HomeMy WebLinkAbout83-552 MillerMalhng Address
STATE ETHICS COMMISSION
P.O. BOX 1179
HARRISBURG, PA 17108
TELEPHONE: (717) 783 -1610
May 27, 1983
ADVICE OF COUNSEL
Mr. Stanley A. Miller, Commissioner
Bureau of Professional & Occupational Affairs
Harrisburg, Pennsylvania 17120
RE: State Board of Examiners of Public Accountants, Board of Directors of the
National Association of State Boards of Accountancy
Dear Commissioner Miller:
83 -552
This responds to your letter of April 1, 1983, in which you, as
Commissioner of the Bureau of Professional and Occupational Affairs, requested
an opinion from the State Ethics Commission.
Issue: You presented the question of whether or not a member of the State
Board of Examiners of Public Accountants may serve on the Board of Directors
of the National Association of State Boards of Accountancy (NASBA).
Facts: You write that NASBA is an association through which information of
common interest to state licensing boards of accountants is transferred. This
exchange of information is accomplished through the dissemination of a
newsletter and intermittent conferences and meetings. Additionally, NASBA
serves as a clearing house of information concerning individual state boards
to the extent that NASBA will collect information from all constituient
regions, compile this information and distribute, for instance, draft
legislation, opinions on questions of experience and recent developments in
educational qualifications. NASBA is an association independent from any
professional society representing certified public accountants or public
accountants. You were concerned with whether or not a member of the State
Board of Examiners of Public Accountants may serve with NASBA.
Discussion: Members of the State Board of Examiners of Public Accountants are
public officials subject to the Ethics Act, 65 P.S. 402 and the restrictions
imposed by the Ethics Act as interpreted by the Ethics Commission. At this
point, the Commission observes that its authority extends only to the
interpretation and enforcement of the Ethics Act. As such, it does not
interpret or enforce any of the provisions set forth in the Administrative
Code or any other statute or regulation, and this advice will address only the
restrictions and prohibitions derived from the Ethics Act.
State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania
Mr. Stanley A. Miller, Commissioner
May 27, 1983
Page 2
Section 1 of the Ethics Act states that the financial interest of public
officials shall "present neither a conflict nor the appearance of a conflict
with the public trust." 65 P.S. 401. A conflict has been said to exist,
according to the Commission, when an individual represents two or more persons
whose interests are adverse to each other. Alfano, 80 -007.
Service as a member of the Board of Directors of NASBA, independent of
any State -wide association, would not seem to present a conflict or the
appearance of a conflict of: interest under Alfano, supra. As you have
indicated, NASBA operates at the national level and represents its interest
nation -wide. As such, it operates independently of any State association and
does not constitute a professional society. Thus, simultaneous service as a
member of the State Board of Examiners of Public Accountants and membership on
the NASBA Board of Directors on the facts you have provided would not per se
present a conflict of interest prohibited by the State Ethics Law.
This ruling, of course, is based upon the assumption that we can see no
apparent adversity between the interests of the Board member on NASBA. You
should be advised, however, that should a Board member who also wishes to
serve as a Board Director stand in_a relationship with the NASBA as did the
requestor in Vavro, 79 -074, a different response might arise. Likewise, we
assume that NASBA is not similar to the groups addressed by this Commission's
Opinion in Allen /Lutton, 79 -024.
Of course, if any NASBA matter of question does come before the Board of -
Examiners, the NASBA Director would be required to abstain from participating
including voting on same. Miller, 80 -006.
• Conclusion: Based upon the facts presented and assumptions expressed herein,
members of the State Board of Examiners of Public Accountants may serve on the
Board of Directors of the National Association of State Boards of Accountancy
(NASBA) without violating the Ethics Act. Such persons must conform their .
conduct to the above discussion in such roles. •
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 conmitted the acts crnnplained
of in reliance on the Advice given.
This letter is a public record and will be made available as such.
Mr. Stanley A. Miller, Commissioner
May 27, 1983
Page 3
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