HomeMy WebLinkAbout83-533 LippincottDale H. Lippincott, CPA
1028 Smethwyck Place
Bensalem, PA 19020
RE: Representation; Restriction; CPA
Dear Mr. Lippincott:
Malhng Address.
STATE ETHICS COMMISSION
P.O. BOX 1 179
HARRISBURG, PA 17108
TELEPHONE: 1717) 783 -1610
April 11, 1983
ADVICE OF COUNSEL
83 -533
This responds to your letter of February 21, 1983, in which you requested
advice from the State Ethics Commission.
Issue: You ask what restrictions the Ethics Act imposes upon you as a former
employee with the Department of Public Welfare.
Facts: You inform us that you were employed by the Commonwealth of
Pennsylvania, Department of the Auditor General, Bureau of Special Audits,
from January, 1972 through November 1978. In December, 1978, you became a
civil service employee, employed by the Pennsylvania Department of Public
Welfare, Office of M'dical Assistance, Bureau of Reimbursement Methods,
Division of Nursing Home Audits as a Field Auditor III (FA III) until April
29, 1982, when you retired with approximately ten years of government
service.
Your last job description indicates that you had substantial
responsibility in planning, developing and implementing audit review practices
and routines. You also participated in special projects such as developing
and updating an audit manual to include procedures, techniques and generally
accepted accounting principles. You were also responsible for interpreting
federal and state regulations in reporting requirements, and you participated
in on -site audit reviews in participating nursing homes. You also
participated in other discretionary duties such as reviewing field audit
reports for completeness and developing manual processes and programs
adaptable to computerization.
As a certified public accountant you are concerned with what restrictions
the Ethics Act places upon your participation in the administrative appeals
process and you have, therefore, requested an opinion from the State Ethics
Commission.
State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania
Dale H. Lippincott, CPA
April 11, 1983
Page 2
Discussion: In your position as a Field Auditor III, you were a public
employee within the meaning of the State Ethics Act. See 65 P.S. §401 et.
seq. As a former public employee, your conduct is regulated by Section 3(e)
of the Act, which provides:
(e) No former official or public employee shall represent
a person, with or without compensation, on any matter
before the governmental body with which he has been
associated for one yeap after he leaves that body.
65 P.S. 403(e).
In previous opinions, the Commission has held that the scope of an
employee's governmental body is that body with which the formal public
employee was capable of a certain influence or the body to which he made
recommendations. See Ewing, 79 -010; Alexander, 82 -506. In your case, the
governmental body with which you were associated is the Division of Nursing
Home Audits (hereinafter the Division) of the Department of Public Welfare.
Thus, you may not represent a person before the Division or before its
personnel for a period of one year from April 29, 1982, the date you
terminated your employment with the Commonwealth. Notably, this one -year
period will soon expire, but we give our response nevertheless.
The Commission has interpreted the term "representation" to preclude for
the one -year period, relative to the governmental body with which you were
associated, the following activities:
1. personally appearing before the Division of Nursing Home Audits,
including but not limited to the appeals process;
2. attempting to influence the Division or its personnel;
3. participating within this one -year period in any manner over a
specific case, matter, or contract over which you had supervision,
direct involvement, or responsibility while employed by the
Commonwealth. This prohibition relates to the Division only; it
does not preclude your participation on matters over which you had
specific responsibility so long as that participation does not
include representation as enunciated herein before the Division.
4. lobbying, that is, representing the interest of any person before
the Division for the one -year period as to legislation, regulations
etc. Morris, 80 -039; Russell, 80 -048.
5. signing and submitting under your own name correspondence,
proposals, appeals, or other items to the Division.
Dale H. Lippincott, CPA
April 11, 1983
Page 3
6. including your name on any type of proposal submitted to the
Division as the individual who would be involved in administering
any contract or providing any technical service on any contract
which is the subject of the proposal. Dalton, 80 -056; Kilareski,
80 -034.
While these restrictions apply to you for the one -year period following
your termination of service with the Commonwealth relative to the Division,
you may, nevertheless, engage in -the following activities even within the
one -year period:
1. administer, rather than negotiate or re- negotiate, any contract or
proposal that exists or is to be awarded to your future employer as
long as the contract is awarded without your name being included as
noted above in Items 5 and 6.
2. make general informational inquiries of the Division as long as no
attempt is being made to influence the Division as prohibited
above.
3. utilize the knowledge and expertise gained during your tenure as a
public employee relating to clients or other employers except as
outlined above.
4. appear and represent any person on behalf of any client or new
employer before any governmental body other than the Division.
As you recognize in your request, and as discussed above, whether or not
you are personally precluded from representing a client before the Division,
that restriction is personal to you and does not extend to the members of your
firm. Morris, - . Your client may, therefore, receive the benefit of
your expertise h e h you are able to represent him before the agency or
not.
Conclusion: Upon your termination of service with the Commonwealth, and
specifically with the Division of Nursing Home Audits, you became a former
public employee subject to the restrictions as delineated by the Ethics Act.
Your conduct should be guided by this advice, and you should take note of both
the prohibited and the allowable activities as noted above.
Additionally, as a former public employee, you must file a Financial
Interest Statement for each year that you held office and for the year
following your termination of service. Thus, a Statement of Financial
Interest should be filed no later than May 1, 1983, which represents the
filing required for the year following your termination of service. A form is
enclosed for your use.
Dale H. Lippincott, CPA
April 11, 1983
Page 4
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 such.
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 made, in
writing, to the Commission within 15 days of service of this Advice pursuant
to 51 Pa. Code 2.12.
CW /rdp
Enclosure
cc: Brian Baxter, Acting Secretary
333 Health & Welfare Bldg.
Department of Public Welfare
Sincerely,
Sandra S. Ch stianson
General Counsel