Appendix A: Definitions and Other Information

American Depositary Receipt

An American depositary receipt (ADR) is a certificate representing shares of a foreign security. It is a form of indirect ownership of foreign securities that are not traded directly on a national exchange in the United States. Financial institutions purchase the underlying securities on foreign exchanges through their foreign branches, and these foreign branches remain the custodians of the securities. Through these foreign branches, the financial institutions hold legal title to the underlying stock.

Many ADRs are registered with the U.S. Securities and Exchange Commission and traded on national exchanges; however, some ADRs are not registered and traded on national exchanges. Investors purchase these non-registered ADRs directly from their issuers or through other private trades (i.e., “over the counter”).

An “American depositary share” corresponds to a single share of the underlying security. An ADR may confer ownership rights to a specified number of American depositary shares, representing the investor’s indirect interest in the underlying foreign security that the issuing institution holds in its foreign branch.

Annuity (fixed)

A fixed annuity is a contract with an insurance company offering a guaranteed, specified rate of return.

Annuity (indexed)

An indexed annuity is a contract with a life insurance company in which the rate of return is based on the performance of a specific index. Typically, the linkage does not pass all gains/losses of the index to the contract but rather a portion, often with a cap on gains, a floor on losses, and/or a “buffer/shield” against some initial losses. The contract may also subtract a portion of the return for fees. An indexed annuity is similar to a variable annuity but typically would not provide for a set of investment options. An indexed annuity is also similar to an equity index-linked note but, unlike equity index-linked notes, has the tax-deferred accrual and subsequent annuity-distribution phases of other annuity types.

Annuity (variable)

A variable annuity is a contract with a life insurance company in which the rate of return is based on the performance of investment options chosen by the investor. The investment options are typically mutual funds. Some variable annuities, however, also provide a fixed account option that pays a set rate of interest.

Asset: Definition

For purposes of financial disclosure, an “asset” refers to an interest in property held in a trade or business or for investment or the production of income.

OGE has determined that certain items, by their nature, are held for investment or the production of income, regardless of the subjective belief of the asset holder. Examples of such designated reportable assets include, but are not limited to:

• stocks, bonds, mutual funds, and other securities;
• personal bank accounts;
• retirement interests (e.g., defined benefit plan or defined contribution plan);
• fixed and variable annuities;
• whole, universal, and variable life insurance;
• certain beneficial interests in trusts and estates;
• virtual currency (or cryptocurrency);
• accounts or other funds receivable;
• income receivables, such as anticipated bonuses, severance, and honoraria; and
• capital accounts or other asset ownership in a business.

Real estate is generally viewed as per se held for investment or the production of income; however, filers do not need to report a personal residence or a residential property held solely for rent-free use by a family member. Allowing a family member to stay rent-free temporarily in a house purchased for resale would not convert what is clearly an investment property into a non-investment, instrumental-use asset.

Asset Related to Employment or Retirement: Examples

The types of assets disclosed in Part 2 and Part 5 of the report include:

• deferred compensation;
• defined benefit plan;
• defined contribution plan (e.g., 401(k) plan, 403(b) plan, 457 plan, TIAA account);
• employee stock ownership plan;
• employee stock purchase plan;
• employer stock obtained through employment (e.g., by exercising a stock option);
• farm operated as a business (i.e., not a passive investment);
• incentive stock option;
• individual retirement account (IRA);
• intellectual property;
• investment fund created by an employer solely for employees;
• phantom stock;
• restricted stock;
• restricted stock unit;
• self-funded defined benefit plan;
• split-dollar life insurance; and
• stock appreciation right.

Asset: Valuation

You typically should value a publicly traded security based on its exchange value. In other cases, you should use some recognized indication of value for the type of asset, such as:

• a recent purchase price (if the purchase date is noted);
• a recent appraisal;
• the market value of the property as assessed for tax purposes;
• the book value of non-publicly traded stock;
• the face value of corporate bonds or comparable securities;
• the net worth of a business partnership; or
• the equity value of an individually owned business.

A good faith estimate of the fair market value may be made in any case in which the exact value cannot be obtained without undue hardship or expense.

If you are unable to make a good faith estimate of the value of an asset, you may indicate on the report that the “value is not readily ascertainable” in lieu of marking a category of value. Note, however, that you generally should be able to make a good faith estimate of value for operating businesses. In addition, a reviewing ethics official may ask you to provide additional details about the nature of an asset for which a value has not been provided.

Boat Loan

A boat loan is a loan secured by a boat. A loan secured by a boat for personal use is generally reportable.

Bond (corporate)

Corporations issue bonds to raise money. Bonds constitute a debt owed by the corporate issuer to the bondholder, usually with the promise to pay a specified rate of interest over a fixed period of time. Alternatively, bonds may be issued at a discount, with interest income being the difference between the discount (purchase) price and redemption value. Some bonds are secured by collateral, while others, such as debentures, are backed only by the company’s good faith and credit standing.

Bond (municipal)

Municipal bonds, often called munis, are debt obligations of states, cities, counties, or other political subdivisions of states in the United States. The two primary types of municipal bonds are general obligation and revenue.

• A general obligation bond is used for general expenditures and is backed by the issuer’s full faith and credit (taxing and borrowing power).
• A revenue bond is used to finance a specific public service project and is backed by the cash flow from that project. Examples are bonds to finance bridges, turnpikes, tunnels, water and sewer systems, schools, power plants, prisons, transportation systems, hospitals, sports complexes, and airports.

Brokerage Account

A brokerage account (also called an “asset management account”) is an account through which individual investors can make investments. The account may hold cash, money market funds, mutual funds, stocks, and bonds. The individual who establishes the account owns the investments in that account.

Business Assets

You are not required to report assets of a trade or business, unless those interests are unrelated to the operations of the business.

Publicly traded corporations: Assets of a publicly traded corporation are deemed to be related to the operations of the business for purposes of financial disclosure. Consequently, one need not perform any further test with respect to such interests.

Businesses that are not publicly traded : One needs to consider factors, such as the type of asset and its relationship to the economic activity conducted by the business.

No one factor is necessarily dispositive; however, in many cases, the type of asset itself will demonstrate a nexus between the asset and operations of the business, which removes the need for further analysis. For example, in OGE’s experience, a filer would not need to itemize office furniture, equipment, supplies, inventory, accounts receivable, working capital funds, or real estate used in the operations of the business.

Business Development Corporation (BDC)

A BDC is a type of closed-end investment fund that often makes investments in developing and financially-distressed companies, which do not have access to other financing options like issuing bonds. BDCs invest for income as well as for capital appreciation, and often hold debt securities as well as stocks (private or public) in their investment portfolios. Investors may equate BDCs to private equity funds, but unlike private equity funds, many BDCs are open to retail investors and are publicly traded. OGE views BDCs as investment funds. Many of the publicly traded BDCs have “capital corporation,” “finance corporation,” or “investment corporation” as part of their name, but often are not easy to identify by name. Ethics officials can determine whether an asset is a BDC by looking up the asset on an online financial website (e.g., Yahoo! Finance or Google Finance) or the U.S. Securities and Exchange Commission’s company filing search engine, EDGAR.

Capital Commitment

A capital commitment is a legal right stemming from a contract that allows an investment firm to demand money that an investor has agreed to contribute. For example, when an investor buys into an investment fund, the investor may not have to contribute all of the money that the investor has pledged to give the firm that manages the investment fund. The fund’s managers in the firm may wait before collecting money from their investors to purchase the fund’s investments, or they may collect money in installments on an as-needed basis. When the investment fund is ready to purchase investments, the firm will issue a capital call to its investors in order to raise money for the investment fund’s purchases, at which time the investors will need to contribute their promised funds to the firm.

Carried Interest

Carried interests are also known as “profit interests” and “incentive fees.” For purposes of financial disclosure, a carried interest is an arrangement that stipulates the right to future payments based on the performance of an investment fund or business.

Carried interests are generally given to managers, advisors, and consultants in private equity, real estate, venture capital, oil and gas, and small business.

Cash Account

For purposes of financial disclosure, the term “cash account” includes all deposit accounts in a bank, savings and loan association, credit union, or similar financial institution (e.g., checking accounts, savings accounts, certificates of deposit, and money market accounts), as well as sweep accounts. The term “cash account” does not include money market funds, which are different from money market accounts.

