The Ethical Components of the Federal Grants and Agreements

The Ethical Components of the Federal Grants and Agreements Handbook NRCS Ethics Office Beltsville, MD Net &Teleconference with State Ethics Advisors August 23, 2006 1 The Ethical Components of the Federal Grants and Agreements Handbook “Anyone who has a role in developing, administering, or processing cooperative agreements or grants shall utilize this guidance*.” DefinitionsCooperative Agreement- An agreement between NRCS and another when the purpose is to transfer a thing of value to accomplish a public purpose and substantial Government involvement is expected (See FGCAH, 600.2(D) Grant-An agreement between NRCS and another when the purpose is to transfer a thing of value for a public purpose and substantial Government involvement is not expected. (See FGCAH, 600.2(G) *(Source: Federal Grants and Cooperative Agreement Handbook, Title 120, Part 600.0 Subpart A) (FGCAH) 2 The Ethical Components of the Federal Grants and Agreements Handbook The Responsible Official is the program manager or other person responsible for developing project requirements, and pre-award and post-award administration. As the Responsible Official, he or she must ensure that ethics issues have been appropriately addressed with guidance and assistance from the State Ethics Advisor or the NRCS Ethics Office as appropriate. FGCAH, Section 600.2(J)(1) & (9) 3 The Ethical Components of the Federal Grants and Agreements Handbook Each Responsible Official must:  File an OGE Form 450.  Sign a Conflict of Interest and Confidentiality Statement [Exhibit 600.115] before commencing any Responsible Official duties. (Retained in the NRCS official file*.)  Ensure ethics issues (conflict of interest, disqualification, etc...) have been addressed with assistance from the State Ethics Advisor. FGCAH, Section 600.2(J)(1) & (9);* 600.23(6) 4 The Ethical Components of the Federal Grants and Agreements Handbook State Ethics Advisors play a very pivotal role in providing ethics assistance and guidance to the Responsible Official, the Signatory Official (usually, the State Conservationist), and other personnel. 5 The Ethical Components of the Federal Grants and Agreements Handbook State Ethics Advisors routinely provide guidance in a number of areas which include but are not limited to: Conflict Interest Disqualification Impartiality Gifts Misuse of Position Relations w/non-Federals Non-Federal Employment Post-Employment Non-Federal Travel Assistance Employee Participation in Programs 6 The Ethical Components of the Federal Grants and Agreements Handbook The Conflict of Interest and Confidentiality Statement ensures that NRCS employees and SGEs do not take on roles and responsibilities that cause them to commit ethical violations in carrying out their duties. 600.115 Proposal Reviewer – Conflict of Interests and Confidentiality Statement (120-VI-FGCAH, Amend 2, October 2005) 600.115 Proposal Reviewer – Conflict of Interests and Confidentiality Statement, Subpart I Exhibits 7 The Ethical Components of the Federal Grants and Agreements Handbook What’s an SGE? (A Special Government Employee)  SGEs typically are recruited for temporary service to the Government because they provide outside expertise or perspective.  SGEs are subject to most of the Federal ethics laws and regulations that apply to regular employees. [18 U.S.C.§ 201-208, Standards of Ethical Conduct, etc…]  SGEs are retained to perform temporary duties, with or without compensation, for not more than 130 days during any period of 365 consecutive days. Source: http://www.usda-ethics.net/rules/rule21.htm 8 The Ethical Components of the Federal Grants and Agreements Handbook  Each employee (including SGEs) assigned to review a grant or cooperative agreement (i.e.,work on the Review Board) must sign the Conflict of Interest and Confidentiality Statement* prior to commencing Review Board activities.  Each Review Board Member must file a financial disclosure form. *The Conflict of Interest and Confidentiality Statement becomes part of the NRCS official file. FGCAH, Section 600.2(J)(1) & (9) 9 The Ethical Components of the Federal Grants and Agreements Handbook An employee with a conflicting interest or the appearance of a conflicting interest must recuse himself or herself, and not be substantively involved in the solicitation, award, or administration of a grant or an agreement. An employee with a conflicting interest should notify the Responsible Official and/or the person responsible for his or her assignment and disqualify from participating in Review Board activities. FGCAH, Part 600.26; See also 5 C.F.R. 2635, Subparts D & E. 10 The Ethical Components of the