EMPLOYEE FINANCIAL REPORTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00154R000100030007-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: January 4, 2017
• Document Release Date: April 10, 2008
• Sequence Number: 7
• Publication Date: April 19, 1979
• Content Type: REGULATION

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This Notice Expires 1 Januar 1920
EMPLOYEENAANCIAL REPORTS
1. This notice alerts senior level employees to the far-reaching
changes in financial reporting requirements established by the Ethics
in Government Act of 1978, signed by the President in late October.
Several special aspects concerning intelligence officers also are noted.
Additional guidance from the Civil Service Commission is anticipated and
will be disseminated at a future date.
2. The new act provides that all officers and employees whose
positions are classified at GS-16 or above (and their equivalents) must
file with the Agency a detailed report of their financial interests.
Apparently, the reporting requirement is based on the grade of the position
rather than that of the employee. These reports are to be filed by 15 May
of each year to include information concerning the preceding year.
3. The Agency is required to make the reports available, to the public.
However, the act authorizes the President to exempt certain employees of
CIA and other intelligence agencies from the public-disclosure requirements
upon his finding that "due to the nature of the office or position occupied
by such individual, public disclosure of such report would, by revealing
the identity of the individual or other sensitive information, compromise
the national interest of the United States." A review of Agency, positions
is under way to determine what positions should be recommended to the
President as appropriate for exemption from the public disclosure provisions.
The act also provides that individuals exempted from the public disclosure
requirements "may be authorized. . . to file such additional reports as
are necessary to protect their identity from public disclosure if the
President first finds that such filing is necessary in the national interest."
This provision was included to permit compliance with the reporting require-
ments by intelligence personnel and also to maintain cover. Recommendations
in this area will be- proposed to the Director at an early date.
4. The financial interests to be reported must be made in much
oreater detail and specificity than has been required in the past under
existing Executive orders and regulations. For example (in general terms),
the following must be reported:
a. The source and type of dividends, rents, interest,
and canitai gains and an indication of the amount in terms of
any of seven specified ranges; i.e., "not more than $1000" to
"greater than $100,000."
STAT
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P ERSONNE L
b. The source, type, and amount of all other income
(except Government salaries). .
c. The source and adescription of gifts and enter-
tainment above a specified amount.
d. The identity and value of any interest in property
held for trade or business or for investment or the production
of income.
e. The identity and value of liabilities in excess of
$10,000, other than personal residence mortgages, and loans
for motor vehicles or household effects.
f. A description, the date and value of any purchase,
sale, or exchange of real property (other than personal
residence), stocks, bonds, commodity futures, and other forms
of securities.
g. The identity of positions held in any business
enterprise,_ nonprofit organization, labor organization, or
educational institution.
h. The identity of the source (other than the United
States Government) of any compensation in excess of $5,000
and a description of the. duties or services for which it was
paid.
y
whose Government employment ceases between the effective date of the act,
1
i. Extensive information on any trusts or other financial
arrangements in which the employee has a beneficial interest.
j. Certain financial interests of the employee's spouse
and dependent children also must be reported.
5. At this point it remains uncertain whether the reporting
requirements of the act will apply in the case of supergrade emplo
ees
provisions of the act are ambiguous in this regard and it may take
several weeks before a definitive interpretation emerges, but those
supergrade employees planning to retire on or after 1 January 1979 and
before 15 May 1979 should be aware of the possibility that reports
may be required. V
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January 1979, and the first specified filing date, 15 May 1979. The
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6. It should be understood that there is no way to know when
the President will act to exempt ac least some CIA employees from the
public disclosure provisions, but it seems almost certain that this
will not be done by the first few weeks of 1979. Thus, financial
reports filed by those employees who terminate in early 1979 would be
subject to public disclosure, at least until the President orders
otherwise.
7. Agency heads must report to the Attorney General "the name
of any individual he has reasonable cause to believe has willfully
failed to file a report or has willfully falsified" a report. The
Attorney General may bring a civil action against such individual,
in which event-the-court may assess a civil penalty against the individual
8. Reporting forms will be developed by the Civil Service
Commission and will be available at an early date. Employees who
file before such forms are available may do so by written submission.
9. The current Executive order requiring financial interests
reports and CIA regulations thereunder apply also to some employees
at less than GS-16 grades. Consideration of whether modification
or rescission of those Agency regulations would be appropriate in
view of the new statute is now being undertaken.
JOHN F. BLAKE
Deputy Director
for
Administration
DISTRIBUTION: ALL EMPLOYEES (1-6)
STAT
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