Cash Balance Pension Plan

A cash balance pension plan is a type of defined benefit plan in which the employer makes contributions to the employee’s account and guarantees a specific rate of return, regardless of the profitability of the plan’s investments. The employer generally makes investment decisions concerning the holdings of the plan and bears the risks of investment.

Each year, the employee receives a pay credit that is proportional to a percentage of the employee’s salary and an income credit that is a fixed rate of return. The employer defines this retirement benefit as an account balance, and a cash balance pension plan will often allow an employee to choose between an annuity and a lump-sum payment.

Collectible Item

For purposes of financial disclosure, a “collectible item” refers to personal property that is unique, limited in quantity, antique, or holds a special quality or financial value. Examples of such items include art work, vintage automobiles, antique furniture, and rare stamps or coins.

Common Trust Fund of a Bank

A common trust fund of a bank is a trust that a bank manages on behalf of a group of participating customers, in order to invest and reinvest their contributions to the trust collectively. A bank customer purchases units of the common trust fund. This arrangement allows the trustee to manage the customer’s contributions in a pool of contributions from a number of customers. These customers are the beneficiaries of the common trust fund.

Acting as a fiduciary, the bank commingles the contributions of participating customers in the common trust fund and invests in a variety of underlying holdings. Typically, a preprinted trust agreement will name the trustee, specify the investments, and establish other terms of participation in the common trust fund.

Confidential Clients

The name of a source of compensation may be excluded only.

1. if that information is specifically determined to be confidential as a result of a privileged relationship established by law; and
2. if the disclosure is specifically prohibited:
a. by law or regulation,
b. by a rule of a professional licensing organization, or
c. by a client agreement that at the time of engagement of the filer’s services expressly provided
   that the client’s name would not be disclosed publicly to any person.

It is rare for a filer to rely on this exception, and it is extremely rare for a filer to rely on this exception for more than a few clients. Examples of situations that fall into one of the three criteria outlined above include:

1. the client’s identity is protected by a statute or court order or the client’s identity is under seal;
2. the client is the subject of a pending grand jury proceeding or other non-public investigation in which there are no public filings, statements, appearances, or reports that identify the client;
3. disclosure is prohibited by a rule of professional conduct that can be enforced by a professional licensing body; or
4. a written confidentiality agreement, entered into at the time that your services were retained, expressly prohibits disclosure of the client’s identity.

A client will not be deemed confidential merely based on the filer’s belief that the client would prefer not to be disclosed or based on the fame or social standing of the client. Similarly, the mere existence of a privileged relationship is not enough to preclude disclosure, absent one or more additional conditions explained above.

Example: A nominee who is a partner or employee of a Washington, D.C., law firm and who has worked on a matter involving a client from which the firm received over $5,000 in fees during a calendar year must report the name of the client only if the value of the services rendered by the nominee exceeded $5,000. The partner is representing the client in connection with a non-public tax evasion investigation. DC Bar Rule 1.6 protects a client’s secrets, including the client’s identity, if the disclosure would be embarrassing or detrimental to the client. The nominee may withhold the name of the client if the disclosure meets the requirements of DC Bar Rule 1.6.

Example: A nominee who is a principal at an information technology consulting firm has a client with whom the nominee has a pre-existing confidentiality agreement. Absent unusual facts, the nominee will need to disclose the identity of the client if the nominee provided services in excess of the reporting threshold. Although the nominee has a pre-existing confidentiality agreement, an IT consultant would not typically have a “privileged relationship established by law” with clients. The confidentiality agreement is a relevant criterion only if there is already a privileged relationship.

Contingency Fee

The term “contingency fee” refers to a type of fee arrangement in a case in which an attorney or firm agrees that the payment of legal fees will be contingent upon the successful outcome of the case. Frequently, a contingency fee will be a portion of the proceeds obtained by the client due to the litigation or settlement, or it may be the amount of attorney fees accrued but not billed to the client until the successful conclusion of the case. The specific arrangements for a contingency fee case should be set forth in a fee agreement, which is a contract between the lawyer (or law firm) and the client that explains the terms and conditions of the representation.

Co-Signed Loan

Co-signed loans are loans where a legal obligation to pay has resulted from co-signing a promissory note with another.

Covered Position

The following individuals serve in positions covered by the public financial disclosure requirements (“covered positions”):

• the President and the Vice President;
• officers and employees (including special Government employees, as defined in 18 U.S.C. § 202) in positions that (1) are paid under a system other than the General Schedule (e.g., Senior Executive Service) and (2) have a rate of basic pay equal to or greater than 120% of the minimum rate of basic pay for GS-15 of the General Schedule; members of the uniformed services whose pay grade is O-7 or above; and officers or employees in any other positions determined by the Director of the Office of Government Ethics to be of equal classification;
• administrative law judges;
• employees in positions which are excepted from the competitive service because of their confidential or policy-making character, unless the position has been excluded from the public financial disclosure requirements by the Director of the Office of Government Ethics;
• the Postmaster General, the Deputy Postmaster General, each Governor of the Board of Governors of the U.S. Postal Service, and officers or employees of the U.S. Postal Service or Postal Regulatory Commission in positions for which the rate of basic pay is equal to or greater than 120% of the minimum rate of basic pay for GS-15 of the General Schedule;
• the Director of the Office of Government Ethics and each designated agency ethics official; and
• civilian employees in the Executive Office of the President (other than special Government employees) who hold commissions of appointment from the President.

Note: For purposes of calculating the reporting threshold, the “minimum rate of basic pay” for GS-15 is the base pay, excluding locality pay, for GS-15, step 1.

Credit Card Debt

Credit card debt is unsecured consumer debt accumulated through purchases made with a credit card.

Currently “Entitled” to Income or Principal

A beneficiary of a trust who is currently eligible to receive income or to access the principal will be “entitled” to payments within the meaning of the disclosure rules, unless the trust does not provide any standard for an enforceable right to payment.

In OGE’s experience, many trusts provide the trustee with some discretion over certain matters, for example, the timing, amount, or source (principal or income) of payment. However, such discretion, by itself, does not mean that the filer lacks an enforceable right to payment. In addition, many trusts permit payments only for specific purposes, for example, health care or education. Such a limitation, by itself, does not mean that the filer lacks an enforceable right to payment. Finally, even if there is no enforceable right to payment, a beneficiary’s current interest would be reportable if the beneficiary is also the trustee, co-trustee, or the settlor. See OGE DAEOgram DO-08-024 (August 6, 2008) and OGE Legal Advisory LA-13-04 (April 9, 2013).

Defined Benefit Plan

A defined benefit plan usually is a type of retirement plan that an employer establishes for its employees. Upon retirement, the employee receives a fixed annuity. The annuity typically makes biweekly or monthly payments to the employee for life. The annuity may also pay a survivor benefit to the employee’s spouse after the employee’s death. Under some plans (such as a cash balance pension plan), the employee can elect to cash out the employee’s interest in the plan and receive a lump-sum payment of the balance.

Defined Contribution Plan

A defined contribution plan usually is a type of retirement plan that an employer establishes for its employees. In this plan, an employee selects various investments (e.g., mutual funds and other investments) and makes pre-tax contributions to those investments with deductions from the employee’s salary. Often the employer will make contributions to the employee’s investments, too. Examples of defined contribution plans include 401(k) plans, 403(b) plans, and 457 plans.

Designated Agency Ethics Official and Alternate Designated Agency Ethics Official

“Designated Agency Ethics Official” (DAEO)

5 C.F.R. part 2638

The DAEO is the officer or employee who is designated by the head of an agency to administer the provisions of Title I of the Ethics in Government Act of 1978, as amended, and 5 C.F.R. part 2634 within an agency. Section 104 of 5 C.F.R. part 2638 provides additional information regarding the appointment and responsibilities of the DAEO. Within this guide, the term “DAEO” will also include any delegate of the DAEO, unless otherwise indicated.

“Alternate Designated Agency Ethics Official” (ADAEO)

5 C.F.R. § 2638.603

The ADAEO is the officer or employee who is designated by the head of the agency as the primary deputy to the DAEO in coordinating and managing the agency’s ethics program.

Donor-Advised Fund

A donor-advised fund is a private fund administered by a third-party for charitable purposes. Donors make charitable contributions to the fund. The fund, in turn, will make contributions to other charitable organizations. Some or all of the donor’s contributions in a period may be invested by the fund to increase the amount of possible contributions at a later date. Donors typically have the ability to recommend how their contributions are managed within the fund and to whom the contributions are ultimately distributed. However, for a donor-advised fund constructed in compliance with Internal Revenue Service rules, the donors do not have any legal control over the fund or retain rights with respect to their contributions.

