278 Modified 2010 Supporting Statement

U.S. Office Of Government Ethics
SUPPORTING STATEMENT FOR THE PROPOSED
OGE FORM 278 (CURRENTLY SF 278)
EXECUTIVE BRANCH PERSONNEL PUBLIC FINANCIAL DISCLOSURE REPORT

A. Justification
1. - 2. Section 101 of the Ethics in Government Act of 1978 as amended (the
Ethics Act). 5 U.S.C. appendix, and 5 C.F.R. part 2634, subpart B, require publicly
available financial disclosure reports to be filed by certain officers and high-level
employees in the executive branch. As the supervising ethics office for the executive
branch, OGE is the sponsoring agency for the Standard Form 278 Executive Branch
Personnel Public Financial Disclosure Report. Covered high-level executive department
and agency officials fill out the SF 278 form, listing their outside income, assets,
transactions,
gifts/reimbursements,
liabilities,
non-Government
employment
agreements/arrangements, outside positions and certain compensation in excess of $5,000
as specified in section 102 of the Ethics Act and subpart C of 5 C.F.R. part 2634.
The SF 278 reports are generally filed with the department or agency where the
covered high-level official serves, will serve or used to serve. The reports are required
upon entrance on duty, annually, and upon terminating Federal service. The executive
branch filers are high-level position new entrants, Presidential nominees subject to Senate
confirmation, candidates for President or Vice President, incumbents and those
terminating such Government positions.
The Office of Government Ethics is requesting a 3-year renewal of approval by
the Office of Management and Budget (OMB) under the Paperwork Reduction Act for
the Executive Branch Personnel Public Financial Disclosure Report form. The first and
second round paperwork notices published in the Federal Register noted that OGE
intended to submit the SF 278 form with no changes. See 75 FR 13287 (March 19,
2010); 75 FR 30831-30832 (June 2, 2010). Subsequent to the publication of these
notices, OGE proposes four non-significant changes to the form. First, withdrawal of the
form from the General Services Administration (GSA) Standard Forms program,
renaming the form the OGE Form 278; second, updating the triennial adjustment of the
gifts/travel reimbursement reporting thresholds; third, updating revisions to the Privacy
Act Statement; finally, reducing the amount of certain personally identifiable information
(street addresses) collected on this form.

Every three years OGE issues final rule amendments that revise the executive
branch financial disclosure regulation to increase the aggregation and exception
thresholds for reporting of gifts, reimbursements and travel expenses for the public and
confidential report systems. See 5 U.S.C. app. section 102(a)(2)(A) & (B). OGE's
threshold adjustments are tied to the "minimal value" threshold of the Foreign Gifts and
Decorations Act, as determined by GSA under 5 U.S.C. 7342. The SF 278 currently in
use reflects the reporting threshold amounts in effect in 2000. Since 2002, OGE has
asked agencies to notify filers of the SF 278 of the updated adjustments to the reporting
thresholds for gifts and reimbursements. Effective January 1, 2008, GSA raised the
"minimal value" threshold under 5 U.S.C. 7342 to $335 or less for the three-year period
2008-2010. See 73 FR 15387-15388 (March 24, 2008). Following GSA's action, OGE
advised agencies of the adjusted thresholds and revised its financial disclosure regulation
to reflect the increase in the thresholds for SF 278 reporting of gifts and travel
reimbursements received from any one source to "more than $335" for the aggregation
level for reporting and to "$134 or less" for the de minimis aggregation exception
threshold. See March 25, 2008 OGE memorandum to designated agency ethics officials
(DO-08-010) and 73 FR 7475 (February 8, 2008). Both GSA and OGE rulemakings and
OGE's memorandum are posted on the OGE Web site. Currently, OGE asks agencies to
inform SF 278 filers of the current reporting thresholds. OGE requests permission to
update those thresholds on the proposed OGE Form 278. OGE anticipates that in 2011
there will be another change (increase) by GSA in the definition of "minimal value"
under the Foreign Gifts and Decorations Act for the three year period 2011-2013. As a
result, the gifts and reimbursements overall and de minimis thresholds will most likely be
raised from current levels about six months after OMB approves this request for
paperwork renewal. Since the thresholds will likely be raised resulting in fewer items to
report, OGE requests permission to adjust those thresholds on the form without any
further paperwork clearance from OMB. Instead, OGE would notify OMB and provide it
with a copy of the updated branchwide financial disclosure regulation when the threshold
values are adjusted. At that time, OGE would also notify the executive branch
departments and agencies and ask them to notify their public financial disclosure report
filers of the further thresholds adjustment.
In 2003, OGE updated the OGE/GOVT-1 Privacy Act system of records notice
(covering SF 278 Public Financial Disclosure Reports and other name-retrieved ethics
program records). See 68 FR 3097-3109 (January 22, 2003), as corrected at 68 FR 24744
(May 8, 2003). As a result, the Privacy Act Statement, which includes summaries of the
routine uses on page 11 of the instructions on the SF 278, is affected. As explained in
OGE memorandum DO-03-015 and the SF 278 notice posted on the OGE Web site, the
system notice update added three new routine uses applicable to SF 278 reports.
Currently, OGE asks agencies to inform filers of the routine uses updates. OGE proposes
including the three additional new routine uses on the proposed OGE Form 278. In
addition, in response to OMB Memorandum M-07-16 (encouraging the reduction of
personally identifiable information collected “to the minimum necessary for the proper
performance of documented agency function”) OGE proposes minor changes to the
forms’ instructions to eliminate respondents’ need to report street addresses except on the
cover sheet of the form.

