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Table of Contents
Table of Contents ...................................................................................................................... 2
Introduction ............................................................................................................................... 5
Objectives ............................................................................................................................. 5
Contents ................................................................................................................................ 5
Disclaimer ............................................................................................................................. 5
Section 1: Confidential Financial Disclosure System .............................................................. 6
Purpose .................................................................................................................................. 6
Authority ............................................................................................................................... 6
Officials Required to File ...................................................................................................... 6
Types of Reports and Filing Deadlines ................................................................................. 9
Confidential Financial Disclosure Forms ........................................................................... 14
Extensions ........................................................................................................................... 15
Filing Penalties.................................................................................................................... 16
Agency Procedures ............................................................................................................. 16
Records Management.......................................................................................................... 16
Section 2: OGE Form 450 – Report Contents ....................................................................... 18
Summary of Contents ......................................................................................................... 18
Reporting Periods and Individuals Covered ....................................................................... 18
Spouses and Dependent Children ....................................................................................... 19
Use of Brokerage Statements and Attachments .................................................................. 21
Cover Page .......................................................................................................................... 21
Part I: Assets and Income ................................................................................................... 24
Part II: Liabilities ................................................................................................................ 33
Part III: Outside Positions ................................................................................................... 35
Part IV: Agreements or Arrangements ............................................................................... 36
Part V: Gifts and Travel Reimbursements (Annual Filers Only) ....................................... 38
Section 3: Review Procedures ............................................................................................... 42
Basic Steps .......................................................................................................................... 42
Certification Requirements ................................................................................................. 42
Review Timeframes ............................................................................................................ 44
Tools of Review .................................................................................................................. 45
When to Obtain Additional Information ............................................................................. 46
Reviewer Notes and Annotations........................................................................................ 47
Section 4: Reviewing Specific Types of Entries.................................................................... 49
401(k) Plan .......................................................................................................................... 49
403(b) Plan .......................................................................................................................... 49
457 Plan .............................................................................................................................. 50
American Depositary Receipt (ADR) ................................................................................. 50
Annuity (fixed).................................................................................................................... 51
Annuity (variable) ............................................................................................................... 51
Award or Prize .................................................................................................................... 52
Bond (corporate) ................................................................................................................. 52
Bond (municipal) ................................................................................................................ 53
Bonus (cash)........................................................................................................................ 54
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Brokerage Account ............................................................................................................. 55
Carried Interest.................................................................................................................... 55
Cash Account ...................................................................................................................... 57
Cash Balance Pension Plan ................................................................................................. 57
Collectible Item ................................................................................................................... 57
College Savings Plan (529 plan) ......................................................................................... 58
Common Trust Fund of a Bank .......................................................................................... 59
Contingency Fee ................................................................................................................. 59
Deferred Compensation ...................................................................................................... 60
Defined Benefit Plan ........................................................................................................... 63
Defined Contribution Plan .................................................................................................. 64
Director Fee ........................................................................................................................ 65
Employee Stock Ownership Plan........................................................................................ 66
Employee Stock Purchase Plan ........................................................................................... 67
Equity Index-Linked Note .................................................................................................. 68
Exchange-Traded Fund ....................................................................................................... 69
Executor or Administrator Fee............................................................................................ 69
Farm (operated as a business) ............................................................................................. 70
Farm or Farmland (passive interest) ................................................................................... 71
Foreign Exchange Position (“forex”) .................................................................................. 72
Futures Contract (“future”) ................................................................................................. 73
Gambling Winnings ............................................................................................................ 73
Government Agency or GSE Security ................................................................................ 74
Government Benefit or Payment ........................................................................................ 75
Honorarium ......................................................................................................................... 76
Intellectual Property ............................................................................................................ 77
Investment Fund (general) .................................................................................................. 77
IRA, Roth IRA, SEP IRA, or Keogh Plan .......................................................................... 79
Law Firm (partnership) ....................................................................................................... 81
Legal Practice (solo practice).............................................................................................. 82
Life Insurance (term) .......................................................................................................... 83
Life Insurance (variable) ..................................................................................................... 83
Life Insurance (whole or universal) .................................................................................... 84
Loan Made to Another Party ............................................................................................... 85
Managed Account ............................................................................................................... 85
Margin Account .................................................................................................................. 86
Money Market Fund ........................................................................................................... 87
Money Purchase Pension Plan ............................................................................................ 87
Mutual Fund ........................................................................................................................ 87
Oil, Gas, or Other Mineral Rights Lease ............................................................................ 89
Option (incentive stock option plan)................................................................................... 89
Option (put or call purchased) ............................................................................................ 90
Option (put or call written) ................................................................................................. 92
Phantom Stock .................................................................................................................... 93
Precious Metal .................................................................................................................... 95
Prepaid Tuition Plan (529 plan) .......................................................................................... 95
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Real Estate .......................................................................................................................... 96
Real Estate Holding Company ............................................................................................ 97
Restricted Stock .................................................................................................................. 99
Restricted Stock Unit (RSU) ............................................................................................. 100
Salary ................................................................................................................................ 101
Self-Funded Defined Benefit Plan .................................................................................... 101
Severance Payment (cash) ................................................................................................ 102
Short Sale .......................................................................................................................... 103
Small Business (operated as a business) ........................................................................... 104
Small Business (passive interest) ...................................................................................... 106
Stable Value Fund ............................................................................................................. 106
Stock ................................................................................................................................. 107
Stock Appreciation Right .................................................................................................. 108
Third-Party Escrow Agreement ........................................................................................ 109
TIAA ................................................................................................................................. 111
Treasury Security .............................................................................................................. 112
Trust (irrevocable) ............................................................................................................ 112
Trust (revocable living)..................................................................................................... 114
Trustee Fee ........................................................................................................................ 115
UGMA or UTMA Account ............................................................................................... 116
Unit Investment Trust ....................................................................................................... 117
Virtual Currency ............................................................................................................... 118
Will or Estate .................................................................................................................... 118
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Introduction
This guide was produced by the U.S. Office of Government Ethics (OGE) as a
reference manual for use by reviewers of the OGE Form 450 (Executive Branch
Confidential Financial Disclosure Report).
Objectives
In this guide, you will learn:
• the key elements of the executive branch confidential financial disclosure system;
• what a filer must disclose in the OGE Form 450; and
• how to analyze entries for technical sufficiency.
Contents
The guide contains four sections:
• Section 1 provides a brief overview of the disclosure system.
• Section 3 provides guidance for conducting reviews.
• Section 4 provides more detailed guidance for reviewing a number of commonly
reported interests and affiliations.
Disclaimer
This guide is intended for use in reviewing executive branch confidential financial
disclosure reports filed on or after January 1, 2019.
Do not rely on statements in this guide for investment advice. This guide is solely for
general informational purposes. This guide supersedes earlier OGE training
publications, but applicable statutes and regulations are the final authorities.
In addition, although the use of the sample language provided in this guide promotes
a degree of consistency in reporting common items, OGE recognizes that there may
be other ways of reporting particular interests.
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Section 1: Confidential Financial Disclosure System
This section provides an overview of the confidential financial disclosure system,
including information on why people file, who files, what forms are used, when forms
are due, what an agency reviewer’s role is, and how long reports are retained.
Purpose
The basic purpose of the confidential financial disclosure system is to assist
employees and their agencies in avoiding conflicts between official duties and
private financial interests or affiliations.
Authority
The Ethics in Government Act of 1978, as amended (the “Act”), requires high-level
federal officials to make public disclosures of selected personal financial interests and
affiliations. Section 107 of the Act and Section 201(d) of Executive Order 12674 (as
modified by E.O. 12731) provide authority for OGE to establish a confidential
financial disclosure system for those executive branch employees who, though not
subject to the public financial disclosure system, have duties that involve a
heightened risk of potential or actual conflicts of interest. The implementing
regulations for the confidential financial disclosure system can be found at 5 C.F.R.
part 2634, subpart I.
Officials Required to File
General Rule
5 C.F.R. § 2634.904(a)(1)
An employee is covered by the confidential financial disclosure system if the
employee’s position meets the following criteria:
1. The employee’s position does not meet the pay or classification thresholds for
public filing.
(Note: This formulation simplifies the rule. More precisely, the regulation
includes each officer or employee in the executive branch whose position is
classified at GS-15 or below of the General Schedule prescribed by 5 U.S.C.
§ 5332, or the rate of basic pay for which is fixed, other than under the General
Schedule, at a rate which is less than 120% of the minimum rate of basic pay for
GS-15 of the General Schedule; each officer or employee of the United States
Postal Service or Postal Regulatory Commission whose basic rate of pay is less
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than 120% of the minimum rate of basic pay for GS-15 of the General Schedule;
each member of a uniformed service whose pay grade is less than 0-7 under
37 U.S.C. § 201; and each officer or employee in any other position determined
by the designated agency ethics official to be of equal classification.)
and
2. The agency has determined that the duties and responsibilities of the employee’s
position require the employee to participate personally and substantially through
decision or the exercise of significant judgment, and without substantial
supervision and review, in taking a Government action regarding:
a. contracting or procurement;
b. administering or monitoring grants, subsidies, licenses, or other federally
conferred financial or operational benefits;
c. regulating or auditing any non-federal entity; or
d. other activities in which the final decision or action will have a direct and
substantial economic effect on the interests of any non-federal entity.
To simplify the application of these criteria, agencies may establish an appropriate
threshold based on the position’s monetary level of procurement authority, pay
grade, or degree of supervision. Agencies should also apply the criteria in
conjunction with their exclusion authority (see below) to ensure that individuals
are not required to file if the possibility of conflict is remote.
Even if the employee’s position does not involve such participation, an agency
may require confidential filing if the agency determines that, based on the
employee’s duties and responsibilities, filing is required in order for the employee
to avoid involvement in a real or apparent conflict of interest. Nevertheless,
agencies should limit such designations to those pay grades where the duties and
responsibilities clearly make filing necessary and relevant. For more help, see
OGE DAEOgram DO-94-031 (September 14, 1994).
Special Government Employees
5 C.F.R. § 2634.904(a)(2)
Special Government employees (SGEs) must file confidential financial disclosure
reports if they meet the criteria outlined above, serve on a Federal Advisory
Committee, or otherwise have a substantial role in the formulation of agency policy.
SGEs need not file if they are required to file public financial disclosure reports or if
they are excluded from filing based on the agency’s determination that the possibility
of conflicts is remote.
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Definition
18 U.S.C. § 202
A special Government employee (SGE) is defined by 18 U.S.C. § 202 to include an
officer or employee who is retained, designated, appointed, or employed by the
Government to perform temporary duties, with or without compensation, for not more
than 130 days during any period of 365 consecutive days. 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.
At the time of appointment, the appointing official determines whether the employee
will be reasonably expected to work more than 130 days in the 365 days after the
appointment date. If an agency designates an employee as an SGE, based on a good
faith estimate, but the employee unexpectedly serves more than 130 days during the
ensuing 365-day period, the individual still will be deemed an SGE for the remainder
of that period. However, upon the commencement of the next 365-day period, the
agency should reevaluate whether the employee is correctly designated as an SGE,
(i.e., expected to serve no more than 130 days).
Supplemental Reporting Requirements
5 C.F.R. §§ 2634.103 and 2634.904(a)(3)
An individual who files a public financial disclosure report may also be required by
agency supplemental regulations to file an additional confidential financial disclosure
report containing supplemental information. Such regulations must receive prior
written approval from OGE.
Exclusions
5 C.F.R. § 2634.904(b)
Agencies may exclude positions otherwise subject to the filing requirements if the
agency head or designee determines that there is only a remote possibility that the
incumbent will be involved in a real or apparent conflict of interest. Agencies should
document such determinations in writing.
Review of Confidential Filer Status
5 C.F.R. § 2634.906
An employee may request a review of a determination that the employee’s position
meets the criteria requiring confidential financial disclosure. The review is conducted
by the head of the agency or an officer designated by the agency head, and the
decision reached by the agency head or designee is final.
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Types of Reports and Filing Deadlines
New Entrant Reports (excluding special Government employees)
5 C.F.R. §§ 2634.903(b) and 2634.908(b)
Requirement to File
A confidential filer must submit a new entrant report within 30 days of assuming the
duties of a covered position, unless an extension is granted. An agency may require
that a prospective entrant to a covered position file a report before serving in the
position if needed to ensure that there are no insurmountable ethics concerns.
Exceptions to the Filing Requirement
An employee need not file a new entrant report in the following cases:
• The employee assumed the duties of the position within 30 days of leaving a
position that was subject to either public or confidential financial disclosure,
provided that the filer satisfied the applicable filing requirements for the prior
position. The agency at which the new position is located, however, should
obtain a copy of the filer’s most recent report and review that report for any
potential conflicts. In addition, the employee must comply with any supplemental
reporting requirements that apply to the new position.
• The employee filed a report while being considered for the position, though the
agency may request an update if more than 6 months has passed.
• The designated agency ethics official (or designee) does not reasonably expect the
employee to serve in the covered position for more than 60 days in the following
12-month period. If the employee actually serves more than 60 days, the
employee must file a new entrant report within 15 calendar days after the 60th
day. For full-time employees, count the number of consecutive calendar days that
the employee served in the position, including weekends and holidays. For part-
time employees, count only days that the employee actually worked.
Reporting Period
The reporting period for a new entrant report varies according to the Part being
completed.
• Part I: Filers report assets as of the date of filing. Filers report sources of earned
income, honoraria, and other non-investment income for the preceding 12 months.
• Part II: Filers report liabilities as of the date of filing.
• Part III: Filers report positions for the preceding 12 months.
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• Part IV: Filers report agreements and arrangements as of the date of filing.
Newly Designated Positions
In most cases, an agency has already determined whether the duties and
responsibilities of a position require confidential financial disclosure prior to an
employee’s entry into the position. Therefore, the employee files a new entrant report
upon assuming the duties. In certain cases, however, an agency may make this
determination for a position that an employee already occupies. The incumbent
employee in this case would file a new entrant report within 30 days of the agency
designating the position as requiring confidential financial disclosure. See OGE
DAEOgram DA-10-20-92 (October 19, 1992).
Annual Reports (excluding special Government employees)
5 C.F.R. §§ 2634.903(a) and 2634.908(a)
Requirement to File
An employee who served in a covered position for more than 60 days during a
calendar year must file an annual report by February 15 of the following year. If the
15th falls on a weekend or holiday, the due date is the next workday.
For full-time employees, count the number of consecutive calendar days that the
employee served in the position, including weekends and holidays. For part-time
employees, count only days that the employee actually worked.
Exceptions to the Filing Requirement
Agencies need not collect annual reports from an individual who is no longer in a
covered position as of February 15. In addition, special Government employees do
not file annual reports.
Reporting Period
An annual report covers the preceding calendar year. Therefore, a filer submitting a
report by February 15, 2019, must ordinarily include information for the period
January 1, 2018, through December 31, 2018. Filers may exclude information for a
period covered by a prior confidential or public financial disclosure report.
Moving between Covered Positions
If a filer moves between covered positions at different agencies, the individual should
file the next annual report with his or her new agency. The new agency should
provide a copy of the report to the filer’s former agency for review if any of the
interests raise potential conflicts or if the former agency requests a copy. This review
by the former agency is not a full review within the meaning of this guide and no
intermediate or final certification is required.
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Special Government Employees (SGEs)
The confidential financial disclosure requirements for special Government employees
differ from the requirements applicable to other United States Government
employees.
Requirement to File
5 C.F.R. §§ 2634.903(b) and 2634.904(a)(2)
An SGE must file a new entrant report within 30 days of starting a covered position
as an SGE. In addition, an SGE must file a new entrant report each year upon the
individual’s “reappointment or redesignation” as an SGE for a new 365-day period.
Exceptions to the Filing Requirement
An SGE need not complete a report when starting a position as an SGE if either of the
following conditions applies:
• The employee assumed the duties of the position within 30 days of leaving a
position that was subject to public or confidential financial disclosure, provided
that the filer satisfied the applicable filing requirements for that position. The
agency at which the new position is located, however, should obtain a copy of the
filer’s most recent report and review for any potential conflicts.
• The employee filed a report while being considered for the position, though the
agency may request an update if more than 6 months has passed.
The exception for employees who serve 60 days or less in a covered position does not
apply to SGEs.
Due Date Considerations
Notwithstanding the 30-day timeframe, individuals being considered for positions
requiring Presidential appointment and Senate confirmation (PAS) file their reports
pursuant to the special deadlines and procedures that govern the PAS nominee
process. In addition, SGEs appointed to a Federal Advisory Committee Act
committee must file their reports before rendering any advice or in no event later than
the first committee meeting. For all other SGEs, agencies may require the individuals
to file their reports prior to serving if needed to ensure that there are no
insurmountable ethics concerns.
With respect to reappointments and redesignations, an SGE with a multiyear term
would ordinarily file an additional new entrant report each year on the anniversary of
that employee’s appointment date. However, OGE permits agencies to specify one
date each year on which to collect follow-on new entrant reports from all SGEs (or
discrete groups of SGEs, such as all members of a given advisory committee) who
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serve for terms in excess of one year. See OGE DAEOgram DO-95-019
(April 11, 1995) and OGE DAEOgram DO-00-003 (February 15, 2000).
Reporting Period
The same reporting period rules apply to all new entrant reports, including those filed
by SGEs.
Relationship to the Public Filing Requirements
An SGE must file a public financial disclosure report if the SGE serves in a position
that meets the criteria for public filing set out at 5 C.F.R. § 2634.202 and serves in the
position for more than 60 days. An SGE who is expected to serve no more than 60
days would file a confidential financial disclosure report; however, if the SGE
actually exceeds the 60-day threshold, the SGE must file a public report within 15
calendar days following the 60th day of service.
In certain cases, agency ethics officials do not expect an employee to serve more than
60 days but know there is a real possibility that the employee could do so. In such
cases, agency ethics officials may permit, but not require, an employee to file a
modified OGE Form 278e in lieu of a confidential financial disclosure form. The
modified OGE Form 278e would include only the information required by the
confidential financial disclosure requirements. For example, in Parts 2, 5, and 6 of
the OGE Form 278e, the filer would report the assets that meet a reporting threshold
but would not complete the value and income fields. Similarly, the filer would
complete only the Creditor Name and Type fields in Part 8. The modified OGE Form
278e would be treated as confidential and marked “not for public release” (or
“confidential”), unless and until the employee works more than 60 days in that
calendar year. If the employee does work more than 60 days, the employee must
update the report within 15 days of the 60th day, including all of the information
required for a public OGE Form 278e. See OGE DAEOgram DO-03-021 (October
23, 2003) for additional guidance.
Alternatively, an employee may voluntarily complete all of the information required
for a public OGE Form 278e at the time the employee files confidentially. For
example, unlike the procedure discussed above, the employee may complete the value
and income fields for each entry in Parts 2, 5, and 6. The OGE Form 278e would be
treated as confidential and marked “not for public release” (or “confidential”), unless
and until the employee works more than 60 days in that calendar year. In the event
that the employee does serve more than 60 days, the agency could use the existing
confidential OGE Form 278e to satisfy the public reporting requirement, provided
that the information is no more than 6 months old. The agency would simply remove
the confidential designation from the report within 15 days after the 60th day worked.
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“Acting” Capacity
5 C.F.R. § 2634.903
Employees are sometimes assigned to perform the duties of a position in an “acting”
capacity. Such employees are subject to any financial disclosure requirements
applicable to that position.
New Entrant
An employee who acts in a position meeting the criteria for confidential filing must
file a new entrant report. A report, however, is not required if (1) the employee is
already a confidential or public filer or (2) the employee is reasonably expected to
serve no more than 60 days in the position. Employees excluded from filing based on
their expected days of service must file a report if they actually exceed 60 days of
service, and this report is due within 15 days of exceeding the 60-day threshold.
For example, an employee, who otherwise does not file a financial disclosure report,
assumes the duties of a covered position on an acting basis on October 29, 2019. The
employee is not reasonably expected to serve in the position for more than 60 days in
the following 12-month period. No report is required. However, the employee later
does serve more than 60 days. The employee, therefore, must file a new entrant
report within 15 calendar days of exceeding 60 days.
Annual
An employee who acts in a position subject to confidential filing for more than 60
days during a calendar year must file an annual report. A report, however, is not
required if (1) the employee is already a public filer or (2) the employee leaves the
position prior to February 15 of the following year.
For example, an employee, who otherwise does not file a financial disclosure report,
assumes the duties of a covered position on an acting basis on October 29, 2019. The
employee is still performing the duties of the position on February 15, 2020. An
annual report is required. If the employee’s acting service ends prior to
February 15, 2020, no annual report is required.
Details between Federal Agencies
5 C.F.R. § 2634.605(b)(1)
An individual detailed to another agency may be subject to the confidential filing
requirements based on the position at the individual’s home agency, the position at
the agency to which the individual is detailed (detail agency), or both positions. If the
position at the individual’s home agency is subject to confidential financial
disclosure, the individual must continue to file the report with the home agency. The
individual’s home agency would consult with the detail agency, as appropriate, to
determine whether the report discloses any potential conflicts with the duties of the
position to which the individual is detailed. If the individual is only subject to
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confidential financial disclosure based on the position at the detail agency, the
individual would file instead with the detail agency. See OGE DAEOgram DA-10-
20-92 (October 19, 1992).
Intergovernmental Personnel Act Detailees
In December 2001, the Intergovernmental Personnel Act (IPA) was amended to make
individuals who are detailed to federal agencies under the IPA “employees” of the
federal agency for purposes of the Ethics in Government Act. Accordingly, IPA
detailees may be required to file a confidential financial disclosure report if their
duties and responsibilities meet the criteria at 5 C.F.R. § 2634.904(a)(1). See OGE
DAEOgram DO-02-029 (December 9, 2002) and OGE DAEOgram DO-06-031
(October 19, 2006).
