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In this application, the following definitions apply in understanding financial disclosure, conflicts of interest, and the administrative terms related to FDM.

278 Filer

Person required to file the OGE Form 278 disclosure report under the authority of the Ethics in Government Act of 1978, as amended (and for DoD employees, the Joint Ethics Regulation 7-200).

 

401(k) Plan

An arrangement in which an employee places pre-tax earnings, and sometimes matching employer contributions, into a tax deferred retirement account that the employer creates and maintains. The employer holds funds in trust until the employee reaches a specified age or leaves the company and rolls the account into another tax-deferred plan.

 

403(b) Plan

An arrangement in which an employee places pre-tax earnings into a tax deferred retirement account that a state or local government employer or non-profit organization creates and maintains. Plans generally offer limited choices of funds in which to invest.

 

450 Filer

Persons required to file the OGE Form 450 (Confidential Financial Disclosure report) under the authority of the Ethics in Government Act of 1978, as amended (and Joint Ethics Regulation 7-300 for DoD employees).

 

529 Plan (Prepaid Tuition Plan)

An education savings account or plan operated by a state or educational institution designed to help families accrue funds for future college costs. There are two types of plans – Prepaid Tuition Plans and Prepaid Savings Plans. See Prepaid College Tuition Plan and Prepaid College Savings Plan.

 

A-B

Alternate Designated Agency Ethics Official (ADAEO)

The official selected by the agency head to act in the capacity of the Designated Agency Ethics Official in the event of his/her absence. In FDM, an ADAEO and any Deputy DAEOs are authorized to certify financial disclosure reports for the agency.

 

Agency

Includes any executive agency as defined in 5 U.S.C. § 105—any executive department, Government corporation, or independent establishment in the executive branch; any military department as defined in 5 U.S.C. § 102; and the Postal Service and the Postal Regulatory Commission.

 

Annual

For FDM purposes, you are an annual filer if last year you filed an OGE Form 450 (or an OGE Form 450-A).

 

Amended

A financial disclosure report that has been changed and eSigned by the filer after the filer has submitted the report. Any financial disclosure report that is Under Review can be amended by the filer. Amending a report voids any eSignatures that were on the report when the filer amended it.

 

Amended Date

Date that a filer eSigned again, changes made to a report that was previously submitted.

 

Amendment in Progress

A financial disclosure report that is Under Review and currently being changed by the filer. Amending a report voids any eSignatures that were on the report when the filer started the amendment. The filer must eSign again the financial disclosure report before a reviewer can eSign it.

 

Annual Post-Employment Certification and Notification

DoD personnel who file Public Financial Disclosure Reports (OGE 278) must certify annually that they are aware of the disqualification and employment restrictions in 18 U.S.C. 207 and 208, and 41 U.S.C. 423, and that they have not violated those restrictions. The Annual Post-Employment Certification and Notification contains the contents of those provisions. DoD FDM 278 filers complete the required certification and acknowledgement concurrent with certifying the accuracy of the information reported in the OGE 278 when submitting the report.

 

Annuity

An annuity is a contract with a life insurance company, though sometimes marketed through banks and financial planners. The investor (annuitant) pays a premium to the insurance company in either a single payment or a series of payments. In return, the insurance company makes payments to the investor, beginning at some future time, such as retirement or at a specified age. Tax-deferred investment income accumulates in the annuity. The two basic types of annuities are:

Fixed annuities: These annuities offer a specified rate of return that the issuing company guarantees. Individual investors have no direct financial interest in how the insurance company invests the premiums. Investors do have an interest in the insurance company in that if it becomes insolvent, they can lose their money.

Variable annuities: These annuities offer investors a limited series of options in which they can invest, typically mutual funds. Investors choose how their money is invested and receive a return based on the performance of the investments they choose. Filers report the underlying assets when reporting a variable annuity. Generally, they are mutual funds and qualify as Excepted Investment Funds (EIF). In FDM 278, list the name of the underlying mutual fund and check the EIF box when applicable.

Report the annuity by indicating the name of the insurance company issuing the annuity. (Note: FDM 450 Filers do not report diversified mutual funds or annuities that hold only diversified mutual funds.)

Note: During the distribution phase, the amount of any payments received from the annuity need not be reported because such payments are merely a distribution from a previously-reported investment and its income. Filers must, however, report the actual amount of a payment received as a beneficiary of someone else's annuity, since it will not have been previously reported.

 

Appointment or Nomination Date

The date the filer entered a covered position or the President nominated them. The promotion date (not the frocking date) is the appointment date for General officer filers. Most filers will use their date of appointment when filling out this field on the OGE 278 or the OGE 450.

 

Asset Management Account

An asset management account, offered by a brokerage house, bank, or savings and loan, combines a number of financial services, such as checking, money market, brokerage, and margin accounts, or a revolving line of credit. These accounts allow a person to receive one statement that covers all of their finances. Customers sometimes use these accounts to shift assets and income automatically or as needed. For example, a person might have excess funds in a checking account automatically transferred to a money market account. Several variants of this account exist, with brand names like Cash Management Account, Active Assets Account, and Financial Management Account. Such accounts are known by such proprietary names as the Cash Management Account (Merrill Lynch), Active Assets Account (Morgan Stanley Dean Witter), or Schwab One Account (Charles Schwab) (from www.allbusiness.com). Filer must disclose the reportable underlying assets in the account. FDM users may use the Underlying Asset feature to first report the account name and then list each reportable underlying asset in the account.

