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HomeMy WebLinkAbout25-528 Tully PHONE: 717-783-1610 STATE ETHICS COMMISSION FACSIMILE: 717-787-0806 TOLL FREE: 1-800-932-0936 FINANCE BUILDING WEBSITE: www.ethics.pa.gov 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120-0400 ADVICE OF COUNSEL June 2, 2025 To the Requester: Kevin T. Tully 25-528 Dear Mr. Tully: This responds to your Financial Disclosure Appeal Form received May 23, 2025, which will be treated as a request for an advisory from the Pennsylvania State Ethics Commission (“Commission”) as to the issue presented below: Issue: Whether, as a Fiscal Management Specialist 2 with the Pennsylvania Department of Education (“Department of Education”) under job code 08120, you are a “public employee” subject to the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 etseq., and the Regulations of the State Ethics Commission, 51 Pa. Code § 11.1 etseq., and particularly, the requirements for filing Statements of Financial Interests. Brief Answer: YES. Upon review of your official Commonwealth position description and the job classification specifications under job code 08120, as aFiscal Management Specialist 2 with the Department of Education, you are a “public employee” subject to the provisions of the Ethics Act and the Regulations of the State Ethics Commission, and you are therefore required to file Statements of Financial Interests pursuant to the Ethics Act. Facts: You seek a determination as to whether, as a Fiscal Management Specialist 2 with the Department of Education under job code 08120, you area “public employee” subject to the Ethics Act and the Regulations of the State Ethics Commission, and in particular, the requirements for filing Statements of Financial Interests. Tully, 25-528 June 2, 2025 Page 2 You have submitted a copy of your official Commonwealth position description (the “Position Description”), which document is incorporated herein by reference. A copy of the job classification specifications for the position of Fiscal Management Specialist 2 (job code 08120) has been obtained and is also incorporated herein by reference. Per the Position Description, aFiscal Management Specialist 2 prepares, reviews, and analyzes fiscal information for the Department of Education. A Fiscal Management Specialist 2 is responsible for monitoring, analyzing, and controlling revenue, financial commitments, and expenditures against the state CTE allocation and federal grant awards, budget, grants, contracts, and other financial data. The duties of a Fiscal Management Specialist 2 include the following: Managing the work of staff in the development of grant guidelines to ensure they meet laws, regulations and standards governing programs and ensuring that staff follow fiscal guidelines to approve and disapprove budgets and expenditures; Creating special reports and managing staff analyses of requests made by the Pennsylvania General Assembly, the Bureau of Fiscal Management, and Department of Education management; Managing the collection, examination, and summarization of fiscal information for presentation and justification of an agency budget request, legislative hearing budget package, and rebudget; Managing the development, monitoring, and interpretation of spending plans and other projections for the use and availability of funds in compliance with statutes, policies, or other fiscal controls; Monitoring sources of federal and other non-state revenue against the rebudget plan and investigating variances from estimates to determine appropriate action; and Researching and preparing financial information used in the budgeting and rebudgeting process. Position Description, at 1-2. Per the Position Description, the decision making responsibilities of a Fiscal Management Specialist 2 include routinely making decisions regarding the development of fiscal guidelines and processes, allowability of costs, application of federal and state regulations, audit resolutions and fiscal management policies for federal grants. Per the job classification specificationsunder job code 08120, a Fiscal Management Specialist 2 performs complex or supervisory work in monitoring, analyzing, and controlling revenue, financial commitments, and expenditures against a budget, grants, contracts, or other financial data to advise management on the appropriate use and ensure the ongoing availability of agency funds. The work involves reviewing and approving or recommending adjustments to requests for the use of funds as well as preparing and reviewing agency budget requests, legislative budget packages, and rebudgets. The examples of work performed by a Fiscal Management Specialist 2 include the following: Prepares and analyzes reports that reflect assets, liabilities, reserves, fund balances, revenue and receipts, appropriations, commitments, expenditures, or other financial obligations for the purposes of providing recommendations on the use of funds and maintaining budgetary controls; Tully, 25-528 June 2, 2025 Page 3 Collects, examines, and summarizes fiscal information for presentation and justification of an agency budget request, legislative hearing budget package, and rebudget; Develops, monitors, and interprets spending plans and other projections for the use and availability of funds in compliance with statutes, policies, or other fiscal controls; Researches and prepares information used in developing grant requests, distribution of grant awards, and financial audits of grant recipients or sub-recipients, and ensures compliance with related policies, regulations, and fiscal controls; Monitors, corrects, and reconciles records of revenue, financial commitments, and expenditures for financial and budgetary account closing and lapsing processes; Conducts periodic meetings with program managers to review spending plans, projections, and other fiscal information, and provides guidance and direction on the use and availability of funds; Reviews and approves, disapproves, or recommends adjustments to requests for financial commitments and expenditures; Assists in the development and implementation of, and ensures compliance with, fiscal policies and controls related to the financial management of state and federal funds, grants, entitlements, contracts, or other fiscal-related agreements; Supervises or conducts the review, analysis, processing, and adjustment of financial transactions affecting budgetary, operating, or other accounts; and Performs the full range of supervisory functions. Job classification specifications (job code 08120), at 2. Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of therequester to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requester has truthfully disclosed all of the material facts. Section 1104(a) of the Ethics Act provides, in pertinent part, that each public official and public employee of the Commonwealth must file a Statement of Financial Interests for the preceding calendar year by May 1 of each year that he holds the positionand the year after he leaves the position: § 1104. Statement of financial interests required to be filed (a) Public official or public employee.--Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of Tully, 25-528 June 2, 2025 Page 4 the year after he leaves such a position. Each public employee and public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to which he is appointed or elected 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 or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Persons who are full-time or part-time solicitors for political subdivisions are required to file under this section. 65 Pa.C.S. § 1104(a)(Emphasis added). The Ethics Act defines the term “public employee” as follows: § 1102. Definitions “Public employee.”Any individual employed by the Commonwealth or a political subdivision who is responsible for taking or recommending official action of a nonministerial nature with regard to: (1) contracting or procurement; (2) administering or monitoring grants or subsidies; (3) planning or zoning; (4) inspecting, licensing, regulating or auditing any person; or (5) any other activity where the official action has an economic impact of greater than a de minimis nature on the interests of any person. The term shall not include individuals who are employed by this Commonwealth or any political subdivision thereof in teaching as distinguished from administrative duties. 65 Pa.C.S. § 1102. The Regulations of the State Ethics Commission similarly define the term “public employee” and set forth the following additional criteria: (ii)The following criteria will be used, in part, to determine whether an individual is within the definition of “public employe”: Tully,25-528 June 2, 2025 Page 5 (A) The individual normally performs his responsibility in the field without onsite supervision. (B) The individual is the immediate supervisor of a person who normally performs his responsibility in the field without onsite supervision. (C) The individual is the supervisor of a highest level field office. (D) The individual has the authority to make final decisions. (E) The individual has the authority to forward or stop recommendations from being sent to the person or body with the authority to make final decisions. (F) The individual prepares or supervises the preparation of final recommendations. (G) The individual makes final technical recommendations. (H) The individual’s recommendations or actions are an inherent and recurring part of his position. (I) The individual’s recommendations or actions affect organizations other than his own organization. (iii) The term does not include individuals who are employed by the Commonwealth or a political subdivision of the Commonwealth in teaching as distinguished from administrative duties. (iv) Persons in the following positions are generally considered public employes: (A) Executive and special directors or assistants reporting directly to the agency head or governing body. (B) Commonwealth bureau directors, division chiefs or heads of equivalent organization elements and other governmental body department heads. (C) Staff attorneys engaged in representing the department, agency or other governmental bodies. (D) Engineers, managers and secretary-treasurers acting as managers, police chiefs, chief clerks, chief purchasing Tully,25-528 June 2, 2025 Page 6 agents, grant and contract managers, administrative officers, housing and building inspectors, investigators, auditors, sewer enforcement officers and zoning officers in all governmental bodies. (E)Court administrators, assistants for fiscal affairs and deputies for the minor judiciary. (F)School superintendents, assistant superintendents, school business managers and principals. (G) Persons who report directly to heads of executive, legislative and independent agencies, boards and commissions except clerical personnel. (v) Persons in the following positions are generally not considered public employes: (A)City clerks, other clerical staff, road masters, secretaries, police officers, maintenance workers, construction workers, equipment operators and recreation directors. (B)Law clerks, court criers, court reporters, probation officers, security guards and writ servers. (C) School teachers and clerks of the schools. 51 Pa. Code § 11.1. The following terms are relevant to your inquiry and are defined in the Ethics Act as follows: § 1102. Definitions “Ministerial action.” An action that a person performs in a prescribed manner in obedience to the mandate of legal authority, without regard to or the exercise of the person’s own judgment as to the desirability of the action being taken. “Nonministerial actions.”An action in which the person exercises his own judgment as to the desirability of the action taken. 