Individuals Who Are Not Government Employees
The confidential financial disclosure requirements apply only to individuals who are
current or prospective United States Government employees. Agencies may not use
the OGE Form 450 (Executive Branch Confidential Financial Disclosure Report) to
collect information from other individuals, such as contractors or members of
advisory committees who are appointed to represent outside interests. See OGE
DAEOgram DO-95-043 (December 13, 1995). Note that Intergovernmental
Personnel Act detailees and advisory committee members appointed as special
Government employees are United States Government employees for purposes of the
confidential financial disclosure requirements.
Confidential Financial Disclosure Forms
OGE Form 450
5 C.F.R. § 2634.601(a)(3)
The OGE Form 450 (Executive Branch Confidential Financial Disclosure Report) is
the standard form for making a confidential financial disclosure. A confidential filer
must use the OGE Form 450, unless otherwise authorized to use an alternative form.
OGE Optional Form 450-A
Effective January 1, 2019, the OGE Optional Form 450-A is no longer approved for
use. Agencies that wish to use a similar format as an alternative reporting procedure
can submit a written request to OGE in accordance with 5 C.F.R. § 2634.905.
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Supplemental and Alternative Forms
5 C.F.R. §§ 2634.103, 2634.601(c), and 2634.905
With the prior written approval of OGE, agencies may require employees to file
additional confidential financial disclosure forms that supplement the standard public
or confidential forms. Agencies, with the prior written approval of OGE, may also
choose to use an alternative confidential financial disclosure form and procedure in
lieu of the OGE Form 450.
Extensions
Agency Extensions
5 C.F.R. § 2634.903(d)(1)
Agencies may, for good cause shown, grant any employee or class of employees a
filing extension or several extensions totaling no more than 90 days. Extensions do
not change the reporting period. For example, if a filer was originally required to file
a new entrant report on October 15, 2019, but received a 90-day extension, the end of
the reporting period for the purpose of valuing assets is still October 15, 2019, and the
reporting period for non-investment income is still October 15, 2018, through
October 15, 2019.
OGE recommends that extension requests and approvals be documented in writing.
In addition, the existence of an extension should be noted on a report once filed.
Service in a Combat Zone or Service during a Period of National Emergency
5 C.F.R. § 2634.903(d)(2)
An individual is automatically eligible for an extension if the individual has served in
a combat zone or was required to perform services away from the individual’s
permanent duty station following a declaration by the President of a national
emergency.
This extension runs until 90 days after the later of the following two dates:
• the last day of the individual’s service in the combat zone or away from the
individual’s permanent duty station; or
• the last day of the individual’s hospitalization as a result of an injury received or a
disease contracted while serving during the national emergency.
The terms of this extension differ from those of a similar combat zone extension
available to public filers.
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Filing Penalties
5 C.F.R. §§ 2634.701 and 2634.909
An agency may take any appropriate action, including adverse 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. An individual who
knowingly and willfully falsifies a report may also be subject to criminal prosecution.
Agency Procedures
Section 402(d) of the Ethics in Government Act, as amended, requires that each
agency establish written procedures for handling financial disclosure reports filed
with the agency. See OGE DAEOgram DA-09-03-92 (September 3, 1992).
Records Management
Access and Use
5 C.F.R. § 2634.604
Reports filed pursuant to the executive branch confidential financial disclosure
regulation are protected under the Privacy Act. Confidential reports may be used
only for the purposes stated in the Privacy Act Statement, which is included on the
first page of the form.
Retention Schedule
5 C.F.R. § 2634.604
The following discussion summarizes the applicable requirements for confidential
financial disclosure reports. See the OGE/GOVT-2 (Privacy Act) system of records
for additional information. See also General Records Schedule 2.8 (Federal Records
Act).
Reports Filed by Employees Who Served in the Position
Agencies must retain confidential financial disclosure reports (OGE Form 450 and
agency alternative forms) for a period of 6 years from the date of receipt. Agencies
must destroy the report after 6 years, unless the report is needed for an ongoing
investigation or to understand an agency alternative form that makes reference to the
information contained in that report.
Reports Filed by PAS Nominees Who Are Not Confirmed
Individuals file financial disclosure reports when nominated to positions requiring
Presidential appointment and Senate confirmation (PAS). If the individual is
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subsequently confirmed by the Senate, the agency must retain the report for 6 years
from the date of receipt, unless the report is needed for an ongoing investigation or to
understand an agency alternative form that is still within its 6-year retention period.
If the individual is not confirmed, however, the agency retains the report for only 1
year after the nominee ceases to be under consideration for the position, unless the
report is needed for an ongoing investigation.
Reports Filed by Other Prospective Employees Who Do Not Serve in the Position
If a prospective employee, other than a PAS nominee, provides a confidential
financial disclosure report and subsequently does not assume the duties of the
position, the agency would treat the report as a draft rather than as a final, filed report.
Drafts may be destroyed when no longer needed by the agency.
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Section 2: OGE Form 450 – Report Contents
This section explains what information a filer must provide in the cover page and
each substantive Part of the OGE Form 450.
Summary of Contents
The OGE Form 450 consists of one page of instructions, a cover page, five
substantive Parts, and a final page of examples. However, filers need only submit
those pages with reportable information, unless otherwise required by their
agency. For example, a filer with no reportable interests would submit only the
cover page.
Each of the five substantive Parts addresses a different category of interest that
the filer must disclose. The type of report (i.e., new entrant or annual) determines
the reporting period as well as the applicability of the gift and travel
reimbursement reporting requirements.
Reporting Periods and Individuals Covered
PART
REPORTING PERIOD
INDIVIDUALS
COVERED
New Entrant
Annual
PART I
Assets and Income
Assets: Date of Filing
Investment Income: N/A
Non-Investment Income:
12 Months Preceding the
Date of Filing
Preceding
Calendar Year*
Filer, Spouse, and
Dependent Children
PART II
Liabilities
Date of Filing
Preceding
Calendar Year*
Filer, Spouse, and
Dependent Children
PART III
Outside Positions
12 Months Preceding the
Date of Filing
Preceding
Calendar Year*
Filer Only
PART IV
Agreements or
Arrangements
Date of Filing
Preceding
Calendar Year*
Filer Only
PART V
Gifts and Travel
Reimbursements
N/A
Preceding
Calendar Year*
Filer, Spouse, and
Dependent Children
* Filers may exclude information for a period covered by a prior confidential or public
financial disclosure report.
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Spouses and Dependent Children
Scope of Reporting Requirements
General Rule
5 C.F.R. §§ 2634.907(a) and (h)
Filers need to report the interests of spouses and dependent children in several
Parts of the OGE Form 450, but the reporting thresholds and requirements may
differ, depending on the type of interest. The requirements are explained in the
instructions for each type of reportable interest.
Definitions
Spouse
For purposes of financial disclosure and other federal ethics rules, “spouse”
means an individual to whom the filer has been legally married, regardless of the
filer’s state of residence. The term “spouse” does not include an individual with
whom the filer is in a civil union, domestic partnership, or other relationship other
than marriage. See OGE Legal Advisory LA-13-10 (August 19, 2013).
Dependent Child v. Minor Child
The basic criminal conflict of interest statute (18 U.S.C. § 208) uses the term
“minor child,” but the financial disclosure requirements (and the Standards of
Conduct provisions on impartiality) refer more broadly to “dependent children.”
For purposes of financial disclosure, “dependent child” means an individual who
is:
1. a son, daughter, stepson, or stepdaughter of the filer; and
2. unmarried, under age 21, and living in the filer’s household or considered a
dependent by tax code standards.
“Minor child” is a class of children defined by state law, usually as under age 18.
Tests for Separateness
5 C.F.R. § 2634.907(h)(6)
A filer need not report assets, investment income, or liabilities of a spouse or
dependent child if the interests strictly meet all the tests for separateness in the
regulation. These tests, however, are very rarely met. For example, an asset that
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 these
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tests is that filers who complete joint tax returns, cohabitate, share expenses, or
have not been disinherited by their spouses must report the spouse’s interests.
Changes in Status during a Reporting Period
Marriage during a Reporting Period
When a filer gets married during the reporting period, the filer reports:
• In Part I: A spouse’s assets and sources of income that met an applicable
reporting threshold after the date of the marriage.
• In Part II: A spouse’s liabilities that met the applicable reporting threshold
after the date of the marriage.
• In Part V (annual filers only): A spouse’s gifts and travel reimbursements that
were received after the date of the marriage.
Divorce or Separation
5 C.F.R. § 2634.907(h)(5)
A filer who is divorced or permanently separated need not report a spouse’s
interests for the period before or after the divorce or permanent separation.
However, note that even in situations where there is no reporting requirement,
18 U.S.C. § 208 will still apply to particular matters in which an employee knows
his or her separated spouse has a financial interest.
No Longer a Dependent
The filer need not report the sole interests of any child who was not a dependent
as of the date of filing. The filer, however, must still report any interests that are
(or were) also those of the filer or the filer’s spouse (e.g., a child’s loan for which
the filer co-signed).
Distinguishing a Filer’s Entries from the Entries of a Spouse or Dependent Child
Entries for the assets, income, and liabilities of spouses and dependent children
may be marked “S” or “DC” (or “J” for joint) if the filer wishes to distinguish
them from the filer’s own assets, income, and liabilities. These designations are
not required but are often helpful.
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Use of Brokerage Statements and Attachments
5 C.F.R. § 2634.907(j)(2)
Agencies may permit a filer to attach brokerage statements, bank statements,
personal spreadsheets, and other financial materials in lieu of entering the
information directly in the OGE Form 450. However, an agency may permit such
materials only if they readily present, in a clear and concise fashion, all of the
information that the filer would have been required to enter in the OGE Form 450.
Because brokerage statements and other financial reports exist in many formats,
OGE cannot provide guidelines that will cover every situation. Nonetheless, an
(1) clearly identify the assets by name; (2) provide a sufficient description of an
asset when required for that asset type; and (3) clearly indicate which assets are
still held.
Filers are responsible for ensuring that they observe the limitations on using
attachments in lieu of data entries in the OGE Form 450 and that they redact
sensitive information not required by the confidential financial disclosure
regulation, such as account numbers and home addresses. Agencies, however,
should provide guidance to filers regarding the rules applicable to the use of
attachments, and agency reviewers need to evaluate the appropriateness of any
attachments as part of the review process. If an attachment proves insufficient, a
reviewer should request follow-up information or require that the filer provide a
revised attachment or enter the information in the OGE Form 450.
Special rules apply for individuals who file nominee reports in connection with a
position that requires Presidential appointment and Senate confirmation (PAS).
PAS nominee filers may not attach brokerage statements in lieu of completing the
OGE Form 450. In certain circumstances, OGE may permit a nominee filer to
provide clarifying notes in an attachment to the OGE Form 450.
Cover Page
Purpose
The cover page serves four basic functions. First, it provides relevant background
information about the filer. Second, it indicates whether the report was filed in a
timely manner. Third, it includes reporting statements that permit the filer to
exclude any unneeded subsequent pages. Fourth, it collects the signatures of the
filer and the reviewer(s).
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Field Instructions
(1) Date Received by Agency: The agency, not the filer, completes this required
field.
(2) Page Number: A page number should be included on each page of the report.
This information will help ensure that the pages remain in sequence.
(3) Employee’s Name: The filer’s name is a required field.
(4) E-mail Address: Agencies should have an e-mail address at which they can
reach the filer. If the information is otherwise readily available, follow-up is not
required.
(5) Position/Title: The report must specify the position for which the individual is
filing. If the filer has not provided this information, the reviewer should make the
appropriate annotation.
(6) Grade: The filer should enter his or her current grade level in the position. If
the filer has not yet entered the position, the filer should enter the anticipated
grade. If the position will not have an assigned grade level, the filer may leave
this field blank; however, the reviewer should confirm that the individual is
required to file.
(7) Agency: The report must specify the agency in which the position is located.
If the filer has a different home agency, the filer should include that information
as well.
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(8) Branch/Unit and Address: The report should specify the organizational
component within the agency where the position resides and should include an
office address. If the office address is otherwise readily available, follow-up is
not required.
(9) Work Phone: Agencies should have a work telephone number at which they
can reach the filer if questions arise about the report. If the information is
otherwise readily available, follow-up is not required.
(10) Reporting Status: The type of report must be indicated. If the filer has not
marked the appropriate box, the reviewer should verify that the filer understood
which Parts were required and the applicable reporting periods.
(11) If New Entrant, Date of Appointment to Position: A new entrant filer must
indicate when he or she entered on duty in the current position so that the
reviewer can determine whether the report was filed on time. An annual filer may
leave this box blank. If the filer did not provide this information, the reviewer
should annotate the report.
(12) Check box if Special Government Employee: The report must specify
whether the filer is a special Government employee (SGE). Reviewers should
correct this field if the filer improperly checked (or failed to check) the box.
(13) If an SGE, Mailing Address: Agencies should have a mailing address at
which to contact an SGE filer. If the information is otherwise readily available,
follow-up is not required.
(14) Reporting Statements: The filer must answer “Yes” or “No” to each of the
reporting statements that apply. A new entrant filer completes the statements for
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Parts I through IV. An annual filer completes all five statements. If the filer
answers “No” to all of the statements, the filer need not include the remaining
blank pages of the report.
(15) Signature of Employee: The filer must sign and date the report certifying
that the statements made are true, complete, and correct to the best of the filer’s
knowledge.
(16) Signature and Title of Supervisor/Other Intermediate Reviewer: These
blocks are provided for agencies that require an intermediate review of the report
prior to examination by the agency’s final reviewing official.
(17) Signature and Title of Agency’s Final Reviewing Official: The agency’s
final reviewing official must sign and date the report to certify that it meets the
requirements set forth in paragraph (b)(2) of 5 C.F.R. § 2634.605. See Section 3
of this guide for additional information.
(18) Comments of Reviewing Officials: Reviewers should use this block to
record any exceptions to the certification statement that they made by signing in
block 16 or 17. They may also use this block to record supplementary
information obtained from the filer. Additionally, reviewers should note in this
block any extensions of the due date granted by the agency.
Part I: Assets and Income
What to Report
5 C.F.R. §§ 2634.907(b), (c), (h)(1), and (h)(2) and 2634.908
A new entrant filer must report the following:
• any asset of the filer, the filer’s spouse, or the filer’s dependent children that
had a value greater than $1,000 as of the date of filing;
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• any source from which the filer received more than $1,000 in earned income,
honoraria, and other non-investment income during the preceding 12 months;
and
• any source from which the filer’s spouse received more than $1,000 in earned
income and honoraria during the preceding 12 months.
An annual filer must report the following:
• any asset of the filer, the filer’s spouse, or the filer’s dependent children that
had a value greater than $1,000 at the end of the preceding calendar year;
• any asset from which the filer, the filer’s spouse, or the filer’s dependent
children received more than $1,000 in income during the preceding calendar
year;
• any source from which the filer received more than $1,000 in earned income,
honoraria, or other non-investment income during the preceding calendar
year; and
• any source from which the filer’s spouse received more than $1,000 in earned
income and honoraria during the preceding calendar year.
Note: Sources of earned income for dependent children need not be reported
because it has been determined that the utility of such information in assessing
potential conflicts does not outweigh the reporting burden. Nonetheless, filers
should be aware that such sources may pose potential conflict or appearance
concerns if the filer can participate in United States Government actions affecting
or involving those sources.
How to Report
In general, a filer must provide a description that is sufficient for the reviewer to
identify the asset or source of income for purposes of the conflict of interest
analysis. The amount of detail required will vary by the type of asset or income.
• Stock and other equity in a business: Filers must provide the full name of any
reportable businesses and securities. For a privately held business, filers
should describe the line of business as well, unless the filer has already
provided this information in another entry or the reviewer can readily identify
the business (e.g., the business has a web site that provides this information).
Ticker symbols for publicly traded companies are helpful but not required.
• Other assets with specific names (e.g., bonds and mutual funds): Filers must
provide the full name of the asset (e.g., “Fidelity Select Pharmaceuticals” not
just “Fidelity”) and, unless clear from the name, describe the type of asset.
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• Assets without specific names: Filers must describe the type of asset,
including the city and state (or county and state) for real estate.
• Sources of earned or other non-investment income: Filers must provide the
name of any reportable source of earned or other non-investment income and
indicate the type of income. For income related to employment, filers may
ordinarily just note that the source is an employer; however, the reviewer may
need to gather additional information as to the specific types of income if
relevant for the conflict of interest analysis. For a privately held business,
filers should describe the line of business as well, unless the filer has already
provided this information in another entry or the reviewer can readily identify
the business (e.g., the business has a web site that provides this information).
Filers should mark the “No Longer Held” box for (1) assets that were no longer
no longer providing income at the end of the reporting period.
Optional Designation of Ownership
A filer may choose to distinguish among entries belonging to different family
members. For example, the filer may note next to entries (S) for “spouse,” (DC)
for “dependent child,” or (J) for “jointly held.” These designations are not
required but are often helpful.
Reporting Standards for PAS Nominees
Filers who are completing reports as nominees to positions requiring Presidential
appointment and Senate confirmation (PAS) face a heightened level of scrutiny.
As part of the review process, such filers may be asked to provide more detailed
descriptions of assets and sources of income than would other filers.
Exceptions from the Reporting Requirements
5 C.F.R. § 2634.907(c)(3)
Filers do not report the following:
• salaries or retirement benefits from United States Government employment
(including Thrift Savings Plan accounts);
• income from Social Security, veterans’ benefits, and other similar
United States Government benefits;
• certificates of deposit (CDs), savings accounts, and checking accounts with
banks, credit unions, and similar depository institutions;
• money market mutual funds and money market accounts;
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• diversified mutual funds or unit investment trusts, including exchange-traded
funds that qualify for the exemption at 5 C.F.R. § 2640.201(a);
• diversified funds in an employee benefit plan that qualify for the exemption at
5 C.F.R. § 2640.201(c)(1)(ii) or 5 C.F.R. § 2640.201(c)(1)(iii);
• term life insurance;
• a personal residence, unless rented out during the reporting period;
• United States Government obligations, including U.S. Treasury bonds, bills,
notes, and savings bonds;
• Government securities issued by United States Government agencies; and
• a personal liability owed to the filer, spouse, or dependent child by a spouse,
parent, sibling, or child.
In addition, a filer need not report the assets of a former spouse or a spouse from
whom the filer is permanently separated; the assets of a spouse living separate and
apart from the filer with the intention of terminating the marriage or providing for
permanent separation; the assets of a spouse or dependent child that meet the tests
of separateness; and income arising from the dissolution of the filer’s marriage or
permanent separation, such as child support or alimony. See the discussion under
“Spouses and Dependent Children” for more information.
Definition of “personal residence”: A “personal residence” is defined at 5 C.F.R.
§ 2634.105(l) to mean any property used exclusively as a private dwelling by the
filer or the filer’s spouse, which is not rented out during any portion of the
reporting period. Filers may have more than one property that qualifies as a
personal residence (e.g., a vacation home).
Definitions of Asset and the Types of Income
Asset
“Asset” refers to an interest in property held in a trade or business or held for
investment or the production of income. Examples of reportable property
interests (or “assets”) include, but are not limited to, stocks, bonds, investment
funds, and other securities; real estate; retirement interests (e.g., defined benefit or
defined contribution plan); fixed or variable annuities; whole, universal, and
variable life insurance; beneficial interests in trusts and estates; collectible items
for resale or investment; commercial crops; accounts or other funds receivable;
and capital accounts or other asset ownership in a business.
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Investment Income
“Investment income” refers to interest, rents, royalties, dividends, realized capital
gains, and other income derived from an asset. Examples of investment income
include, but are not limited to, income derived from: stocks, bonds, investment
funds, and other securities; real estate; retirement investment accounts; annuities;
the investment portion of life insurance contracts; interests in trusts and estates;
collectible items; commercial crops; accounts or other funds receivable; and
businesses.
Earned Income
“Earned income” includes fees, salaries, commissions, honoraria, and any other
compensation received for personal services but excludes salary from United
States Government employment and other federal benefits, including retirement
and veterans’ benefits. If personal services provided by the filer or the filer’s
spouse or dependent children are a material factor in the production of income
from an asset or business, the income is considered “earned income” for purposes
of financial disclosure rather than “investment income.” A dependent child’s
earned income is not reportable.
Other Non-Investment Income
A remainder category exists for income that is neither investment income nor
earned income. Examples include prizes, scholarships, awards, and gambling
winnings. Filers report only their own sources of other non-investment income.
Other non-investment income received by a spouse or dependent child is not
reportable.
Valuing Assets
5 C.F.R. § 2634.301(e)
Valuation Methods
Filers typically should value a publicly traded security based on its exchange
value. In other cases, filers should use some recognized indication of value for
the type of asset, such as:
• a recent purchase price;
• a recent appraisal;
• the market value of the property as assessed for tax purposes;
• the book value of non-publicly traded stock;
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• the face value of bonds or comparable securities;
• the net worth of a business partnership; or
• the equity value of an individually owned business.
A good faith estimate of the fair market value may be made in any case in which
the exact value cannot be obtained without undue hardship or expense.
Aggregation
When determining whether an asset meets the reporting threshold, a filer must
aggregate the value of the filer’s own holdings with that of the filer’s spouse and
dependent children. Even if the filer chooses to report his or her interest in the
asset on a separate line from the interest of a spouse or dependent child, this
choice does not affect the reporting threshold.
Receipt of Income
General Rule
A filer has received income when the filer has the right to exercise control over
the income, regardless of whether the filer has taken actual possession.
