidences 3. Duty to avoid conflicts of interest 4. Duty to be diligence 5. Duty to be competent

Duties Owed to the Public


1. Duty to maintain personal integrity 2. Duty to maintain public trust

Duties Owed to Profession


1. False Statements, Fraud, and Misrepresentation

Standard for Sanction


“Clear and convincing evidence” required Higher that “Preponderance of the evidence,” and Lower than “Beyond reasonable doubt.”

What’s The Worst That Could Happen?


CODE OF ETHICS, ARTICLE IV, SECTION 11: 1. Disciplinary Action 2. Warning 3. Censure 4. Suspension* 5. Termination* 6. Payment *Indicates disposition of member discipline may be made public.

Who are “Public Officials”


“Any person elected to public office […]”

Who are “Public Employees”


“Any person employed at the state, county, or municipal level of government or their instrumentalities…”

Some Don’t’s


1. Don’t use public facilities, time, materials, etc. 2. Don’t use your position for personal gain 3. Don’t solicit or receive things of value or money 4. Don’t obtain a non-competitive government contract 5. Don’t use confidential information for personal gain

Some Do’s


1. Avoid conflicts of interest 2. Beware the revolving door 3. File Statements of Economic Interest (if required) 4. Keep current with changes to Alabama’s ethics laws

Government Agency Heads


1. You MUST file reports with the Ethics Commission within ten (10) days when potential ethics violations come to your attention in your official capacity.

1. You MUST cooperate with any actions or hearings of the

Ethics Commission.

Who Must File Statements of Economic Interest?


1. All elected public officials 2. Appointed public officials 3. All public employees whose base pay is $75,000 or more 4. All candidates for public office 5. All full-time non-merit public employees (non-secretarial) 6. Any public employee who invests public funds 7. Chief administrative officers 8. Purchasing and procurement agents 9. Directors and assistant directors of state agencies 10. Chief financial and accounting directors 11. Chief grant coordinators

What is a Conflict of Interest?


1. A conflict between private interest and official responsibilities inherent in an office of public trust.

1. Any official act, omission, or decision that would materially

affect their financial interest or their family or business’ financial interest.

What is NOT a Conflict of Interest?


1. Loan or financial transaction made in the ordinary course of business

2. Occasional non-pecuniary award publicly presented 3. Payment or reimbursement for necessary, meaningful travel 4. Campaign contributions if used for political purposes

What is a Thing of Value?


“Any gift, benefit, favor, service, gratuity, tickets or passes to an entertainment, social or sporting event, unsecured loan, other than those loans and forbearances made in the ordinary course of business, reward, promise of future employment, or honoraria or other item of monetary value.”

What is NOT a Thing of Value?


1. Contribution under Chapter 5 of Title 17 (FCPA) 2. Contribution to an inaugural or transition committee 3. Gift clearly motivated by familial relationship 4. Gift clearly motivated by friendship 5. Greeting cards, or items with little intrinsic value 6. Loans on generally available terms 7. Plus 12 other exceptions under 36-25-1(33).

Who May Initiate An Ethics Complaint?


‘Only persons who have credible and verifiable information supporting the allegations contained in the complaint.’

What is Personal Gain?


‘When you or your family receive, obtain, exert control over, or otherwise convert to personal use the object constituting such personal gain.’

Ethics Advisory Opinions


Persons who request and rely upon written ethics opinions in good faith are protected. Ethics Commission can charge for publication of advisory opinions.

Ethics Violations Penalties


For violations of financial disclosure filing requirements: 1. Administrative fines 2. Class A Misdemeanor (0-1 yrs) For violations of ethics laws: 1. Legal expenses 2. Administrative fines 3. Class A Misdemeanor (0-1 yrs) 4. Class C Felony (1-10 yrs) 5. Class B Felony (2-20 yrs)

Ethics Enforcing Authorities


1. Alabama Ethics Commission 1. Alabama Attorney General’s Office 1. District Attorney

Ethics Statute of Limitations


Felony Prosecution: 4 years after commission of offense Misdemeanor Prosecution: 2 years after commission of offense

What’s New?


SB36 Awaiting Gov’s Signature


Would Ban legislators from lobbying either chamber for two years after leaving office.

SB66 – Act 2014-71


“(c) The commission shall redact all identifying information on any electronic database accessible to the public, as defined in Section 41-13-7, that is included in any statement of economic interest filed by a public official or public employee and was in the database on August 1, 2013.”

Practical Advice


Return to the Power of “It”


1. Is it legal? 1. Does it comply with established policy? 1. Does it comply with our values and culture? 1. Will it harm anyone? 1. Would it harm our organization if everyone did it? 1. Would anyone be concerned if it appears as a news headline?

Thank You For Your Time and

Attention!


Questions?


Contact Information: Wells Robinson J. Wells Robinson, P.C. Attorneys at Law 2740 Zelda Rd, 4th Floor Montgomery, AL 36106 [email protected] (334) 306-7872

essential advice: ethics in the government workplace€¦ · essential advice: ethics in the...

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