65 Pa.C.S. § 1102. Status as a “public employee” subject to the Ethics Act is determined by an objective test. The objective test applies the Ethics Act’s definition of the term “public employee” and the related Tully, 25-528 June 2, 2025 Page 7 regulatory criteria to the powers and duties of the position itself. Typically, the powers and duties of the position are established by objective sources that define the position, such as the job description, job classification specifications, and organizational chart. The objective test considers what an individual has the authority to do in a given position based upon these objective sources, rather than the variable functions that the individual may actually perform in the position. See, Phillips v. State Ethics Commission, 470 A.2d 659 (Pa. Cmwlth. 1984); Eiben, Opinion 04-002; Shienvold, Opinion 04-001; Shearer, Opinion 03-011. The Commonwealth Court of Pennsylvania has specifically considered and approved this Commission’s objective test and has directed that coverage under the Ethics Act be construed broadly and that exclusions under the Ethics Act be construed narrowly. See, Quaglia v. State Ethics Commission, 986 A.2d 974 (Pa. Cmwlth. 2010), amended by, 2010 Pa. Commw. LEXIS 8 (Pa. Cmwlth. January 5, 2010), allocatordenied, 607 Pa. 708, 4 A.3d 1056 (2010); Phillips, supra. The first portion of the statutory definition of “public employee” includes individuals with authority to take or recommend official action of a nonministerial nature. 65 Pa.C.S. § 1102. Likewise, the regulatory criteria for determining status as a public employee, as set forth in 51 Pa. Code § 11.1 (“public employee”)(ii), include not only individuals with authority to make final decisions but also individuals with authority to forward or stop recommendations from being sent to final decision-makers; individuals who prepare or supervise the preparation of final recommendations; individuals who make final technical recommendations; and individuals whose recommendations are an inherent and recurring part of their positions. See,e.g., Reese/Gilliland, Opinion 05-005. Conclusion: In applying the objective test in the instant matter, the necessary conclusion is that in your capacity as aFiscal Management Specialist 2 with the Department of Education under job code 08120, you are a “public employee” subject to the Ethics Act. It is clear that as a Fiscal Management Specialist 2 under job code 08120, you have the ability to take or recommend official action of a nonministerial nature with respect to subparagraph (5) within the definition of “public employee” as set forth in the Ethics Act, 65 Pa.C.S. § 1102. Specifically, your authority to: Manage the work of staff in the development of grant guidelines to ensure they meet laws, regulations and standards governing programs and ensure that staff follow fiscal guidelines to approve and disapprove budgets and expenditures; Manage the collection, examination, and summarization of fiscal information for presentation and justification of an agency budget request, legislative hearing budget package, and rebudget; Manage the development, monitoring, and interpretation of spending plans and other projections for the use and availability of funds in compliance with statutes, policies, or other fiscal controls; Monitor sources of federal and other non-state revenue against the rebudget plan and investigate variances from estimates to determine appropriate action; Tully, 25-528 June 2, 2025 Page 8 Make decisions regarding the development of fiscal guidelines and processes, allowability of costs, application of federal and state regulations, audit resolutions and fiscal management policies for federal grants; Review and approve or recommend adjustments to requests for the use of funds and prepare and review agency budget requests, legislative budget packages, and rebudgets; Prepare and analyze reports that reflect assets, liabilities, reserves, fund balances, revenue and receipts, appropriations, commitments, expenditures, or other financial obligations for the purposes of providing recommendations on the use of funds and maintaining budgetary controls; Develop, monitor, and interpret spending plans and other projections for the use and availability of funds in compliance with statutes, policies, or other fiscal controls; Monitor, correct, and reconcile records of revenue, financial commitments, and expenditures for financial and budgetary account closing and lapsing processes; Review and approve, disapprove, or recommend adjustments to requests for financial commitments and expenditures; Assist in the development and implementation of, and ensure compliance with, fiscal policies and controls related to the financial management of state and federal funds, grants, entitlements, contracts, or other fiscal-related agreements; and Supervise or conduct the review, analysis, processing, and adjustment of financial transactions affecting budgetary, operating, or other accounts, would be sufficient to establish your status as a “public employee” subject to the Ethics Act. The foregoing duties/authority would also meet the criteria for determining your status as a public employee under the Regulations of the State Ethics Commission, specifically at 51 Pa. Code § 11.1, “public employee,” subparagraphs (i) and (ii). Therefore, you are advised that as a Fiscal Management Specialist 2 with the Department of Education under job code 08120, you are a “public employee” subject to the provisions of the Ethics Act, and you are therefore required to file Statements of Financial Interests pursuant to the Ethics Act. Pursuant to Section 1107(11) of the Ethics Act, an 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, provided the requester 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 appeal the Advice to the full Commission. A personal appearance before the Commission will be scheduled and a formal Opinion will be issued by the Commission. Any such appeal must be in writing and must be actually receivedat the Commission within thirty (30) days of the date of this Advice pursuant to 51 Pa. Code § 13.2(h). The appeal may be Tully,25-528 June 2, 2025 Page 9 received at the Commission by hand delivery, United States mail, delivery service, or by FAX transmission (717-787-0806). Failure to file such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Respectfully, Bridget K. Guilfoyle, Chief Counsel