 

Bonds (Corporate)

Corporate debt owed by an issuer to a bondholder – usually a promise to pay a specified rate of interest over a fixed rate of time. Filer must disclose the name of the asset on and identify it as a corporate bond.

 

C

Capital Gain

The difference between an asset's basis (usually the cost) and sale price. In appropriate cases, a Certificate of Divestiture allows a financial disclosure filer to defer paying taxes on capital gain.

 

Category of Amount

Reportable financial interests are disclosed either by actual amount or by category of amount, depending on the interest, as specified by the OGE 278 form.

 

Certificate of Divestiture

The certificate of divestiture (CD) was created by the Ethics in Government Act of 1978 to reduce the tax burden of divestiture that can occur when an employee is ordered to comply with ethics restrictions. It allows an employee to defer the payment of capital gains tax after a sale of a conflicting asset.

 

Collectible

Collectibles include virtually any items of personal property that are unique, limited in quantity, antique, or hold special quality or personal significance. Works of art, vintage automobiles, stamps, jewelry, gemstones, antique furniture, rare coins, and books are but a few examples. Filers must report collectibles.

 

Common Access Card (CAC)

An Agency smartcard issued as standard identification for agency personnel, selected reserve personnel, civilian employees, and eligible contractor personnel. The CAC is used as a general identification card as well as for authentication to enable access to agency Information technology assets. The CAC enables encrypting and cryptographically signing email, facilitating the use of PKI authentication tools, and establishes an authoritative process for the use of identity credentials.

 

CAC Digital Signature

Verify that the identity on the CAC Card matches the identity of the expected signer. If they do not match, the system informs the card holder to use the correct card. The process relies on a Public Key Infrastructure (PKI), possession of a CAC and knowledge of the PIN to ensure identity.

 

Career SES Employee

Career Senior Executive Service Employee.

 

Complete

The review status of a financial disclosure report whose required reviews are finished and has all the required eSignatures.

D

Defined Benefit Pension Plan

A pension plan by which an employer holds and invests pooled funds for all participating employees together, and the employer guarantees a fixed amount of benefits to employees after retirement.

 

Defined Contribution Pension Plan

A pension plan by which an employer or its agent maintains a separate account for each participating employee. Benefits at retirement depend upon the amount contributed and the investment performance of the plan's assets, which are selected by the employee or an independent manager.

 

Dependent Child

When used with respect to any reporting individual, a son, daughter, stepson, or stepdaughter who -- (1) Is unmarried and under age 21 and is living in the household of the reporting individual, or (2) Is a dependent of the reporting individual within the meaning of 26 U.S.C. § 152. See also the narrower term "minor child," as used in the conflict of interest statute.

 

Designated Agency Ethics Official (DAEO)

The primary officer or employee designated by the head of an agency to administer the provisions of title I of the Ethics in Government Act of 1978 and 5 C.F.R. part 2634 within an agency, and in his absence the alternate who is designated by the head of the agency. The term also includes a delegate of such an official, unless otherwise indicated. Subpart B of 5 C.F.R. part 2638 provides information on the appointment and additional responsibilities of a designated agency ethics official and alternate. The Designated Agency Ethics Official is the senior ethics official in an agency. A DAEO may appoint Deputy DAEOs.

 

Diversified Mutual Fund

This is a mutual fund that does not have a stated policy of concentrating its investments in one industry, business, single country other than the U.S., or bonds of a single state within the U.S. An OGE 450 filer does not report diversified mutual funds on OGE 450 reports. See also Mutual Fund and Sector Mutual Fund.

 

Dividend

A distribution of money or other property made by a corporation or other entity to its shareholders or investors out of its earnings and profits.

 

Draft

The Review Status of a financial disclosure report that has not been eSigned and submitted by the filer.

E

Earned Income

Earned income is contrasted with investment income. It includes wages, salaries, honoraria, commission, professional fees, and other forms of compensation for services. Filer must disclose on employment income earned in excess of $200 during the reporting period from any one source. However, filer does not report Federal employment or Federal retirement benefits (such as military retirement benefits). Filer must report spouse's employment source if spouse earned income in excess of $1,000 (not $200 like the filer). Filer is not required to report any earned income of dependent children. Filer must report on the position with any employer listed.

 

Electronic Signature (or eSignature)

An indication on an electronic record indicating that the signer approves or authorizes the record under the terms stated after going through an authentication process that verifies the identity of an individual and ensures that the person is who he or she claims to be. The verification relies only on FDM authentication of the user to ensure identity.

 

End Review

A reviewer assisting another reviewer may End Review to signify that the reviewer has completed review of a financial disclosure report. End Review is used when another reviewer (e.g., SLC, Supervisor) will actually eSign the report. End Review is not the same as eSigning a report in that it does not sign the report.

 

eSign

The last stage of the disclosure editing process which explains if the disclosure report is ready to be submitted and allows the Filer to submit the report for review by his/her supervisor and/or senior legal counsel. The "eSign" feature is available for both Filers and Reviewers.