2

3.
OGE will make the proposed OGE Form 278 available to Federal
employees and private citizen filers through the Forms, Publications and Other Ethics
Documents section of OGE's Web site at www.usoge.gov. This site will provide two
different fillable options for preparing the OGE Form 278 on a computer (in addition to a
downloadable blank form).
At present there are approximately sixteen executive branch agencies offering the
option to electronically file the public financial disclosure report using internal agency
systems. OGE believes that eventually, once electronic filing systems become familiar to
filers and are implemented throughout the executive branch, electronic filing of this form
will shorten the time required to complete and submit the form. However, in those
agencies currently offering electronic filing of the form, this option is generally not
available to private citizen filers before entering Federal service, or to private citizen
former employees filing their final, termination report after leaving Federal service.
Moreover, the electronic filing option is available to only a limited number of Federal
employee filers compared to the total number of filers of the current SF 278 throughout
the executive branch. OGE does not believe that the limited agency implementation of
electronic filing initiatives significantly impacts any of its branchwide figures reporting
burden or costs to respondents or costs to the Federal Government as provided in this
current paperwork submission. For now, there is a rough balance between anticipated
future time and cost savings with the need for additional time and expenditures to
implement and adjust to new systems of form completion, collection and review. Please
see also Item 14, Costs to the Federal Government.
4.
Not applicable. The proposed OGE Form 278 is the only executive
branchwide form used for high-level employee public financial disclosure under title I of
the Ethics in Government Act and OGE's implementing regulations.
5.
Not applicable. This collection of information does not involve small
businesses or other small entities.
6.
Not applicable. The collection frequency is required by title I of the
Ethics in Government Act and 5 C.F.R. part 2634, subpart B of the OGE executive
branchwide regulations thereunder. (See also items 1-2 above.)
7.

No special circumstances exist as outlined in the instruction for this item.

8.
The information requested on the report form is required by the abovenoted provisions of the law and OGE's implementing regulations at 5 C.F.R. part 2634.
OGE provided a first round Federal Register paperwork notice concerning its intention to
submit a request for a three-year extension of approval for the SF 278. See 75 FR 13287
(March 19, 2010). No comments were received from the public or agencies in response
to this notice. A second round Federal Register paperwork notice has also been

3

published with any comments to be sent to OMB by July 2, 2010. See 75 FR 3083130832 (June 2, 2010).
OGE continually seeks comments from individuals and agencies concerning the
impact of its information collection instruments upon filers and agency ethics programs.
OGE provides opportunities for comment at ethics conferences and symposia. OGE
routinely alerts professionals in the ethics community to recently published OGE Federal
Register paperwork notices via the Ethics News and Information listserv and
"DAEOgram" memoranda sent to designated agency ethics officers. Visitors to the OGE
Internet Web site are provided the opportunity to contact OGE with comments or
suggestions. In addition, OGE remains open to any suggestions for improvement
received in the course of public comment on the second round Federal Register
paperwork notice. Comments received by OGE subsequent to this request for approval
will be considered for the next paperwork renewal cycle.
9.

Not applicable. Respondents received no payments or gifts.