Generally, this means income would be “received” for purposes of financial
disclosure when received for purposes of federal income tax. Note, however, that
income would be reportable on a financial disclosure report even if exempt from
federal income tax (e.g., interest on municipal bonds). In other words, a filer’s
financial disclosure report generally will correspond to the filer’s taxable income
in terms of when it is counted but not necessarily what is counted.
Example 1: A filer has received dividends on a stock held even if the dividends
are reinvested.
Example 2: A filer has received a payment for services that has been delivered in
the form of a check even though the filer has not cashed the check. Similarly, a
filer who defers collecting a check would still have received the payment for
purposes of financial disclosure. Filers cannot avoid reporting income by
deferring possession of income made available to them.
Aggregation – Filers, Spouses, and Dependent Children
When determining whether income from an asset meets the reporting threshold, a
filer must aggregate income received by the filer, the filer’s spouse, and the filer’s
dependent children.
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Aggregation – Different Types of Income and Losses from a Particular Source
When determining whether income from an asset meets the reporting threshold,
filers must generally use gross income, and filers must aggregate all types of
income received. Capital losses may be subtracted from any gains and other
investment income when calculating the gross amount of investment income
received.
Example 1: A filer received $750 in dividends and $750 in capital gains from an
asset. The total income of $1,500 meets the income reporting threshold. If the
asset instead produced $750 in dividends but was sold at a loss of $500, the total
income of $250 falls below the income reporting threshold.
Example 2: A filer owns a rental property from which the filer received $9,000 in
rent during the reporting period. The filer may not subtract the expenses of
maintaining the property when determining whether the amount of income
received exceeded $1,000.
Income from Partnership, LLCs, and S-Corporations
Filers may use net distributive share, rather than gross income, when determining
the total amount of income received from any partnerships, limited liability
companies, or S-corporations in which the filer has an interest. However, the
filer’s net distributive share has been received for purposes of financial disclosure,
regardless of whether the filer has taken a distribution.
Example: A filer operates a business that is structured as a limited liability
company. The filer must report income from the business even if all of its profit
during the reporting period was reinvested into the business.
Special Treatment of Tax-Deferred Plans and Accounts
OGE does not treat tax-deferred income accruing within a retirement plan or
account as having been received because of the limitations on withdrawal and
other regulatory requirements governing such plans and accounts. The filer,
however, would report distributions as having been received. When determining
whether a distribution meets the reporting threshold, the filer may subtract any
portion that constitutes an investment into the plan or account of previously
received income. In most cases, though, filers will find it easiest to use the total
amount of a distribution during the reporting period.
Example: A filer would not report dividends on a stock as having been received
if the stock is held within an individual retirement account. The filer, however,
would report distributions from the retirement account as having been received.
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Treatment of Underlying Assets
General Rule
5 C.F.R. § 2634.907(c), Note to paragraphs (c)(1) and (c)(2)
Filers frequently report interests in brokerage accounts, managed accounts,
retirement plan accounts, mutual funds, trusts, and other entities through which
the filer has an interest in other assets. These other assets are the “underlying
assets” or “underlying holdings” of the account, fund, trust, or other entity. For
example, a filer may have a brokerage account. Through this account, the filer
might hold interests in various stocks. These stocks are the underlying assets of
the brokerage account. Similarly, a filer may invest in a mutual fund, which, in
turn, invests in stocks and bonds. These stocks and bonds are the underlying
assets of the mutual fund.
As a general rule, filers must report each underlying asset for which the filer’s
interest (aggregated with that of the filer’s spouse and dependent children)
individually meets the reporting requirements.
Example: A filer has a brokerage account with three underlying assets: (1) shares
of ABC Corporation stock valued at $2,000; (2) a bond issued by XYZ, Inc.,
valued at $500; and (3) U.S. Treasury bonds valued at $5,000. None of the assets
produced more than $1,000 in income. The filer must report the ABC
Corporation stock because the value of the stock exceeds the $1,000 reporting
threshold for value. The filer does not have to report the bond issued by XYZ,
Inc., because the bond meets neither the $1,000 reporting threshold for value nor
the $1,000 reporting threshold for income. The U.S. Treasury bonds exceed the
value threshold; however, U.S. Treasury securities are excepted from reporting
per 5 C.F.R. § 2634.907(c)(3).
General Rule Applied to Proportionate Interests
For purposes of valuing an underlying asset in a trust, fund, or other pooled
investment vehicle, filers may use the value of the proportionate interest that the
filer, the filer’s spouse, and the filer’s dependent children have in the underlying
asset. For purposes of measuring income from an underlying asset, filers may use
the amount of income received from that underlying asset attributable to the filer,
the filer’s spouse, and the filer’s dependent children. A filer would need to use
the total value and income of the underlying assets if the filer is unable to
determine whether the proportionate interest in value and income meets a
reporting threshold.
Example: A filer, who is completing an annual report, has a 25% interest in a
family investment fund. The fund had an overall value of $77,000 at the end of
the calendar year and held the following underlying assets: (1) shares of ABC
Corporation stock that had a value of $75,000 and produced $3,000 in dividends
and (2) bonds issued by XYZ, Inc., that had a value of $2,000 and produced
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$5,000 in interest and capital gains. The filer must report the family investment
fund because the filer’s interest in the overall fund exceeded the reporting
thresholds. With respect to the underlying assets of the fund, the filer would
report the ABC Corporation stock because the filer’s proportionate interest in the
ABC Corporation stock had a value that exceeded $1,000 ($75,000 x 25% >
$1,000). In addition, the filer would report the XYZ, Inc., bonds because the
filer’s proportionate interest in the income from the XYZ, Inc., bonds exceeded
$1,000 ($5,000 x 25% > $1,000).
Reduced Disclosure Requirements for Certain Trusts and Funds
5 C.F.R. § 2634.907(i)
A filer need not follow the process outlined above for (1) investment funds that
meet the criteria for “excepted investment funds”; (2) trusts that meet the criteria
for “excepted trusts”; or (3) trusts certified by OGE as part of the qualified trust
program. Excepted trusts and qualified trusts are relatively rare (see the
regulation for additional information), but excepted investment funds are fairly
common.
An excepted investment fund (EIF) is an investment fund that is:
1. independently managed; and
2. widely held; and
3. either publicly traded or available or widely diversified.
• “independently managed”: An investment fund is independently managed if
the filer lacks the ability to exercise control over the financial interests held by
the fund.
• “widely held”: An investment fund is widely held if the fund has at least 100
natural persons as direct or indirect investors. For example, if a pension plan
invests in the ABC Fund, one would count each plan participant toward the
100-person threshold when determining whether the ABC Fund is widely
held.
• “publicly traded or available”: An investment fund is publicly traded if it is
listed on a national exchange (NYSE or NASDAQ) or a regional exchange in
the United States. An investment fund is publicly available if it is, or was,
open to anyone who wants to become an investor. A fund is not disqualified
solely because it has net worth or income requirements or if an investor must
be an “accredited investor.”
• “widely diversified”: An investment fund is widely diversified if it does not
have a stated policy of concentrating its investments in any industry, business,
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or single country other than the United States or bonds of a single state within
the United States.
Caution: Qualifying as an excepted investment fund reduces a filer’s disclosure
obligations; however, the underlying assets of an excepted investment fund are
still relevant for purposes of the conflict of interest analysis. For example, a
sector mutual fund would ordinarily qualify as an excepted investment fund, so a
filer would not need to report the underlying assets of the fund in Part I. The filer,
however, is still prohibited by 18 U.S.C. § 208 from participating in particular
matters affecting those underlying assets absent an exemption or waiver.
Therefore, if the fund’s sector of concentration is related to the filer’s official
duties, the reviewer will need to gather additional information to determine
whether an exemption applies or whether another remedy such as recusal or
divestiture is required.
Lack of Access to Fund Information
In general, an agency may certify a report if the agency is satisfied that the filer
has made a good faith effort to obtain the required information and that the
potential for conflicts has been addressed. As evidence of the good faith effort,
agencies may require the filer to provide a letter from the fund stating that the
fund will not disclose the underlying assets.
Confidentiality Agreement
In general, an agency may certify a report if the agency is satisfied that the filer is
unable to disclose the information due to a preexisting confidentiality agreement
and that the potential for conflicts has been addressed.
Part II: Liabilities
What to Report
5 C.F.R. §§ 2634.907(d) and (h)(3)
A new entrant filer must report liabilities owed to any one creditor by the filer, the
filer’s spouse, or the filer’s dependent children that (in aggregate) exceeded
$10,000 as of the date of filing.
An annual filer must report liabilities owed to any one creditor by the filer, the
filer’s spouse, or the filer’s dependent children that (in aggregate) exceeded
$10,000 at any point during the preceding calendar year.
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How to Report
Filers must provide the following information:
• the creditor’s name;
• the creditor’s location (city and state), unless the creditor is otherwise readily
identifiable; and
• the type of liability, such as personal loan or margin account.
A filer may choose to distinguish among entries belonging to different family
members. For example, the filer may note (S) for “spouse,” (DC) for “dependent
child,” or (J) for “jointly held.” These designations are not required.
Exceptions from the Reporting Requirements
5 C.F.R. § 2634.907(d)
Filers do not report the following:
• loans from a financial institution or other business entity on terms that are
generally available to the public;
• mortgages secured by a personal residence of the filer or the filer’s spouse;
• loans secured by a personal motor vehicle, household furniture, or appliances,
unless the loan exceeded the purchase price of the item it secures;
• revolving charge accounts;
• student loans; and
• personal liabilities owed to a spouse or to the parent, sibling, or child of the
filer, spouse, or dependent child.
In addition, a filer need not report liabilities of a former spouse or a spouse from
whom the filer is permanently separated; liabilities of a spouse living separate and
apart from the filer with the intention of terminating the marriage or providing for
permanent separation; liabilities of a spouse or dependent child that meet the tests
of separateness; and obligations arising from the dissolution of the filer’s
marriage or permanent separation, such as child support or alimony. See the
discussion under “Spouses and Dependent Children” for more information.
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Guarantors and Co-Signers
Filers do not have a reportable liability for loans on which they are only
guarantors. However, if by co-signing a loan the filer has created a current legal
obligation to repay regardless of whether the person with whom the filer co-
signed defaults, then the filer has a reportable liability. In describing a liability as
a co-signer, the filer should identify the party for whom the filer co-signed.
Bills and Tax Deficiencies
Payments owed for goods and services are reportable if payment is overdue and
the overdue payment exceeded $10,000 during the reporting period. Also
reportable are overdue tax liabilities and tax liens. Note that a bill paid on
installments would be treated as an ordinary loan/liability, regardless of whether
any particular installment payment was overdue.
Part III: Outside Positions
What to Report
5 C.F.R. § 2634.907(e)(1)
A new entrant filer must report positions held with organizations other than the
United States Government at any time during the preceding 12 months.
An annual filer must report positions held with organizations other than the
United States Government at any time during the preceding calendar year.
Reportable positions include those of an officer, director, general partner, limited
partner with an active role, proprietor, representative, executor, trustee, employee,
or consultant of any for-profit or non-profit organization. This would include a
member with an active role in a limited liability company and any managing
member.
How to Report
Filers must provide the following information:
• the name of the organization;
• the location of the organization (city and state), unless the organization is
otherwise readily identifiable;
• a general description of the organization’s purpose or function; and
• the title of the filer’s position or a description of the type of position held.
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The filer should also mark the “No Longer Held” box if the filer no longer held
the position at the end of the reporting period.
Exceptions from the Reporting Requirements
5 C.F.R. § 2634.907(e)(2)
Filers do not report the following:
• positions held by the filer’s spouse or dependent children;
• positions held with the United States Government or as part of the filer’s
official duties as a representative of the United States Government;
• positions held with a religious, social, fraternal, or political entity;
• positions solely of an honorary nature;
• mere membership in an organization; and
• passive investment interests as a limited partner or non-managing member of
a limited liability company (i.e., the filer is just an investor and provides no
services).
In addition, filers do not need to report service as a member of an advisory board
or committee if the following criteria are met: (1) the filer’s service is unpaid;
(2) the board or committee is that of a non-profit or governmental organization;
(3) the filer does not have fiduciary duties of the sort exercised by officers,
directors, or trustees; and (4) the filer’s role does not involve sufficient
supervision by the organization to create a common-law employee-employer
relationship.
Part IV: Agreements or Arrangements
What to Report
5 C.F.R. § 2634.907(f)
New entrant filers must report their participation in an agreement or arrangement
for any of the following:
• future employment;
• leaves of absence;
• continuing payments from a current or former employer, such as severance;
and
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• continuing participation in an employee welfare or benefit plan maintained by
a current or former employer.
Annual filers must report any agreement or arrangement described above in which
they participated during the preceding calendar year.
How to Report
Filers must provide the following information:
• the name of the other party or parties;
• the party’s location (city and state), unless the party is otherwise readily
identifiable; and
• the terms of the agreement or arrangement.
The description of the terms must include, at minimum, the general type of
agreement or arrangement in which the filer participates (e.g., defined benefit plan
or anticipated severance) and its status. For more complicated agreements or
arrangements, the reviewer may require additional information for the conflict of
interest analysis, such as the nature and timing of any pending payments.
Descriptions of future employment arrangements must also include the month and
year in which the arrangement was made.
Exceptions from the Reporting Requirements
5 C.F.R. § 2634.907(f)
Filers do not report the following:
• agreements and arrangements for spouses or dependent children;
• agreements and arrangements with the United States Government, including
participation in the Federal Employees Retirement System or the Civil Service
Retirement System; and
• continuing participation in a defined contribution plan (e.g., 401(k) plan) to
which a former employer is no longer making contributions.
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Part V: Gifts and Travel Reimbursements (Annual Filers Only)
What to Report
5 C.F.R. §§ 2634.907(g) and (h)(4)
Annual filers must report gifts and travel reimbursements received by the filer,
filer’s spouse, and dependent children from a single source aggregating more than
$390 during the preceding calendar year.
Filers count only items worth more than $156 when determining whether gifts or
travel reimbursements from a single source totaled more than $390.
How to Report
The filer must provide the name of the donor. In addition, for gifts, the filer must
provide a description of the gift, and, for travel-related gifts or travel
reimbursements, the filer must provide an itinerary, the purpose, date(s), and the
kinds of expenses. Filers need not report the basis for the gift or travel
reimbursement (e.g., “birthday gift from friend” or “approved as widely attended
gathering”) in the OGE Form 450; nonetheless, the reviewer may need to ask
about the basis in order to determine whether the filer could accept the gift or
reimbursement.
Exceptions from the Reporting Requirements
5 C.F.R. §§ 2634.907(g)(5) and h(4)
Filers do not report the following:
• anything given to a spouse or dependent child totally independent of their
relationship to the filer (e.g., spouse’s business-related travel
reimbursements);
• anything for which the filer (or the filer’s spouse or dependent child) paid fair
market value;
• anything accepted by the United States Government under a statute or contract
(e.g., travel payments accepted under 31 U.S.C. § 1353);
• anything received when the filer was not a United States Government
employee;
• anything received from a “relative,” which is defined at 5 C.F.R.
§ 2634.105(o);
• bequests and other forms of inheritance;
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• suitable mementos of a function honoring the filer (e.g., retirement party);
• gifts in the nature of communications to the filer’s office, such as
subscriptions to newspapers and periodicals;
• non-business gifts of personal hospitality (food, lodging, and entertainment,
but not transportation) at the donor’s personal residence or family property;
• food, lodging, transportation, entertainment, or reimbursements provided by a
foreign government within a foreign country or by the United States
Government, the District of Columbia, or a state or local government;
• food and beverages that are not consumed in connection with a gift of
overnight lodging;
• travel reimbursements that must be reported under the Foreign Gifts and
Decorations Act (5 U.S.C. § 7342); and
• travel reimbursements received for political trips that must be reported under
§ 304 of the Federal Election Campaign Act of 1971.
Changes to the Reporting Thresholds
The reporting thresholds for gifts and travel reimbursements are tied to the
definition of “minimal value” for purposes of gifts under the Foreign Gifts and
Decorations Act (5 U.S.C. § 7342(a)(5)). The General Services Administration
redefines “minimal value” under the Foreign Gifts and Decorations Act every
three years. After the General Services Administration makes this change, OGE
amends 5 C.F.R. part 2634 to update the reporting thresholds for gifts and travel
reimbursements.
Aggregation Example
A filer received the following gifts from the same source during the reporting
period: a painting ($290), a pen set ($185), and a letter opener ($25).
Step 1: Eliminate those gifts with a value of $156 or less.
• Painting ($290)
• Pen set ($185)
• Letter opener ($25)
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Step 2: Add the values of the remaining gifts.
• Painting ($290)
• Pen set ($185)
$290 + $185 = $475
Step 3: Compare the total value from Step 2 to the $390 threshold. If the value
is more than $390, report the gifts worth more than $156. The filer reports the
painting and the pen set but not the letter opener.
Note: For reports filed prior to January 1, 2019, gifts and travel reimbursements
were counted toward separate thresholds. Gifts and travel reimbursements now
count toward a single $390 threshold.
Valuing a Gift or Travel Reimbursement
5 C.F.R. § 2634.907(g)(3)
General Approach
Filers must value gifts and travel reimbursements according to their fair market
value. For most travel reimbursements, the fair market value will be the amount
actually received. The fair market value of a gift ordinarily will be the retail cost
for the filer to purchase the item. If the filer cannot find the market value of the
same item, the filer may estimate its value by referencing the retail cost of similar
items of like quality. The filer may make a good faith estimate if items of like
quality are not readily available in the market.
Valuing a Ticket to an Event
The market value of a ticket entitling the holder to attend an event that includes
food, refreshments, entertainment, or other benefits is the face value of the ticket,
which may exceed the actual cost of the food and other benefits. Pursuant to the
regulatory revisions effective January 1, 2019, filers may not subtract the cost of
food and beverages from the face value of a ticket when determining the value.
Valuing Free Attendance at an Event in a Skybox or Private Suite
To value free attendance at an event in a skybox or private suite, filers would take
the value of the most expensive publicly available ticket to the event and add in
the market value of food, beverages, entertainment, and other tangible benefits
provided to the filer in excess of what would have been provided through the
publicly available ticket.
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Valuing Attendance at a No-Fee Event
If no fee was charged to any attendee, a filer would value a gift of free attendance
by using the market value of food, beverages, entertainment, and other tangible
benefits offered to attendees. The market value of these items is based on the cost
the filer would have incurred to obtain similar items at a comparable location or
event.
Multiple Donors
A gift from a group of individuals is considered a gift from a single source for
purposes of the $390 and $156 thresholds. Filers, therefore, cannot apportion the
value of the gift among several donors.
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Section 3: Review Procedures
This section provides an overview of the review process. The information
presented here will help you use the more detailed guidance offered in Section 4.
Basic Steps
Reviewers advance the objectives of the confidential financial disclosure system
by taking the following steps:
• Technical Review: Make sure the report is completed correctly.
o Ensure that each applicable Part has been completed or that the filer
selected “No” for the corresponding reporting statement on the cover
page.
o Determine whether the entries provide sufficient information to complete
the conflict of interest analysis.
o Resolve any instances of inadequate disclosure or over-reporting, as
needed.
• Conflict of Interest Analysis: On the basis of the information reported and
any needed follow-up inquiries, assess whether the filer could engage in (or
may have engaged in) behavior that violates or appears to violate applicable
laws and regulations.
• Remedies: Resolve any potential or actual substantive issues.
o Provide guidance on the application of the ethics statutes and regulations
to the filer’s disclosed interests and official duties, as appropriate.
o Identify specific actions that the filer must or should take to resolve any
conflicts concerns, and document such actions, as appropriate.
o Refer apparent violations for further action, as necessary (e.g., Office of
Inspector General or the Department of Justice).
Certification Requirements
What Certification Means
5 C.F.R. § 2634.605(b)
The review process ends with certification of the report by a reviewing official.
In order to certify a report, a reviewer must determine, to the reviewer’s
satisfaction, that:
1. each required Part of the report is complete; and
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2. no interest or position disclosed in the form violates or appears to violate:
a. any applicable provision of chapter 11 of title 18, United States Code;
b. Executive Order 12674, as modified by Executive Order 12731, and the
implementing regulations (i.e., Standards of Conduct);
c. any other applicable Executive Order in force at the time of the review
(e.g., Ethics Pledge); or
d. any other agency-specific statute or regulation which governs the filer.
When determining whether a required item is complete to his or her satisfaction, a
reviewer should consider that, with respect to confidential financial disclosure
reports, disclosure is important, not as an end in itself, but rather as a means to
gather information relevant for a conflict of interest analysis. A reviewer,
therefore, may certify a report as being sufficiently complete, despite technical
deficiencies, if those deficiencies do not materially impair the completion of the
conflict of interest analysis.
Exception: A stricter level of technical scrutiny is required for a nominee to a
position requiring Presidential appointment and Senate confirmation (PAS).
Despite being confidential, these reports do have an audience outside the agency,
namely the applicable Senate committees, and technical consistency ensures that
these reports are readily understandable without recourse to supplemental
reviewer notes.
Who Certifies
5 C.F.R. § 2634.605(a)
The 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, deputy ethics
counselor, deputy standards of conduct counselor, or the equivalent.
Only the DAEO (or ADAEO in the DAEO’s absence) may certify a report filed
by a nominee to a position requiring Presidential appointment and Senate
confirmation (PAS). The Director of the U.S. Office of Government Ethics, or
the Director’s delegate, conducts an additional review of reports filed by PAS
nominees.
