link to page 1 
January 14, 2022
Executive Branch Ethics and Financial Disclosure
Administration: The Role of Designated Agency Ethics Officials
(DAEOs)
When acting in an official capacity, federal public servants
disclosure. To implement and run the required program,
are expected to put the government’s interests ahead of
each agency is to appoint a DAEO. The DAEO must be an
their own. Federal laws (e.g., the Ethics in Government Act,
employee at an appropriate level to effectively coordinate
5 U.S.C. Appendix §§101-112) and regulations (e.g.,
the ethics program and demonstrate required knowledge
Standards of Ethics Conduct for Employees of the
and skills (5 C.F.R. §2638.104(b)). The DAEO implements
Executive Branch, 5 C.F.R. §2635) provide for several
the ethics program, including the collection and review of
programs to help ensure that governmental officials abide
financial disclosure reports; evaluates and helps remediate
by that principle.
conflicts of interest; and provides education, training, and
advice to agency employees. Most DAEOs are career
Government agencies primarily ensure ethical conduct
officials with significant experience in government ethics.
through the identification and remediation of real or
Table 1 provides an OGE chart of key agency ethics
perceived conflicts of interest. The Ethics in Government
responsibilities.
Act establishes annual financial disclosure requirements to
aid in the identification and potential remediation of
Table 1. OGE Summary of Agency and DAEO Ethics
conflicts of interest. To administer the agency’s ethics
Responsibilities
program, each agency head is required to designate an
official—a Designated Agency Ethics Official (DAEO)—to
Employee or Entity
direct “the daily activities of the agency’s ethics program”
(Regulatory Citation)
Key Ethics Responsibilities
and coordinate with the Office of Government Ethics
Agency Head
Establish and maintain an effective
(OGE) (5 C.F.R. §2638.104(a)). The Office of Government
agency ethics program and foster an
Ethics (OGE) provides “overall direction of executive
(5 C.F.R. §2638.107)
ethical culture in the agency.
branch policies related to preventing conflicts of interests
on the part of officers and employees of any executive
Designate the DAEO and Alternate
[branch] agency” (5 U.S.C. appendix §402(a)).
DAEO (ADEAO).
Require agency officials to support
the DAEO and ADAEO.
Each agency has a designated agency ethics official
Enforce government ethics laws and
(DAEO). That officer or employee is designated by
regulations.
the head of the agency to administer within that
Agency Ethics Officials Direct the daily activities of the
agency the provisions ... of the Act (pertaining to the
public financial disclosure requirements for the
(5 C.F.R. §2638.104)
ethics program. (See the
implementing regulation, which
executive branch), to coordinate and manage the
includes eight responsibilities that
agency’s ethics program, and to provide liaison with
the DAEO or ADAEO may not
OGE with regard to all aspects of the agency’s ethics
delegate.)
program.
Source: Adapted by CRS from Office of Government Ethics, “Chart
- Frank Q. Nebeker, Director, Office of Government
of Ethics Roles and Responsibilities,” at https://www.oge.gov/web/
Ethics, Statement before the Senate Committee on
OGE.nsf/ethicsofficials_mission?OpenForm.
Governmental Affairs, Subcommittee on Oversight of
Government Management, April 13, 1988
Financial Disclosure Review, and Conflict of
Interest Identification, Remediation, and
Enforcement
This InFocus describes the role of the DAEO in
Pursuant to the Ethics in Government Act, covered
administering the executive branch financial disclosure
employees are required to file annual financial disclosure
program and OGE’s role in supporting the DAEOs.
reports on or before May 15 each year. Other timelines
exist for new hires (within 30 days of appointment),
Designated Agency Ethics Officials
nominees (within 5 days of the White House’s transmission
Under the Ethics in Government Act, each agency is
of their nomination to the Senate), and candidates for
responsible for the establishment, execution, and
federal office (e.g., President, Vice President, House of
enforcement of ethical principles, including financial
https://crsreports.congress.gov
Executive Branch Ethics and Financial Disclosure Administration: The Role of Designated Agency Ethics Officials (DAEOs)
Representatives, and Senate; within 30 days of declaring
to disclose waste, fraud, and abuse, as well as
candidacy or May 15, whichever is later).
violations of criminal law. The DAEO also ensures
that the agency has a process for concurrently
Once a covered employee files a financial disclosure report,
notifying OGE when the agency refers a potential
the DAEO is to review the filing to ensure its completeness
criminal violation to the Department of Justice.
