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HomeMy WebLinkAbout89-547 KarpArdie L. Karp, C.P.A. 3033 W. Chestnut Ave. Altoona, PA 16601 Dear Mr. Karp: STATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL June 5, 1989 Re: FIS, Public Employee, Period of Reporting 89 -547 The financial disclosure appeal form dated May 3, 1989 which you have filed with the State Ethics Commission will be treated as an Advice of Counsel. Issue: Whether the State Ethics Act requires a public employee in his Financial Interests Statement to list his financial interests for the calendar year even though that individual terminates his employment during that year. Facts: You state that you worked for the Department of Revenue from January 1, 1988 through January 31, 1988 on an active basis and then received vacation during February and March of 1988. After advising that the foregoing can be verified by the records of the Department of Revenue, you assert that you do not understand why you should report any income received after January 31, 1988 since you were no longer an active Commonwealth employee. You state that you returned to the private sector for employment as of February 1, 1988 and it is no longer a matter of public concern as to what or from whom or where you earned your income. You conclude by asserting that you would be willing to file the statement covering the period`January 1, 1988 through January 31, 1988 if necessary. Discussion: As a Tax Auditing Manager in the Pennsylvania Department of Revenue, you are a "public employee" as the term is defined under the Ethics Act. 65 P.S. 402; 51 Pa. Code 51.1. As such, you are subject to the provisions of the State Ethics Act. Section 4(a) of the Ethics Act provides: Section 4. Statement of financial interests Ardie L. Karp, C.P.A. June 5, 1989 Page 2 Additionally, Section 5.2 of the regulations of the State Ethics Commission provides: required to be filed. (a) Each public employee employed by the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency or bureau in which he is employed no later than May 1, of each year that he holds such a position and of the year after he leaves such a position. Any other public employee shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. 65 P.S. 5404(a). S5.2. Period covered. The Statement of Financial Interests includes information for the full calendar year immediately preceding the year in which the Statement of Financial Interests is filed. 51 Pa. Code 55.2. Section 4(a) of the Ethics Act quoted above is clear in its direction that a public employee is required to file the Statement of Financial Interest no later than May 1, for each year that he holds such a position and for the year after he leaves such a position. Further, the regulations of the Commission require that the Statement of Financial Interest include information for the full calendar year. Therefore, based upon the statute and regulations of the State Ethics Commission you are required to file your Financial Interest Statement which would include all of your interests for the calendar year 1988. You, however, argue that because you left employment as of February 1, 1988 it is no longer a matter of the public concern as to what or from whom or where you earn the income. Aside from the fact that you must include your interest for the calendar year 1988 because that is what the law requires, you should be aware of the preamble of the Ethics Act which provides: Ardie L. Karp, C.P.A. June 5, 1989 Page 3 such. Section 1. Purpose. The legislature hereby declares that public office is a public trust and that any effort to realize personal financial gain through public office other than compensation provided by law is a violation of that trust. In order to strengthen the faith and confidence of the people of the State in their government, the Legislature further declares that the people have a right to be assured that the financial interests of holders of or candidates for public office present neither a conflict nor the appearance of a conflict with the public trust. Because public confidence in government; can best be sustained by assuring the people of the impartiality and honesty of public officials, this act shall be liberally construed to promote complete disclosure. 65 P.S. S401. Thus, as a public employee for the first month of the calendar year 1988, you held a position of public service and the people have a right to know of your financial interest during the 1988 calendar year. Conclusion: As a Tax Auditing Manager for the Department of Revenue you are a public employee subject to the provisions of the Ethics Act. Although you only worked from January 1, through January 31, 1988, you are required pursuant to Section 4(a) of the Ethics Act and Regulation 5.2 of the Ethics Commission to file a 1989 Financial Disclosure for the full 1988 calendar year. Pursuant to Section 7(9)(ii), this Advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, providing the requestor has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. This letter is a public record and will be made available as Finally, if you disagree with this Advice or if you have any reason to challenge same, you may request that the full Commission review this Advice. A personal appearance before the Commission will be scheduled and a formal Opinion from the Commission will be issued. Any such appeal must be in writing • Ardie L. Karp, C.P.A. June 5, 1989 Page 4 and must be received at the Commission within 15 days of the date of this Advice pursuant to 51 Pa. Code S2.12. S erely, 1--04) 40_ Vincent . Dopko, General Counsel