Employee Stock Ownership Plan

An employee stock ownership plan is a type of defined contribution plan to which the employer contributes shares of company stock.

Note that employee stock ownership plans should not be confused with employee stock purchase plans. An employee stock purchase plan is an employer-sponsored incentive plan that allows employees to purchase company stock.

Employee Stock Purchase Plan

An employee stock purchase plan is an employer-sponsored incentive plan that allows employees to purchase company stock. Under such a plan, the employer offers its employees the option to purchase company stock at the end of an “offering period,” which typically ranges between 3 months and 27 months.

When an employee exercises such an option, the employer typically withholds the cost of purchasing the stock from the employee’s pay in installments during the offering period. The employer holds this money in an account for the employee during the offering period. At the end of the offering period, the employee uses the money withheld to purchase company stock at the specified purchase price. Most employers offer the stock at discounts below fair market value.

Note that employee stock purchase plans should not be confused with employee stock ownership plans. An employee stock ownership plan is a type of defined contribution plan to which the employer contributes shares of company stock.

Equity Index-Linked Note

An equity index-linked note is a debt instrument that affords the owner interest payments based on the performance of an equity index and, sometimes, a guaranteed return. The terms of such notes vary, but interest payments are typically based on any increase in the value of a specified equity index (e.g., Standard & Poor’s 500 Index). A note may also guarantee the return of the investor’s principal, insulating the investor against decreases in the value of the equity index to which the note is linked. In exchange for such protection against risk, a note usually will offer an investor a return that is less than 100% of the value of any increase in the equity index to which it is linked, or a note may establish a maximum return.

Excepted Investment Fund (EIF)

Definition

An excepted investment fund is an investment fund that is:

1. “independently managed;”
2. “widely held;” and
3. either “publicly traded or available” or “widely diversified.”

Normally, you have to disclose all of the underlying holdings of an investment fund, but you do not have to list any of the underlying holdings of an excepted investment fund. Instead of listing the underlying holdings, select “Yes” for the “EIF” field.

Additional Information about Key Terms

• “independently managed”: For purposes of the excepted investment fund definition, an investment fund is independently managed if you lack the ability to exercise control over the financial interests held by the fund.
• “widely held”: An investment fund is widely held if the fund has at least 100 natural persons as direct or indirect investors.
• “publicly traded or available”: An investment fund is publicly traded if it is listed on a national exchange (NYSE or NASDAQ) or a regional exchange in the United States. An investment fund is publicly available if it is, or was, open to anyone who wants to become an investor. A fund is not disqualified solely because it has net worth or income requirements or if an investor must be an “accredited investor.”
• “widely diversified”: An investment fund is widely diversified if it does not have a stated policy of concentrating its investments in any industry, business, or single country other than the United States or bonds of a single state within the United States.

Note: The fact that an investment fund qualifies as an excepted investment fund is not relevant to a determination as to whether the investment qualifies for an exemption to the criminal conflict of interest statute at 18 U.S.C. § 208(a), pursuant to 5 C.F.R. part 2640. Some excepted investment funds qualify for exemptions pursuant to part 2640, while other excepted investment funds do not qualify for such exemptions. If an employee holds an excepted investment fund that is not exempt from 18 U.S.C. § 208(a), the ethics official may need additional information from the employee to determine whether the holdings of the fund create a conflict of interest and should advise the employee to monitor the fund’s holdings for potential conflicts of interest.

Excepted Trust: Definition

A trust qualifies as an excepted trust if it has both of the following characteristics:

1. The trust was not created by you, your spouse, or dependent children;

AND

2. You, your spouse, or dependent children have no specific knowledge of the trust’s holdings or sources of income through a report, disclosure, or constructive receipt, whether intended or inadvertent. Filers may not blind themselves from trusts by simply avoiding information that is available to them.

The application of the “specific knowledge” standard can be context-dependent. Filers are strongly encouraged to consult with an ethics official before designating a trust as an excepted trust.

Excepted Trust: How to Report

Part 6

Report an excepted trust as follows:

Description: Identify the trust interest, using initials or a general description (e.g., “J.S. 2003 Trust” or “Family Trust #1”), and indicate the general nature of its holdings to the extent known. In addition, write “excepted trust.”

EIF: Select “No.”

Income Amount: Select the category that corresponds to the amount of your income during the reporting period.

Transactions

Do not report transactions involving excepted trusts.

Exchange

For purposes of financial disclosure, an exchange generally occurs when a security or real property is transferred to another party for consideration in the form of property (security, real property, or otherwise). Within the context of financial disclosure, exchanges most commonly involve the acquisition of one company by another. The shareholders of the acquired company are often given the option to sell their shares to the acquiring company or exchange their existing stock for stock of the acquiring company.

Example: ABC Corporation recently acquired XYZ Corporation. ABC gave its shares to the shareholders of XYZ in exchange for their XYZ shares. A filer would report this transaction as an exchange.

Changing the investment options held in a brokerage or retirement account are not exchanges. In these cases, you are selling one fund or stock and buying another. Since exchanges are rare, you may wish to consult your agency ethics official before designating a transaction as an exchange.

Note that, at present, virtual currencies are deemed to be property rather than money. Depending of the specific facts of the case, a virtual currency may or may not be a security.

Exchange-Traded Fund (ETF)

An exchange-traded fund (ETF) is a fund that pools investors’ money in a variety of investments. Unlike traditional mutual funds, most investors buy and sell shares of ETFs from other investors on an exchange rather than directly from the issuer. In addition, ETFs cannot market themselves to consumers as “mutual funds” because they are not necessarily subject to all the requirements applicable to traditional mutual funds. Nevertheless, ETFs are usually registered with the U.S. Securities and Exchange Commission under the same statutory authorities as traditional mutual funds and unit investment trusts.

Exchange-Traded Note (ETN)

An exchange-traded note (ETN) is a debt instrument that tracks a reference index, benchmark, or portfolio and is traded on an exchange. Owners of an ETN do not own the underlying securities represented by the reference index, benchmark, or portfolio, but the structure of the note provides for a return that varies in response to the performance of the underlying securities. Unlike some other debt instruments, ETNs do not make interest payments; rather, the return occurs when the note reaches maturity or when the investor sells the ETN.

Fractionalized Non-Fungible Token (F-NFT)

Fractionalized non-fungible tokens, often referred to as “shards” or “F-NFTs” represent partial ownership of an NFT. Unlike full ownership, the owner of an F-NFT does not enjoy exclusive use or the full benefits of the underlying NFT.

Foreign Exchange Position (“forex”)

For purposes of financial disclosure, “foreign currency” is the official currency of a country other than the United States. It is possible to hold a foreign currency through a “foreign exchange” transaction.

A foreign exchange transaction results in the purchase of one currency for investment purposes and the simultaneous sale of another. This constitutes an open position that is later offset to terminate the position. Both the short and the long position must be offset to close out the holding. One may take a position in a foreign currency for speculation or for hedging purposes. The increase or decrease in the exchange rate between the two currencies may result in a profit or loss.

A foreign exchange transaction always involves a currency pair of which the first listed is the “base currency” and second is the “quoted currency.” For example, in the U.S. Dollar-Japanese Yen pair, the U.S. Dollar is the base currency and the Yen is the quoted currency.

The investor is always long one currency of the pair and short the other. This process happens through a foreign exchange broker, who bankrolls the entire transaction by supplying all the currencies in the exchange. So, for example, if the investor anticipated that the Dollar was going to appreciate versus the Yen, the investor could buy the Dollar and short the Yen. The investor borrows the Yen from the investor’s broker and then sells the borrowed Yen (creating the short position) and simultaneously buys the Dollar (creating the long position). In this example, the broker would charge the investor interest on the Yen that the broker lent, and the broker would pay interest on the Dollar, which the investor owns but which the broker holds.

Futures Contract

A futures contract (“future”) is an agreement to buy or sell an underlying commodity (such as an agricultural product) or a financial instrument at a specified time, price, and quantity. A futures contract is identified by its underlying commodity/instrument and the month and year of its expiration date. Futures are used to speculate in or hedge against the future price of the underlying commodity/instrument.

Index futures are a variant in which the parties agree to notational trade of an index at a specified time, price, and quantity. The index cannot itself be delivered to fulfil the contract so these futures are cash settled. In essence, they are bets on the price movements of the referenced index.