 

Ethics Agreement

An ethics agreement is an arrangement that an employee or nominee makes with her agency to alleviate an actual or potential conflict of interest. It usually involves a promise to perform or seek one of the following: recusal, waiver, divestiture, resignation, reassignment, or qualified trust.

 

Ethics Counselor (EC) or Ethics Official

An agency employee who is delegated agency ethics program responsibilities. In DoD, an EC is an attorney appointed in writing to perform specific ethics program duties, including providing ethics advice to agency employees, administering the agency ethics program, and reviewing financial disclosure reports. Communications to an ethics counselor are not protected by the attorney-client privilege.

 

Excepted Investment Fund (EIF)

An EIF is a basic concept that reduces the degree of disclosure of certain investments. The concept of the EIF was created by statute and is solely a characterization for financial disclosure purposes. An EIF may include pooled investments such as mutual funds, common trust funds of a bank or other financial institution, unit investment trusts, and limited partnerships if they meet all of the following tests.

An EIF is an investment vehicle that is:
1. widely held;
2. either (a) publicly traded (or publicly available) or (b) widely diversified; and
3. independently managed, which means that it is arranged so that the filer neither exercises control nor has the ability to exercise control over the assets held in the investment vehicle.

To qualify as an EIF, an investment vehicle must satisfy the requirements of both paragraphs 1 and 3 above, and either 2(a) or 2(b). With regard to 2(b), "widely diversified" means that the investment pool:
1. holds no more than 5% of the value of its portfolio in the securities of any one issuer (other than the U.S. Government); and
2. holds no more than 20% of the value of its portfolio in any particular economic or geographic sector.

278 Filers should identify EIFs while 450 Filers do not.

 

Excepted Trust

A trust in which a filer has a vested interest, but no knowledge of the holdings. A trust is an excepted trust if it has both of the following characteristics:

the filer, the filer's spouse or dependent children did not create the trust; and

the filer, the filer's spouse or dependent children have no specific knowledge of the trust's holdings or sources of income through a report, disclosure, or constructive receipt, whether intended or inadvertent. Filers may never blind themselves from trusts by simply avoiding information that is made available to them.

For these types of trusts, the filers must indicate the general type of holdings to the extent known. The filer also would check "excepted trust" and provide the appropriate category of amount of income from the trust. Transactions involving trust assets cannot be reported because the filer does not know the trust's assets.

 

Exchange

An exchange generally occurs when one company acquires another. The shareholders of the acquired company are often given the option to sell their shares to the acquiring company or exchange their existing stock for stock of the acquiring company. When a filer exchanges his/her stock, they must specify both the stock tendered and the stock acquired in its place. For example, ABC Corporation recently acquired XYZ Corporation. ABC gave its shares to the shareholders of XYZ in exchange for their XYZ shares.

 

Exchange-Traded Fund (ETF)

An investment vehicle that holds numerous companies under one umbrella unified by a particular investing theme, such as companies that comprise the Dow Jones Industrial Average. Like mutual funds, ETFs may be diversified or may concentrate on a particular sector. Unlike mutual funds, ETFs are traded like stocks on the major stock exchanges. The following are the most common ETF types: DIAMONDs (track the Dow Jones Industrial Average), iShares (ETFs marketed by Barclays Global Investors), QUBEs (track the Nasdaq-100 index), Spiders or SPDRS (track a variety of Standard & Poors' indices), and VIPERs (ETFs marketed by Vanguard). Filer must disclose the full name of an ETF that concentrates on a sector.

 

F

FDM

Common abbreviation for Financial Disclosure Management, the online program to electronically file and manage financial disclosure reports.

 

Fiduciary

A person such as a trustee or executor who holds a special trust and confidence to act in good faith for another's benefit. A fiduciary can be held legally liable for breaches of her fiduciary duty.

 

Filing Date

This is the date a filer submits a financial disclosure report to the supervisor or senior legal counsel for review, usually the date the filer eSigns the report in FDM.

 

Flags

Flags identify missing or incomplete information on a financial disclosure report in FDM. Red flags identify required information that should be provided before the report is considered complete for filing (submission). Yellow flags are cautionary and may cause a request for additional information.

 

Funds Receivable

Filers and their spouses and dependent children may also serve as the lender for a loan, which is a receivable account. Additionally, other receivable accounts include compensation owed by a former employer and money owed to them for goods or services or as refunds, if income-producing. Filers must disclose a note or an account receivable unless it is a loan to a close relative. Filer must identify the borrower (helpful to include relation to filer and reason for loan). Loans between government employees could be problematic. If the loan is to a superior and a low interest rate is charged, the loan could be a gift to a superior.

 

Futures

Contracts or agreements obligating the holder to buy or sell a commodity (such as agricultural products, metals, and energy fuels) or a financial instrument at a stipulated price, quantity, and time.

