Ethics Overview
Federal Grants and Cooperative and Contribution Agreements Conference and Training Session Caryl J. Butcher
Ethics Officer NRCS Ethics Office Telephone: (301) 504-2194 Fax: (301) 504-0161
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 1
Ethics Overview - Grants and Agreements
Assessment to the Under Secretary B. FACTORS 1. Risk Assessment NRCS: Initial Assessment:
“High”
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 2
USDA ASSESSMENT OF NRCS
Risk Assessment: NRCS
Ethics risks are much higher than in most Agencies.
Employees become so active in supporting the partnership that they become, essentially, agents of the partners.
Areas of particular concern:
Partnering Agreements
Relationships between NRCS research scientists collocated at universities and those universities and the competitive sourcing issue.
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 3
Commitment to Implement New Safeguards
Assessment to the Under Secretary
Chief Knight:
Personally met with the Director, Office of Ethics Agreed to implement recommended safeguards Successfully negotiated for a lower “risk assessment” “Moderately High”
Current Assessment
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 4
Reduce Risks From Partnership Agreements, Etc.
“Grade for “Risk Assessment” downgraded to “Moderately High.”
Chief Chief
Knight committed to actions to reduce risks.
Knight requested ethics review of all new and renewed NRCS partnership agreements to ensure they make clear to participating employees and partnering organizations where the lines of loyalty run. and OGC developed issuances to reduce risks for:
OE
NRCS and NRCS employees.
You are responsible for implementing agreed-to-items.
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 5
Ethics Overview - Grants and Agreements
New Safeguards: Standard Ethics Provision for Grants and Agreements etc. Requirement to formally designate Liaisons to Non-Federal Organizations Notify YOU of YOUR ethical responsibilities
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 6
Ethics Overview - Grants and Agreements
You* must learn, understand and operate by the Ethics laws and regulations in performing: NRCS duties, responsibilities; NRCS delegated authorities; and
As
individual NRCS employees
1. Take basic Ethics training on the USDA Ethics Website 2. Get answers to any questions you have
3. See NRCS Ethics Directive, Title 110 GM Part 405 4. Make sure you understand
•Conflicting Interests •Participation in Outside Organizations
NRCS Agreement Training Conference April 26, 2004, New Orleans, LA Slide 7
Ethics Overview - Grants and Agreements
Ethics Provision for Agreements, etc.
[See Handout]
Purpose: Makes clear to participating employees and partnering organizations where the lines of loyalty must run. Add it to the standard Provisions section for:
Agreements
MOUs
Partnering Agreements Other
similar written arrangement with a non-Federal organization
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 8
Ethics Overview - Grants and Agreements
Ethics Provision for Agreements, etc. Example: Employees 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, NARC&DC, or any member RC&DCs. They also shall not assist NARC&DC, or any member RC&DCs with efforts to lobby Congress, or to raise money through fundraising efforts. Further, NRCS employees shall report to their immediate supervisor any negotiations with NARC&DC, or any member RC&DC, concerning future employment and shall refrain from participation in efforts regarding such party until approved by the agency.
NRCS Agreement Training Conference April 26, 2004, New Orleans, LA Slide 9
Ethics Overview - Grants and Agreements
Liaison Designation Form
Issue to Liaison to a non-Federal Entity Issued by a “senior official” * Protects NRCS Assists the Liaison to understand key do’s and don’ts
Liaisons must:
Avoid conflicting interests
Be
clear about lines of loyalty Avoid prohibited activity
*Division Directors and Above, RC or STC
NRCS Agreement Training Conference April 26, 2004, New Orleans, LA Slide 10
Ethics Overview - Grants and Agreements
Liaisons must recognize and avoid prohibited activity.
