ETHICS T. Recent Media Spotlights Statistics Source: State of Florida Commission on Ethics, Annual Report to the Florida Legislature for Calendar Year.

ETHICS

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Recent Media Spotlights

Statistics

Source: State of Florida Commission on Ethics,Annual Report to the Florida Legislature for Calendar Year 2012

POSITION# of

COMPLAINTS% of

TOTAL

State Elected Officer 76 25.7%

State Appointed Officers 2 0.7%

State Employee 17 5.7%

District Elected Officer 16 5.4%

District Appointed Officers 2 0.7%

District Employee 7 2.4%

County Elected Officer 43 14.5%

County Appointed Officer 3 1%

County Employee 9 3%

Municipal Elected Officer 67 22.6%

Municipal Appointed Officer 10 3.4%

Municipal Employee 37 12.5%

Judicial 2 0.7%

Candidate 5 1.7%

TOTAL 296 100%

Of the 296 complaints received in 2012, 123 were dismissed for

lack of legal sufficiency; 85 were ordered to be investigated; and

88 were pending legal sufficiency determination at the end of the

year.

Statistics

Source: State of Florida Commission on Ethics,Annual Report to the Florida Legislature for Calendar Year 2012

Of the 296 complaints received in 2012, the Commission’s Executive Director ordered an investigation of 85 complaints as of December 31, 2012. A breakdown of the allegations made in complaints found sufficient for investigation is illustrated below.

Statistics

Source: State of Florida Commission on Ethics,Annual Report to the Florida Legislature for Calendar Year 2012

Ten Year History of Complaints

2012 296

2011 169

2010 190

2009 176

2008 167

2007 256

2006 288

2005 190

2004 243

2003 209

Advice Giving Actions

Source: State of Florida Commission on Ethics,Annual Report to the Florida Legislature for Calendar Year 2012

Anyone within the jurisdiction of the

Ethics Commission may submit a

written Request for an Opinion

(RQO) or an Inquiry (INQ) as to the

proper interpretation or applicability

of ordinances within the ethics

Commission’s purview. The

request must pertain to the

particular facts of the individual’s

situation. In 2012, the Ethics

Commission issued 23 advisory

opinions and responses to inquiries.

MY PERSPECTIVEAS A CPA

(not an attorney)T

Generic Definition and Examples of Conflict of Interest

A conflict of interest (COI) occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other.

The presence of a conflict of interest is independent from the execution of impropriety. Therefore, a conflict of interest can be discovered and voluntarily defused before any corruption occurs.

•Self-dealing, in which an official who controls an organization causes it to enter into a transaction with the official, or with another organization that benefits the official. The official is on both sides of the “deal.”

•Outside employment, in which the interests of one job contradict another.

•Family interests, in which a spouse, child, or other close relative is employed (or applies for employment) or where goods or services are purchased from such a relative or a firm controlled by a relative.

•Gifts from friends who also do business with a person receiving the gifts. (Such gifts may include non-tangible things of value such as transportation and lodging.)

Ways to Mitigate Conflicts of Interest

• Removal: The best way to handle conflicts of interests is to avoid them entirely. For example, someone elected to political office might sell all corporate stocks that he/she owns before taking office, and resign from all corporate boards.

• Disclosure: Commonly, politicians and high-ranking government officials are required to disclose financial information—assets such as stock, debts such as loans, and/or corporate positions held, typically annually.

• Recusal: Those with a conflict of interest are expected to recuse themselves from (i.e. abstain from) decisions where such a conflict exists. The imperative for recusal varies depending upon the circumstances and profession, either as common sense ethics, codified ethics, or by statute.

• Third-party evaluations

• Codes of ethics

Financial Fraud

• Management or other employees have an incentive or are under pressure, which provides a reason to commit fraud.

• Circumstances exist (for example, the absence of controls, ineffective controls, or the ability of management to override controls) that provide an opportunity for a fraud to be perpetrated.

• Those involved are able to rationalize committing a fraudulent act.

FLORIDA’SETHICS LAWS

(Florida Commission on Ethics)T

Florida’s Ethics Laws

Goals Types

• Promote public interest and maintain the respect of the people for their government

• Ensure public officials conduct themselves independently and impartially, not using their offices for private gain other than compensation provided by law

• Those that prohibit certain actions

• Those requiring certain disclosures be made to the public

PROHIBITEDACTIONS OR CONDUCT

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Prohibited Actions or Conduct• Solicitation and acceptance of gifts

• Prohibited from soliciting anything of value such as a gift, loan, reward, promise of future employment, favors or service based on an understanding that their vote, official action or judgment would be influenced.

• Unauthorized compensation• Prohibited from accepting any compensation or payment or thing of value

when they know, or with the exercise of responsible care should know, that it is given to influence a vote or other official action (includes spouses and minor children).