G-L

Gift

A payment, advance, forbearance, rendering, or deposit of money, or anything of value, unless consideration of equal or greater value is received by the donor, but does not include:

(1) Bequests and other forms of inheritance;
(2) Suitable mementos of a function honoring the reporting individual;
(3) Food, lodging, transportation, and entertainment 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 or political subdivision thereof;
(4) Food and beverages which are not consumed in connection with a gift of overnight lodging;
(5) Communications to the offices of a reporting individual, including subscriptions to newspapers and periodicals;
(6) Consumable products provided by home-State businesses to the offices of the President or Vice President, if those products are intended for consumption by persons other than the President or Vice President; or
(7) Exclusions and exceptions as described at Sec. 2634.304(c) and (d).

Government Securities

Debt obligations issued by Federal, state, and local governments to help finance their programs and operations. Includes Treasury securities, government agency securities, and municipal securities.

Treasury Securities:

Debt obligations issued by the Federal Government and secured by the full faith and credit of the United States. Filer is not required to report these securities on the OGE 450. Includes the following 4 types of securities:

Treasury bills:	Short-term obligations with maturities of 1 year or less; issued at a discount from their maturity value
Treasury notes:	Intermediate-term obligations with maturities of 1 to 10 years
Treasury bonds:	Long-term obligations with maturities of 10 years or more
U.S. savings bonds:	Obligations issued in smaller denominations than Treasury bonds; issued either at a discount from maturity value or at face value with periodic interest

Government Agency
Securities:

Debt obligations issued by Federal agencies and U.S. Government-sponsored corporations to help finance their operations. The U.S. Government-sponsored corporations also sell equity shares or stock. Filer is not required to report the debt obligations on the OGE 450, but filer is required to report the stock he owns in a Government-sponsored corporation. Examples of some common agency security issuers are:

Freddie Mac:	Federal Home Loan Mortgage Corporation (FHLMC) (Government-sponsored corporation)
Fannie Mae:	Federal National Mortgage Association (FNMA) (Government-sponsored corporation)
Ginnie Mae:	Government National Mortgage Association (GNMA)
TVA:	Tennessee Valley Authority

Municipal Securities:

Debt obligations of cities, counties, and other local governments. Filer must report these securities. Two common types of municipal securities are:

General Obligation Bond (GO):	A debt obligation for general expenditures; backed by taxing and borrowing power. Filer must disclose on Part I the municipality that issued the bond and describe it as a GO bond.
Revenue Bond (REV):	A debt obligation used to finance specific public service projects; backed by cash flow from those projects. Filer must disclose on Part I the municipality that issued the bond and describe the type of bond (e.g., school).

 

Hedge Fund

Fund that seeks to profit in all kinds of markets by pursuing leveraging and other speculative investments that may increase the risk of investment loss. Filer must disclose the full name of the fund and the reportable underlying assets if the fund does not qualify as an excepted investment fund.

 

Honorarium

A payment of money or anything of value for an appearance, speech, or article, less any necessary travel expenses. Most federal employees may accept honoraria for activities that do not relate to their official duties (see exceptions at 5 CFR part 2636, subpart C). Filers must report honoraria and their sources. If the honorarium is received as compensation for an outside position, filer must report the position. Reviewers will want to verify that filer followed the requirements for participating in an outside activity and consider whether the honorarium is compensation for teaching, speaking, or writing that relates to their official duties (with an exception for teaching certain courses).

 

Income

Includes but is not limited to the following items: earned income such as compensation for services, fees, commissions, salaries, wages and similar items; gross income derived from business (and net income if the individual elects to include it); gains derived from dealings in property including capital gains; interest; rents; royalties; dividends; annuities; income from the investment portion of life insurance and endowment contracts; pensions; income from discharge of indebtedness; distributive share of partnership income; and income from an interest in an estate or trust. The term includes all income items, regardless of whether they are taxable for Federal income tax purposes, such as interest on municipal bonds. Generally, income means "gross income" as determined in conformity with the Internal Revenue Service principles.

 

Incumbent

An incumbent filer is an employee who has worked for more than 60 days during the previous calendar year in a position which required filing of an OGE 278. This includes individuals temporarily promoted to such a position or who are temporarily detailed to such a position.

 

Incumbent and Termination

An incumbent and termination filer is an employee who anticipates terminating his/her covered position employment within 90 days of the annual filing deadline (May 15th) and requests extensions from the appropriate Agency DAEO or designee for up to 90 days. In such a case, the filer may file one consolidated annual and termination report as late as August 13th. If an employee terminates his/her covered position prior to that date, a combined report may be filed no earlier than the date of termination, but must be filed within 30 days of termination of employment. In no event may the combined report be filed after August 13th.

 

Interest

Compensation for the use of money, usually stated as an annual rate.

 

Individual Retirement Account (IRA)

Generally a bank, brokerage, or mutual fund account that a person designated as a tax-deferred retirement account. All IRAs are "self-directed" because investors choose where to invest their retirement funds. IRAs may hold cash accounts, stocks, mutual funds, and other securities. Filer must disclose all reportable underlying assets in the IRA. For example, if Filer owns Fidelity Magellan as the only asset in an IRA report as Fidelity Magellan (IRA), mutual fund for asset type. 450 Filers would not report the IRA since Fidelity Magellan is a diversified mutual fund.