Gambling Winnings

For purposes of financial disclosure, the term “gambling winnings” includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes such as cars and trips.

General Guidance: OGE Form 278e, Part 2

For You

Part 2

Report an asset related to your employment (which includes any non-investment activities and retirement accounts) if the value of the asset was more than $1,000 at the end of the reporting period or if you received more than $200 in income during the reporting period.

In addition, report each source, whether a natural person or an organization or entity, if you received more than $200 in earned income and other non-investment income during the reporting period. There are additional requirements for honoraria payments, as discussed in the honorarium entry of this guide.

Generally, you need to report assets and sources of non-investment income as follows:

Description: Provide a description sufficient to identify the asset or source of income being reported. The amount of information needed for a sufficient description will depend on the type of asset or source of income being reported.

(1) Stock and other equity in a business: Provide the name of the business. For a privately held business, describe the line of business as well, unless you have already provided this information in another entry. For publicly traded stocks, it is helpful to provide the ticker symbol in addition to the name of the stock.

(2) Other assets with specific names (e.g., bonds and mutual funds): Provide the full name of the asset and, unless it is clear from the name, describe the type of asset. For publicly traded securities, it is helpful to provide the ticker symbol in addition to the name of the security.

(3) Assets without specific names: Describe the type of asset, including the city and state (or county and state) for real estate.

(4) Sources of earned or other non-investment income: Provide the name of the source and, for privately held companies, the nature of the business. In addition, for honoraria, include the date that the services were provided.

EIF: If you are reporting an investment vehicle that invests in assets of its own, you need to report each underlying asset that was individually worth more than $1,000 at the end of the reporting period or from which more than $200 in income was received during the reporting period. As an exception to this requirement, however, you do not need to report the underlying assets of an investment vehicle that qualifies as an excepted investment fund (EIF). Indicate whether your entry (1) is an investment vehicle that qualifies as an EIF (“Yes”), (2) is an investment vehicle that does not qualify as an EIF (“No”), or (3) is not an investment vehicle at all (“N/A”).

Value: Report the value of an asset by selecting the appropriate category.

Income Type: Specify the type(s) of income, unless the asset qualifies as an EIF or the income did not exceed $200.

Income Amount:

(1) Income less than $201: Select the category for “None (or less than $201).”

(2) Dividends, capital gains, interest, rent, royalties, or income from excepted investment funds: Select the category that corresponds to the total amount of income received during the reporting period.

(3) Other income: Provide the exact amount of income received during the reporting period.

Assets and Income That Are Not Reportable

• Do not include assets or income from United States Government employment (e.g., salary, FERS, and Thrift Savings Plan account).
• Assets that were acquired separately from your business, employment, or other income-generating activities (e.g., assets purchased through a brokerage account). Report these assets in Part 6 instead.

General Guidance: OGE Form 278e, Part 3

For You

Part 3

Report your participation in any of the following agreements or arrangements during the reporting period:

• Continuing participation in an employee welfare, retirement, or benefit plan maintained by a former employer (including any defined contribution plan, defined benefit plan, or deferred compensation);
• Continuation of payments by a former employer (e.g., final bonus payment or severance payments);
• Retention or disposition of employer-awarded equity, sharing in profits, or carried interests (e.g., vested or unvested stock options, restricted stock, future sale of a company's profits, etc.);
• Leave of absence; or
• Future employment.

Note: Maintaining an account within a 401k, 403b, 457, or similar plan constitutes “continuing participation.”

Employer or Party: Provide the party to the agreement or arrangement, other than yourself. In most cases, the other party will be your employer.

City/State: Provide the city and state of the other party.

Status and Terms: Briefly describe the type of agreement or arrangement, its terms (in particular, the timing and form of any payments), and its current status.

Date: Provide the month and year in which the agreement or arrangement began. In many cases, this will be when you joined the employer or otherwise became eligible for coverage under the agreement or arrangement.

Agreements and Arrangements That Are Not Reportable

You do not need to report the following as agreements and arrangements in Part 3:

• Agreements and arrangements of your spouse or your dependent children.
• Agreements and arrangements with the United States Government, such as your participation in the Federal Employees Retirement System or the Civil Service Retirement System.
• If you are filing a Nominee, New Entrant, or Candidate report, any agreement or arrangement that will end before you file your report.

General Guidance: OGE Form 278e, Part 5

For Your Spouse

Part 5

Report an asset related to your spouse’s employment (which includes any non-investment activities and retirement accounts) if the value of the asset was more than $1,000 at the end of the reporting period or if your spouse received more than $200 in income during the reporting period.

In addition, report each source, whether a natural person or an organization or entity, from which your spouse received more than $1,000 in earned income (or $200 in honoraria) during the reporting period. There are additional requirements for honoraria payments, as discussed in the honorarium entry of this guide.

Generally, you would report assets and sources of earned income as follows:

Description: Provide a description sufficient to identify the asset or source of income being reported. The amount of information needed for a sufficient description will depend on the type of asset or source of income being reported.

(1) Stock and other equity in a business: Provide the name of the business. For a privately held business, describe the line of business as well, unless you have already provided this information in another entry. For publicly traded stocks, it is helpful to provide the ticker symbol in addition to the name of the stock.

(2) Other assets with specific names (e.g., bonds and mutual funds): Provide the full name of the asset and, unless it is clear from the name, describe the type of asset. For publicly traded securities, it is helpful to provide the ticker symbol in addition to the name of the security.

(3) Assets without specific names: Describe the type of asset, including the city and state (or county and state) for real estate.

(4) Sources of earned income: Provide the name of the source and, for privately held companies, the nature of the business. In addition, for honoraria, include the date that the services were provided.

EIF: If you are reporting an investment vehicle that invests in assets of its own, report each underlying asset that was individually worth more than $1,000 at the end of the reporting period or from which more than $200 in income was received during the reporting period. As an exception to this requirement, however, you do not need to report the underlying assets of an investment vehicle that qualifies as an excepted investment fund (EIF). Indicate whether your entry (1) is an investment vehicle that qualifies as an EIF (“Yes”); (2) is an investment vehicle that does not qualify as an EIF (“No”), or (3) is not an investment vehicle at all (“N/A”).

Value: Report the value of an asset by selecting the appropriate category.

Income Type: Specify the type(s) of income unless the asset qualifies as an EIF or the income did not exceed $200.

Income Amount:

(1) Income less than $201: Select the “None (or less than $201)” category.

(2) Dividends, capital gains, interest, rent, royalties, or income from excepted investment funds: Select the category that corresponds to the total amount of income received during the reporting period.

(3) Other investment income: Provide the exact amount of income received during the reporting period.

(4) Earned income (other than honoraria): Leave this field blank.

(5) Honorarium: Provide the exact amount of the honorarium.

Assets and Income That Are Not Reportable

• Assets or income from United States Government employment (e.g., salary, FERS, Thrift Savings Plan account).
• Assets that were acquired separately from your spouse’s business, employment, or other income-generating activities (e.g., assets purchased through a brokerage account). Report these assets in Part 6 instead.
• Interests of a spouse living separate and apart with the intention of terminating the marriage or providing for a permanent separation.
• Interests of a former spouse or a spouse from whom you are permanently separated.

General Guidance: OGE Form 278e, Part 6

Report assets and income from assets in Part 6, unless already reported in Part 2 or Part 5 as being related to employment.

For You, Your Spouse, and Your Dependent Children

Part 6

Report an asset if the value of the asset was more than $1,000 at the end of the reporting period or if more than $200 in income was received during the reporting period. For purposes of the value and income thresholds, aggregate your interests with those of your spouse and your dependent children.

Generally, report assets as follows, though you should note that specific requirements and exceptions for certain types of assets are discussed in this guide:

Description: Provide a description sufficient to identify the asset being reported. The amount of information needed for a sufficient description will depend on the type of asset or source of income being reported.

(1) Stock and other equity in a business: Provide the name of the business. For a privately held business, describe the line of business as well, unless you have already provided this information in another entry. For publicly traded stocks, it is helpful to provide the ticker symbol in addition to the name of the stock.

(2) Other assets with specific names (e.g., bonds and mutual funds): Provide the full name of the asset and, unless it is clear from the name, describe the type of asset. For publicly traded securities, it is helpful to provide the ticker symbol in addition to the name of the security.

(3) Assets without specific names: Describe the type of asset, including the city and state (or county and state) for real estate.