• Misuse of public position• Prohibited from corruptly using or attempting to use their official position to

obtain a special privilege for themselves or others.

• Disclosure of certain information• Prohibited from disclosing or using information not available to the public and

obtained by access of their public positions for the personal benefit of themselves or others.

Prohibited Employment and Business Relationships

• Doing Business with One’s Agency• Prohibited from purchasing, renting or leasing any realty, goods or

services for his/her agency from a business entity in which there is more than a 5% interest (includes spouse or child).

• Conflicting Employment or Contractual Relationship

• Prohibited from holding any employment or having a contractual relationship which will pose frequently recurring conflict between private interest and public duties or which will impede the full factual discharge of public duties.

• Exemptions MAY apply. Examples:• Businesses rotated amongst all qualified suppliers in city or county

• Business awarded by sealed bid

Other Ethics Laws

• Restrictions on Appointing, Employing and Contracting with Relatives

• Post Office Holding and Employment Restrictions

• Voting Conflict of Interest

• Disclosures

KEY ELEMENTS INGOVERNANCE POLICIES

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Key Elements

• Goal: Inspire trust in the organization

• Trust: “See” ethical culture via corporate transparency

• Principle Centered Leadership: Sets tone

• Transparency: Provides information actively (without being prompted)

• Stakeholder Voice: Employees/citizens

• Ethical Culture: Reinforced from above components

Source: Journal of Accountancy, October 2010

Ethics Programs

• Written standards

• Anonymous advice help lines

• Anonymous reporting

• Training

IT’S LOVELYat theTOP

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It’s Lovely at the Top

• Identity theory

• Disconnect between top management’s positive perception of ethical environment and less positive perception of lower level employees

• Create opportunities for regularly scheduled interactions between two groups

• Joint training

• Regular and detailed briefings on information collected through whistleblower reporting centers

Real Life

How is this related to YOU as an Government employee?

Using Public Property/Resources or Position for Personal Gain

• Vehicles/equipment

• Telephone

• Supplies

• Pcards/tavel

• Overtime

• Special privileges

• What if a commissioner asks me to do it?

Avoiding Business Relationship that May Create a Conflict of Interest

• Avoid lending to or borrowing money from any supplier

• Avoid business relationships with personal friends

• Avoid noticeable displays of affection, which may give an impression of impropriety

• Avoiding holding business meetings with suppliers outside the office

Gift Acceptance

• Examples of gifts

• As a government employee, may I accept a gift, tip or gratuity?

• What is the best way to prevent an appearance of impropriety regarding gifts?

• Are any gifts absolutely not allowed?

RESPONSIBILITY(Abuse)

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“The closest to perfection a person ever comesis when he fills out a job application form.”

--Stanly J. Randall

“A computer lets you make more mistakes fasterthan any invention in human history—with the possible

exceptions of handguns and tequila.”--Mitch Radcliffe

Responsibility

• Expenditures—the newspaper test

• Time, skills and energy applied to the position

• Personal work/business on county time

• Purchase without prejudice—striving to obtain maximum value for each dollar of expenditure

• Don’t ask don’t tell mentality

Personal Integrity

• Respect and protect sensitive information (medical)

• Citizens rights

• Public records vs. public information

• Management principles—fairness, impartiality and consistency

Reporting

Do I know how to reportconcerns or ask questions?

REAL LIFESCENARIOS

Scenario One

The Assistant County Manager was troubled by a decision the Public Works Director had made to hire a consultant. The consultant is well qualified to do the work for the county, but there is a catch: she is living with the County Manager! The Assistant, who noted that the County Manager had disclosed this relationship to the County Board of Supervisors, remained concerned that the consulting work created an appearance of a conflict of interest for the county.

Scenario Two

A City Manager has an active presence on Facebook and is friends with the City Attorney. The attorney asks the City Manager to be a “fan” of his law firm on Facebook.

Is this okay under the International City/County Management Association (ICMA) Standards?

Scenario Three

A county employee is asked to play golf in a charity tournament with a vendor with whom the county transacts significant business. The vendor is going to pay for the employee’s participation in the tournament which includes the round of golf and lunch.

Scenario Four

The county’s fiscal year-end is approaching. Actual expenditures for supplies are substantially under current budgeted amounts. The manager of the department asks you to make bulk purchases of supplies to be used in the department in the future months to prevent the supplies budget from being reduced in future years. Normally supplies are purchased on an as needed basis.

Scenario Five

A county employee has been performing to job expectations. The supervisor of the department is aware the individual’s earnings provide the bulk of the financial support to his/her family. Due to budget constraints, raises have not been awarded in the past two years. Giving the employee above expectation marks on their performance appraisal may provide an opportunity for the individual to be eligible for a step/grade promotion which would allow the employee the opportunity to earn additional salary.

Questions?