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Where to Certify
A reviewer certifies the report by signing and dating the cover page of the OGE
Form 450 in the field labeled “Signature and Title of Agency’s Final Reviewing
Official.”
Intermediate Reviews
5 C.F.R. § 2634.605(b)(1)
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. For example, 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” the report in terms of the procedures outlined
in this section of the guide. Signatures of intermediate reviewing officials should
and Title of Supervisor/Other Intermediate Reviewer.”
Review Timeframes
5 C.F.R. § 2634.605
Initial Review
An agency should review reports promptly and must perform a technical review
and conflict of interest analysis within 60 days of receipt.
If No Additional Information or Remedy is Required
If no additional information or remedy is required, agencies must also certify the
report before the 60-day period expires.
If Additional Information or Remedy is Required
If additional information or a remedy is required, agencies must contact the filer
for the information or begin the process of implementing a remedy before the 60-
day period expires. Requests for additional information must require a response
within 30 days of the request, unless the agency grants a written extension.
Agencies must then make reasonable efforts to complete the review process as
soon as practicable following the expiration of the 60-day period. Such efforts
would include actively following up with filers and escalating instances of non-
responsiveness as appropriate. In cases for which remedial action is required,
such remedial action must be completed no later than 3 months from the date on
which the filer receives notice that the action is required. Agencies may extend
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this timeframe in unusual circumstances but such circumstances must be fully
documented to the satisfaction of the final certifying official.
Filers who do not respond to requests for information in a timely manner may be
subject to the provisions of 5 C.F.R. § 2634.701.
PAS Nominee Reports
Special expedited procedures apply to reports filed by nominees to positions
requiring Presidential appointment and Senate confirmation (PAS). See 5 C.F.R.
§ 2634.605(c) for additional information regarding these procedures.
Tools of Review
A variety of resources exist that can help the review of confidential financial
disclosure reports. Some of these resources include:
• the filer’s previous report, if applicable;
Note: Reviewers need not perform a line-by-line comparison between the
two reports; however, the prior report is a useful tool for familiarizing
oneself with the filer, spotting significant inconsistencies, and gathering
additional information about entries in the current report. Reviewer
annotations to the prior report can prove especially helpful.
• the instructions accompanying the OGE Form 450;
• the filer’s position description or other materials describing the filer’s duties;
• federal ethics laws and regulations;
• the agency’s prohibited holdings list (if applicable);
• a list of the agency’s grantees, contractors, licensees, etc.;
• OGE legal and program management advisories; and
• financial reference materials and/or access to the internet to conduct research.
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When to Obtain Additional Information
Standard of Scrutiny
There is no requirement to audit a report to determine whether disclosures are
accurate, and reviewers may generally take disclosures at “face value” as correct.
Moreover, as discussed under the “Certification Requirements” section, reviewers
may choose not to pursue technical deficiencies that are not relevant for the
conflict of interest analysis.
Nevertheless, reviewers should seek additional information in the following
situations:
• An entry does not provide enough information to identify the particular
interest, source, or organization. For example, the filer reports “Fidelity
mutual fund” or “stock.”
• An entry (or the absence of an entry) is inconsistent with another entry in the
report and the inconsistency may obscure information relevant for the conflict
of interest analysis. For example, the filer reports a position with a law firm
in Part III but does not report any related income or assets in Part I. Without
more information, it is not clear whether the position is or was compensated.
• The report omits an entry for which the reviewer has independent knowledge
that is relevant for the conflict of interest analysis. For example, the filer does
not report non-federal income, but the reviewer knows that the filer recently
worked in the private sector. By contrast, if the filer failed to include a non-
conflicting defined benefit plan from a prior report, the reviewer may
determine that there is no need to follow up as to whether the filer still
participates in the plan.
• The reviewer otherwise needs more information for the conflict of interest
analysis.
The decision whether to request additional information often involves the exercise
of judgment. The 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 potential for conflicts of interest.
Additional Considerations
New Entrant and Nominee Filers
With new entrant reports, 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 retirement plan reported or a new entrant with
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significant stock holdings and no employment. If gaps appear, reviewers should
help filers to understand the disclosure requirements better. In all cases, however,
reviewers need to ensure that the filer has reported entries for each applicable Part
(Parts I through IV) or affirmatively stated that there are no interests to report for
that Part.
The highest level of scrutiny applies when reviewing a report filed by a nominee
to a position requiring Presidential appointment and Senate confirmation (PAS).
Therefore, reviewers should err on the side of seeking clarification or additional
information from a PAS nominee if there is any doubt about the adequacy of a
report. See OGE DAEOgram DO-08-002 (January 25, 2008).
Annual Filers
Reviewers are not required to perform a line-by-line comparison between a filer’s
current annual report and the filer’s most recent prior report, and reviewers need
not reconcile all of the differences that may exist. Reviewers, however, should
familiarize themselves with the prior report and follow up on any apparent
inconsistencies that raise reasonable concerns as to whether the filer understands
the reporting requirements. Reviewers should also follow up on inconsistencies
relevant to the reviewer’s conflict of interest analysis. In all cases, reviewers need
to ensure that the filer has reported entries for each applicable Part (Parts I
through V) or affirmatively stated that there are no interests to report for that Part.
Over-Reporting
If the filer discloses interests that are not reportable or provides more detail than is
required, reviewers should notify the filer. In many cases, no change to the report
is necessary but the filer should understand that such information can be excluded
from future reports.
Reviewer Notes and Annotations
5 C.F.R. § 2634.605(b)(4)
Annotations and Amendments
Reviewers should initial and date any corrections or additions to the OGE Form
450 that they make based on information obtained from the filer or other sources.
Reviewers may record such information next to the entry itself or in the box for
“Comments of Reviewing Officials.”
Agencies may amend reports after certification in the same manner as they
annotate reports prior to certification. However, it should be clear that the report,
as amended, meets the criteria for certification.
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Notes
Depending on the report and the procedures at the reviewer’s agency, reviewers
may also need to produce a more detailed set of notes that record additional
background information, discuss technical reporting issues and the conflict of
interest analysis, and document significant interactions with the filer. Such notes
can be especially helpful when reviewing the filer’s subsequent reports.
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Section 4: Reviewing Specific Types of Entries
section provides more detailed guidance for reviewing specific types of entries.
In using this section, please keep the following considerations in mind:
• Unless otherwise noted, the guidance provided for assets applies to the
aggregate value of interests belonging to and the aggregate amount of income
received by the filer, the filer’s spouse, and the filer’s dependent children.
Given their rarity, employment-related assets for dependent children (e.g., a
defined benefit plan interest or an incentive stock option held by a dependent
child) generally are not addressed.
• The reporting requirements set forth what OGE deems a technically complete
entry for a particular interest or affiliation. Nonetheless, as noted in Section 3,
a reviewer may certify a report (other than a PAS nominee report), despite
deviations from the reporting requirements included here, if the reviewer has
sufficient information to complete the conflict of interest analysis. In
addition, a reviewer may request information that goes beyond the reporting
requirements if that information is needed for the conflict of interest analysis.
• Seek additional guidance as needed if the nature of the filer’s interest differs
from how that interest has been described in this guide.
401(k) Plan
Description
A 401(k) plan is a type of defined contribution plan. See the Defined
Contribution Plan entry for more information.
403(b) Plan
Description
A 403(b) plan is a type of defined contribution plan for certain public educational
institutions and tax-exempt organizations. See the Defined Contribution Plan
entry for more information.
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457 Plan
Description
A 457 plan is a type of defined contribution plan for state and local governments
and certain non-governmental, tax-exempt organizations. See the Defined
Contribution Plan entry for more information.
American Depositary Receipt (ADR)
Description
An American depositary receipt (ADR) is a certificate representing shares of a
foreign security. It is a form of indirect ownership of foreign securities that are
not traded directly on a national exchange in the United States. Financial
institutions purchase the underlying securities on foreign exchanges through their
foreign branches, and these foreign branches remain the custodians of the
securities. Through these foreign branches, the financial institutions hold legal
title to the underlying stock.
Many ADRs are registered with the U.S. Securities and Exchange Commission
and traded on national exchanges; however, some ADRs are not registered and
traded on national exchanges. Investors purchase these non-registered ADRs
directly from their issuers or through other private trades (i.e., “over the counter”).
An “American depositary share” corresponds to a single share of the underlying
security. An ADR may confer ownership rights to a specified number of
American depositary shares, representing the investor’s indirect interest in the
underlying foreign security that the issuing institution holds in its foreign branch.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report an ADR if the value of the ADR was more than $1,000
at the end of the reporting period. Annual filers must also report an ADR from
which they received more than $1,000 in income during the reporting period.
Filers must provide the full name of the ADR. Filers should provide a description
of the issuer’s trade or business and indicate that the security is an ADR if the
security is not publicly traded in the United States, unless this information is
otherwise readily available to the reviewer. Ticker symbols for publicly traded
ADRs are helpful but not required.
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1
Xylophone Technologies Corporation (XYZ)
2
Halley Research (pharmaceuticals), ADR
Annuity (fixed)
Description
A fixed annuity is a contract with an insurance company offering a guaranteed,
specified rate of return.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a fixed annuity if the value of the annuity was more than
$1,000 at the end of the reporting period. Annual filers must also report an
annuity from which they received more than $1,000 in income during the
reporting period. Income is ordinarily reported when the annuity begins making
payments.
Filers must provide the name of the insurance company and identify the asset as a
fixed annuity.
1
Mutual of Aurora, fixed annuity
Annuity (variable)
Description
A variable annuity is a contract with an insurance company in which the rate of
return is based on the performance of investment options chosen by the investor.
The investment options are typically mutual funds. Some variable annuities,
however, also provide a fixed account option that pays a set rate of interest.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a variable annuity contract if the value of the annuity
was more than $1,000 at the end of the reporting period. Annual filers must also
report an annuity from which they received more than $1,000 in income during
the reporting period. Income is ordinarily reported when the annuity begins
making payments.
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Filers must provide the name of the insurance company and identify the asset as a
variable annuity.
Unless a reporting exception applies, the filer must also report each underlying
asset that individually was worth more than $1,000 at the end of the reporting
period. Most investment options, however, will qualify for the diversified mutual
fund reporting exception.
1
Long Life, Inc., variable annuity (invested in Long Life
Fixed Account and diversified mutual funds)
Award or Prize
Reporting Requirements (Filer)
Part I: Filers must report the source of an award or prize that exceeded $1,000
during the reporting period.
The filer must provide the name of the source and describe the type of income.
1
Alliance for Excellence in Achievement, award
Part V (annual filers only): Filers must report any gifts or travel reimbursements
that exceeded the reporting threshold (e.g., travel to the awards dinner).
Reporting Requirements (Spouse and Dependent Children)
Part I: Filers do not need to report an award or prize received by a spouse or
dependent child.
Bond (corporate)
Description
Corporations issue bonds to raise money. 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. Some bonds are secured by collateral,
while others, such as debentures, are backed only by the company’s good faith
and credit standing.
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Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a bond if the value of the bond was more than $1,000 at
the end of the reporting period. Annual filers must also report a bond from which
they received more than $1,000 in income during the reporting period.
Filers must provide the name of the issuer and identify the asset as a bond.
1
Xylophone Technologies Corporation, bonds
Bond (municipal)
Description
Municipal bonds, often called munis, are debt obligations of states, cities,
counties, or other political subdivisions of states in the United States. The two
primary types of municipal bonds are general obligation and revenue.
• A general obligation bond is used for general expenditures and is backed by
the issuer’s full faith and credit (taxing and borrowing power).
• A revenue bond is used to finance a specific public service project and is
backed by the cash flow from that project. Examples are bonds to finance
bridges, turnpikes, tunnels, water and sewer systems, schools, power plants,
prisons, transportation systems, hospitals, sports complexes, and airports.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a municipal bond if the value of the bond was more than
$1,000 at the end of the reporting period. Annual filers must also report a bond
from which they received more than $1,000 in income during the reporting
period.
Filers must provide the name of the issuing government authority and identify the
asset as a bond.
1
Philadelphia, PA, bonds
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Bonus (cash)
Reporting Requirements (Filer)
Part I: Filers must report the source of bonuses if the bonuses totaled more than
$1,000 during the reporting period. Filers also must report an anticipated bonus
that ended the reporting period with a value greater than $1,000.
Filers most often report bonuses in connection with employment. In these cases,
filers may combine their salary, bonus, and other income onto a single line that
simply indicates that the source is an employer, although specifying the types of
income is helpful. However, if the filer has no other income to report other than a
bonus or anticipated bonus (e.g., payments from a former employer), the filer
should specify the type of income in order to avoid confusion. In addition, if the
source is a privately held business, filers should provide the source’s line of
business, unless this information is otherwise readily available to the reviewer.
Bonus (and other income) as single line entry
1
Quasar Engineering, salary and bonus
Anticipated bonus from a former employer
1
Widgets Unlimited, anticipated bonus
Part III: Filers must report a position with the source paying the bonus. In rare
cases, a filer may have an outstanding bonus even though the position terminated
before the start of the reporting period.
Part IV: Filers must report an anticipated bonus as a continuing arrangement.
Filers should describe the nature of the bonus (e.g., “annual year-end performance
bonus”) and the status of the arrangement (e.g., bonus is still pending, some bonus
payments were received, or all bonus payments were received). In addition, if the
payment will be (or was) made pursuant to an employment agreement or a
standard company policy, the filer should state this fact in the description.
1
Widgets Unlimited
Pursuant to my employment agreement, I will
receive a performance-based bonus for services
2
rendered in 2019 up to the date of my departure
from the firm. This bonus will be paid within
3
6 months of my departure.
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Reporting Requirements (Spouse)
Part I: Filers must report the source of a spouse’s bonus payments if the
payments totaled more than $1,000 during the reporting period. The information
required for a reportable source is the same as for the filer’s bonus payments.
Parts III and IV: These Parts do not apply to spouses.
Brokerage Account
Description
A brokerage account (also called an “asset management account”) is an account
through which individual investors can make investments. The account may hold
cash, money market funds, mutual funds, stocks, and bonds. The individual who
establishes the account owns the investments in that account.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report each underlying asset of a brokerage account that
individually was worth more than $1,000 at the end of the reporting period.
Annual filers must also report each underlying asset from which they received
more than $1,000 in income during the reporting period.
Filers report the underlying assets following the rules applicable to that type of
asset. Filers may indicate that the assets are held within a brokerage account, but
this information is not required.
1
Bar Harbor Canada Fund (BHRCX)
or
1
Brokerage account #1: Bar Harbor Canada Fund
(BHRCX)
Carried Interest
Description
Carried interests are also known as “profit interests” and “incentive fees.” For
purposes of financial disclosure, a carried interest is an arrangement that stipulates
the right to future payments based on the performance of an investment fund or
business. Carried interests are generally given to managers, advisors, and
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consultants in private equity, real estate, venture capital, oil and gas, and small
business.
Reporting Requirements (Filer)
Part I: As a matter of policy, OGE deems a carried interest to have a value that
exceeds $1,000. Therefore, carried interests must be reported. Also, if an annual
filer no longer has a carried interest but received more than $1,000 in income
related to a carried interest during the reporting period, the filer needs to report
the carried interest.
Filers must indicate that the asset is a carried interest and provide the name of the
entity through which the filer has the carried interest. In the typical case, filers
with a carried interest through an entity also have a direct equity interest in that
entity, which is reported as a separate entry. If the filer does not otherwise report
the entity through which the filer has a carried interest, the filer must report any
reportable underlying assets within that entity as part of the carried interest entry.
1
Crocus Partners II, LP, carried interest
Part IV: Filers must report an arrangement to receive carried interest. Filers
should describe the arrangement, including whether the percentage interest has
been fixed.
1
Crocus Partners II,
LP
Pursuant to my contract, I retain carried interest in
Crocus Partners II, LP, as compensation for
2
services provided in 2014-2016. The percentage
was fixed in March 2014. Payment will be made if
3
and when the fund profits from its investments.
Reporting Requirements (Spouse)
Part I: As a matter of policy, OGE deems a carried interest to have a value that
exceeds $1,000. Therefore, carried interests must be reported. Also, if an annual
filer’s spouse no longer has a carried interest but received more than $1,000 in
income related to a carried interest during the reporting period, the filer needs to
report the carried interest. The information required for a reportable carried
interest is the same as for the filer’s carried interest.
Part IV: This Part does not apply to spouses.
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Cash Account
Description
For purposes of financial disclosure, the term “cash account” includes all deposit
accounts in a bank, savings and loan association, credit union, or similar financial
institution (e.g., checking accounts, savings accounts, certificates of deposit, and
money market accounts), as well as sweep accounts. The term “cash account”
does not include money market funds, which are different from money market
accounts.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Cash accounts are not reportable in the OGE Form 450.
Cash Balance Pension Plan
Description
A cash balance pension plan is a type of defined benefit plan in which the
employer makes contributions to the employee’s account and guarantees a
specific rate of return, regardless of the profitability of the plan’s investments.
The employer generally makes investment decisions concerning the holdings of
the plan and bears the risks of investment. Each year, the employee receives a
pay credit that is proportional to a percentage of the employee’s salary and an
income credit that is a fixed rate of return. The employer defines this retirement
benefit as an account balance, and a cash balance pension plan will often allow an
employee to choose between an annuity and a lump-sum payment. See the
Defined Benefit Plan entry for more information.
Collectible Item
Description
For purposes of financial disclosure, a “collectible” refers to personal property
that is unique, limited in quantity, antique, or holds a special quality or financial
value. Examples of such items include artwork, vintage automobiles, antique
furniture, and rare stamps or coins.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a collectible if the item is held for investment purposes
and had a value that was more than $1,000 at the end of the reporting period.
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Annual filers must also report a collectible item from which they received more
than $1,000 in income during the reporting period.
Filers must specify the type of collectible, such as “rare books” or “classic cars.”
1
Stamp collection
2
Artwork
Note: Periodic sales of items from a collection would indicate that the filer holds
the items for investment purposes. Absent such sales or any income during the
reporting period, reviewers may generally accept a filer’s claim that a collectible
is not held for investment purposes.
College Savings Plan (529 plan)
Description
A college savings plan is a type of qualified tuition program (529 plan) in which
an individual chooses among various investment options, often consisting of
portfolios that invest in mutual funds. The amount available for future tuition
depends on the amount that the individual contributes and the performance of the
investments chosen.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a college savings plan if the value of the plan account
report a college savings plan from which they received more than $1,000 in
income during the reporting period. Income is ordinarily reported when funds are
withdrawn.
Filers must provide the name of the sponsor and identify the interest as a college
savings plan.
The filer must also report each underlying asset that individually was worth more
than $1,000 at the end of the reporting period. Most investment options within
college savings plans are portfolios that qualify as excepted investment funds.
1
CA (ScholarShare) College Savings Plan: Age 0-5
Portfolio
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Common Trust Fund of a Bank
Description
A common trust fund of a bank is a trust that a bank manages on behalf of a group
of participating customers in order to invest and reinvest their contributions to the
trust collectively. A bank customer purchases units of the common trust fund.
This arrangement allows the trustee to manage the customer’s contributions in a
pool of contributions from a number of customers. These customers are the
beneficiaries of the common trust fund. Acting as a fiduciary, the bank
commingles the contributions of participating customers in the common trust fund
and invests in a variety of underlying holdings. Typically, a preprinted trust
agreement will name the trustee, specify the investments, and establish other
terms of participation.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a common trust fund if the value of the common trust
also report a common trust fund from which they received more than $1,000 in
income during the reporting period.
Filers must provide the names of the bank and the common trust fund. Filers also
must provide the reportable underlying assets of the common trust fund if the
fund does not qualify as an excepted investment fund. Common trust funds,
however, usually qualify as excepted investment funds.
1
First District Bank, Long-Term Bond Common Trust
Fund
Contingency Fee
Description
The term “contingency fee” refers to a type of fee arrangement in a case in which
an attorney or firm agrees that the payment of legal fees will be contingent upon
the successful outcome of the case. Frequently, a contingency fee will be a
portion of the proceeds obtained by the client due to the litigation or settlement, or
it may be the amount of attorney fees accrued but not billed to the client until the
successful conclusion of the case. The specific arrangements for a contingency
fee case should be set forth in a fee agreement, which is a contract between the
lawyer (or law firm) and the client that explains the terms and conditions of the
representation.
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Reporting Requirements (Filer)
Part I: Filers must report an interest in contingency fee cases if the value of the
more than $1,000 in income during the reporting period.
Filers must provide the name of the law firm through which the interest was
acquired and describe the interest (e.g., “contingency fee case” or “contingency
fee cases”).
1
Faraday, Maxwell & Franklin, contingency fee cases
Part III: Filers must report an attorney position held during the reporting period.
Part IV: Filers must report a contingency fee interest as a continuing
arrangement. Filers should describe what will happen to this interest upon
leaving the firm or terminating the practice. Specifically, the filer should report
such details as whether the filer has an agreement with another lawyer or a firm,
such as a buy-sell or partnership agreement, that covers what happens to the
filer’s interest in a contingency fee case upon the filer’s departure from the firm.
The filer should also indicate whether he or she will retain an interest in any
recovery obtained in a contingency fee case.
1
Faraday, Maxwell
& Franklin
Upon appointment, I will transfer to Faraday,
Maxwell & Franklin several cases in which I have a
2
contingency fee interest. I will retain an interest in
those fees, as stated in my agreement with that firm.
Deferred Compensation
Deferred compensation can take many forms, and the reporting requirements will
vary based on the timing of the compensation and its form. The examples below
are merely illustrative of the various forms that deferred compensation may take.