EIF: If you are reporting an investment vehicle that invests in assets of its own, report each underlying asset that was individually worth more than $1,000 at the end of the reporting period or from which more than $200 in income was received during the reporting period. As an exception to this requirement, however, you do not need to report the underlying assets of an investment vehicle that qualifies as an excepted investment fund (EIF). Indicate whether your entry (1) is an investment vehicle that qualifies as an EIF (“Yes”), (2) is an investment vehicle that does not qualify as an EIF (“No”), or (3) is not an investment vehicle at all (“N/A”).

Value: Report the value of an asset by selecting the appropriate category.

Income Type: Specify the type(s) of income, unless the asset qualifies as an EIF or the income did not exceed $200.

Income Amount:

(1) Income less than $201: Select the “None (or less than $201)” category.

(2) Dividends, capital gains, interest, rent, royalties, or income from excepted investment funds: Select the category that corresponds to the total amount of income received during the reporting period.

(3) Other income: Provide the exact amount of income received during the reporting period.

Assets and Income That Are Not Reportable

• A personal residence (including a vacation home used as a second residence or a vacation home used as a timeshare) that you did not rent out during the reporting period.
• Retirement benefits from the United States Government, including the Thrift Savings Plan.
• Income from Social Security, veterans’ benefits, and other similar United States Government benefit programs.
• Cash accounts (e.g., money market accounts, certificates of deposit, savings accounts, checking accounts) in a single financial institution aggregating $5,000 or less, unless the income exceeded $200.
• Shares in a single money market fund aggregating $5,000 or less, unless the income exceeded $200.
• Term life insurance.
• Insurance claims and reimbursements, unless they are subject to federal income tax.
• Assets of a trade or business, unless the assets are unrelated to the operations of that trade or business.
• Personal loans made by you, your spouse, or a dependent child to a parent, spouse, sibling, or child.
• Interests of a spouse living separate and apart from you with the intention of terminating the marriage or providing for a permanent separation.
• Interests of a former spouse or a spouse from whom you are permanently separated.
• Payments from a spouse or former spouse associated with a divorce or permanent separation (e.g., alimony or child support).

General Guidance: OGE Form 278-T

Report purchases, sales, or exchanges by the applicable due date.

For You, Your Spouse, and Your Dependent Children

Report any purchase, sale, or exchange by you, your spouse, or dependent child of stocks, bonds, options, futures, and other securities (except as noted below) if the amount of the transaction exceeded $1,000.

Description: Provide a description sufficient to identify the asset being reported (or both assets in the case of an exchange). The amount of information needed for a sufficient description will depend on the type of asset being reported.

(1) Stock: Provide the name of the issuing company.

(2) Other securities with specific names (e.g., bonds): Provide the full name of the asset and, unless it is clear from the name, describe the type of asset.

If the asset is an underlying holding of some other investment vehicle (e.g., held within a fund that does not qualify as an excepted investment fund), it is helpful if you identify the investment vehicle (e.g., Positron Investments, LLC: Chevron Corp.).

Type: Specify the type of transaction as a purchase, sale, or exchange.

Date: Provide the month, day, and year of the transaction.

Notification Received Over 30 Days Ago: Select this field only if you received notice of the transaction more than 30 days ago. Absent an extension, you would likely not select this field because you are required to report transactions within 30 days of notification.

Amount: Report the amount of the transaction by selecting the appropriate category.

Transactions That Are Not Reportable in an OGE Form 278-T

You do not need to report transactions that concern the following:

• Real property (e.g., apartment building or farmland).
• Cash accounts (e.g., checking, savings, certificates of deposit, money market accounts) and money market mutual funds.
• Treasury bills, Treasury bonds, Treasury notes, and U.S. savings bonds.
• An excepted investment fund, such as a mutual fund.
• Holdings of a Thrift Savings Plan account or other retirement account for United States Government employees.
• Underlying assets held within an excepted trust or a qualified trust.
• Assets of a trade or business, unless the assets are unrelated to the operations of that trade or business.

In addition, you do not need to report:

• Transactions that occurred when you were not a public financial disclosure filer or an employee of the United States Government.
• Transactions that occurred solely by and between you, your spouse, or your dependent children.
• Actions that do not constitute purchases, sales, or exchanges (e.g., gifts given or received, stock splits, bond calls or maturity, or expiration of options).
• Transactions involving the interests of a spouse living separate and apart from you with the intention of terminating the marriage or providing for a permanent separation.
• Transactions involving the interests of a former spouse or a spouse from whom you are permanently separated.

Relationship to the Annual and Termination Reporting Requirements

Annual and Termination reports (OGE Form 278e) require you to report purchases, sales, or exchanges of the same securities that are reportable in a Periodic Transaction report (OGE Form 278-T). In addition, Annual and Termination reports require you to report purchases, sales, or exchanges of (1) mutual funds and other excepted investment funds and (2) real property (excluding your personal residence). If you prefer, you may report these additional transactions in Periodic Transaction reports as they occur rather than attempting to differentiate between transactions subject to the Periodic Transaction reporting requirements and those transactions subject to the more extensive Annual and Termination reporting requirements.

You do not need to report a transaction in an Annual or Termination report if you have already reported the transaction in a Periodic Transaction report, unless your agency requires duplicate reporting.

* Note that Integrity allows filers to import Periodic Transaction reports into Annual or Termination reports without additional data entry. Other electronic filing systems may offer similar functionality.

No Transactions to Report

Do not file an OGE Form 278-T if you have no transactions to report. Filing is required only if you have reportable transactions.

Click Here for Frequently Asked Questions

Gift

Gift means a payment, advance, forbearance, rendering, free attendance at an event, deposit of money, or anything of value, unless (1) consideration of equal or greater value is received by the donor or (2) reporting exception exists. See the main “Gifts and Travel Reimbursements” entry for a list of reporting exceptions.

Gifts and Travel Reimbursements: Aggregation

Example

Let’s say you received the following gifts from the same source during the reporting period:

• Painting ($290 value)
• Pen set ($225)
• Letter opener ($25)

Step 1: Eliminate those gifts with a value of $192 or less.

• Painting ($290 value)
• Pen set ($225)
• Letter opener ($25)

Step 2: Add the values of the remaining gifts.

• Painting ($290 value)
• Pen set ($225)

$290 + $225 = $515

Step 3: Compare the total value from Step 2 to the $480 threshold. If the value is more than $480, report the gifts worth more than $192.

Report the painting and the pen set. Do not report the letter opener.

Remember

Gifts and travel reimbursements count toward separate $480 thresholds. Let’s say that in the example above you received a $290 travel reimbursement instead of a $290 painting. If that were the case, the pen set is the only gift that you received with value of more than $192. However, the value of the pen set does not individually exceed the $480 threshold, so you would have no gifts to report.

Gifts and Travel Reimbursements: Valuation

General Approach

Value gifts and travel reimbursements according to their fair market value. For most travel reimbursements, the fair market value will be the amount actually received. The fair market value of a gift ordinarily will be the retail cost to purchase the item. If you cannot find the market value of the same item, you may estimate its value by referencing the retail cost of similar items of like quality. You may make a good faith estimate if items of like quality are not readily available in the market.

Valuing a Ticket to an Event

The market value of a ticket entitling the holder to attend an event that includes food, refreshments, entertainment, or other benefits is the face value of the ticket, which may exceed the actual cost of the food and other benefits. Do not subtract the cost of food and beverages from the face value of a ticket when determining the value.

Valuing Free Attendance at an Event in a Skybox or Private Suite

To value free attendance at an event in a skybox or private suite, take the value of the most expensive publicly available ticket to the event and add in the market value of food, beverages, entertainment, and other tangible benefits provided to you in excess of what would have been provided through the publicly available ticket.

Valuing Attendance at a No-Fee Event

If no fee was charged to any attendee, value a gift of free attendance by using the market value of food, beverages, entertainment, and other tangible benefits offered to attendees. The market value of these items is based on the cost you would have incurred to obtain similar items at a comparable location or event.

Multiple Donors

A gift from a group of individuals is considered a gift from a single source for purposes of the $480 and $192 thresholds. Do not apportion the value of the gift among several donors.

Gifts and Travel Reimbursements: Waiver of the Public Reporting Requirement

In unusual cases, the Director of OGE may waive the requirement to include a gift on your public financial disclosure report. The Director may grant such a waiver after receiving a written request for such a waiver and determining that (1) your relationship to the donor and the donor’s motivation for the gifts are personal and (2) no separate public purpose requires disclosure of the nature, source, and value of the gift.

