OGE Form 450_PRA Supporting Statement_2013 Renewal

U. S. OFFICE

OF

GOVERNMENT ETHICS

SUPPORTING STATEMENT

FOR THE

OGE FORM 450

EXECUTIVE BRANCH CONFIDENTIAL FINANCIAL DISCLOSURE REPORT

A. Justification
1. - 2. The authority for collection of the information on the existing
OGE Form 450 as provided in the underlying Office of Government Ethics (OGE)
regulation, primarily at subpart I of 5 C.F.R. part 2634, is two-fold. First, section 201(d)
of Executive Order 12674 of April 12, 1989, as amended, directs OGE to establish a
system of nonpublic (confidential) financial disclosure by executive branch employees to
complement the system of public disclosure under the Ethics in Government Act of 1978
as amended (EIGA), 5 U.S.C. appendix 101. Second, section 107(a) of EIGA authorizes
OGE, as the supervising ethics office for the executive branch of the Federal
Government, to require that executive agency employees file confidential financial
disclosure reports, “in such form as the supervising ethics office may prescribe.” The
OGE Form 450, together with the underlying OGE regulation initially adopted in 1992
and subsequently modified at 5 C.F.R. part 2634, constitutes the format prescribed by
OGE for such confidential financial disclosure in the executive branch. See OGE's recent
final rule amendments to its branchwide confidential financial disclosure regulation,
effective January 1, 2007, as published at Federal Register (FR) 71, 28229-28239
(May 16, 2006). OGE's prior proposed rule amendments to that regulation were
published at 70 FR 47138-47147 (August 12, 2005).
OGE is submitting an unmodified OGE Form 450 confidential financial
disclosure form package for review and approval of a three-year extension by the Office
of Management and Budget (OMB) under the Paperwork Reduction Act (control number
3209-0006). The OGE Form 450, a locally reproducible form, is the only executive
branchwide form used in departments and agencies for employee confidential disclosure.
OGE anticipates that in 2014 there will be a change (increase) by GSA in the
definition of "minimal value" under the Foreign Gifts and Decorations Act for the three
year period 2014-16. The reporting thresholds for gifts and reimbursements is now tied
to any such change under section 102(a)(2)(A) & (B) of EIGA and
5 C.F.R. §§ 2634.304 & 2634.907(a)(3) (§ 2634.907(g) of the regulation as amended
effective January 1, 2007). As a result, the OGE Form 450 gifts and reimbursements
overall and de minimis thresholds will most likely be raised from current levels after
OMB approves this request for paperwork renewal. 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 form 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 OGE Form 450 filers of the
thresholds adjustment.
3.
The OGE Form 450 is available on the OGE Website at
http://www.usoge.gov. The form is a viewable and downloadable PDF version of the
form that is both fillable and printable, providing a locally reproducible form for use as
needed by agencies and the public. In addition, OGE will continue to allow agencies to
electronically duplicate the OGE Form 450, provided that the electronic versions
precisely duplicate the paper original. The basis for these electronic initiatives is to
lessen burden and to facilitate dissemination to and use of the form by agencies and filers.
4.
Not applicable. The OGE Form 450 is the only executive branchwide
form used for employee confidential financial disclosure, though individual agencies
have obtained OGE approval for the collection of alternative forms, such as certificates of
no conflict, or have separate or supplemental disclosures of information based on
independent statutory authorities or other unique circumstances. OGE has also developed
an alternative, the OGE Optional Form 450-A Confidential Certificate of No New
Interests (Executive Branch). This alternate form is available for use by employees
whose agencies permit the optional use of that form, for certain years, in lieu of the
complete OGE Form 450. Based upon previous consultation with OMB, the OGE
Optional Form 450-A is only a certification and is not subject to paperwork clearance.
The OGE Form 450 remains the only executive branchwide, complete financial
disclosure report form for covered filers.
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
5 C.F.R. part 2634, subpart I, which OGE has promulgated under the cited statutory and
Executive order authority.
7.
No special circumstances exist as outlined in the instruction for this item.
The OGE Form 450, pursuant to EIGA, Executive Order 12674 as modified by
Executive Order 12731, and OGE’s implementing regulations, is a personal confidential
financial disclosure form filled out by individual agency employees and prospective
employees. The form is also subject to the protections of the Freedom of Information Act
and the Privacy Act.
8.
The information requested on the OGE Form 450 is required by the abovenoted
provisions
of
law
and
OGE’s
implementing
regulations
at
5 C.F.R. part 2634, subpart I. OGE published a first round Federal Register notice of
its intent to request paperwork clearance for an unmodified form on May 21, 2013.
See 78 FR 29753. OGE received two responses to that notice: one from a private citizen
and one from an executive branch ethics official. The private citizen suggested several
changes to the form including requiring filers to indicate whether or not a reported asset