Reporting Requirements (Filer)
The guidance on deferred compensation is broken into the following sections:
Part I – Five examples
• Example 1: Cash Payments from a Deferred Compensation Plan
• Example 2: Future Cash Payment That is Fixed
• Example 3: Payments in the Form of Assets – Received or Anticipated
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• Example 4: Deferred Compensation Plan with Underlying Assets
• Example 5: Deferred Compensation Plan Linked to an Index or Other
Benchmark
Part IV – General instructions for all types
Part I:
• Example 1: Cash Payments from a Deferred Compensation Plan
Filers must report the source of a deferred compensation cash payment if the
total amount derived from deferred, earned income exceeded $1,000. In
addition, annual filers must report the source of any payment (or payments)
derived from investment income in excess of $1,000 during the reporting
period.
Filers must provide the name of the employer providing the payment and
describe the payment (e.g., “deferred compensation: cash payment”). In
addition, for a privately held business, filers should describe the line of
business, unless the information is otherwise readily available to the reviewer.
1
Halley Engineering, deferred compensation: cash
payment
• Example 2: Future Cash Payment That is Fixed
An employer may owe deferred compensation in the future in the form of a
cash payment. That payment may be a fixed, as opposed to variable, amount
that has already been determined.
In such a case, filers must report the anticipated cash payment if the fixed
amount owed is more than $1,000. Filers must provide the name of the
employer providing the payment and describe the payment (e.g., “deferred
compensation: cash receivable”). In addition, for a privately held business,
filers should describe the line of business, unless the information is otherwise
readily available to the reviewer.
1
Halley Engineering, deferred compensation: cash
receivable
• Example 3: Payments in the Form of Assets – Received or Anticipated
Filers may have an arrangement for deferred compensation in the form of
assets, rather than cash. If the filer has not yet received the deferred
compensation, the filer must provide the name of the employer and explain
the existence of a receivable (e.g., “deferred compensation receivable”). The
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filer must then report the assets using the guidance appropriate for that type of
asset (e.g., stock, stock options, restricted stock, stock appreciation rights,
phantom stock, and restricted stock units).
• Example 4: Deferred Compensation Plan with Underlying Assets
Filers may have an arrangement for deferred compensation in the form of a
plan that holds underlying assets.
In such a case, filers must report the deferred compensation plan and each
underlying asset of the plan that individually was worth more than $1,000 at
the end of the reporting period.
Filers, however, need not report underlying assets that qualify as diversified
investment funds of a bona fide employee benefit plan within the meaning of
5 C.F.R. §§ 2640.201(c)(1)(ii) or 2640.201(c)(1)(iii).
1
Halley Engineering, deferred compensation:
2
- Halley Engineering
3
- BMSL Propulsion
• Example 5: Deferred Compensation Plan Linked to an Index or Other
Benchmark
The filer may have an interest in a deferred compensation plan under which
the employer owes a future payment that depends on the performance of
something tracked, such as an index, a mutual fund, or some other benchmark.
However, the filer does not, through the deferred compensation plan, own the
thing being tracked. For instance, the plan may track the performance of the
S&P 500 or the performance of a mutual fund that mirrors the S&P 500, but
the filer does not hold, through the deferred compensation plan, shares of the
companies listed on the S&P 500 or shares of the mutual fund. Instead, the
employer owes the filer a cash payment, and the employer may pay more
money if the S&P 500 performs well or may pay less money if the S&P 500
performs poorly.
In such a case, filers must report their interest in the plan if the value of the
interest was more than $1,000 at the end of the reporting period.
Filers must provide the name of the employer, describe the interest as deferred
compensation, and specify the index or other benchmark that the future
payment tracks. In addition, for a privately held business, filers should
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describe the line of business, unless the information is otherwise readily
available to the reviewer.
1
Halley Engineering, deferred compensation:
tracks S&P 500
Part IV: Filers must identify the plan as a deferred compensation plan and
describe its terms in detail. Among other details, filers should state what they will
receive and when they will receive it. The filer also needs to state any deviations
from the normal terms of the plan that the employer will make. This includes any
acceleration of payment, any waiving of vesting requirements, and any change in
the form or timing of payment or eligibility.
Reporting Requirements (Spouse)
Part I: A spouse’s deferred compensation is reportable according to the same
rules applicable to a filer’s deferred compensation.
Part IV: This Part does not apply to spouses.
Defined Benefit Plan
Description
A defined benefit pension plan is a type of retirement plan that an employer
establishes for its employees. Upon retirement, the employee receives a fixed
annuity. The annuity typically makes biweekly or monthly payments to the
employee for life. The annuity may also pay a survivor benefit to the employee’s
spouse after the employee’s death. Under some plans (such as a cash balance
pension plan), the employee can elect to cash out his or her interest in the plan
and receive a lump-sum payment of the balance.
Reporting Requirements (Filer)
Part I: Filers must report a defined benefit plan if the value of the plan was more
in income from the plan during the reporting period.
Filers must identify the employer and specify the type of plan.
1
Regional Electric, defined benefit plan
Part IV: Filers must identify the employer, the type of plan, and whether the filer
will continue to participate.
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1
Regional Electric
I will continue to participate in this defined benefit
plan.
Reporting Requirements (Spouse)
Part I: A spouse’s defined benefit plan is reportable according to the same rules
applicable to a filer’s plan.
Part IV: This Part does not apply to spouses.
Defined Contribution Plan
Description
A defined contribution plan is a type of retirement plan that an employer
establishes for its employees. In this plan, an employee selects among mutual
funds or other investments and makes pre-tax contributions to those investments
with deductions from the employee’s salary. Often the employer will make
contributions to the employee’s investments, too. Examples of defined
contribution plans include 401(k) plans, 403(b) plans, and 457 plans.
Reporting Requirements (Filer)
Part I: Filers must report each underlying asset that was worth more than $1,000
at the end of the reporting period. Annual filers must also report distributed
income from a defined contribution plan that exceeded $1,000 during the
reporting period.
Filers, however, need not report underlying assets that qualify as diversified
mutual funds within the meaning of 5 C.F.R. § 2640.201(a) or underlying assets
that qualify as diversified investment funds of a bona fide employee benefit plan
within the meaning of 5 C.F.R. §§ 2640.201(c)(1)(ii) or 2640.201(c)(1)(iii).
Filers report the underlying assets following the rules applicable to that type of
asset. Although this information is not required, it is helpful if filers identify the
employer and the type of plan (e.g., “401(k)” or “defined contribution”).
1
Tyler Informatics, 401(k) plan:
2
- Tyler Informatics (TYIN)
3
- Harris NY Municipal Bond Fund (HNYCX)
or
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1
Tyler Informatics (TYIN)
2
Harris NY Municipal Bond Fund (HNYCX)
Filers report distributed income from a defined contribution plan by identifying
the plan sponsor, describing the type of plan, and noting the distributions.
1
Tyler Informatics, 401(k) plan: distributions
Part IV: Filers do not need to report continued participation in a defined
contribution plan maintained by a former employer, unless the former employer
continues to make contributions. For a reportable plan, filers must specify the
employer, the type of plan, and the terms of any post-separation contributions. If
no holdings are reportable in Part I, filers can facilitate the review process by
explaining this in Part IV; however, it is not required.
1
Tyler Informatics
I will continue to participate in this defined
contribution plan. The plan sponsor will make
2
a final contribution to the plan within 6 months of
my separation.
Reporting Requirements (Spouse)
Part I: A spouse’s defined contribution plan is subject to the same reporting
requirements as the filer’s plan.
Part IV: This Part does not apply to spouses.
Director Fee
Reporting Requirements (Filer)
Part I: Filers must report the source of director fees if the fees totaled more than
$1,000 during the reporting period.
Filers must provide the name of the source and indicate the type of income. In
addition, if the source is a privately held business, filers should provide the
source’s line of business, unless the information is otherwise readily available to
the reviewer.
1
DSLK Financial Techniques, Inc., director fees
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Part III: Filers must report a position as a director.
* Other Considerations: Filers need to report any deferred fees using the
guidance provide for deferred compensation plans. See the Deferred
Compensation entry. Note also that filers who receive director fees often have
other financial interests with the source company (e.g., stock, stock options,
restricted stock, etc.).
Reporting Requirements (Spouse)
Part I: A spouse’s director fees are reportable according to the same rules
applicable to a filer’s director fees.
Part III: This Part does not apply to spouses.
Employee Stock Ownership Plan
Description
An employee stock ownership plan (ESOP) is a type of defined contribution plan
to which the employer contributes shares of company stock.
Employee stock ownership plans should not be confused with employee stock
purchase plans. An employee stock purchase plan is an employer-sponsored
incentive plan that allows employees to purchase company stock.
Reporting Requirements (Filer)
Part I: Filers must report an employee stock ownership plan account if the value
of the account was more than $1,000 at the end of the reporting period. Annual
filers must also report an account from which they received more than $1,000 in
income during the reporting period.
Filers must provide the name of the employer and write “ESOP account” or
“employee stock ownership plan account.” In addition, for a privately held
business, filers should describe the line of business, unless the information is
otherwise readily available to the reviewer.
1
Widgets Unlimited, ESOP account
Part IV: Filers must disclose the employer, note that the agreement is an
employee stock ownership plan, and indicate whether the filer’s participation in
the plan will terminate. Filers do not need to report continued participation in an
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employee stock ownership plan maintained by a former employer, unless the
former employer continues to make contributions.
1
Widgets Unlimited
My participation in the employee stock ownership
plan will cease upon my separation from the firm.
Reporting Requirements (Spouse)
Part I: A spouse’s employee stock ownership plan is subject to the same reporting
requirements as the filer’s plan.
Part IV: This Part does not apply to spouses.
Employee Stock Purchase Plan
Description
An employee stock purchase plan (ESPP) is an employer-sponsored incentive
plan that allows employees to purchase company stock. Under such a plan, the
employer offers its employees the option to purchase company stock at the end of
an “offering period,” which typically ranges between 3 months and 27 months.
When an employee exercises such an option, the employer withholds the cost of
purchasing the stock from the employee’s pay in installments during the offering
period. The employer holds this money in an account for the employee during the
offering period. At the end of the offering period, the employee uses the money
withheld to purchase company stock at the specified purchase price. Most
employers offer the stock at discounts below fair market value.
Employee stock purchase plans should not be confused with employee stock
ownership plans. An employee stock ownership plan is a type of defined
contribution plan in which the employer contributes shares of company stock to
the plan.
Reporting Requirements (Filer)
Part I: Filers must report an employee stock purchase plan account if the cash
balance of the account was more than $1,000 at the end of the reporting period.
Annual filers must also report an account from which they received more than
$1,000 in income during the reporting period.
Filers must provide the name of the employer and write “ESPP account” or
“employee stock purchase plan account.” In addition, for a privately held
business, filers should describe the line of business, unless the information is
otherwise readily available to the reviewer.
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1
Widgets Unlimited, ESPP account
Filers would report stock purchased through an employee stock purchase plan in
the same way that they would report any other stock. See the Stock entry for
more information.
Part IV: The filer must disclose the employer, note that the agreement is an
employee stock purchase plan, and indicate whether the filer’s participation in the
plan will terminate or (for annual filers) has terminated.
1
Widgets Unlimited
My participation in the employee stock purchase
plan will cease upon my separation from the firm.
Reporting Requirements (Spouse)
Part I: A spouse’s employee stock purchase plan is subject to the same reporting
requirements as the filer’s plan.
Part IV: This Part does not apply to spouses.
Equity Index-Linked Note
Description
An equity index-linked note is a debt instrument that affords the owner interest
payments based on the performance of an equity index and, sometimes, a
guaranteed return.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report an equity index-linked note if the value of the note was
more than $1,000 at the end of the reporting period. Annual filers must also
report a note from which they received more than $1,000 in income during the
reporting period.
Filers must provide the name of the issuer and the name of the note, which should
include the index to which the note is linked.
1
First District Bank Note Linked to S&P 500 Index
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Exchange-Traded Fund
Description
An exchange-traded fund (ETF) is a fund that pools investors’ money in a variety
of investments. Unlike traditional mutual funds, most investors buy and sell
shares of ETFs from other investors on an exchange rather than directly from the
issuer. In addition, ETFs cannot market themselves to consumers as “mutual
funds” because they are not necessarily subject to all the requirements applicable
to traditional mutual funds. Nevertheless, ETFs are usually registered with the
U.S. Securities and Exchange Commission (SEC) under the same statutory
authorities as traditional mutual funds and unit investment trusts.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: The reporting requirements depend on whether the ETF is registered with
the SEC under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.)
(1940 Act) as either a management company or a unit investment trust.
• Registered under 1940 Act: Filers would treat these ETFs as they would treat
mutual funds. Filers must report a sector ETF if the value of the ETF was
more than $1,000 at the end of the reporting period. Annual filers must also
report a sector ETF from which they received more than $1,000 in income
during the reporting period. Diversified ETFs are not reportable.
Filers must provide the full name of reportable ETFs. Providing the ticker
symbol is helpful but not required.
1
iShares Dow Jones U.S. Energy Sector Index Fund (IYE)
• Not Registered under 1940 Act: Regardless of whether the ETF focuses on a
sector, filers must report an unregistered ETF that ended the reporting period
with a value more than $1,000. Annual filers must also report an unregistered
ETF from which they received more than $1,000 in income during the
reporting period. Filers must report the full name of a reportable ETF.
Executor or Administrator Fee
Reporting Requirements (Filer)
Part I: Filers must report the source of executor or administrator fees totaling
more than $1,000 during the reporting period.
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Filers must identify the source and indicate the type of income. If the estate is
that of a relative, the filer may write “estate of a family member.” In other cases,
the filer would identify the estate by the last name of the party (e.g., “Estate of
Mr. Doe”).
1
Estate of a family member, executor fees
Part III: Filers must report a position as an executor or administrator.
* Other Considerations: Reviewers should inquire as to whether the filer (or the
filer’s spouse or dependent child) has a reportable interest in the estate.
Reporting Requirements (Spouse)
Part I: A spouse’s executor or administrator fees are reportable according to the
same rules applicable to a filer’s executor or administrator fees.
Part III: This Part does not apply to spouses.
Farm (operated as a business)
Reporting Requirements (Filer)
Part I: Filers must report an interest in a farm they operate as a business if the
they received more than $1,000 in income during the reporting period.
Filers must provide (1) the name of the farm; (2) the location of the farm (either
the city and state or the county and state); and (3) the business of the farm, such as
crops or livestock. In addition, it is helpful if the filer specifies the type of interest
in the farm, such as “sole proprietor” or “general partner.”
1
Highlands Farm, Papillion, NE, general partner (crops)
Part II: Filers must report liabilities for which they are personally liable that
report personal liabilities that exceeded $10,000 at any point during the reporting
period. However, filers need not report liabilities from a financial institution or
other business entity on terms that are generally available to the public. Filers
also do not need to report any liabilities of the farm for which they are not
personally liable (e.g., loan owed by a farm structured as a LLC).
Part III: Filers must report any position held, including that of sole proprietor.
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Reporting Requirements (Spouse)
Parts I and II: A spouse’s farm is reportable according to the same rules
applicable to a filer’s farm.
Part III: This Part does not apply to spouses.
Farm or Farmland (passive interest)
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I:
• Farm as a Passive Investment: Filers must report a passive investment interest
in a farm if the value of the farm was more than $1,000 at the end of the
reporting period. Annual filers must also report a passive investment interest
from which they received more than $1,000 in income during the reporting
period.
If reportable, a passive investment interest would be reported in the same
manner as a farm that the filer operates as a business.
• Farmland Rented: Filers must report farmland if the value of the farmland
was more than $1,000 at the end of the reporting period. Annual filers must
also report rented farmland from which they received more than $1,000 in
income during the reporting period.
Filers must identify the interest as farmland and provide its location (either the
city and state or the county and state). In addition, if applicable, filers must
provide the name of the partnership or other entity used to hold the farmland
and note any leasing arrangements.
1
Rented farmland (Zanesville, OH)
• Resource Extraction Leases: See the Oil, Gas, or Other Mineral Rights Lease
entry.
Part II: Filers must report liabilities, such as a mortgage on farmland, for which
they are personally liable if the liability exceeded $10,000 at the end of the
reporting period. Annual filers must also report personal liabilities that exceeded
$10,000 at any point during the reporting period. However, filers need not report
liabilities from a financial institution or other business entity on terms that are
generally available to the public. Filers also do not need to report any liabilities
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of a farm or farmland for which they are not personally liable (e.g., loan owed by
a farm structured as a LLC).
Part III: Filers would not report a position as a passive limited partner, passive
stockholder, or passive non-managing member. However, the filer would need to
report a position as a general partner or managing member even if the filer does
not actually provide services. Part III does not apply to positions held by a spouse
or dependent child.
Foreign Exchange Position (“forex”)
Description
For purposes of financial disclosure, “foreign currency” is the official currency of
a country other than the United States. It is possible to hold a foreign currency
through a foreign exchange transaction.
A foreign exchange transaction results in the purchase of one currency for
investment purposes and the simultaneous sale of another. This constitutes an
open position that is later offset to terminate the position. Both the short and the
long position must be offset to close out the holding. The increase or decrease in
the exchange rate between the two currencies may result in a profit or loss.
A foreign exchange transaction always involves a currency pair of which the first
listed is the “base currency” and second is the “quoted currency.” For example, in
the U.S. Dollar-Japanese Yen pair, the U.S. Dollar is the base currency and the
Yen is the quoted currency. The investor is always long one currency of the pair
and short the other. This process happens through a foreign exchange broker,
who bankrolls the entire transaction by supplying all the currencies in the
exchange. So, for example, if the investor anticipated that the Dollar was going to
appreciate versus the Yen, the investor could buy the Dollar and short the Yen.
The investor borrows the Yen from the investor’s broker and then sells the
borrowed Yen (creating the short position) and simultaneously buys the Dollar
(creating the long position). In this example, the broker would charge the investor
interest on the Yen that the broker lent, and the broker would pay interest on the
Dollar, which the investor owns but which is held by the broker.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a foreign exchange position if the value of the position
was more than $1,000 at the end of the reporting period. Annual filers must also
report a foreign exchange position from which they received more than $1,000 in
income during the reporting period.
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Filers must identify the currency pair (e.g., “U.S. Dollar-Japanese Yen”) and
indicate whether the position is open or closed.
1
Euro-U.S. Dollar (EUR/USD), open position
Futures Contract (“future”)
Description
A futures contract (“future”) is an agreement to buy or sell an underlying
commodity (such as an agricultural product) or financial instrument at a specified
time, price, and quantity. A futures contract is identified by its underlying
commodity/instrument and the month and year of its expiration date. Futures are
used to speculate in or hedge against the future price of the underlying
commodity/instrument.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a futures contract if the value of the future was more
future from which they received more than $1,000 in income during the reporting
period.
Filers must provide the name of the future and indicate whether the position is
open or closed.
1
Crude oil futures, closed position
2
Pork belly futures, open position
Gambling Winnings
Description
For purposes of financial disclosure, the term “gambling winnings” includes, but
is not limited to, winnings from lotteries, raffles, horse races, and casinos. It
includes cash winnings and the fair market value of prizes such as cars and trips.
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Reporting Requirements (Filer)
Part I: Filers must report the source of gambling winnings if the gross winnings
totaled more than $1,000 during the reporting period.
The filer must provide the name of the source and indicate the type of income.
1
Royal Pond Casino, gambling winnings
Reporting Requirements (Spouse and Dependent Children)
Part I: Filers do not need to report the gambling winnings of a spouse or
dependent child.
Government Agency or GSE Security
Description
Agency securities are debt obligations of United States Government agencies and
United States Government-Sponsored Enterprises (GSEs). In addition to issuing
debt obligations, GSEs may also sell equity shares.
Examples of United States Government agencies include:
• Government National Mortgage Association (GNMA or Ginnie Mae)
• Export-Import Bank of the United States (ExImBank)
• Tennessee Valley Authority (TVA)
Examples of GSEs include:
• Federal National Mortgage Association (FNMA or Fannie Mae)
• Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)
• Federal Agricultural Mortgage Corporation (Farmer Mac)
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report securities of GSEs if the value of the security was more
GSE security from which they received more than $1,000 in income during the
reporting period.
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Filers must provide name of the issuer.
1
Fannie Mae
Securities issued by United States Government agencies are not reportable in the
OGE Form 450.
Government Benefit or Payment
Note
In this section, you will find general guidance as to which governmental benefits
and payments are reportable and which are not. The exact reporting requirements
will depend on the source and the type of benefits or payments.
Reporting Requirements (Filer)
Part I: Filers must report the following benefits or payments from governmental
entities if the benefits or payments meet the value or income reporting threshold:
• Honoraria received from the United States Government.
• Consulting fees received as a contractor with the United States Government
(but do not include income received as a special Government employee).
• Salary received from state, local, or foreign government employment.
• Honoraria or consulting fees received from state, local, or foreign government
sources.
• Retirement benefits from a state, local, or foreign government, such as
participation in a defined benefit plan or a defined contribution plan.
• Income from state, local, or foreign government benefits programs.
Filers do not need to report the following benefits or payments:
• Income received as an employee of the United States Government, including
military Reserve pay and income received as a special Government employee.
• Retirement benefits received from the United States Government, including
the Thrift Savings Plan and any other United States Government retirement
system.
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• Income from the United States Government’s Social Security, veterans’
benefits, and other similar United States Government benefits programs.
Reporting Requirements (Spouse)
Part I: A spouse’s governmental benefits and payments are reportable according
to the same rules applicable to a filer’s benefits and payments with one exception.
A filer need not report a spouse’s income from state, local, or foreign government
benefits programs, unless related to the spouse’s government employment.
Reporting Requirements (Dependent Children)
Part I: Governmental benefits and payments to a dependent child are generally
not reportable.