Federal Grants and Agreements Handbook All agreements involving the exchange of NRCS personnel or funds, or where NRCS will designate an employee to serve as liaison to the non-Federal entity must include the mandatory ethics clause for agreements. FGCAH 600.26(C)(1)(iv) 11 The Ethical Components of the Federal Grants and Agreements Handbook 600.113 Ethics Provision for MOUs and AgreementsEmployees of NRCS shall participate in efforts under this agreement solely as representatives of the United States. To this end, they shall not participate as directors, officers, employees, or otherwise serve or hold themselves out as representatives of, [the partner or other non-Federal entity with whom NRCS is entering into the MOU] or any member [entity]. They also shall not assist [the entity], or any member [entity] with efforts to lobby Congress, or to raise money through fundraising efforts. Further, NRCS employees shall report to their immediate supervisor any negotiations with [entity], or any member [entity], concerning future employment and shall refrain from participation in efforts regarding such party until approved by the Agency. FGCAH, Part 600.113 12 The Ethical Components of the Federal Grants and Agreements Handbook Liaison Designation Form* The Form shall be issued by the State Conservationist to the employee authorized to participate in the activities of the non-Federal recipient in his or her official capacity where an ongoing relationship will exist between the employee and the non-Federal recipient. FGCAH, Section 600.26(C)(1)(g); *Retained by the Servicing Ethics Advisor for the file. 13 The Ethical Components of the Federal Grants and Agreements Handbook State Ethics Advisors should provide assistance, as needed, to Responsible Officials to ensure NRCS does not knowingly award a grant or agreement that is not consistent with the regulatory requirements for code of conduct and conflicts of interest on the part of applicants, sub-grantees and their employees. For example: FGCAH, Section 600.26(C)(2) 14 The Ethical Components of the Federal Grants and Agreements Handbook ▪The possibility that any current or former employee of USDA may be compensated in any way with funds from a grant or cooperative agreement; ▪ The disclosure that any grant or cooperative agreement funds may be used to purchase equipment, services, or supplies from entities in which an applicant or applicant’s employee has a financial interest; ▪ The possibility of organizational conflicts of interest based on scope of work*; ▪ The award recipient shall maintain required written standards of conduct governing the performance of its employees engaged in the award and administration of contracts in accord with 7 CFR 3016.36(3) and 7 CFR 3019.42. *Consult OGC with questions regarding real or apparent organizational conflicts of interest. FGCAH, Section 600.26(C)(2)(a-d) 15 The Ethical Components of the Federal Grants and Agreements Handbook Contribution Agreements do not come under the authority of the Federal Grant and Cooperative Agreement Act of 1977. Its authority is at 7 U.S.C. 6969(a). NRCS can non-competitively enter into agreements with any party that will serve the mutual interest of the parties in carrying out NRCS programs. Unlike grants and agreements, it does not provide for financial assistance. Note: § 610.95, Mandatory Ethics Clause § 610.96, Designation of Liaison Template § 610.97, Conflicts of Interest and Confidentiality Statement 16 Contribution Agreement Handbook, Section 610.0 B.; 7 U.S.C. 6962(a) The Ethical Components of the Federal Grants and Agreements Handbook Questions? Next topic: Ethics Issues Related to USDA Personnel and Universities The USDA Office of Ethics is currently revising the Ethics Issuance: Number 04-2, June 17, 2004, Entitled Adjunct Professor. The final work-product is expected in December 2006. 17 Ethics Issues Related to USDA Personnel and Universities The Issuance does not create any new or different rules-it just applies them to the activities of our scientists. • Official Capacity • Personal Capacity •Compensation •Teaching •Guest Lecturing •Service on Boards • Activities w/ Students • Tenure • Outside Employment •Free or Reduced Tuition •Gifts •Editing Journals Ethics Issuance, Relations with Universities 18 Ethics Issues Related to USDA Personnel and Universities Science is a key component to the overall mission of USDA. The Department utilizes the services of scientific personnel in the following 6 of 17 agencies: •Agricultural Research Service (ARS) •U.S. Forest Service (FS) •Cooperative State Research, Education and Extension Service (CSREES) •Natural Resources Conservation Service (NRCS) •Food Safety and Inspection Service (FSIS) •Animal and Plant Health Inspection Service (APHIS) Ethics Issuance, Relations with Universities 19 Ethics Issues Related to USDA Personnel and Universities Sources:  Standards of Ethical Conduct for Employees of the Executive Branch (2002)  USDA Supplement, 5 C.F.R. § 8301,et.seq.  18 U.S.C.