 

Investment Club

Individual investors often join together, either formally or informally, to form investment clubs. They form clubs for a variety of reasons, including limiting each individual's risk, assisting each other with investment decisions and advice, or participating in larger investments at lower commissions. To form an investment club, a group of persons pool limited or stated amounts of funds to invest together. Each member of the club contributes a certain amount of capital, with additional money added each month or quarter. Investment decisions are usually made by majority vote. These collaborations range from small, informal investment clubs to large groups with written agreements, charters, and bylaws.

 

Investment Income

Investment income is contrasted with earned income. It includes returns on investments, rather than compensation for personal services. Common forms of investment income are dividends, interest, capital gains, rents, royalties, and distributive shares.

 

Life Insurance

To the extent that an insurance policy is purely term life insurance, it does not require disclosure. Filers must report insurance that has an investment portion. Cash value insurance is part insurance and part investment. Such policies require premiums during the life of the insured person in exchange for a fixed sum of money to a beneficiary when the insured person dies. While part of these premiums pay for expenses and the insurance part of the policy, the remainder goes into a tax-deferred cash reserve which is invested and builds the policy's cash value. Filers must disclose cash value policies, including their choice of investments, if any. Filers need not report any transactions involving life insurance contracts. Filers also need not report any amount that they borrow against the cash value of their policies. OGE 278 Filers need to report all reportable underlying assets including diversified mutual funds. OGE 450 Filers do not report diversified mutual funds.

Term	Life insurance in which the beneficiaries receive a death benefit if the insured person dies during the term of the policy. Filer does NOT report term insurance.
Universal	Life insurance in which the insured person can vary the premiums by paying them with some of the accumulated cash value under the policy; person normally receives a minimum guaranteed rate of return at money market rates. Filer must disclose the name of the insurance company and the type of insurance (universal).
Variable	Life insurance in which the insured person chooses investments from among several company options, such as stock, bond, or money market portfolios. Filer must disclose the name of the insurance company, the type of insurance variable), and all reportable underlying assets.
Whole	Life insurance in which the insured person pays fixed premiums and has no control over the investments, which is left to the insuring company. Filer must disclose the name of the insurance company and the type of insurance(whole).

 

Limited Partnership (LP)

Entity formed when a group of individuals join together for the purpose of conducting or investing in a trade or business. It usually has one general partner who organizes and manages the operations and the partnership. The other investors are limited partners. Typically, LPs invest in real estate, hedge funds, oil and gas, and equipment for leasing. Filer must disclose the name of the partnership on Part I. If the LP is a private LP, filer must disclose additional information. See below.

Private Limited Partnership	An LP that has private investors and does not sell shares to the public. Filer must report on Part I the full name of the LP, the location (city and state) of the LP, and a brief description of its line of business or its purpose. If an investment LP does not meet the definition of an excepted investment fund, the underlying assets must be disclosed.
Public Limited Partnership	An LP that sells shares to the public. Filer must report on Part I the full name of the LP. Public LPs will usually meet the definition of an excepted investment fund. In the case of such an LP, filer is not required to disclose the reportable underlying assets.

 

Loan

A transaction in which one entity, the lender, allows another, the borrower, to use property. In return, the borrower customarily promises to return the lender's property after a specified period and to pay a finance charge. The property, often cash, is called the principal. The finance charge is usually based on an interest rate, which is a percentage of the principal. In addition, borrowers must often commit some valuable property to the lender as collateral that becomes the lender's if the borrower does not repay the loan (or defaults).

M

Managed Account/Fund (also called a separately managed account/fund)

A customized portfolio of stocks and/or bonds and cash that is guided by a professional investment manager. The manager buys and sells stock and/or bonds for [the] portfolio on [the investor's] behalf. From the "Individual Investors" page of the Morgan Stanley web site. These accounts may have names that are similar to mutual funds, but they are not mutual funds. They also do not qualify as excepted investment funds. Filer must disclose the reportable underlying assets in the account/fund.

 

Margin Account

Arrangement with a broker or financial institution permitting a customer to borrow in order to cover the cost of investment purchases.

 

Minor Child

A son or daughter who is under a state's age of legal competence, which is age 18 in most states. Prior to reaching a state's age of majority (legal competency), a minor cannot legally enter contracts, give legal consent, or otherwise transact business. Minor child is used in the conflict of interest statute (18 U.S.C. § 208) to describe those whose financial interests are attributed to a Government employee. See also the broader term "dependent child", as used in the financial disclosure law.

 

Mortgage

A loan to finance construction or purchase of real estate, whereby the borrower gives the lender a lien (a claim against the real estate) as security for repayment.

 

Mutual Fund

A portfolio of stocks, bonds, futures, options, money market instruments, or other securities, that is created and managed as an investment company and registered with the Securities and Exchange Commission. The mutual fund sells shares to investors and pools their money to purchase its investments.

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. Filer is not required to disclose diversified mutual funds on the OGE 450. Reviewers may have the filer check the fund's prospectus or call a broker or the manager of the fund to determine whether a mutual fund is diversified.

Sector Mutual Fund

A mutual fund that concentrates its investments in an industry, business, single country other than the United States, or bonds of a single state within the United States. Filer must disclose the name of the sector fund, including the fund family name. In addition to the full name, filer may provide the ticker symbol.

