Executive Branch Ethics and Financial Disclosure Administration: The Role of Designated Agency Ethics Officials (DAEOs)

Executive Branch Ethics and Financial Disclosure Administration: The Role of Designated Agency Ethics Officials (DAEOs)

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Updated May 30, 2023
Executive Branch Ethics and Financial Disclosure
Administration: The Role of Designated Agency Ethics Officials
(DAEOs)
When acting in an official capacity, federal public servants
each agency is to appoint a DAEO. The DAEO must be an
are expected to put the government’s interests ahead of
employee at an appropriate level to effectively coordinate
their own. Federal laws (e.g., the Ethics in Government Act,
the ethics program and demonstrate required knowledge
5 U.S.C. §§13101-13111) and regulations (e.g., Standards
and skills (5 C.F.R. §2638.104(b)). The DAEO implements
of Ethics Conduct for Employees of the Executive Branch,
the ethics program, including the collection and review of
5 C.F.R. §2635) provide for several programs to help
financial disclosure reports; evaluates and helps remediate
ensure that governmental officials abide 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. §13122(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
Representatives, and Senate; within 30 days of declaring
disclosure. To implement and run the required program,
candidacy or May 15, whichever is later).
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Executive Branch Ethics and Financial Disclosure Administration: The Role of Designated Agency Ethics Officials (DAEOs)
Once a covered employee files a financial disclosure report,
that the agency has a process for concurrently
the DAEO is to review the filing to ensure its completeness
notifying OGE when the agency refers a potential
and to identify holdings or liabilities that might violate or
criminal violation to the Department of Justice.
appear to violate federal law, executive orders, or agency-
specific statutes or regulations (5 U.S.C. §13108; 5 C.F.R.
For more information on financial disclosure, conflict
§2634.605). During review, DAEOs are generally
identification, and conflict remediation, see CRS In Focus
instructed to consider the employee’s circumstances and
IF11904, Financial Disclosure: Identifying and
position in the identification of potential conflicts of
Remediating Conflicts of Interest in the Executive Branch,
interest. The regulations (5 C.F.R. §2638.104(c)(8)) contain
by Jacob R. Straus.
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
1. Establish written procedures that fit the
disclosure forms, remediation of real or perceived conflicts
agency’s ethics policies and
of interest, and education and training, DAEOs have several
circumstances;
other responsibilities. These include maintenance of agency
ethics records, establishment of written procedures for
2. Require filers to comply with deadlines
financial disclosure, imposition of late filing fees in
and, in the event of noncompliance, take
appropriate circumstances, assistance with agency
appropriate action;
enforcement of ethics laws and regulations, and periodic
3. Impose late fees for untimely filing of
evaluation of ethics programs (5 C.F.R. §2638.104(c)).
disclosure reports;
4. Make referrals to the Inspector General or
Education, Training, and Advice
the Department of Justice in certain cases;
Beyond their duties administering the financial disclosure
5. Review financial disclosure reports with
requirements in the Ethics in Government Act, DAEOs are
an emphasis on preventing conflicts of
responsible for their agencies’ education and training
programs. Generally, education programs aim to “teach
interest;
employees how to identify government ethics issues and
6. Consult with filers and supervisors to
obtain assistance in complying with government ethics laws
evaluate potential conflicts of interest;
and regulations” (5 C.F.R. §2638.301). Education occurs
7. Certify financial disclosure statements in
through a variety of means, including the issuance of ethics
a timely manner and take appropriate
notices, initial ethics training for new employees, ethics
action with regard to filings that cannot
briefings and annual training for existing employees, advice
be certified; and
on current ethics laws, and guidance to former employees
8. Use information from financial disclosure
about postemployment restrictions.
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
remedy the conflict. There are several remediation options
financial disclosure filing and other ethics related
(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
or diversified trust (5 C.F.R. §2634.802(a)). Remediation
presidential nominations and appointments; maintains
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
notes on their “
OGE does not have enforcement authority. Rather,
Enforcement Responsibilities” webpage that
individual agencies, generally through the DAEO, are to
enforce required financial disclosure filings, review forms,
The DAEO, acting directly or through other
identify real or perceived conflicts of interest, and
officials, is responsible for assisting the agency in
remediate conflicts, within the confines of the law. OGE
enforcing ethics laws and regulations. To properly
provides resources and guidance to ensure that agencies can
assist the agency, the DAEO should work with the
adequately interpret, apply, and enforce the law, as
Inspector General, employee relations, labor
necessary.
relations, and human resources offices to
understand lines of responsibility and authority for
For more information on the Office of Government Ethics,
disciplinary or corrective action. The DAEO should
see CRS In Focus IF10634, Office of Government Ethics: A
also understand the penalties for ethics violations
Primer, by Jacob R. Straus.
and be aware of what safe harbor provisions may be
available to employees. Likewise, the DAEO
Jacob R. Straus, Specialist on the Congress
should understand government-wide requirements
to disclose waste, fraud, and abuse, as well as
IF12019
violations of criminal law. The DAEO also ensures

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Executive Branch Ethics and Financial Disclosure Administration: The Role of Designated Agency Ethics Officials (DAEOs)

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https://crsreports.congress.gov | IF12019 · VERSION 2 · UPDATED