Honorarium
Description
An honorarium is a payment of money or anything of value for an appearance,
speech, or article, excluding any actual and necessary travel expenses incurred by
the recipient and one relative.
Reporting Requirements (Filer)
Part I: Filers must report the source of honoraria if the honoraria totaled more
than $1,000 during the reporting period. Filers must report an anticipated
honorarium that ended the reporting period with a value more than $1,000. Filers
need to do this, however, only if they have provided the service for which the
honorarium will be paid or have a contractual right to the honorarium after
providing the service. Sources of honoraria donated to charity are still reportable.
Filers must provide the name of the source and identify the income as an
honorarium. For an honorarium not yet received, the filer must provide the
source and indicate that payment is still pending (e.g., “anticipated honorarium”).
1
Loomis County University, honorarium
2
Alliance for Excellence in Achievement,
anticipated honorarium
Part V (annual filers only): Filers must report any gifts or travel reimbursements
that they received that exceeded the reporting threshold.
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Version: 1/2019
Reporting Requirements (Spouse)
Part I: A spouse’s honoraria are reportable according to the same rules applicable
to a filer’s honoraria.
Intellectual Property
Description
“Intellectual property” includes patents, inventions, novels, plays, movie scripts,
other literary works, artistic works, musical works, films, symbols, names,
images, designs, trademarks, copyrights, and similar interests.
Reporting Requirements (Filer)
Part I: Filers must report intellectual property if the value of the intellectual
received more than $1,000 of earned income (such as an advance) from the
intellectual property during the reporting period. Annual filers must also report
the intellectual property if they received more than $1,000 in royalties, capital
gains, or other income during the reporting period.
Filers must describe the intellectual property with sufficient detail that one can
identify the type of property and sources of potential conflicts. For a book, filers
must provide the publisher and note any book advances. Listing the title of the
book is preferred but not required. For a patent, filers must provide a brief
description and should, preferably, list the patent number.
1
“Financial Disclosure,” 4th edition, Zorn & Co.
2
“Circular frame and hub system for a conveyance,”
Patent # 202,482,924
Reporting Requirements (Spouse)
Part I: A spouse’s intellectual property is subject to the same rules applicable to a
filer’s intellectual property.
Investment Fund (general)
Note
This guide provides specific instructions for a number of common investment
funds, such as mutual funds, money market funds, exchange-traded funds, and
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unit investment trusts. Use this entry for investment funds that do not fit into one
of the other entries provided.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers need not report investment funds that qualify as diversified mutual
funds within the meaning of 5 C.F.R. § 2640.201(a) or funds that qualify as
diversified investment funds of a bona fide employee benefit plan within the
meaning of 5 C.F.R. §§ 2640.201(c)(1)(ii) or 2640.201(c)(1)(iii).
Assuming that the investment fund does not qualify for a reporting exception,
filers must report an equity interest in an investment fund if the value of the
interest was more than $1,000 at the end of the reporting period. Annual filers
must also report an investment fund if they received more than $1,000 in total
income from the fund during the reporting period.
The proper way to report an investment fund varies based on whether the fund
qualifies as an excepted investment fund.
• Fund Qualifies as an Excepted Investment Fund: Filers must provide the
name of the investment fund and, unless clear from the name that it is a fund,
describe the type of asset.
1
Positron Investments XI, LP
• Fund Does Not Qualify as an Excepted Investment Fund: Filers must describe
the fund as specified above and report each underlying asset of the fund that
individually was worth more than $1,000 at the end of the reporting period.
Annual filers must also report each underlying asset from which they received
more than $1,000 in income during the reporting period.
For purposes of valuing an underlying asset in a fund, filers may use the value
of the proportionate interest that the filer, the filer’s spouse, and the filer’s
dependent children have in the underlying asset. For purposes of measuring
income from an underlying asset, filers may use the amount of income
received from that underlying asset attributable to the filer, the filer’s spouse,
and the filer’s dependent children. A filer would need to use the total value
and income of the underlying assets if the filer is unable to determine whether
the proportionate interest in value and income meets a reporting threshold.
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1
Jones Capital Ventures, LLC:
2
- Hydroponics Unlimited, LLC (agricultural products)
3
- BMSL Propulsion, Inc. (rocket fuel research)
Part II: Filers must report any capital commitment that exceeded $10,000 at the
end of the reporting period. Annual filers must also report any capital
commitments that exceeded $10,000 at any point during the reporting period.
Employment with the Company That Manages the Investment Fund: Additional
requirements may apply if the filer or the filer’s spouse has ever operated or
worked for the company that manages the investment fund.
• The income from the fund potentially would be characterized, in whole or
part, as earned income for purposes of the Part I reporting threshold.
• The filer must report in Part II any exercised line of credit or other liability for
which the filer is personally liable if (1) the liability exceeded the reporting
threshold and (2) the liability was not from a financial institution or other
business entity on terms that are generally available to the public.
• The filer must report in Part III any position that the filer held during the
reporting period. A spouse’s position is not reportable in Part III.
• The filer must report in Part IV any agreement or arrangement concerning the
filer’s exit from the fund (e.g., buy-back agreement). A spouse’s agreements
are not reportable in Part IV.
• If the filer or the filer’s spouse provides services to the investment fund (e.g.,
fund manager), there may be reportable compensation for those services. This
compensation may take the form of salary, severance, bonus, deferred
compensation, defined benefit plan, defined contribution plan, or other
financial interest. Filers must report each such financial interest using the
instructions appropriate for that type of asset or income.
IRA, Roth IRA, SEP IRA, or Keogh Plan
Description
Individual Retirement Account (IRA) – Traditional and Roth: An Individual
Retirement Account (IRA) is typically a bank, brokerage, or mutual fund account
that a person has designated as a tax-deferred retirement account. All IRAs are
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“self-directed” because investors choose where to invest their retirement funds.
Although investors may place these funds in bank accounts, they may also buy
stocks and other securities. The main difference between a Traditional IRA and a
Roth IRA is the tax treatment of contributions and withdrawals.
Simplified Employee Pension Individual Retirement Account (SEP IRA): Some
small employers offer employees the opportunity to participate in a tax-deferred
Simplified Employee Pension (SEP) plan. Under a SEP plan, the employer and
employee make contributions to individual retirement accounts (called a SEP
IRA) set up by or for each eligible employee. Employees own and control their
accounts. For purposes of financial disclosure, SEP IRAs are treated like IRAs.
Keogh Plan: A Keogh plan (also called a “HR-10 plan”) is a tax-deferred pension
account for self-employed persons and employees of unincorporated businesses.
Like IRAs, an employee may put almost any available investment into a Keogh
plan, and the investment earnings grow on a tax-deferred basis.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report each underlying asset of an IRA, Roth IRA, SEP IRA,
or Keogh plan that individually was worth more than $1,000 at the end of the
reporting period. Annual filers must also report distributed income from an
individual retirement account that exceeded $1,000 during the reporting period.
Filers report the underlying assets following the rules applicable to that type of
asset. Although this information is not required, it is helpful if filers indicate that
the assets are held within a retirement account.
1
IRA #1:
2
- Bar Harbor Canada Fund (BHRCX)
or
1
Bar Harbor Canada Fund (BHRCX)
Filers report distributed income from an individual retirement account by
describing the account and noting the receipt of distributions.
1
IRA #1: distributions
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Law Firm (partnership)
Reporting Requirements (Filer)
Part I: Filers must report a law firm partnership interest if its value was more than
income during the reporting period.
Filers must provide the name of the firm and indicate that the entity is a law firm,
unless this information is readily apparent from the name or otherwise readily
available to the reviewer. In addition, it is helpful if the filer specifies that the
interest held is a partnership interest (as opposed to a limited liability company or
professional corporation interest).
1
Faraday, Maxwell & Franklin (law firm), partner
Part III: Filers must report any position held during the reporting period.
Part IV: Filers must report any agreement or arrangement concerning the refund
of a capital account or the payment of an anticipated partnership share. Filers
must provide the terms under which these payments will be paid. If the payments
are being made pursuant to an established agreement or firm policy, filers should
note that fact. In addition, if the filer’s name will be removed from the name of
the firm or partnership, the filer should disclose the change (e.g., “partnership
name will be changed to ‘Faraday & Maxwell’ upon my withdrawal”).
1
Faraday, Maxwell &
Franklin
Pursuant to the partnership agreement, I will
receive a lump-sum payment of my capital account
2
and a final partnership share distribution. These
payments will be calculated as of the date of my
3
withdrawal from the firm.
* Other Considerations: Filers must identify any other assets that they have
through their association with the firm, such as deferred compensation and
retirement plans. Filers need not itemize the assets of the law firm itself.
Disclosing the law firm is normally sufficient. As an exception to this rule, a filer
would report any of the firm’s assets that are unrelated to the operations of the
firm. Filers must also report any liabilities for which they are personally liable
that exceeded the reporting threshold, unless the liability was from a financial
institution or other business entity on terms generally available to the public.
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Reporting Requirements (Spouse)
Part I: A spouse’s law firm interest is reportable according to the same rules
applicable to a filer’s law firm interest.
Parts III and IV: These Parts do not apply to spouses.
Legal Practice (solo practice)
Reporting Requirements (Filer)
Part I: Filers must report a solo legal practice if the value of the practice was
$1,000 in income during the reporting period.
Filers must indicate that they practice law as a solo practitioner. Filers may also
include the name under which they do business; however, this information is not
required.
1
Law Office of Betsy Jones, solo legal practice
Part III: Filers must report a position as a sole proprietor.
Part IV: Filers must describe the status of the legal practice and how the filer will
handle any remaining fees owed (e.g., “amounts of outstanding fees were fixed
before entering government service”). In addition, filers must describe any
arrangements with respect to referral fees and contingency fee cases.
1
Betsy Jones
My solo legal practice will be inactive during my
appointment and all outstanding client fees will be
2
fixed before I enter government service.
* Other Considerations: Filers must identify any other assets that they have
through their practice, such as contingency fee interests. Filers need not itemize
the assets of the practice itself. Disclosing the legal practice is normally
sufficient. As an exception to this rule, a filer would report any assets of the
practice that are unrelated to the operations of the practice. Filers must also report
any liabilities for which they are personally liable that exceeded the reporting
threshold, unless the liability was from a financial institution or other business
entity on terms generally available to the public.
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Reporting Requirements (Spouse)
Part I: A spouse’s legal practice is reportable according to the same rules
applicable to a filer’s practice.
Parts III and IV: These Parts do not apply to spouses.
Life Insurance (term)
Description
Term life insurance pays beneficiaries a death benefit if the insured person dies
during the term of the policy. No value remains when the policy expires. This
type of insurance policy is pure insurance with no investment component.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Term life insurance is not reportable in the OGE Form 450.
Life Insurance (variable)
Description
A variable life insurance policy is part insurance and part investment. Part of the
policyholder’s premiums pay for expenses and the insurance part of the policy.
The remainder goes into a tax-deferred cash reserve that is invested and builds the
policy’s cash value. Unlike whole life and universal life policies, variable life
policies provide the policyholder a range of investment options, and the rate of
return is based on the performance of the options chosen by the investor. The
investment options are typically mutual funds. Some variable life policies,
however, also provide a fixed account option that pays a set rate of interest.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a variable life insurance policy if the value of the policy
report a policy from which they received more than $1,000 in income during the
reporting period. Income is ordinarily reportable only if also reportable for tax
purposes.
Filers must provide the name of the company issuing the policy and identify the
interest as a variable life insurance policy.
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Unless a reporting exception applies, the filer must also report each underlying
asset that individually was worth more than $1,000 at the end of the reporting
period. Most investment options will qualify for the diversified mutual fund
reporting exception.
1
Long Life, Inc., variable life insurance policy (invested
in diversified mutual funds)
Life Insurance (whole or universal)
Description
Whole life and universal life policies are part insurance and part investment. Part
of the policyholder’s premiums pay for expenses and the insurance part of the
policy. The remainder goes into a tax-deferred cash reserve that is invested and
builds the policy’s cash value.
Whole life: The policyholder pays fixed premiums and has no control over
investments, which is left to the insuring company.
Universal life: The policyholder can vary premiums by paying them with some of
the accumulated cash value of the policy, and the policyholder normally receives
a minimum guaranteed rate of return at money market rates. As with whole life,
the universal life insurance policyholder generally does not have control over the
investments. However, if the policy does permit the selection of specific
investments, report the policy as a variable life insurance policy.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a whole life or universal life insurance policy if the
value of the policy was more than $1,000 at the end of the reporting period.
Annual filers must also report a policy from which they received more than
$1,000 in income during the reporting period. Income is ordinarily reportable
only if also reportable for tax purposes.
Filers must provide the name of the company issuing the policy and identify the
type of policy.
1
Home Life, Inc., whole life
2
Mutual of Akron, universal life
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Loan Made to Another Party
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a loan made to another party if the value of the loan was
report a loan from which they received more than $1,000 in income during the
reporting period. The other party may be either a person or an entity. Filers,
however, do not need to report a personal liability owed to the filer, spouse, or
dependent child by a spouse, parent, sibling, or child.
Filers must identify the party who owes the liability and describe the interest as a
loan or note. If the party is a relative, filers may identify the party as a “family
member” (e.g., “personal loan to family member”). If the party is a natural person
who is not related to the filer or spouse, filers should identify the party by last
name (e.g., “personal loan to Mr. Doe”). If the party is an entity, filers should
provide the entity’s name.
1
Personal loan to family member
2
Personal loan to Brain Imagery Consultations, LLC
Managed Account
Description
A managed account (also called “separately managed account” or “controlled
account”) is an account that is owned by the investor but managed for a fee by a
financial advisor. The investor gives the financial advisor the discretion to buy,
sell, and trade investments on behalf of the investor. An investor usually chooses
among predetermined portfolios, which financial institutions sometimes package
in categories such as high yield, balanced, large cap, global small cap, strategic
fixed income, and other similar descriptors. The investor can usually customize
the portfolio to some extent, although this is not necessarily the case with all
managed accounts.
A managed account is not an “excepted investment fund.” Even if the investor
may select an established portfolio of investment choices, the managed account is
not an excepted investment fund. In fact, the managed account is not an
investment fund at all. The investor has not “pooled” the investor’s money with
that of other investors. Although the account manager may have offered the
option of selecting a predetermined “portfolio” of assets, the investor owns each
of these assets individually and directly in the investor’s own name. For this
reason, as well as other reasons, the investor must disclose each asset as a separate
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line item in the financial disclosure report. In addition, although some managed
accounts may appear similar to mutual funds, they are not mutual funds and do
not qualify for the same treatment as mutual funds under the confidential financial
disclosure regulation or the conflict of interest laws.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report each underlying asset of a managed account that
individually was worth more than $1,000 at the end of the reporting period.
Annual filers must also report each underlying asset from which they received
more than $1,000 in income during the reporting period.
Filers report the underlying assets following the rules applicable to that type of
asset. Although this information is not required, it is helpful if filers provide the
name of the managed account.
1
ANW Wealth Retention Strategy:
2
- Mimeograph Supply Co. (MIME)
3
- Xylophone Technologies Corporation (XYZ)
Margin Account
Description
A margin account is an account that an investor maintains with the investor’s
broker from which the investor can borrow funds to purchase securities.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report any securities purchased or positions opened using
margin account funds using the guidance applicable to each type of security
purchased or position opened.
Part II: Filers must report a margin account liability owed to a broker that was
terms generally available to the public. Annual filers must also report margin
account liabilities that exceeded $10,000 at any point during the reporting period,
unless the liability was on terms generally available to the public.
Filers must provide the name of the broker and identify the liability as a margin
account.
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1
Smith & Dell, Inc.
Margin account
Money Market Fund
Description
A money market fund (or money market mutual fund) is a type of mutual fund
that holds financial interests in certain low-risk investments (e.g., government
securities, certificates of deposit, and high-quality bank or corporate obligations).
Its rate of return is responsive to fluctuations in the market for these investments.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Money market funds are not reportable in the OGE Form 450.
Money Purchase Pension Plan
Description
A money purchase pension plan is a type of defined contribution plan in which an
employer makes fixed contributions to a tax-deferred retirement account. Unlike
profit-sharing plans in which employer contributions are discretionary, employer
contributions to a money purchase pension plan are fixed in advance. Each year,
the employer must make fixed contributions based on an employee’s annual
compensation. Like other defined contribution plans, money purchase pension
plans contain underlying assets in which a filer has invested. See the Defined
Contribution Plan entry for more information.
Mutual Fund
Description
A mutual fund is a company that is created and managed to hold a portfolio of
securities as an investment company registered with the U.S. Securities and
Exchange Commission (SEC) under the Investment Company Act of 1940, as
amended. Investors purchase shares of the mutual fund, and the value of those
shares typically rises and falls based on the performance of the mutual fund’s
underlying investments. The underlying investments of a mutual fund may
include shares of companies in a variety of business sectors, bonds, cash
equivalents, etc. The mutual fund uses the money it raises from selling its shares
to fund its purchases of underlying investments. A mutual fund may pay
dividends to its investors. It also charges management fees.
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The ethics rules differentiate between “sector” and “diversified” mutual funds.
• Sector Mutual Fund: A fund that has a stated policy of concentrating its
investments in any industry, business, single country other than the United
States, or bonds of a single state within the United States.
• Diversified Mutual Fund: A mutual fund that does not have a stated policy of
concentrating its investments in any industry, business, single country other
than the United States, or bonds of a single state within the United States.
See OGE DAEOgram DO-00-030 (August 25, 2000) and OGE Legal Advisory
LA-15-09 (June 30, 2015) for further assistance differentiating between
diversified and sector mutual funds.
Caution: Filers may sometimes describe an investment as a “mutual fund” even
though the investment does not qualify as a mutual fund for purposes of OGE’s
exemptions. To qualify for the mutual fund exemptions in 5 C.F.R. § 2640.201,
the fund must be registered with the SEC as a management company or unit
investment trust under the Investment Company Act of 1940. You can find a
fund’s registration status in a prospectus available on the issuer’s website or
through the EDGAR website maintained by the SEC. Most funds traded on the
open market as “mutual funds” will be registered. Certain funds held within
deferred compensation plans, retirement accounts, and private investment funds
may not be registered. In addition, managed accounts, brokerage accounts, and
individual retirement accounts are not mutual funds, even though some of the
holdings of those accounts may be mutual funds.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a sector mutual fund if the value of the fund was more
sector mutual fund from which they received more than $1,000 in income during
the reporting period. Diversified mutual funds are not reportable.
Filers must provide the full name of reportable sector mutual funds. Providing the
ticker symbol is helpful but not required.
1
ABC Healthcare Fund (ABCHX)
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Oil, Gas, or Other Mineral Rights Lease
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a lease for oil, gas, or other mineral rights if its value
was more than $1,000 at the end of the reporting period. Annual filers must also
report a lease from which they received more than $1,000 in income during the
reporting period.
Filers must identify the asset as a lease and provide the following: (1) the location
of the land (either city and state or county and state); (2) the resource being
extracted under the terms of the lease; and (3) the name of the lessee (i.e.,
company extracting resources and paying royalties).
1
Oil Lease, Fargo, ND: Humble Oil & Refining Co.
Option (incentive stock option plan)
Description
An incentive stock option is a type of compensation in the form of an agreement
between an employer and an employee that allows the employee to purchase
shares of the employer’s stock at a specified price (“strike price”). A stock option
typically has a vesting requirement, which means that the employee may exercise
the stock option (i.e., purchase the employer’s stock at the strike price) only after
a specified period of time has passed. The employee typically forfeits the
unvested stock option if the employee’s employment terminates before the stock
option has vested. After the stock option vests, the employee may exercise the
stock option until the stock option expires. Once the stock option has expired, the
employee no longer has the right to purchase the stock at the strike price.
An incentive stock option is a type of “call option” because it provides the right to
purchase stock. Unlike some other types of call options, however, an incentive
stock option is not traded on the open market.
Reporting Requirements (Filer)
Part I: Filers must report an option if the value of the option was more than
$1,000 at the end of the reporting period. Annual filers must also report an option
from which they received more than $1,000 in income during the reporting
period. Keep in mind that the value of an option is not the same as the value of
the stock for which it was issued. In addition, a stock option may have reportable
value even if the option is currently “underwater” (i.e., the strike price is above
the market price), depending on how much time remains to exercise the option.
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The human resources office of the company that issued the options may be able to
provide the filer with a valuation.
Filers must provide the name of the stock for which the option was issued and
identify the interest as a stock option. In addition, it is helpful to indicate whether
the option is vested. For a privately held business, filers should describe the line
of business, unless the information is otherwise readily available to the reviewer.
1
Widgets Unlimited, vested and unvested stock options
Filers would report stock purchased by exercising an option in the same way that
they would report any other stock. See the Stock entry for more information.
Part IV: Filers must identify the arrangement as a stock option plan and describe
what will happen (or has happened) to the stock options (e.g., retention, exercise,
forfeiture, accelerated vesting, etc.). If applicable, filers should specify the
timeframe in which these actions will occur (e.g., “upon my separation”).
1
Widgets Unlimited
I will forfeit my unvested stock options upon
separation. I will retain my vested stock options.
Reporting Requirements (Spouse)
Part I: A spouse’s incentive stock options are subject to the same reporting
requirements as the filer’s incentive stock options.
Part IV: This Part does not apply to spouses.
Option (put or call purchased)
Description
Put option: A put option is a contract that provides the buyer the right to sell a
security.
Call Option: A call option is a contract that provides the buyer the right to
purchase a security.