N

New Entrant – OGE 278

A new entrant filer is a Federal government employee who is required to file an OGE 278 when he or she first assumes a position that requires the employee to file an OGE 278. This does not include an employee who filed an OGE 278 in a previous position if less than 30 days have elapsed since leaving that position, or an employee who is not expected to work more than 60 days in a covered position in a calendar year, or certain employees who have filed as nominees or candidates for certain positions.

 

New Entrant – OGE 450

You are a new entrant if you did not file an OGE 450 or an OGE 450-A last year.

 

Non-Career SES Employee

Non-Career Senior Executive Service Employee.

O

Office of Government Ethics (OGE)

The Office of Government Ethics exercises leadership in the executive branch to prevent conflicts of interest on the part of Government employees, and to resolve those conflicts of interest that do occur. In partnership with executive branch agencies and departments, OGE fosters high ethical standards for employees and strengthens the public's confidence that the Government's business is conducted with impartiality and integrity.

 

OGE 278 of Record

The official version of the filer's OGE 278 report that is complete and subject to release upon proper request. The 278 of Record includes the cover page and schedules of the OGE 278 and any attachments and comments that are designated as included in the OGE 278 of Record.

 

Options

Contracts or agreements giving the holder the right (but not the legal obligation as with futures contracts) to buy or sell a commodity (such as agricultural products, metals, and energy fuels) or a financial instrument or stock at a stipulated price, quantity, and time.

P-Q

PAS Employee

A PAS Employee is one who holds a senior non-career position that requires nomination by the President and confirmation by the Senate.

 

Pension Plans:

Defined
Benefit
Plan

Pension plan in which employer makes a contribution to a pool that is held and invested for all participating employees. Employee will receive a fixed amount of benefits when he retires. Employee may know in advance the amount of his future benefits or, at a minimum, know the formula that determines the amount. Filer must disclose the name of the employer providing the plan and the type of pension interest (defined benefit plan) on Part I. Filer must disclose on Part IV the terms of the defined benefit plan.

Defined
Contribution
Plan

Pension plan in which employee makes contribution to an employer, who maintains a separate account for each employee. The employee chooses how the contributions will be invested. He will choose among several investment options, such as mutual funds and stocks. The benefits upon retirement depend on the performance of the plan's assets. Filer must disclose on Part I the reportable underlying assets of a defined contribution plan. Filer must disclose on Part IV the terms of the defined contribution plan. The following are examples of defined contribution plans:

401(k) Plan:	A defined contribution plan in which an employee places pre-tax earnings into a tax-deferred retirement account that a private industry employer creates and maintains.
403(b) Plan:	A defined contribution plan in which an employee places pre-tax earnings into a tax-deferred retirement account that a state or local government employer or a tax-exempt organization (such as a school or a non-profit organization) creates and maintains.
Keogh Plan (HR-10 plan):	Tax-deferred pension account for self-employed persons and employees of unincorporated businesses. Filer selects the investments that go into the account.
Simplified Employee Pension (SEP):	Tax-deferred plan for small employers with 25 employees or fewer. Filer selects the investments that go into the account.

 

Personal Hospitality of any Individual

Hospitality extended for a non-business purpose by an individual, not a corporation or organization, at the personal residence of or on property or facilities owned by that individual or his family.

 

Personal Residence

Any real property used exclusively as a private dwelling by the reporting individual or his spouse, which is not rented out during any portion of the reporting period. The term is not limited to one's domicile; there may be more than one personal residence, including a vacation home.

 

Personal Savings Account

Any form of deposit in a bank, savings and loan association, credit union or similar financial institution (5 C.F.R. §2634.301(c)(2)).

 

Prepaid college savings plan

Prepaid savings plans are investment accounts in which an individual chooses among offered investment options, usually mutual funds. The participant relies on the growth of these funds to pay for education expenses in the future.
Filer must disclose the name and sponsor of the plan (e.g. GIFT College Investing Plan (Arkansas)), the name of the portfolio (e.g., Vanguard Aggressive Growth Portfolio), and the reportable underlying assets in that portfolio. Note: 450 Filers do not need to report underlying assets that are diversified mutual funds.

 

Prepaid college tuition plan

An education savings account or plan operated by a state or educational institution designed to help families accrue funds for future college costs. There are two types of plans – Prepaid Tuition Plans and Prepaid Savings Plans. A 529 plan is a contract with a state or institution that allows a person to lock in tuition rates.
Filer must disclose the name and sponsor of the plan (e.g. Maryland Prepaid College Trust).

 

Principal

The basic amount of an investment, upon which the investor may accrue interest or other income.

 

Prohibited Source

In the Standards of Conduct, a prohibited source for gifts is any person (including an individual or entity) who:
(1) Is seeking official action by the employee's agency;
(2) Does business or seeks to do business with the employee's agency;
(3) Conducts activities regulated by the employee's agency;
(4) Has interests that may be substantially affected by performance or nonperformance of the employee's official duties; or
(5) Is an entity a majority of whose members are described in (1) through (4).

 

Qualified Trusts

Blind or diversified trusts authorized by the Ethics in Government Act as a means of avoiding conflicts of interest for employees with extensive financial holdings. A qualified blind or diversified trust will insulate an employee from the criminal provisions of 18 U.S.C. § 208. Qualified trusts require approval by the Office of Government Ethics and must follow specific statutory guidelines.