This authority is ordinarily used when a filer receives a large number of personal gifts, such as at an engagement or wedding.

Elements of a Request

Requests for a waiver are made in writing to OGE but are first routed through your agency’s ethics office. The request should contain a cover letter and an enclosure.

Provide the following in your cover letter:

• your name and your position and
• a request for a waiver under 5 C.F.R. § 2634.304(f).

Provide the following in your enclosure:

• the identity and occupation of the donor;
• a statement that the relationship between you and the donor is personal in nature;
• an explanation of all relevant circumstances surrounding the gift, including whether any donor is a prohibited source, as defined in 5 C.F.R. § 2635.203(d), or represents a prohibited source and whether the gift was given because of your official position; and
• a brief description of the gift and the value of the gift.

If a gift has more than one donor, provide the necessary information for each donor.

If you cannot make the above described statement, explain why you cannot.

If OGE grants a waiver, disclose your receipt of the waiver in Part 9. In addition, attach your cover letter, but not the enclosure, to your financial disclosure report. Note that, if you use Integrity, you will need to file the report before you have access to the “Documents” tab, which is used for uploading attachments.

Government Agency or GSE Security (“agency security”)

Agency securities are debt obligations issued by U.S. Government agencies and U.S. Government-Sponsored Enterprises (GSEs). In addition to issuing debt obligations, GSEs may also sell equity shares.

Examples of U. S. Government agencies include:

• Government National Mortgage Association (GNMA or Ginnie Mae)
• Export-Import Bank of the United States (ExImBank)
• Tennessee Valley Authority (TVA)

Examples of GSEs include:

• Federal National Mortgage Association (FNMA or Fannie Mae)
• Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)
• Federal Agricultural Mortgage Corporation (Farmer Mac)

Health Savings Account (HSA)

A health savings account (HSA) is a type of account to which individuals can allocate pre-tax income for future use in paying qualified medical expenses. Contributions to a health savings account can also be made by an individual’s employer. Although health savings accounts are often held in cash or cash equivalents, these accounts can hold other types of investments as well, similar to an individual retirement account.

Honorarium

An honorarium is a payment of money or anything of value for an appearance, speech, or article, excluding any actual and necessary travel expenses incurred by the recipient and one relative.

Income: Types

Income is reportable regardless of whether the income is taxable for federal income tax purposes.

Investment Income: “Investment income” includes interest, rents, royalties, dividends, capital gains, and other income derived from an asset. Examples of investment income include, but are not limited to, income derived from: stocks, bonds, investment funds, and other securities; real estate; retirement investment accounts; annuities; the investment portion of life insurance contracts; interests in trusts and estates; collectible items; commercial crops; accounts or other funds receivable; and businesses.

Earned Income: “Earned income” includes fees, salaries, commissions, honoraria, and any other compensation received for personal services but excludes United States Government salary and other federal benefits, including retirement and veterans’ benefits. If personal services (provided by you or your spouse or dependent children) are a material factor in the production of income from an asset or business, it is considered “earned income” for purposes of financial disclosure rather than “investment income.” However, your dependent child’s sources of earned income are not reportable.

Other Non-Investment Income: A remainder category exists for income that does not fit into the investment income or earned income categories. Examples include prizes, scholarships, awards, and gambling winnings. Report only your own sources of other non-investment income. Other non-investment income received by your spouse or dependent child is not reportable.

Excluded from Income: Certain realized increases in wealth, though “income” in a general sense are not deemed to be reportable income for purposes of financial disclosure. These include gifts and inheritance; life insurance proceeds to a beneficiary (unless from a policy obtained in exchange for valuable compensation from a person other than an insurance company); payments for injury and sickness excluded from federal gross income; and medical or fringe benefits from a current/former employer (though any such benefit continuing post-employment would be reportable in Part 3 of the OGE Form 278e).

Compensation in the form of equity would be considered income; however, as a rule of reason, where a filer has reported the value of the equity as an asset, the filer is not required to report the received amount of equity as income as well.

Intellectual Property

“Intellectual property” includes patents, inventions, novels, plays, movie scripts, other literary works, artistic works, musical works, films, symbols, names, images, designs, trademarks, copyrights, and similar interests.

Investment Club

For purposes of financial disclosure, an “investment club” is a private investment portfolio formed when individual investors informally pool their monies together. The investors may or may not document their arrangement with a written agreement, may adopt several different legal structures, and may have rules of varying formality and complexity. Most commonly, however, investment clubs are structured as general partnerships and management of the portfolio is relatively informal. Investment decisions are frequently made by consensus or majority vote.

Investment Fund: Employment with the Company that Manages the Fund

If you have ever worked for the company that manages the investment fund, additional reporting requirements may apply to you.

• Equity Interest in Actively Managed Fund: If you actively manage an investment fund, you should generally follow the standard instructions for investment funds; however, the fund will not qualify as an excepted investment fund.
• Compensation and Other Benefits: If you provide services to the investment fund (e.g., fund manager), you may receive compensation for those services. This compensation may take the form of salary, severance, bonus, deferred compensation, a defined benefit plan, a defined contribution plan, or some other financial interest. Report each such financial interest as a separate line entry in your financial disclosure report, using the instructions appropriate for that type of asset or income in this guide.
• Co-Investment Interest: In Part 2, report any co-investment interest that you have in the investment fund. If you are unable to calculate a value of this interest, write “value not readily ascertainable” in the “Description” field. Provide a brief explanation of your interest. In Part 3, report any arrangement with your employer related to this co-investment interest that will continue after you enter government service.
• Carried Interest: See the entry for carried interest in this guide for assistance.
• Exit Arrangements: In Part 3, report any agreement or arrangement that you have concerning your exit from the fund (e.g., buy-back agreement). For further information, see the general guidance for reporting agreements or arrangements.

If you have any other type of financial interest in the investment fund, report the interest as consistently as possible with the instructions in this guide for similar types of interests. Then, talk to an ethics official at your agency for guidance on how to ensure proper reporting of that financial interest.

Investment Fund: Spouse’s Employment with the Company that Manages the Fund

If your spouse has ever worked for the company that manages the investment fund, additional reporting requirements may apply.

• Equity Interest in Actively Managed Fund: If your spouse actively manages an investment fund, you should generally follow the standard instructions for investment funds; however, the partnership or LLC income potentially would be characterized, in whole or part, as earned income.
• Compensation and Other Benefits: If your spouse provides services to the investment fund (e.g., fund manager), your spouse may receive compensation for those services. This compensation may take the form of salary, severance, bonus, deferred compensation, a defined benefit plan, a defined contribution plan, or some other financial interest. Report each such financial interest as a separate line entry in your financial disclosure report, using the instructions appropriate for that type of asset or income in this guide.
• Co-Investment Interest: In Part 5, report any co-investment interest that your spouse has in the investment fund. If you are unable to calculate a value of this interest, write “value not readily ascertainable” in the “Description” field. Provide a brief explanation of your spouse’s interest.
• Carried Interest: See the entry for carried interest in this guide for assistance.

If your spouse has any other type of financial interest in the investment fund, report the interest as consistently as possible with the instructions in this guide for similar types of interests. Then, talk to an ethics official at your agency for guidance on how to ensure proper reporting of that financial interest.

IRA, Roth IRA, SEP IRA, or Keogh Plan

Individual Retirement Account (IRA) – Traditional and Roth: An Individual Retirement Account (IRA) is typically a bank, brokerage, or mutual fund account that a person has designated as a tax-deferred retirement account. All IRAs are “self-directed” because investors choose where to invest their retirement funds. Although investors may place these funds in bank accounts, they may also buy stocks and other securities. The main difference between a Traditional IRA and a Roth IRA is the tax treatment of contributions and withdrawals.

Simplified Employee Pension Individual Retirement Account (SEP IRA): Some small employers offer employees the opportunity to participate in a tax-deferred Simplified Employee Pension (SEP) plan. Under a SEP plan, the employer and employee make contributions to individual retirement accounts (called a SEP IRA) set up by or for each eligible employee. Employees own and control their accounts. For purposes of financial disclosure, SEP IRAs are treated like IRAs.

Keogh Plan: A Keogh plan (also called a “HR-10 plan”) is a tax-deferred pension account for self-employed persons and employees of unincorporated businesses. Like IRAs, an employee may put almost any available investment into a Keogh plan, and the investment earnings grow on a tax-deferred basis.