With regard to each of these types of contracts, the buyer has the right, but not the
obligation, to exercise the option at a specified price (i.e., the “strike price”) until
the contract’s expiration date. Some put and call options may be purchased on the
open market. As an alternative to exercising put and call options, investors can
resell these options on the open market before their expiration.
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Caution: This entry applies to put and call options purchased on the market. It
does not apply to:
• Call options acquired through an employment relationship, such as through an
employee stock purchase plan or an incentive stock option plan. See the
Employee Stock Purchase Plan or Option (incentive stock option plan) entries
in this guide for additional information about these types of employment-
related options.
• Put or call options that have been “written” rather than purchased. An option
writer does not have the choice to buy or sell but rather must buy or sell if an
investor exercises the option written. For this case, see the Option (put or call
written) entry.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I:
• Unexercised Put or Call Option: Filers must report a put or call option if the
value of the option was more than $1,000 at the end of the reporting period.
Annual filers must also report an option from which they received more than
$1,000 in income during the reporting period. Options, however, normally do
not produce income until they have been exercised or sold.
Filers must provide the name of the option, which would include the
underlying security and the type of option.
1
Widgets Unlimited (WIG), put option
• Exercised Put Option: If the filer fully exercised a put option, neither the
option nor the underlying security will have any reportable value. Annual
filers, however, must report the underlying security if they received more than
$1,000 in income from the security during the reporting period.
Filers must provide the name of the underlying security that was sold.
1
Widgets Unlimited (WIG)
• Exercised Call Option: If the filer fully exercised a call option, the option will
no longer have a value of its own, but the underlying security that was
purchased may have reportable value or income. Filers must report the
underlying security if the value of the security was more than $1,000 at the
end of the reporting period. Annual filers must also report the underlying
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security if they received more than $1,000 in income from the security during
Filers must provide the name of the underlying security purchased.
1
Widgets Unlimited (WIG)
• Resold Put or Call Option: Annual filers must report an option that was resold
if they received more than $1,000 in income from the option during the
reporting period. Filers must provide the name of the underlying security and
specify the type of option.
1
Widgets Unlimited (WIG), put option
Option (put or call written)
Description
Put option: A put option is a contract that provides the buyer the right to sell a
security. The writer of a put option has an obligation to buy the security at a
specified price (i.e., the “strike price”) from the buyer if the buyer exercises the
option before the contract’s expiration date.
Call Option: A call option is a contract that provides the buyer the right to
purchase a security. The writer of a call option has an obligation to sell the
security at a specified price (i.e., the “strike price”) to the buyer if the buyer
exercises the option before the contract’s expiration date.
Caution: This entry applies to put and call options written on the market. It does
not apply to:
• Call options acquired through an employment relationship, such as through an
employee stock purchase plan or an incentive stock option plan. See the
Employee Stock Purchase Plan or Option (incentive stock option plan) entries
in this guide for additional information about these types of employment-
related options.
• Put or call options that have been purchased rather than written. An option
buyer does not have an obligation to exercise an option but rather may choose
to let the option expire, unexercised. For this case, see the Option (put or call
purchased) entry.
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Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I:
• Open Position: Filers must report a written put or call option in an open
position if the value of the shares on which the option was written was more
than $1,000 at the time the position was opened.
Filers must provide the name of the underlying security, the type of option,
and an indication that the position is open.
1
Widgets Unlimited (WIG), open position for written put
option
• Closed Position: Annual filers must report a written put or call option in a
closed position from which they received more than $1,000 in income during
Filers must provide the name of the underlying security, the type of option,
and an indication that the position is closed.
1
Xylophone Technologies Corporation (XYZ), closed
position for written put option
Filers would report stock acquired through an exercised option in the same way
that they would report any other stock. See the Stock entry for more information.
Phantom Stock
Description
Phantom stock is a contract between an employer and an employee that grants the
employee the right to receive a payment based on the value of the employer’s
stock. When granting phantom stock, the employer does not grant the employee
any shares of the employer’s stock. Instead, the employer grants the employee a
right that tracks the value of a specified number of shares of the stock.
The employee will have a right to receive a payout equivalent to the value of
these tracked shares. Depending on the terms of the employer’s phantom stock
plan regarding the vesting of phantom stock, the payout may occur on a specified
date or upon the occurrence of a certain event, such as retirement, disability, or
death. If the employee’s employment is terminated before the phantom stock
vests, the employee normally forfeits the phantom stock.
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The plan may provide for a single payment, or it may provide for installment
payments over a period of time after the phantom stock vests. In some cases, the
employer may let the employee elect to receive the payout in the form of an
equivalent amount of stock. In addition to the final payout, under some phantom
stock plans, the employee may receive payments equivalent to any dividends that
the employer pays to stockholders.
It may help to understand some of the key similarities and differences between
phantom stock and other types of financial interests in an employer. Phantom
stock differs from an employer’s stock in that phantom stock does not give the
employee an ownership interest in the employer. Unlike stock, phantom stock
also might not convey a right to payments based on dividends. Phantom stock
differs from a stock appreciation right in that its payout is based on the full value
of the stock, while the payout of a stock appreciation right is based only on any
increase in the value of the stock over a specified period of time. Phantom stock
differs from a stock option because the employee does not need to purchase
anything.
Reporting Requirements (Filer)
Part I: Filers must report phantom stock if the value of the phantom stock was
$1,000 in income during the reporting period.
Filers must provide the name of the company and identify the interest as phantom
stock. In addition, it is helpful to indicate whether the phantom stock is vested.
For a privately held business, filers should describe the line of business, unless the
information is otherwise readily available to the reviewer.
1
Widgets Unlimited, unvested phantom stock
Filers would report stock acquired through a phantom stock plan as a separate line
entry, using the standard instructions for stock.
Part IV: Filers must identify the arrangement as a phantom stock plan and
describe its terms in detail. Among other details, filers must state what they will
receive and when they will receive it. In addition, filers must state any deviations
from the normal terms of the plan that the employer will make. This includes any
acceleration of payment, any waiving of vesting requirements, and any change in
the form or timing of payment or eligibility.
1
Widgets Unlimited
Upon separation, I will receive a lump-sum cash
payment equal to the value of my vested phantom
2
stock, calculated as of the date of my separation. I
will forfeit any unvested phantom stock interests.
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Reporting Requirements (Spouse)
Part I: A spouse’s phantom stock is reportable according to the same rules
applicable to a filer’s phantom stock.
Part IV: This Part does not apply to spouses.
Precious Metal
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report precious metal if the metal was held for investment
purposes and was valued at more than $1,000 at the end of the reporting period.
Annual filers must also report precious metal from which they received more than
$1,000 in income during the reporting period. If the filer does not own the
precious metal directly but rather holds funds or futures concentrating in precious
metals, use the guidance appropriate to that type of security.
Filers must describe the type of metal owned (e.g., gold) and the form in which
the metal is held (e.g., ingots, jewelry, coins, or warehouse certificates).
1
Gold coins
2
Platinum bars
Prepaid Tuition Plan (529 plan)
Description
A prepaid tuition plan is a type of qualified tuition program (529 plan). It is a
contract between an individual and the plan’s sponsor that allows the individual to
prepay future tuition expenses at current tuition rates. The sponsor can either be a
state or the Tuition Plan Consortium, LLC, for private institutions (also known as
the Private College 529 Plan).
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a prepaid tuition plan if the value of the plan was more
prepaid tuition plan from which they received more than $1,000 in income during
the reporting period. Income is ordinarily reported when payments are made.
Filers must provide the plan sponsor and the name of the plan.
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1
Maryland Prepaid College Trust (MPCT),
University Plan – 4 Years
Real Estate
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Real estate is reportable if its value was more than $1,000 at the end of the
reporting period. Annual filers must also report real estate from which they
received more than $1,000 in income during the reporting period. Filers do not
have to report a personal residence, unless it was rented out for any period of time
during the reporting period.
Filers must describe the type of real estate (e.g., “residential,” “commercial,”
“industrial,” or “undeveloped”) and provide the city and state in which it is
located. Providing the county and state is also acceptable. Filers should not
provide a street address.
1
Residential real estate, Des Moines, IA
2
Undeveloped land, Rapid City, SD
Other requirements apply if (1) the real estate is a farm; (2) the real estate is held
by a trust; (3) the real estate is held by a limited liability company or other entity;
or (4) the filer has leased mineral rights associated with the property. See the
corresponding entries in this guide for more information about reporting farms,
trusts, real estate holding companies, and leases.
Part II: Filers need not report mortgages or home equity lines of credit on
personal residences nor must they report mortgages on rental properties that were
obtained on terms generally available to the public. Most mortgages and lines of
credit obtained through arms-length negotiations with a bank or other financial
institution would qualify as being “on terms generally available to the public.”
Also note that filers do not disclose personal liabilities owed to a spouse or to the
parent, sibling, or child of the filer, spouse, or dependent child.
Part IV (filer only): In rare cases, filers may receive a housing subsidy or
subsidized loan from an employer. Such an arrangement would be reportable in
Part IV.
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Real Estate Holding Company
A real estate holding company is a business that is principally engaged in owning,
holding, selling, or leasing real estate. These companies derive most of their
income from dividends, interest, royalties, and rent collection. Real estate
holding companies may be organized as limited partnerships, limited liability
companies, or as corporations. A real estate investment trust (REIT) is a specific
type of real estate holding company that manages a portfolio of real estate and
mortgages.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report an equity interest in a real estate holding company if the
value of the interest was more than $1,000 at the end of the reporting period.
Annual filers must also report a real estate holding company if they received more
than $1,000 in total income during the reporting period.
The proper way to report a real estate holding company varies based on whether
the entity qualifies as an excepted investment fund.
• Entity Qualifies as an Excepted Investment Fund: Filers must provide the
name of the real estate holding company and, unless clear from the name that
it is a real estate holding company, describe the type of asset.
1
Blackhawk Commercial Realty Portfolio
• Entity Does Not Qualify as an Excepted Investment Fund: Filers must
describe the real estate holding company as specified above and report each
underlying asset of the real estate holding company that individually was
worth more than $1,000 at the end of the reporting period. Annual filers must
also report each underlying asset from which they received more than $1,000
in income during the reporting period.
For purposes of valuing an underlying asset in a real estate holding company,
filers may use the value of the proportionate interest that the filer, the filer’s
spouse, and the filer’s dependent children have in the underlying asset. For
purposes of measuring income from an underlying asset, filers may use the
amount of income received from that underlying asset attributable to the filer,
the filer’s spouse, and the filer’s dependent children. A filer would need to
use the total value and income of the underlying assets if the filer is unable to
determine whether the proportionate interest in value and income meets a
reporting threshold.
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1
Macon Real Estate V, LP:
2
- commercial real estate, Champaign, IL
3
- commercial real estate, Terre Haute, IN
Part II: Filers must report any capital commitment that exceeded $10,000 at the
end of the reporting period. Annual filers must also report any capital
commitment that exceeded $10,000 at any point during the reporting period.
Employment with the Company That Manages the Real Estate Holding Company:
Additional requirements may apply if the filer or the filer’s spouse has ever
operated or worked for the company that manages the real estate holding
company.
• The income from the real estate holding company potentially would be
characterized, in whole or part, as earned income for purposes of the Part I
reporting threshold.
• The filer must report in Part II any mortgage or other liability for which the
filer is personally liable if (1) the liability exceeded the reporting threshold
and (2) the liability was not from a financial institution or other business
entity on terms that are generally available to the public.
• The filer must report in Part III any position that the filer held during the
reporting period. A spouse’s position is not reportable in Part III.
• The filer must report in Part IV any agreement or arrangement concerning the
filer’s exit from the real estate holding company (e.g., buy-back agreement).
A spouse’s agreements are not reportable in Part IV.
• If the filer or the filer’s spouse provides services to the real estate holding
company (e.g., fund manager), there may be reportable compensation for
those services. This compensation may take the form of salary, severance,
bonus, deferred compensation, defined benefit plan, defined contribution plan,
or other financial interest. Filers must report each such financial interest using
the instructions appropriate for that type of asset or income.
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Restricted Stock
Description
Restricted stock is a grant to an employee of company stock that has limitations
on the employee’s rights (usually, the right to sell the stock) until the shares vest.
Specific terms, such as the vesting period and whether the employee will be paid
dividends before vesting, are spelled out in an agreement between the employee
and employer. Once the shares vest, the employee usually owns the stock without
limitations and can sell it at any time. Generally, the employee forfeits restricted
stock if the employee leaves the company before the restricted stock vests.
Reporting Requirements (Filer)
Part I: Filers must report restricted stock if the value of the restricted stock was
report restricted stock from which they received more than $1,000 in income
during the reporting period.
Filers must provide the name of the company and identify the interest as restricted
stock. In addition, it is helpful to indicate whether the restricted stock is vested.
For a privately held business, filers should describe the line of business, unless the
information is otherwise readily available to the reviewer.
1
Widgets Unlimited, unvested restricted stock
Filers would report stock that has vested and lacks any remaining restrictions as a
separate line entry, using the standard instructions for stock.
Part IV: Filers must identify the arrangement as a restricted stock plan and
describe what will happen (or has happened) to the restricted stock (e.g.,
retention, forfeiture of unvested restricted stock, acceleration of vesting prior to
entering government service, etc.). If applicable, filers should specify the
timeframe in which these actions will occur.
1
Widgets Unlimited
I will forfeit my unvested restricted stock upon my
separation.
Reporting Requirements (Spouse)
Part I: A spouse’s restricted stock is subject to the same reporting requirements as
the filer’s restricted stock.
Part IV: This Part does not apply to spouses.
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Restricted Stock Unit (RSU)
Description
A restricted stock unit (RSU) is a grant to an employee valued in terms of
company stock. No actual stock is issued at the time of the grant. Instead, the
grant of stock or its cash equivalent is deferred until the RSUs vest, which is
based upon a set date or an occurrence described in a RSU plan or agreement.
Once the vesting requirement is satisfied, the company ordinarily distributes the
shares or their cash equivalent to the employee; however, the distribution may be
deferred in some plans. Generally, the employee forfeits RSUs if the employee
leaves the company before the RSUs vest.
Reporting Requirements (Filer)
Part I: Filers must report a restricted stock unit if the value of the restricted stock
more than $1,000 in income during the reporting period.
Filers must provide the name of the company and identify the interest as a
restricted stock unit. In addition, it is helpful to indicate whether the restricted
stock unit is vested. For a privately held business, filers should describe the line
of business, unless the information is otherwise readily available to the reviewer.
1
Widgets Unlimited, unvested restricted stock units
Filers would report stock acquired through a restricted stock unit plan as a
separate line entry, using the standard instructions for stock.
Part IV: Filers must identify the arrangement as a restricted stock unit plan and
describe what will happen (or has happened) to the restricted stock units (e.g.,
retention of RSUs, payout of vested RSUs, forfeiture of unvested RSUs, or
accelerated payout of unvested RSUs prior to government appointment, etc.). If
applicable, filers should specify the timeframe in which these actions will occur
and the form that any payout will take (e.g., cash or stock).
1
Widgets Unlimited
Pursuant to the company’s executive compensation
plan, my unvested restricted stock units will vest
2
upon separation. At that time, I will receive a cash
payout.
Reporting Requirements (Spouse)
Part I: A spouse’s restricted stock units are subject to the same reporting
requirements as the filer’s restricted stock units.
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Part IV: This Part does not apply to spouses.
Salary
Reporting Requirements (Filer)
Part I: Filers must report the source of a salary if the amount totaled more than
$1,000 during the reporting period.
Filers must provide the name of the source and identify the employment
relationship. Filers may choose to specify the type of income as salary for clarity.
In addition, if the employer is a privately held business, filers should provide the
employer’s line of business, unless the information is otherwise readily available
to the reviewer.
1
Xylophone Technologies Corporation, salary
Part III: Filers must report a position with the source paying the salary.
* Other Considerations: Filers receiving salary often have interests related to the
source company (e.g., stock, stock options, deferred compensation, retirement
plans, etc.), which should also be reported using the guidance applicable to that
interest.
Reporting Requirements (Spouse)
Part I: A spouse’s salary is reportable according to the same rules applicable to a
filer’s salary.
Part III: This Part does not apply to spouses.
Self-Funded Defined Benefit Plan
Description
Self-funded defined benefit plans are funded by individuals instead of employers.
The individual invests money to meet a certain benefit amount in the future. The
returns on the investments will fund the future benefits to be paid to the
individual. If the investments do not perform as well as expected, the required
contribution amounts will increase. At retirement, participants often roll their
balances into IRAs or purchase annuities; however, continued participation in the
plan is possible as well.
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Reporting Requirements (Filer)
Part I: Filers must report a self-funded defined benefit plan if the value of the
also report a self-funded defined benefit plan from which they received more than
$1,000 in income during the reporting period. Income is ordinarily reported when
distributions are received.
Filers must identify the plan as their own self-funded defined benefit plan and
include the financial institution through which the plan is held. Unless a reporting
exception applies, the filer must also report each underlying asset that individually
was worth more than $1,000 at the end of the reporting period.
1
Betsy Jones, self-funded defined benefit plan (DSLK
Financial Techniques, Inc.):
2
- Tyler Informatics (TYIN)
3
- Harris NY Municipal Bond Fund (HNYCX)
Reporting Requirements (Spouse)
Part I: A spouse’s self-funded defined benefit plan is subject to the same
reporting requirements as the filer’s plan; however, the filer should write “spouse”
rather than providing the spouse’s name.
Severance Payment (cash)
Description
A severance payment is a payment for past services that is paid upon the
departure of an employee. Severance payments may be pursuant to the
employer’s standard policy or pursuant to an employment agreement with a
specific employee.
Reporting Requirements (Filer)
Part I: Filers must report the source of severance payments if the payments
totaled more than $1,000 during the reporting period. Filers also need to report an
anticipated severance payment that ended the reporting period with a value more
than $1,000.
Filers most often report severance in connection with employment. In these
cases, filers may combine their salary, bonus, severance, and other income onto a
single line, although specifying the types of income can be helpful. However, if
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the filer has no other income to report other than a severance payment or
anticipated severance payment, the filer should specify the type of income in
order to avoid confusion. In addition, if the source is a privately held business,
filers should provide the source’s line of business, unless this information is
otherwise readily available to the reviewer.
Severance payment (and other income) as a single line entry
1
Xylophone Technologies Corporation, salary and
severance
Anticipated severance from a former employer
1
SendNow Co., anticipated severance
Part III: Filers must report any position held with the source during the reporting
period.
Part IV: Filers must report an anticipated severance payment as a continuing
arrangement. Filers should describe the terms under which the severance will be
(or was) paid (e.g., “quarterly payments over two years” or “lump sum before
entering government service”). If the severance is being (or was) paid pursuant to
an established agreement or company policy, filers should also note that fact in
the description.
1
SendNow Co.
Pursuant to my employment agreement, I will
receive a lump-sum severance payment within
2
90 days of my separation from the firm.
Reporting Requirements (Spouse)
Part I: A spouse’s severance payments are reportable according to the same rules
applicable to a filer’s severance payments.
Parts III and IV: These Parts do not apply to spouses.
Short Sale
Description
A short sale is the sale of securities that an investor has borrowed from a broker.
The investor, who does not actually own the securities, must eventually purchase
an equal number of the same securities and return them to the broker.
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• Open Position: The investor has acquired and subsequently sold the borrowed
securities from the broker but has not yet purchased the replacement
securities.
• Closed Position: The investor has purchased the replacement securities and
returned them to the broker.
Generally, the investor’s goal is to purchase replacement securities at a price
lower than the price at which the investor initially sold them. The investor will
realize a profit as a result of this price discrepancy if the value of the securities
decreases. However, the investor will lose money if the value of the securities
increases before the investor purchases them. In either case, the investor pays
interest on the loan.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I:
• Open Position: Filers must report a short sale in an open position if the value
of the shorted security was more than $1,000 at the time the position was
opened.
Filers must provide the name of the security shorted and indicate that the short
position is open.
1
Widgets Unlimited (WIG), open short position
• Closed Position: Annual filers must report a short sale in a closed position
from which they received more than $1,000 in income during the reporting
period.
Filers must provide the name of the security shorted and indicate that the short
position is closed.
1
Xylophone Technologies Corporation (XYZ), closed
short position
Small Business (operated as a business)
Reporting Requirements (Filer)
Part I: Filers must report a small business that they operate if the value of the
business was more than $1,000 at the end of the reporting period or if they
received more than $1,000 in income during the reporting period.
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Filers must provide the name of the business and the type of business, unless the
type is otherwise readily available to the reviewer. In the absence of a specific
business name, filers must describe the trade practiced. If the legal name of the
business differs from the name under which the business operates, it is helpful if
the filer provides both names for clarity.
In addition, reported business interests are generally assumed to be structured as
C-corporations. Consequently, if the business is otherwise structured, it is helpful
if the filer describes the type of business structure, such as “LLC” or “sole
proprietorship.”
1
Advanced Systems, LLC (software)
2
ABC Holdings, Inc., S-Corp, d/b/a Jones Management
Solutions (HR consulting)
3
Accountant, sole proprietor
4
Piano teacher, sole proprietor
Part II: Filers must report liabilities for which they are personally liable that
exceeded $10,000 at the end of the reporting period. Annual filers must also
report personal liabilities that exceeded $10,000 at any point during the reporting
period. However, filers need not report liabilities from a financial institution or
other business entity on terms that are generally available to the public. Filers
also do not need to report any liabilities of the business for which they are not
personally liable (e.g., loan owed by a business structured as a LLC).
Part III: Filers must report any position held with the business during the
reporting period.
Part IV: Reportable agreements sometimes associated with actively managed
businesses include the anticipated return of a capital account, a 401(k) and/or
defined benefit plan, a deferred compensation plan, anticipated bonus or
severance, and continued participation in a health insurance or other benefit plan.