and to identify holdings or liabilities that might violate or
appear to violate federal law, executive orders, or agency-
For more information on financial disclosure, conflict
specific statutes or regulations (5 U.S.C. Appendix §106; 5
identification, and conflict remediation, see CRS In Focus
C.F.R. §2634.605). During review, DAEOs are generally
IF11904, Financial Disclosure: Identifying and
instructed to consider the employee’s circumstances and
Remediating Conflicts of Interest in the Executive Branch,
position in the identification of potential conflicts of
by Jacob R. Straus.
interest. The regulations (5 C.F.R. §2638.104(c)(8)) contain
eight responsibilities for a DAEO to implement an effective
Other Ethics Responsibilities
financial disclosure program. They are as follows:
In addition to the administration and review of financial
disclosure forms, remediation of real or perceived conflicts
1. Establish written procedures that fit the
of interest, and education and training, DAEOs have several
agency’s ethics policies and
other responsibilities. These include maintenance of agency
circumstances;
ethics records, establishment of written procedures for
financial disclosure, imposition of late filing fees in
2. Require filers to comply with deadlines
appropriate circumstances, assistance with agency
and, in the event of noncompliance, take
enforcement of ethics laws and regulations, and periodic
appropriate action;
evaluation of ethics programs (5 C.F.R. §2638.104(c)).
3. Impose late fees for untimely filing of
disclosure reports;
Education, Training, and Advice
4. Make referrals to the Inspector General or
Beyond their duties administering the financial disclosure
the Department of Justice in certain cases;
requirements in the Ethics in Government Act, DAEOs are
5. Review financial disclosure reports with
responsible for their agencies’ education and training
an emphasis on preventing conflicts of
programs. Generally, education programs aim to “teach
interest;
employees how to identify government ethics issues and
obtain assistance in complying with government ethics laws
6. Consult with filers and supervisors to
and regulations” (5 C.F.R. §2638.301). Education occurs
evaluate potential conflicts of interest;
through a variety of means, including the issuance of ethics
7. Certify financial disclosure statements in
notices, initial ethics training for new employees, ethics
a timely manner and take appropriate
briefings and annual training for existing employees, advice
action with regard to filings that cannot
on current ethics laws, and guidance to former employees
be certified; and
about postemployment restrictions.
8. Use information from financial disclosure
reports to prevent and resolve conflicts of
Office of Government Ethics
interest.
OGE provides general oversight of government ethics and
If upon review the DAEO determines a conflict of interest
advice to DAEOs in over 130 executive branch agencies.
exists, they can, if necessary, negotiate with the filer to
Specifically, OGE provides DAEOs with guidance on
financial disclosure filing and other ethics related
remedy the conflict. There are several remediation options
(5 C.F.R. §2634.605(b)(6)), including recusal, divestiture,
requirements; collects and shares financial disclosure and
resignation, waiver, or the establishment of a qualified blind
educational program data; supports agencies with
presidential nominations and appointments; maintains
or diversified trust (5 C.F.R. §2634.802(a)). Remediation
efforts can culminate in a written ethics agreement.
Integrity, the electronic financial disclosure filing system;
and provides trainings, orientations, and help desk services.
OGE also notes that the DAEO has certain enforcement
responsibilities as the agency’s ethics officer. The OGE
OGE does not have enforcement authority. Rather,
notes on their “Enforcement Responsibilities” webpage that
individual agencies, generally through the DAEO, are to
enforce required financial disclosure filings, review forms,
identify real or perceived conflicts of interest, and
The DAEO, acting directly or through other
remediate conflicts, within the confines of the law. OGE
officials, is responsible for assisting the agency in
provides resources and guidance to ensure that agencies can
enforcing ethics laws and regulations. To properly
adequately interpret, apply, and enforce the law, as
assist the agency, the DAEO should work with the
necessary.
Inspector General, employee relations, labor
relations, and human resources offices to
For more information on the Office of Government Ethics,
understand lines of responsibility and authority for
see CRS In Focus IF10634, Office of Government Ethics: A
disciplinary or corrective action. The DAEO should
Primer, by Jacob R. Straus.
also understand the penalties for ethics violations
and be aware of what safe harbor provisions may be
Jacob R. Straus, Specialist on the Congress
available to employees. Likewise, the DAEO
should understand government-wide requirements
IF12019
https://crsreports.congress.gov
Executive Branch Ethics and Financial Disclosure Administration: The Role of Designated Agency Ethics Officials (DAEOs)
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF12019 · VERSION 1 · NEW