R

Real Estate

Typically includes residential property (e.g., homes, apartment buildings, hotels), commercial property (e.g., office buildings, business sites, shopping malls), and land held for agricultural use or mineral exploration (e.g., vacant lots are included if held for the production of income such as appreciation in value).
Filer is not required to report the home in which he lives. A personal residence has to be reported only if it is rented out and filer is receiving rental income from it. Filer must disclose the nature of any reportable real estate (residential, commercial, and undeveloped) and its location (city and state).

 

Real Estate Investment Trust (REIT)

Managed diversified portfolios of real estate and mortgages. REITs are usually publicly traded like mutual funds and qualify as excepted investment funds (EIF).

 

Recusal

Is an ethics agreement in which an employee disqualifies himself from acting in official matters involving entities that present a financial conflict of interest for him.

 

Relative

An individual who is related to the filer or reporting individual, as father, mother, son, daughter, brother, sister, uncle, aunt, great uncle, great aunt, first cousin, nephew, niece, husband, wife, grandfather, grandmother, grandson, granddaughter, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister, or who is the grandfather or grandmother of the spouse of the reporting individual, or who is the fiance or fiancee of the reporting individual.

 

Reportable Asset

An asset that meets the reporting threshold and is not a type of asset that is exempt from disclosure. (450 Filers do not report diversified mutual funds while 278 Filers do report diversified mutual funds.)

 

Reporting Individual

The term is synonymous with "filer" of an OGE 278, Public Financial Disclosure Report (see 5 C.F.R. § 2634.202) or OGE Form 450, Confidential Financial Disclosure Report (see 5 C.F.R. § 2634.904) and applicable agency regulations (e.g., for DoD, the Joint Ethics Regulation).

 

Reporting Status

Is a type of financial disclosure report an FDM filer can complete. For the 278 Filer, the Reporting Statuses are New Entrant, Incumbent, Termination, Incumbent/Termination. For the 450 Filer the Reporting Statuses are New Entrant and Annual.

 

Reporting Threshold

The minimum dollar amount that asset, income, liability, gift, or travel reimbursement must meet in order to be reported.

• For an asset: value greater than $1,000 at end of reporting period OR income (dividends, capital gains, rent) in excess of $200 during the reporting period.
• For honoraria: more than $200 from a single source during the reporting period.
• For filer's earned income: more than $200 from any one source during the reporting period.
• For earned income of filer's spouse: more than $1,000 from any one source during the reporting period.
• For liabilities: more than $10,000 owed to a single source at any time during the reporting period.

 

Reviewer

For FDM purposes, a person who checks a filer's financial disclosure report for accuracy and completeness and to identify those financial interests that may conflict with the Filer's official duties. Before eSigning the report, the reviewer must take appropriate steps to resolve any apparent conflicts of interest. For DoD filers the filer's Supervisor is a reviewer as is an ethics counselor or official.

 

Review Chain

The assigned users selected within FDM to review and eSign a filer's financial disclosure report before it is completed. See definition of "Complete".

 

Review Date

Review Date is the date on which a reviewer has completed a review of the report.

 

Reviewing Official

The designated agency ethics official or his delegate, the Secretary concerned, the head of the agency, or the Director of the Office of Government Ethics, who has the responsibility of examining and certifying an OGE 278.

S

Sector Mutual Fund

A mutual fund that concentrates its investments in an industry, business, single country other than the United States, or bonds of a single State within the United States (5 CFR 2640.103(q)).

 

Schedule C Employee

One who holds a Federal appointment for a position that is excepted from the competitive service because of its policy-determining nature or because it involves a close and confidential working relationship with the agency head or other top appointed official. Persons with this type of appointment range from secretaries and chauffeurs to policy advisors.

 

Senior Legal Counsel (SLC)

A term referring to senior ethics officials in a command, organization, or agency. In the Department of Defense, this person can be, for example, a Staff Judge Advocate, Command Judge Advocate, Chief Counsel, or General Counsel of the organization.

 

Signature Date

The date that a filer or reviewer digitally or electronically signed (eSigned) the financial disclosure report.

 

Special Government Employee (SGE)

SGEs are defined at 18 U.S.C. 202(a): Generally, employees performing temporary duty for 130 days or less in any 365 day period, including Reserve and National Guard officers while on active duty solely for training, or while serving involuntarily. While section 202(a) does not include enlisted members as SGEs, the Joint Ethics Regulation (JER), at section 1-232, applies the definition to enlisted members the same as it applies to officers. Unless excepted or required to file an OGE 278, all SGEs must file a 450. See 5 C.F.R. 2634.904(b). See exceptions in 7-300a(2) of the JER. One exception is reservists on active duty for less than 30 consecutive days in a calendar year.

 

Stock

Private Company:	Equity interest in a corporation. This type of equity interest is not available to the public. Usually issued directly to those who formed the company or provided capital to the company. Filer must report on Part I the full name of the company, the location (city and state) of the company, and a brief description of the nature of the company's business.
Publicly Traded Company:	Equity interest in a corporation. This type of equity interest is available to the public and traded on an exchange. Reviewers can locate information about publicly traded stocks in the newspaper, on the internet, or in other financial services publications. Filer must report the full name of the company on Part I. In addition to the full name, the filer may also report the ticker symbol.