Criminal Statutes [18 USC 201-209]
Standards of Ethical Conduct [5 CFR Part 2635]
USDA Supplemental Ethics Regulation [5 CFR 8301] Employee Responsibilities & Conduct Regulation [5 CFR Part 735]
Anti Lobbying Provision [18 USC 1913]
Post Employment Restrictions [5 CFR 2641] Hatch Act [5 U.S.C. § 7321-7326, 5 CFR 734 Subparts A - F]
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 11
Ethics Overview - Grants and Agreements
Agency Liaison must not:
Serve as a member of the Board of Directors or vote on matters; Serve on committees or task groups unrelated to the stated
purpose for appointment as Agency Liaison;
Participate in finance, fundraising or membership issues; Engage in lobbying efforts or representation of the non-Federal
organization’s interests before the Federal Government;
Actively participate in the non-Federal organization’s activities in
a personal capacity;
Etc.
NRCS Agreement Training Conference April 26, 2004, New Orleans, LA Slide 12
Ethics Overview - Grants and Agreements
What YOU must do to avoid Ethics violations Examples for NRCS Employees: 1. Do not designate an employee to be the Liaison if: an officer, board member, trustee committee or subcommittee chairperson
spouse, parent or dependent child is an employee, officer, consultant, agent or contractor
general partner of an officer or employee has an easement or other contract … with that organization
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 13
Ethics Overview - Grants and Agreements
What YOU must do to avoid Ethics violations Examples for NRCS Employees: (continued) 2. If an employee attempts to communicate with you on behalf of a non-Federal person or organization about a grant, agreement, etc., Recognize it is an ethics violation.* Contact the Ethics Office for guidance. 3. Do not perform NRCS duties on an agreement, etc. if:
You* have an interest in the matter; A person or organization with whom you have certain relationships has an interest.
(*unless an employee organization or union)
NRCS Agreement Training Conference April 26, 2004, New Orleans, LA Slide 14
Disqualification Requirement Triggers
Applicable to NRCS Employees
Interests
Employee Spouse or minor child General partner Outside employer or prospective employer Non-Federal organization in which employee is an officer, director, trustee, or general partner
contractual or other financial relationship Member of household or close relative Employer of spouse, parent or dependent child Non-Fed employer within past 1 year; Non-Fed organizations in which the employee is active; Person or Org for whom the spouse, parent or dependent child is an employee, officer, director, consultant, contractor, agent, etc
Relationships Person with whom employee has or seeks a business,
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 15
Ethics Overview - Grants and Agreements
What YOU must do to avoid Ethics violations (more examples) Know the FAR prohibition against Contracts with Employees A contracting officer is prohibited from knowingly awarding a contract to a Government employee or to a business concern or other organization owned or substantially owned or controlled by one or more Government employees.
Exception: Only if there is a “most compelling reason.” Requires approval by the Chief.
This FAR policy is intended to avoid any conflict of interest that might arise between the employees' interests and their Government duties, and to avoid the appearance of favoritism or preferential treatment by the Government toward its employees.
NRCS Agreement Training Conference April 26, 2004, New Orleans, LA Slide 16
Ethics Overview - Grants and Agreements
Federal Government Ethics Rules
Generally Do Not Apply to Non-Federals
Exceptions
Ethics provisions in grants, agreements, contracts, etc.
The Hatch Act
Applies to certain state, county or local Government
employees and may apply to employees of certain private nonprofits.
Example:
State and local employees who are principally employed in connection with programs financed in whole or in part by loans or grants made by a federal agency. See www.osc.gov for more information.
NRCS Agreement Training Conference April 26, 2004, New Orleans, LA Slide 17
Ethics Overview - Grants and Agreements
Personal vs. Official Participation Click HERE to see the Quick Reference Chart
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 18
Ethics Overview
Federal Grants and Cooperative and Contribution Agreements Conference and Training Session
THE END
The NRCS Ethics Office Telephone: (301) 504-2194 Fax: (301) 504-0161
NRCS Agreement Training Conference
April 26, 2004, New Orleans, LA
Slide 19