Leave of Absence

When entering the executive branch, some employees choose to take a leave of absence rather than resign from their employer. For example, a tenured faculty professor might take a leave of absence to retain her university position. If you are taking a leave of absence, you should discuss the leave of absence with your ethics official, who will provide you with guidance on the applicable ethics rules.

Life Insurance (split-dollar)

The term “split-dollar” describes the method of paying for life insurance (whether whole, universal, or variable) by splitting the premiums and proceeds between an employer and an employee.

Split-dollar payment arrangements generally take one of two forms:

• The employer pays the premiums and owns the contract. The employer receives reimbursement of the premiums upon the employee’s death, and the employee’s beneficiary then receives the balance of the insurance proceeds.
• The employer pays the premiums, but the employee owns the contract. The premiums are then repaid to the employer out of the insurance proceeds.

The primary differences between these two arrangements are differing tax consequences based on the ownership of the contract.

Life Insurance (term)

Term life insurance pays beneficiaries a death benefit if the insured person dies during the term of the policy. No value remains when the policy expires. This type of insurance policy is pure insurance with no investment component.

Life Insurance (variable)

A variable life insurance policy is part insurance and part investment. Part of the policyholder’s premiums pay for expenses and the insurance part of the policy. The remainder goes into a tax-deferred cash reserve that is invested and builds the policy’s cash value.

Unlike whole life and universal life policies, variable life policies provide the policyholder a range of investment options, and the rate of return is based on the performance of the options chosen by the investor. The investment options are typically mutual funds. Some variable life policies, however, also provide a fixed account option that pays a set rate of interest.

Life Insurance (whole or universal)

Whole life and universal life policies are part insurance and part investment. Part of the policyholder’s premiums pay for expenses and the insurance part of the policy. The remainder goes into a tax-deferred cash reserve that is invested and builds the policy’s cash value.

• Whole life: The policyholder pays fixed premiums and has no control over investments, which are left to the insuring company.
• Universal life: The policyholder can vary premiums by paying them with some of the accumulated cash value of the policy, and the policyholder normally receives a minimum guaranteed rate of return at money market rates. As with whole life, the universal life insurance policyholder generally does not have control over the investments. However, if the policy does permit the selection of specific investments, report the policy as a variable life insurance policy.

Line of Credit (exercised)

A line of credit is an arrangement under which liabilities may be created. As a general matter, the mere fact that you have a line of credit arrangement (e.g., a plan or arrangement permitting you to borrow a certain amount of money) does not necessarily require the “line of credit” plan or arrangement to be reported. You have a reportable liability when you have actually borrowed money or exercised the borrowing authority under the line of credit arrangement.

Managed Account

A managed account (also called a “separately managed account” or “controlled account”) is an account that is owned by the investor but managed for a fee by a financial advisor. The investor gives the financial advisor the discretion to buy, sell, and trade investments on behalf of the investor.

An investor usually chooses among predetermined portfolios, which financial institutions sometimes package in categories such as high yield, balanced, large cap, global small cap, strategic fixed income, and other similar descriptors. The investor can usually customize the portfolio to some extent, although this is not necessarily the case with all managed accounts.

A managed account is not an “excepted investment fund.” Even if the investor may select an established portfolio of investment choices, the managed account is not an excepted investment fund. In fact, the managed account is not an investment fund at all.

The investor has not “pooled” the investor’s money with that of other investors. Although the account manager may have offered the option of selecting a predetermined “portfolio” of assets, the investor owns each of these assets individually and directly in the investor’s own name. For this reason, as well as other reasons, each asset is disclosed as a separate line item in the financial disclosure report.

Although some managed accounts may appear similar to mutual funds, they are not mutual funds and do not qualify for the same treatment as mutual funds under conflict of interest laws.

Margin Account

A margin account is an account that an investor maintains with the investor’s broker, from which the investor can borrow funds to purchase securities.

Master Limited Partnership (MLP)

MLPs are companies that are generally focused on the exploration, development, mining, processing, or transportation of minerals or natural resources. They are business entities in the form of publicly-traded partnerships and often contain the acronym “MLP” or the word “Partners” in the title of the business. Employees may suggest they own stock in an MLP when, in reality, employees hold a partnership interest in the MLP. MLPs have two classes of partners: general partners, who run the business; and limited partners, who invest in the business. Because of the interaction between the 1940 Act and the Internal Revenue Code, MLPs cannot register as “investment companies” because that registration would remove the favorable tax treatment accorded to MLPs. As a result, an MLP will never be a mutual fund. Because of these reasons, OGE views MLPs as operating businesses in the energy and natural resources industries, rather than funds that own assets, like pipelines. Ethics officials can determine whether an asset is a MLP by looking up the asset on an online financial website (e.g., Yahoo! Finance or Google Finance) or the U.S. Securities and Exchange Commission’s company filing search engine, EDGAR.

Money Market Fund (or money market mutual fund)

A money market fund is a type of mutual fund that holds financial interests in certain low-risk investments (e.g., government securities, certificates of deposit, and high-quality bank or corporate obligations). Its rate of return is responsive to fluctuations in the market for these investments.

A money market fund is distinguished from a money market account in that a money market fund is an investment fund that holds underlying investments, whereas a money market account is a cash deposit account. A money market fund is not FDIC insured.

The reporting threshold for both a money market fund and a money market account is a value of more than $5,000 (or income more than $200).

Money Purchase Pension Plan

A money purchase pension plan is a type of defined contribution plan in which an employer makes fixed contributions to a tax-deferred retirement account. Unlike profit-sharing plans in which employer contributions are discretionary, employer contributions to a money purchase pension plan are fixed in advance. Each year, the employer makes fixed contributions based on an employee’s annual compensation. Like other defined contribution plans, money purchase pension plans contain underlying assets in which a filer has invested.

Mortgage

For purposes of financial disclosure, mortgage debt is debt by which the borrower gives the lender a lien on real estate as security for repayment of the loan.

Mortgages for PAS Nominees and Appointees

A PAS nominee or appointee generally must report a mortgage or home equity loan on a personal residence, regardless of whether the residence was rented during the reporting period.

However, you do not need to report a mortgage or home equity loan secured by your personal residence if you are a nominee or appointee to one of the following three types of PAS positions:

• a position in which you will serve as a special Government employee (SGE);
• a position as a Foreign Service Officer below the rank of ambassador; or
• a position in the uniformed services for which the pay grade prescribed by section 201 of title 37, United States Code is O–6 or below.

This exclusion does not apply to a residence that was rented out during the reporting period.

Mutual Fund

A mutual fund is a company that is created and managed to hold a portfolio of securities as an investment company registered with the U.S. Securities and Exchange Commission under the Investment Company Act of 1940, as amended.

Investors purchase shares of the mutual fund, and the value of those shares typically rises and falls based on the performance of the mutual fund’s underlying investments. The underlying investments of a mutual fund can take a number of forms, such as shares of companies in a variety of business sectors, bonds, options, futures, and cash equivalents. The mutual fund uses the money it raises from selling its shares to fund its purchases of underlying investments. A mutual fund may pay dividends to its investors. It also charges management fees.

Non-Fungible Token (NFT)

Non-fungible tokens (NFTs) are digital assets that represent a unique virtual item or evidence ownership of a virtual, physical, or intangible item. Collectible NFTs are a subset of NFTs that represent digital artwork, music or video files, trading cards or other digital collectibles. Unlike cryptocurrencies and stablecoins, no two NFTs are exactly alike. Rather, each individual NFT is valued based on its unique properties and uses. NFTs can therefore be thought of as similar to “digital” goods.

Option (stock option plan)

A stock option is a type of compensation in the form of an agreement between an employer and an employee that allows the employee to purchase shares of the employer’s stock at a specified price (i.e., the “strike price”). A stock option typically has a vesting requirement, which means that the employee may exercise the stock option (i.e., purchase the employer’s stock at the strike price) only after a specified period of time has passed. The employee typically forfeits the unvested stock option if the employee’s employment terminates before the stock option has vested. After the stock option vests, the employee may exercise the stock option until the stock option expires. Once the stock option has expired, the employee no longer has the right to purchase the stock at the strike price.

A stock option acquired through a business or employer’s stock option plan is a type of “call option” because it provides the right to purchase stock. Unlike some other types of call options, however, an incentive stock option is not traded on the open market.