 

Stock Options

Rights to buy or sell stocks at specified quantities and prices within a certain time period. Some options are a form of employee benefit. These types of options are not purchased or sold over an exchange. They are granted by a company to its employees as part of an incentive and compensation plan. Filer must disclose on Part I the name of the corporation that issued the options and identify the asset as stock options.

 

Submitted

The term used to collectively describe those FDM disclosure report Review Statuses that are not Draft. This includes the Under Review, Amended, Submitted to ADAEO, and Complete Review Status.

 

Submitted Date

The original date the filer electronically submitted a financial disclosure report. Amending a report after it has been submitted will not change the submitted date.

T

Termination

A Reporting Status for an employee who is leaving a covered position that requires the filer to file an OGE 278. This report is due within 30 days after leaving the covered position.

 

Termination Date

The 278 filer's last day in the position. It is the last day paid for that position. For military personnel it is usually the day entered on the retired rolls (not the day transition or terminal leave started).

 

TIAA-CREF

The Teachers' Insurance and Annuity Association—College Retirement Equities Fund (TIAA-CREF) is one of the largest private pension funds in the United States. In addition to operating a pension system for people employed in academic and research fields, it offers to the general public a variety of investment products, such as annuities, diversified mutual funds, and sector mutual funds. Filer must disclose the reportable assets selected from TIAA-CREF.

Treasuries

Debt obligations, such as U.S. Treasury bills, notes and bonds, issued by the Federal Government and secured by the full faith and credit (power to tax and borrow) of the United States.

Trust

A trust is a formal, legal arrangement by which legal title and management responsibility for a person's property is given to a fiduciary, known as the trustee. The person who creates the trust is known as the grantor, settlor or donor. The property put into the trust is called the corpus (the body, literally), trust res (the thing in trust, literally), trust fund, or trust estate. Those who are designated to receive income from or ultimately the corpus of the trust are known as beneficiaries. Generally, filers need to report holdings and income from any trust or estate in which they, their spouse or dependent children hold a vested beneficial interest in principal or income. Income received in the form of a distribution from a trust is required to be reported by the filer in actual amount if a filer does not have a beneficial interest and the trust holdings have not been individually reported. Distributions to spouses and dependent children are not required to be reported. Consult your Ethics Official for assistance in reporting trusts.
If the filer, spouse, or dependent child has a reportable vested beneficial interest in the principal or income of the trust, the filer must disclose the name of the trust and all reportable underlying assets. If the filer is a trustee and receives a fee over $200, filer must make a separate entry for her service as trustee to indicate that she received earned income for this work. Filer must always report a trustee position, whether it is compensated or uncompensated.

 

U-V

Underlying Assets

Assets that are held in another investment vehicle in which a filer has a financial interest. For example, a filer's underlying assets may include the portfolio holdings of a partnership, a trust, or an investment fund. Full disclosure often requires a filer to report both the investment vehicle itself and the underlying assets that it holds, unless the investment vehicle is an Excepted Investment Fund (EIF). For example, if Trust X holds Stocks 1, 2, and 3, you should report both Trust X and Stocks 1, 2, and 3 because the stocks are the underlying assets of the trust.

 

Under Review

The review status of a financial disclosure report after the filer has eSigned and submitted their report for review.

 

Value

In determining the monetary equivalent for assets and gifts, value is a good faith estimate of the fair market value if the exact value is neither known nor easily obtainable by the reporting individual without undue hardship or expense. In the case of any interest in property, see the alternative valuation options in 5 C.F.R. § 2634.301(e). For gifts and reimbursements, see 5 C.F.R. § 2634.304(e) & 5 CFR 2634.904(g)(4).

 

Vested Interest

The concept of a vested interest is extremely important--if an interest is not vested, a filer need not report it and will not have a financial interest under the conflict statute. For example, merely being named as an heir in a will by someone who is still living does not create a financial interest in the estate, because the will can be changed. Similarly, persons do not have a vested beneficial interest in a trust when their legal right is conditioned on some uncertain future event. A person has a vested interest in a trust or estate if he has a present legal right to its property or income (including the authority to dispose of the property or income), even if that right is defeasible (subject to being revoked or voided). Uncertainty as to when property will be received does not establish that it is non-vested. Rather, uncertainty as to whether the person is presently entitled to the property indicates that it is non-vested.

 

W

Waiver

Under the conflict of interest statute, 18 U.S.C. § 208, a waiver permits an employee to participate in specified Government matters which would otherwise conflict with private financial interests. Section 208(b)(1) and (b)(3) of the statute details the conditions under which a waiver may be granted. It must be issued in writing by the employee's appointing official or delegate. (The statute also provides, in section 208(b)(2), for exemptions by OGE regulation, for certain remote or inconsequential financial interests common to a large number of employees.)

 

Widely Diversified

Widely diversified is a central element of the definition of an Excepted Investment Fund and of a Qualified Trust. A fund (or a qualified trust) is widely diversified if it holds no more than 5% of the value of its portfolio in the securities of any one issuer (other than the United States Government) and no more than 20% in any particular economic or geographic sector.

X-Z

 

No entries for this letter.