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in Part I was over $15,000 and changing OGE’s underlying regulation to require filers to
report the value of any assets. OGE does not believe that making either change is
necessary or desirable because reporting specific asset values will not provide the ethics
official with sufficient information for making the required conflicts analysis. This
commenter also suggested that OGE create a customized version of the OGE Form 450
for special Government employee (SGE) filers. OGE does not see the need for an
additional form for use throughout the executive branch because agencies already have
available an alternative procedure process at 5 C.F.R § 2634.905(a) to collect the
information necessary to perform the conflicts analysis tailored for their SGE filers. The
comment from an executive branch agency ethics official suggested modifying the
instructions for Part III of the OGE Form 450 by adding more examples. OGE has
decided not to make this change to the form because this type of information is best
conveyed to filers in reference materials that can easily be updated. OGE will consider
creating reference materials containing additional descriptions of reportable positions to
those provided in the broad language of 5 C.F.R. § 2634.907(e)(1).
OGE published a second round Federal Register notice September 4, 2013.
See 78 FR 54466-54467. OGE received one comment from an executive branch agency
ethics official as a result of this notice. This official’s agency requested that OGE modify
its language in the filer certification section of the form. The commenter requested that
the existing language certifying that the filer has made true, complete, and correct
statements on the form to the best of the filer’s knowledge be replaced with language
certifying that he/she has no potential conflicts or that conflicts of interest have been
identified. OGE believes that the existing certification on the OGE Form 450 is
sufficient. The obligation of filers under the confidential financial disclosure regulations,
5 C.F.R. §§ 2634.901-909, is to report their financial interests and outside business
activities to their agencies. A truthful reporting is necessary for the agency ethics
officials to advise filers on possible conflicts of interest, and the current language requires
filers to make that certification. The regulation does not require filers to certify that they
have no conflicts of interest between their job duties and their investments and outside
business activities. An annual certification such as the agency ethics official proposes is
ineffective. The analysis of whether a filer has conflicts of interest continues throughout
the period of a filer’s executive branch employment and cannot be limited to the date on
which the filer signs a financial disclosure report.
OGE continually seeks comments from persons outside the agency 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, the
OMB Max site and various social media applications, and Advisory Memoranda sent to
designated agency ethics officers. Visitors to the OGE Website are provided the
opportunity to contact OGE with comments or suggestions. In addition, OGE has
remained open to any suggestions for improvement received in the course of public
comment on the first and second round paperwork notices published in the
Federal Register. Any ongoing comments received by OGE as a result of these various

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means of availability will be considered by OGE for the next paperwork renewal cycle in
three years.
9.

Not applicable. Respondents receive no payments or gifts.

10.
Assurance of confidentiality is provided to respondents directly in the
instructions to the OGE Form 450. That confidentiality is guaranteed by section 201(d)
of Executive Order 12674 (as modified), section 107(a) of the Ethics in Government Act
of 1978, 5 C.F.R. § 2634.604 of OGE's regulation and the OGE/GOVT-2 executive
branchwide Privacy Act system of records.
11.
All of the personal financial information required to be reported on the
OGE Form 450 as provided in 5 C.F.R. part 2634 is deemed necessary by OGE for
proper reporting by employees and for agency review for conflicts of interest purposes.
No information on religious beliefs or other sensitive non-financial personal information
is collected.
12.
Based on OGE's annual agency ethics program questionnaire responses for
2010 through 2012, OGE estimates that an average of approximately 259,432
OGE Form 450 reports will be filed each year for the next three years throughout the
executive branch. This estimate is based on the number of reports filed in the executive
branch for 2010 through 2012 (247,406 in 2010, and 246,579 in 2011, and 284,312 in
2012) for a total of 778,297 reports with that number, then divided by three to give the
projected annual average of 259,432 reports. Of these reports, OGE estimates that
7.65 percent, or some 19,847 per year, will be filed by private citizens. Private citizen
filers are those potential (incoming) regular employees whose positions are designated
for confidential disclosure filing as well as potential special Government employees
whose agencies require that they file their new entrant reports prior to assuming
Government responsibilities. No termination reports are required for the OGE Form 450.
Each form is estimated to take an average of one hour to complete. This yields an
annual reporting burden for private citizen filers of 19,847 burden hours. The estimated
annualized hour burden cost to private citizen respondents is $1,369,443. This estimate is
based on the average annual number of private citizen filers multiplied by an average filer
wage rate of $69 per hour (equal to a GS-14/4, fully loaded).
The annualized burden hours and burden hours cost during the most recent period
2010 through 2012, are slightly less than the amount reported previously for the
2006 through 2008 period because fewer OGE Form 450 reports were received by
executive branch agencies during the most recent reporting period. The reduction in total
annualized filers for this reporting period is noted in the Statement section of the ICR
Summary of Burden.
13.
For the OGE Form 450, OGE estimates annual burden hours and annual
burden hours cost, not annual cost burden to the respondents.

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14.-15.
OGE reported in the previous reporting period, 2006 through 2008, that
the estimated total annual cost of the OGE Form 450 to the Federal Government is
$70,400,000. This figure is comprised of: 1) $52,700,000, a percentage of the total
estimated annual cost of salaries (with benefits) 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 OGE Form
450 (6,124 full and part-time ethics employees in the salary range of SES to GS-7);
2) $16,800,000 in cost to the Government for the time spent by an estimated
243,544 Federal employee filers completing the form ($69 per hour average wage of a
GS-14/4, with benefits, multiplied by the estimated one hour required to complete the
form); and 3) $900,000 in estimated annual costs to OGE to develop, monitor, and
provide advisory and training support to department and agency ethics programs
administering the OGE Form 450 confidential financial reports program. OGE believes
that the estimated total annual cost of the OGE Form 450 to the Federal Government
reported in the previous three-year renewal submission of 2010, totaling $70,400,000,
will continue to accurately reflect costs for the 2013 through 2016 period. The largest
contributing factor in the cost computations is the wages of ethics officials to implement
the OGE Form 450. Federal wages have been frozen at the 2010 level since 2011, overall
inflation rates have remained historically low, and due to reduced staffing levels in
executive branch departments and agencies, there are fewer Federal employees and
private citizen new job entrants required to complete this form.
16.

Not applicable. This is a confidential financial disclosure reporting form.

17.
OGE requests permission to not display the expiration date on the
OGE Form 450 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

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