* Other Considerations: Filers must identify any other assets that they may have
through their association with the business, such as deferred compensation and
retirement plans. Filers need not itemize the assets of the business itself.
Disclosing the business is normally sufficient. As an exception to this rule, a filer
would report any assets that are unrelated to the operations of the business.
Reporting Requirements (Spouse)
Parts I and II: A spouse’s business is reportable according to the same rules
applicable to a filer’s business.
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Parts III and IV: These Parts do not apply to spouses.
Small Business (passive interest)
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a passive investment interest in a small business if the
value of the business was more than $1,000 at the end of the reporting period.
Annual filers must also report a passive investment interest from which they
received more than $1,000 in income during the reporting period.
If reportable, a passive investment interest would be reported in the same manner
as a business operated by the filer.
Part II: Filers must report liabilities for which they are personally liable that
exceeded $10,000 at the end of the reporting period. Annual filers must also
report personal liabilities that exceeded $10,000 at any point during the reporting
period. However, filers need not report liabilities from a financial institution or
other business entity on terms that are generally available to the public. Filers
also do not need to report any liabilities of the business for which they are not
personally liable (e.g., loan owed by a business structured as a LLC).
Part III: Filers would not report a position as a passive limited partner, passive
stockholder, or passive non-managing member. However, the filer would need to
report a position as a general partner or managing member even if the filer does
not actually provide services. Part III does not apply to positions held by a spouse
or dependent child.
Stable Value Fund
Description
A stable value fund is an investment vehicle that is generally offered as an
investment option within an employee benefit or retirement plan. Stable value
funds typically invest in bonds and interest-bearing contracts. Some stable value
funds are mutual funds that are registered with the U.S. Securities and Exchange
Commission, but not all stable value funds are registered mutual funds.
Reporting Requirements (Filer)
Part I: Filers must report a stable value fund if the value of the fund was more
stable value fund from which they received more than $1,000 in income during
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accruing within a retirement plan or account as having been received because of
the limitations on withdrawal and other regulatory requirements governing such
plans and accounts. Therefore, if the stable value fund is held within a retirement
plan or account, the income will be reportable at the level of the plan or account
once distributions begin.
Filers must provide the name of the stable value fund and the institution that
manages the fund (e.g., Fidelity, Vanguard, T. Rowe Price, etc.), unless the
institution is part of the fund name. In addition, although not required, the filer
may indicate the type of account or plan in which the fund is held (e.g., defined
contribution plan, 401(k), 403(b), 457, etc.).
1
ING Stable Value Fund
Part IV: If the stable value fund is held through an employer-sponsored plan, a
filer may need to report the plan in Part IV. See, for example, the Defined
Contribution Plan entry.
Reporting Requirements (Spouse)
Part I: A spouse’s stable value fund is subject to the same reporting requirements
as the filer’s stable value fund.
Part IV: This Part does not apply to spouses.
Stock
Description
Stock shares represent an equity (ownership) interest in a corporation and entitle
the holder to a claim on corporate assets and earnings.
Corporations issue two basic types of stock: common and preferred. Differences
between the two types involve shareholder voting rights, dividend variability,
price sensitivity, and the priority for payment of dividends and liquidation claims.
These differences are ordinarily not significant for purposes of financial
disclosure, and filers need not specify the type of stock.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report stock if the value of the stock was more than $1,000 at
the end of the reporting period. Annual filers must also report a stock from which
they received more than $1,000 in income during the reporting period.
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Filers must provide the name of the stock (e.g., “Xylophone Technologies
Corporation”). For stock of a privately held company, filers should provide a
description of the issuer’s trade or business (e.g., grain distributor, supermarket,
financial advisory, etc.), unless that information is otherwise readily available to
the reviewer. Ticker symbols for publicly traded securities are helpful but not
required.
1
Xylophone Technologies Corporation (XYZ)
2
BMSL Propulsion, Inc. (rocket fuel research)
Stock Appreciation Right
Description
A stock appreciation right is a contract between an employer and an employee
that grants the employee the right to receive a payment tied to any increase in the
value of the employer’s stock. When granting a stock appreciation right, the
employer does not grant the employee any shares of the employer’s stock.
Instead, the employer grants the employee a right that tracks the value of a
specified number of shares over a specified period of time. The employer
designates a “grant price,” and the employee will have a right in the future to
receive a payout equivalent to the difference between the market price of the
stock and the grant price.
If the value of the shares increases, the employee can exercise the stock
appreciation right by requesting a payment equivalent to the increase in value of
the shares. For example, if the employee has a stock appreciation right tied to 100
shares and the value of the shares increases by 50 cents per share, the employee
may request a payment of $50. In some cases, the employer may let the employee
elect to receive the payment in the form of $50 worth of the employer’s stock at
current market value.
Like stock options, a stock appreciation right typically has a vesting requirement
and an expiration date. The employee may not exercise the stock appreciation
right before it vests or after it expires. The employee normally forfeits a stock
appreciation right if the employee terminates from the company before the stock
appreciation right vests.
Reporting Requirements (Filer)
Part I: Filers must report a stock appreciation right if the value of the stock
they received more than $1,000 in income during the reporting period.
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Filers must provide the name of the company and identify the interest as a stock
appreciation right. In addition, it is helpful to indicate whether the stock
appreciation right is vested. For a privately held business, filers should describe
the line of business, unless the information is otherwise readily available to the
reviewer.
1
Widgets Unlimited, unvested stock appreciation rights
Filers would report stock acquired through a stock appreciation right plan as a
separate line entry, using the standard instructions for stock.
Part IV: Filers must identify the arrangement as a stock appreciation right plan
and describe what will happen (or has happened) to the stock appreciation rights
(e.g., retention of stock appreciation rights, exercise of vested rights, forfeiture of
unvested rights, or accelerated payout of unvested rights). If applicable, the filer
should specify the timeframe in which these actions will occur and the form that
any payout will take (e.g., cash or stock).
1
Widgets Unlimited
All unvested stock appreciation rights will be
forfeited upon my separation. I will exercise or
2
forfeit my vested rights. Payment of any exercised
rights will be in the form of a cash lump sum.
Reporting Requirements (Spouse)
Part I: A spouse’s stock appreciation rights are reportable according to the same
rules applicable to a filer’s stock appreciation rights.
Part IV: This Part does not apply to spouses.
Third-Party Escrow Agreement
Description
For purposes of financial disclosure, “third-party escrow agreement” refers to an
escrow agreement that is designed to make funds available for the purchaser of a
business that the filer has sold. The purpose of such an agreement would be to
protect the purchaser against unforeseen liabilities or expenses that arise after the
sale but stem from matters predating the sale. At the end of a specified period of
time, any unused funds will be returned to the seller. The agreement is a purely
negotiated (i.e., non-standard) item in connection with the sale of a business and,
as such, will vary from case to case.
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Reporting Requirements (Filer)
Part I: Filers must report an interest in an escrow agreement if the value of the
escrow property was more than $1,000 at the end of the reporting period. Annual
filers must also report an interest in an escrow agreement from which they
received more than $1,000 in income during the reporting period.
Filers must identify the third-party escrow holder with whom the escrow property
is held in trust and write a short description of the nature of the underlying
transaction (e.g., “due to sale of WQX Systems, LLC, to Widgets Unlimited”).
1
Third-party escrow account with Tristate Bank (due to
sale of WQX Systems, LLC, to Widgets Unlimited)
Part IV: With respect to the parties, filers must provide the names of the grantee,
grantor, and escrow agent (or depositary). In describing the escrow agreement,
filers should provide such details as the purpose of the escrow agreement,
including the name of the escrow holder or agent; the nature of the underlying
business or real estate transaction; and the timeframe needed to execute the
transaction. In addition, filers should report any anticipated conditions affecting
the transaction’s completion.
1
Tristate Bank
Escrow account with Tristate Bank is from the sale
of WQX Systems, LLC. Under the provisions of
2
Widgets Unlimited
the purchase plan with Widgets Unlimited, funds
are being held in escrow for unforeseen costs
3
WQX Systems, LLC
and liabilities for matters predating the sale. The
remainder will be distributed to me in December
4
2019. There have been no such costs or liabilities
reported thus far.
Reporting Requirements (Spouse)
Part I: A spouse’s interest in an escrow agreement is subject to the same
reporting requirements as the filer’s interest.
Part IV: This Part does not apply to spouses.
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TIAA
Description
TIAA (formerly TIAA-CREF) is a non-profit entity that provides a variety of
financial services, including retirement plans. TIAA holdings may consist of
annuities, various forms of insurance, cash accounts, and mutual funds.
Reporting Requirements (Filer)
The specific reporting requirements will depend on the type of TIAA product that
the filer holds. For example, see Mutual Fund for guidance on TIAA mutual
funds; see Life Insurance (variable) if the filer holds a variable life policy; and see
Annuity (fixed) or Annuity (variable) if the filer holds TIAA personal annuities.
See below for specific instructions on reporting the TIAA Traditional Annuity,
TIAA Real Estate, and CREF accounts.
Part I:
• TIAA Traditional: Filers must report TIAA Traditional if its value was more
TIAA Traditional if they received more than $1,000 in annuity payments
during the reporting period.
Writing “TIAA Traditional” is sufficient.
1
TIAA Traditional
• TIAA Real Estate and CREF Accounts: Filers need not report TIAA Real
Estate or a CREF account, unless the CREF account option has a stated policy
of concentrating its investments in any industry, business, single country other
than the United States, or bonds of a single state within the United States.
Part IV: TIAA accounts are usually held through an employer-sponsored
retirement plan. Filers do not need to report continued participation in a defined
contribution maintained by a former employer, unless the former employer
continues to make contributions. For a reportable plan, filers must specify the
employer, the type of plan, and the terms of any post-separation contributions. If
no holdings are reportable in Part I, filers can facilitate the review process by
explaining this in Part IV; however, it is not required.
1
East State University
I will continue to participate in this defined
contribution plan. The plan sponsor will make
2
a final contribution to the plan within 6 months of
my separation.
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Reporting Requirements (Spouse)
Part I: A spouse’s TIAA product is reported in Part I according to the same rules
applicable to the filer.
Part IV: This Part does not apply to spouses.
Treasury Security
Description
Treasury securities are debt obligations issued by the United States Government
and secured by the full faith and credit (the power to tax and borrow) of the
United States. Examples include Treasury bills (T-bills), Treasury notes,
Treasury bonds, and U.S. savings bonds.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Treasury securities are not reportable in the OGE Form 450.
Trust (irrevocable)
Note
There are many types of trusts, and trusts are established and interpreted under
state law. Reporting requirements and conflicts considerations will vary based on
the type of trust, the interests involved, and the filer’s relationship to the trust.
This entry discusses the basic reporting requirements for irrevocable trusts. It
does not address interests in or income from revocable living trusts.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I:
• Reporting a Trust: Filers must report a trust in the following cases.
o Income Received: Annual filers must report a trust if they received more
than $1,000 in income during the reporting period. Trust income is treated
as “received” if (1) the income is actually distributed to the filer, the filer’s
spouse, or the filer’s dependent child or (2) the income is recognized by
the filer, the filer’s spouse, or the filer’s dependent child for tax purposes.
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o Reportable Current Interest: New entrant and annual filers must report an
interest in a trust if (1) the filer, the filer’s spouse, or the filer’s dependent
child is currently entitled to receive income from the trust or is entitled to
access the principal of the trust and (2) the value of the interest was more
than $1,000 at the end of the reporting period.
Note that a beneficiary currently eligible to receive income or to access the
principal will be “entitled” to payments within the meaning of the
disclosure rules, unless the trust does not provide any standard for an
enforceable right to payment. In OGE’s experience, many trusts provide
the trustee with some discretion over certain matters, for example, the
timing, amount, or source (principal or income) of payment. However,
such discretion, by itself, does not mean that the filer lacks an enforceable
right to payment. In addition, many trusts permit payments only for
specific purposes, for example, health care or education. Such a
limitation, by itself, does not mean that the filer lacks an enforceable right
to payment. Finally, even if there is no enforceable right to payment, a
beneficiary’s current interest would be reportable if the beneficiary is also
the trustee, co-trustee, or the settlor. See OGE DAEOgram DO-08-024
(August 6, 2008) and OGE Legal Advisory LA-13-04 (April 9, 2013).
o Reportable Future Interest: New entrant and annual filers must report an
interest in a trust if (1) the filer, the filer’s spouse, or the filer’s dependent
child has a future interest in principal or income that is vested under
controlling state law and (2) the value of the interest was more than $1,000
at the end of the reporting period.
If a trust is reportable, filers should identify the trust using initials (“J.S. 2003
Trust”) or a general description (“Family trust #1”) in lieu of a full name.
• Reporting the Underlying Holdings of a Trust: Filers with a reportable current
or future interest in a trust must also report the underlying holdings of a trust
in the following cases.
o Assets Held at the End of the Reporting Period: New entrant and annual
filers must report each underlying asset of the trust that was worth more
than $1,000 at the end of the reporting period. For purposes of this
calculation, filers may use the proportionate interest that the filer, the
filer’s spouse, and the filer’s dependent children have in the asset.
o Income from Assets Held during the Reporting Period: Annual filers must
also report each underlying asset from which they received more than
$1,000 in income during the reporting period. Income from an underlying
trust asset is treated as received if (1) it is clear it contributed more than
$1,000 to a trust distribution or (2) the income is recognized for tax
purposes by the filer, the filer’s spouse, or the filer’s dependent child. If
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the filer cannot ascertain the amount of income contributed, the filer
would use the total amount of income of the underlying asset.
1
Family trust #1:
2
- Xylophone Technologies Corporation (XYZ)
3
- Philadelphia, PA, bonds
o Special Rule for the Underlying Holdings of Excepted Trusts:
Notwithstanding the guidance above, filers need not report the underlying
assets of a trust if the trust qualifies as an excepted trust; however, the filer
should specify that the trust is an excepted trust. If the filer is reporting
such an interest for the first time, reviewers should follow up with the filer
to confirm that the filer understands the criteria for qualifying as an
excepted trust. See 5 C.F.R. § 2634.907(i) for more information.
1
Family trust #1, excepted trust
* Other Considerations: In addition, reviewers should inquire as to whether the
filer holds a compensated or uncompensated trustee position and whether the
filer’s spouse receives any trustee fees.
Trust (revocable living)
Description
In a typical revocable living trust (sometimes called a “revocable inter vivos trust”
or a “living trust”), the person who created the trust – often called the grantor,
settler, or donor – transfers ownership of assets into a trust, which is managed by
the trustee for the benefit of the trust’s beneficiaries. The grantor, who often
serves as trustee, can revoke the trust and make other changes, such as
substituting beneficiaries or taking assets out of the trust, at any time. The trust
becomes irrevocable upon the grantor’s death. A revocable living trust is widely
recognized as a will substitute. See OGE DAEOgram DO-02-015 (June 11, 2002)
for a detailed discussion of revocable living trusts.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I:
• Grantor: If the filer, the filer’s spouse, or a dependent child is the grantor of a
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revocable living trust, the filer needs to report each underlying asset of the
trust that individually was worth more than $1,000 at the end of the reporting
period. Annual filers must also report each underlying asset from which they
received more than $1,000 in income during the reporting period. Income has
been received even if not distributed out of the trust. The filer need not
specify that the assets are held through a revocable living trust.
1
Xylophone Technologies Corporation (XYZ)
2
ABC Telecommunications Fund (ABCTX)
• Mandatory Distributions: Filers must report the trust and any underlying
assets that meet a reporting threshold if the trust instrument expressly directs
the trustee to make present, mandatory distributions of trust income or
principal to the filer (or the filer’s spouse or dependent child). In such
situations, even though the grantor retains the power to revoke the trust or
change beneficiaries, the fact remains that the trust instrument gives the
beneficiary a right to present enjoyment of trust assets and this present
enjoyment cannot be interrupted except by an affirmative act of the grantor to
alter the trust.
Part V (annual filers only): A discretionary distribution received from a revocable
living trust will qualify as a gift from a relative if the grantor is a “relative” within
the meaning of 5 C.F.R. § 2634.105(o).
* Other Considerations: In addition, reviewers should inquire as to whether the
filer holds a compensated or uncompensated trustee position and whether the
filer’s spouse receives trustee fees.
Trustee Fee
Reporting Requirements (Filer)
Part I: Filers must report the source of trustee fees totaling more $1,000 during
Filers must identify the source and indicate the type of income. For a family trust,
the filer may simply refer to the entity as a family trust (e.g., “Family trust #1”).
For other trusts, filers should provide the name of the trust.
1
Family trust #1, trustee fees
Part III: Filers must report a trustee position in Part III.
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* Other Considerations: In addition, reviewers should inquire as to whether the
filer (or the filer’s spouse or dependent children) (1) is the grantor; (2) has a
beneficial interest in the trust; or (3) has received distributions from the trust. If
so, see the other Trust entries in this guide for further information.
Reporting Requirements (Spouse)
Part I: A spouse’s trustee fees are reportable according to the same rules
applicable to a filer’s trustee fees.
Part III: This Part does not apply to spouses.
* Other Considerations: In addition, reviewers should inquire as to whether the
filer (or the filer’s spouse or dependent children) (1) is the grantor; (2) has a
beneficial interest in the trust; or (3) has received distributions from the trust. If
so, see the other Trust entries in this guide for further information.
UGMA or UTMA Account
Description
A Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act
(UTMA) account is an account into which property is set aside for a minor’s
benefit. Whether a UGMA or UTMA account is used depends on the state in
which the account is established.
Transfers made to a UGMA or UTMA account are irrevocable and belong to the
child in whose name the account is registered; however, the account is controlled
by the custodian until the child reaches a certain age, which varies by state
(usually 18 or 21).
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report each underlying asset of a UGMA or UTMA account
belonging to their dependent children that individually was worth more than
$1,000 at the end of the reporting period. Annual filers must also report each
underlying asset from which they received more than $1,000 in income during the
reporting period.
Filers report the underlying assets following the rules applicable to that type of
asset. Filers may indicate that the assets are held within a UGMA or UTMA
account, but this information is not required.
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1
Bar Harbor Canada Fund (BHRCX)
2
Xylophone Technologies Corporation (XYZ)
Unit Investment Trust
Description
A unit investment trust (UIT) is a type of investment company regulated under the
Investment Company Act of 1940. A UIT buys a relatively fixed portfolio of
securities and holds them with little or no change until the UIT’s termination date.
The ethics rules differentiate between “sector” and “diversified” UITs.
• Sector UIT: A UIT that has a stated policy of concentrating its investments in
any industry, business, single country other than the United States, or bonds of
a single state within the United States.
• Diversified UIT: A UIT that does not have a stated policy of concentrating its
investments in any industry, business, single country other than the United
States, or bonds of a single state within the United States.
OGE DAEOgram DO-00-030 (August 25, 2000) and OGE Legal Advisory LA-
15-09 (June 30, 2015) provide guidance on differentiating between diversified
and sector mutual funds. That discussion is also applicable to UITs.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report a sector UIT if the value of the UIT was more than
$1,000 at the end of the reporting period. Annual filers must also report a sector
UIT from which they received more than $1,000 in income during the reporting
period. Diversified UITs are not reportable.
Filers must provide the full name of reportable sector UITs. Providing the ticker
symbol is helpful but not required.
1
First Trust Utilities Select, Series 32 (FEAGBX)
Superseded
Confidential Financial Disclosure Guide, Section 4 118
Version: 1/2019
Virtual Currency
Description
For purposes of financial disclosure, “virtual currency” describes a digital
representation of value that functions as a medium of exchange, a unit of account,
and/or a store of value that has an equivalent value in real currency or that acts as
a substitute for real currency (i.e., a “convertible virtual currency” within the
meaning of IRS Notice 2014-21). Examples of virtual currencies include Bitcoin,
Bitcoin Cash, and Litecoin.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I: Filers must report virtual currency if the value of the virtual currency was
more than $1,000 at the end of the reporting period. Annual filers must also
report a virtual currency from which they received more than $1,000 in income
during the reporting period.
Filers must provide the full name of the virtual currency and, if held through a
platform or exchange, indicate the name of the platform or exchange.
1
Bitcoin (Coinbase account)
Will or Estate
Note
Wills are established and interpreted under state law. The guidance provided here
addresses the most common situations. Note that the guidance on wills and
estates discussed in this section does not cover trusts. Consult the Trust entries if
the will or estate involves a trust.
Reporting Requirements (Filer, Spouse, and Dependent Children)
Part I:
• Assets Distributed from an Estate: Filers report distributed assets the same
way that they would report any other assets that they hold.
1
Bar Harbor Canada Fund (BHRCX)
2
Xylophone Technologies Corporation (XYZ)
Superseded
Confidential Financial Disclosure Guide, Section 4 119
Version: 1/2019
• Beneficial Interest in an Estate That Has Not Been Distributed: Filers must
report a beneficial interest if the interest was worth more than $1,000 at the
end of the reporting period. Annual filers must also report a beneficial interest
from which more than $1,000 in income was received during the reporting
period. For purposes of this calculation, filers would exclude any payments
that are excluded from taxation as inheritance.
Filers must identify the interest as one in an estate. If the estate is that of a
relative, the filer may write “estate of a family member.” In other cases, the
filer should identify the estate by the last name of the party (e.g., “Estate of
Mr. Doe”).
1
Estate of a family member
• Wills of Living Persons: Filers do not need to report any interest in the will of
a living person.
* Other Considerations: Reviewers should inquire as to whether the filer holds a
position as the executor or administrator of an estate and whether the filer or the
filer’s spouse received any fees for services as an executor or administrator.
Superseded