§ 201-209. Let’s consider Guest Lecturing: Officially and Personally. 20 Ethics Issues Related to USDA Personnel and Universities Guest Lecturing – Officially An employee may be assigned, as part of his or her official duties, to serve as guest lecturer discussing matters related to his or her official duties. He or she may not accept compensation in any form. Generally, an employee may not receive compensation from any source other than the Government for teaching, speaking, and writing that relates to the employee’s official duties. (See 5 C.F.R. §2635.807) Ethics Issuance, Section 6.4 21 Ethics Issues Related to USDA Personnel and Universities Guest Lecturing – Personally An employee may provide guest lecturing services in a personal capacity. In his or her personal capacity, the employee is not on official time, is not using Agency funds (appropriated, travel, etc…) and is not giving the impression that he or she is acting on behalf of the Agency. Ethics Issuance, Section 6.4 22 Ethics Issues Related to USDA Personnel and Universities Guest Lecturing – Personally Uncompensated – If an employee elects not to receive compensation, his or her ethics concerns will relate to avoiding the appearance of Government sanctions and not using non-public information. Compensated – If he or she receives compensation, he will become an employee of the university. He or she may violate the conflict of interest rule if he or she performs official duties that directly and predictably affect the financial interests of the University. He or she may violate the dual compensation statute, if the lecturing activities relate to his official duties. (18 U.S.C.§ 209) If compensated, treat as a request to engage in outside employment 5 C.F.R. 8301.102(b)] Ethics Issuance, Section 6.4 23 Ethics Issues Related to USDA Personnel and Universities Teaching – Officially Generally speaking, an NRCS employee may not teach a course as part of their official duties, unless “authorized by statute and provided by written agreement” (emphasis added) Note: NRCS does not have statutory authority that permits its employees to teach in an official capacity. Ethics Issuance, Section 6. 24 Ethics Issues Related to USDA Personnel and Universities Teaching – Personally An employee may teach a course in his personal capacity but there are cautions that he or she should be aware of: Cautions:  Teaching, whether paid or unpaid, constitutes employment.  Teaching activities not deemed part of employee’s official duties must be treated as a request to engage in outside employment.  An employee may not receive compensation from a source other than the Federal Government for teaching, speaking, and writing that relates to the employee’s official duties. [5 C.F.R.§ 2635.807]  Dual Compensation (Receiving payment that relates to official duties.) [18 U.S.C. § 209]  Conflict of Interest. (Working on a matter for NRCS in an official capacity in which the University has an interest) 18 U.S.C. § 208 Ethics Issuance, 6.3 & 7.4 25 Ethics Issues Related to USDA Personnel and Universities Acceptance of Tenure Official Capacity. Tenure constitutes an employer-employee relationship with the university. Acceptance of such creates a conflicting financial interest under 18 U.S.C. § 208. Personal Capacity. Because the offer of tenure is most likely related in some fashion to the scientist’s official duties or Federal status, other than in rare cases, tenure also may not be accepted in the employee’s personal capacity. Issuance, Section 6.1 26 Ethics Issues Related to USDA Personnel and Universities Service on University Committees and Other Bodies 1. Official Capacity: Membership (W/ Agency Approval): Space, facilities, and equipment Curriculum; and Graduate students and doctoral theses. 2. Scientists May Not Serve on the Following Committees*: Budget, Finance or Tenure Employee/Faculty Search Committees or Faculty Senate *He or she may be able to serve as a Liaison in an Official Capacity. 27 Issuance, Section 6.5 Ethics Issues Related to USDA Personnel and Universities Activities with Students  Official Capacity. 1. Must relate to agency mission; and 2. w/ agency approval;  Personal Capacity. 1. w/agency Approval Representing the University At Events  Official Capacity- No  Personal Capacity - No Issuance, Section 6.6 & 6.7 28 Ethics Issues Related to USDA Personnel and Universities The End. 29