10.
There is no assurance of confidentiality to the filers of this financial report
form. The proposed OGE FORM 278 is a public financial disclosure form, available to
the public for a six-year period upon the submission of a proper Ethics Act access request
form (OGE Form 201) in compliance with the provisions of section 105 of the Ethics Act
and OGE's implementing regulations at 5 C.F.R. § 2634.603.
11.
All of the information required on this report form and in the underlying
regulation is specified by current law for financial disclosure reporting by filing
individuals and conflict of interest review by executive branch departments and agencies.
12.
Based on OGE's annual agency ethics program questionnaire responses for
2006 through 2008, OGE estimates that an average of approximately 25,736 SF 278
report forms are filed annually at departments and agencies throughout the executive
branch. (Questionnaire response totals for 2009 are not yet available.) This estimate is
based on the number of reports filed branchwide for 2006 through 2008 (25,551 in 2006,
and 25,812 in 2007, and 25,846 in 2008) for a total of 77,209, with that number then
divided by three to give the projected annual average of 25,736 reports. Most of those
executive filers are current Federal employees at the time that they file. However, OGE
estimates that about 1,300, or about 5 percent, of the branchwide total of public financial
disclosure report filers over each of the next three years (2010-2012) will be members of
the public. This annual estimate includes (a) private citizen Presidential nominees to
executive branch positions subject to Senate confirmation (and their private
representatives  lawyers, accountants, brokers and bankers); (b) other private citizen
prospective new entrants to reportable positions; (c) those who file termination reports (or
combination annual and termination reports) from such positions after their Government
service ends; and (d) Presidential and Vice Presidential candidates. In the previous
reporting period, OGE factored into the estimate an additional 3,900 private citizen filers
in anticipation of the 2008 Presidential election and following transition. The estimated

4

number of filers in this submission for the 2010-2012 reporting period is lower because
the figures do not provide for an increase in filers to cover a presidential transition.
The estimated average amount of time to complete the report form, including review
of the instructions and gathering of needed information, remains the same as previously
reported, at three hours. Thus, the overall estimated annual public burden for the report
form for the private citizen/representative nominee and terminee filers processed in
executive branch agencies, and those report forms processed by the OGE, including
private citizen Presidential and Vice Presidential candidates report forms, is 3,900 hours.
The estimated annualized hour burden cost to private citizen respondents is $351,000.
This estimate is based on the average annual number of private citizen filers multiplied
by an average filer wage rate of $90 per hour (equal to a mid-level Senior Executive
Service (SES) salary, fully loaded).
13.
For the Executive Branch Personnel Public Financial Disclosure Report
form, OGE estimates annual burden hours and annual burden hours cost, not annual cost
burden to the respondents.
14.
The estimated total annual cost of the form to the Federal Government is
$21,000,000. This figure is comprised of: a) $11,400,000, a percentage of the total
estimated annual cost of salaries (fully loaded) for all full-time and part-time ethics
officials employed by executive branch departments and agencies to distribute, track,
review for accuracy and completeness, resolve conflict issues, and certify the SF 278
report forms (6,200 full- and part-time ethics employees in the salary range of SES to
GS-7); b) $6,600,000 estimated annual cost to the Government for the time spent by an
estimated 24,400 annual Federal employee filers ($90 per hour average wage of a midlevel SES salary, fully loaded, multiplied by the estimated three hours required to
complete the form); and c) $2,800,000 estimated annual costs to OGE to process those
SF 278 report forms reviewed by OGE, and to develop, monitor, and provide advisory
and training support to executive branch department and agency ethics programs
administering the SF 278 financial reports program.
At present there are approximately sixteen executive branch agencies (using ten different
electronic systems) that provide filers with the option to electronically file, and ethics
officials to review the report forms. OGE believes that eventually, once electronic filing
systems become familiar to filers and are implemented throughout the executive branch,
electronic filing of the form will shorten the time required to complete and submit, and
ethics officials to review and certify the report. At this time it is not possible to gather
data from multiple systems with which to make a meaningful estimate of cost efficiencies
realized. Furthermore, OGE does not track agencies’ expenditures to develop and
implement electronic filing systems for this form. These technology costs are not
included in the estimated total annual cost of the disclosure report form to the Federal
Government provided above.

5

15.
13 or 14.
16.

Not applicable. There were no program changes or adjustments for items

Not applicable.

17.
OGE requests continued permission not to display the expiration date on
the proposed OGE Form 278 so that it may continue to be used beyond the three-year
paperwork approval period requested, subject to appropriate further OMB approval, if the
form is not sooner modified.
18.
collection.

B.

Certification items (c), (f) and (i) are not applicable to this information

Collections of Information Employing Statistical Methods
Not applicable.
methods.

This collection of information does not employ statistical

6