Option (put or call purchased)

Put option: A put option is a contract that provides the buyer the right to sell a security (stock, exchange-traded fund, etc.).

Call Option: A call option is a contract that provides the buyer the right to purchase a security.

With regard to each of these types of contracts, the buyer has the right, but not the obligation, to exercise the option at a specified price (i.e., the “strike price”) until the contract’s expiration date. Some put and call options may be purchased on the open market. As an alternative to exercising put and call options, investors can resell these options on the open market before their expiration.

Index Options: A variant in which the option holder does not have the right to buy or sell an actual security but rather has the right to exercise if an index increases over the specified price (index call option) or decreases over the specified price (index put option). Functionally, these options are very similar to an option on a fund that invests in the index components. However, an index option holder does not have the ability to buy/sell any underlying security through the option. These options are cash-settled.

Caution: This entry applies to put and call options purchased on the market. It does not apply to:

• Call options acquired through an employment relationship, such as through an employee stock purchase plan or an incentive stock option plan. See the “Employee Stock Purchase Plan” and “Option (incentive stock option plan)” entries for additional information about these types of employment-related options.
• Put or call options that have been “written” rather than purchased. An option writer does not have the choice to buy or sell but rather must buy or sell if an investor exercises the option written. For this case, see the “Option (put or call written)” entry.

Option (put or call written)

Put option: A put option is a contract that provides the buyer the right to sell a security (stock, exchange-traded fund, etc.). The writer of a put option has an obligation to buy the security at a specified price (i.e., the “strike price”) from the buyer if the buyer exercises the option before the contract’s expiration date.

Call Option: A call option is a contract that provides the buyer the right to purchase a security. The writer of a call option has an obligation to sell the security at a specified price (i.e., the “strike price”) to the buyer if the buyer exercises the option before the contract’s expiration date.

Index Options: A variant in which the option holder does not have the right to buy or sell an actual security but rather has the right to exercise if an index increases over the specified price (index call option) or decreases over the specified price (index put option). The option writer, then, is obligated to pay the option holder based on the amount the index price changes relative to the specific option price. Functionally, these options are very similar to an option on a fund that invests in the index components. However, an index option holder does not have the ability to buy/sell any underlying security through the option. These options are cash-settled.

Caution: This entry applies to put and call options written on the market. It does not apply to:

• Call options acquired through an employment relationship, such as through an employee stock purchase plan or an incentive stock option plan. See the “Employee Stock Purchase Plan” and “Option (incentive stock option plan)” entries for additional information about these types of employment-related options.
• Put or call options that have been purchased rather than written. An option buyer does not have an obligation to exercise an option but rather may choose to let the option expire, unexercised. For this case, see the “Option (put or call purchased)” entry.

Personal Residence

For purposes of financial disclosure, a “personal residence” includes any property used exclusively as a private dwelling by you or your spouse, provided the property was not rented out during any portion of the reporting period. The term is not limited to your domicile, so you may have more than one property that qualifies as a personal residence (e.g., your vacation home).

Note that this definition would include a residential property held for rent-free use by a family member.

Phantom Stock

Phantom stock is a contract between an employer and an employee that grants the employee the right to receive a payment based on the value of the employer’s stock. When granting phantom stock, the employer does not grant the employee any shares of the employer’s stock. Instead, the employer grants the employee a right that tracks the value of a specified number of shares of the stock.

The employee will have a right to receive a payout equivalent to the value of these tracked shares. Depending on the terms of the employer’s phantom stock plan regarding the vesting of phantom stock, the payout may occur on a specified date or upon the occurrence of a certain event, such as retirement, disability, or death. If the employee’s employment is terminated before the phantom stock vests, the employee normally forfeits the phantom stock.

The plan may provide for a single payment, or it may provide for installment payments over a period of time after the phantom stock vests. In some cases, the employer may let the employee elect to receive the payout in the form of an equivalent amount of stock. In addition to the final payout, under some phantom stock plans, the employee may receive payments equivalent to any dividends that the employer pays to stockholders.

It may help to understand some of the key similarities and differences between phantom stock and other types of financial interests in an employer. Phantom stock differs from an employer’s stock in that phantom stock does not give the employee an ownership interest in the employer. Unlike stock, phantom stock also might not convey a right to payments based on dividends. Phantom stock differs from a stock appreciation right in that its payout is based on the full value of the stock, while the payout of a stock appreciation right is based only on any increase in the value of the stock over a specified period of time. Phantom stock differs from a stock option because the employee does not need to purchase anything.

Political Entity

The Ethics in Government Act requires public financial disclosure filers to report the positions they hold with various organizations, but exempts certain positions from reporting, including positions held with a “political entity.” The Act does not define “political entity”; however, OGE has determined that, for purposes of this reporting exception to Part 1 of the OGE Form 278e, “political entity” covers organizations that meet the definition of “political organization” in definition section 527(e) of the Internal Revenue Code. See OGE Legal Advisory LA-18-13 (September 27, 2018).

Purchase

For purposes of financial disclosure, a purchase generally occurs when a security or real property is acquired from another party for consideration in the form of money (dollars, euros, yen, etc.). An acquisition through a note that is repaid in money would also be considered a purchase rather than an exchange (i.e., an installment purchase).

Note that, at present, virtual currencies are deemed to be property rather than money. Depending on the specific facts of the case, a virtual currency may or may not be a security.

Qualified Trust

Before discussing qualified trusts, we want to give an important word of caution: Do not attempt to establish a federal executive branch qualified trust without first consulting OGE.

The Ethics in Government Act established a uniform system of qualified trusts that emphasizes independent trustees and limited communication with the employee involved.

There are two different types of qualified trusts:

• A qualified blind trust may hold most types of assets, such as cash, stocks, bonds, or mutual funds. It is important to note that any asset initially placed in the trust is not considered blind and continues to pose a potential conflict of interest until it has been divested or reduced to a value of less than $1,000. The new assets purchased by the trustee will not be disclosed to you, so they will be considered blind and will not pose conflicts of interest.
• In contrast, a qualified diversified trust must hold a portfolio of readily marketable securities. No single asset placed in the trust may be more than 5% of the total portfolio, and no more than 20% of the portfolio may be concentrated in any particular economic or geographic sector. Additionally, unlike with the qualified blind trust, the securities of an entity that has substantial activities in your primary area of federal responsibility cannot be put in the initial portfolio of a qualified diversified trust. By law, the assets of a qualified diversified trust certified by OGE do not pose conflicts of interest.

A “qualified trust” must be certified as such by the Director of OGE. Interested parties should contact OGE or an ethics official to coordinate efforts to create an appropriate type of trust. OGE has several model qualified trust documents available on our website.

Qualified Tuition Program

There are two types of qualified tuition programs:

1. College savings plans: A college savings plan is an investment account in which an individual chooses among various investment options, often consisting of portfolios that invest in mutual funds. The amount available for future tuition depends on the amount that the individual contributes and the performance of the investments that the individual has chosen.
2. Prepaid tuition plans: A prepaid tuition plan is a contract between an individual and the plan’s sponsor that allows the individual to prepay future tuition expenses at current tuition rates. The sponsor can either be a state or the Tuition Plan Consortium, LLC, for private institutions (also known as the Private College 529 Plan).

In either case, the qualified tuition program is essentially a program that offers investors tax-advantaged accounts for the purpose of saving money to cover educational expenses. Qualified tuition programs are often called “529 plans” because they are recognized in the tax code at 26 U.S.C. § 529.

Real Estate Holding Company

A real estate holding company is a business that is principally engaged in owning, holding, selling, or leasing real estate. These companies derive most of their income from dividends, interest, royalties, and rent collection. Real estate holding companies may be organized as limited partnerships, limited liability companies, or as corporations.

Real Estate Investment Trust (REIT)

A REIT is a specific type of real estate holding company, which owns or finances income-producing real estate or mortgages. They are organized as corporations with at least 100 investors and can be publicly traded or privately held. In addition, REITs may focus on the ownership of properties in a particular property sector, such as shopping malls or office buildings, or they may focus on ownership of properties in a range of different sectors.

Although REITs are a type of real estate holding company, they have specific legal requirements that distinguish them from other real estate holding companies. In particular, REITs are required to derive at least 75% of their gross income from rents generated by real property, interest on mortgages financing real property, or from sales of real estate. The Investment Company Act of 1940 (1940 Act) excludes an entity that is primarily engaged in “purchasing or otherwise acquiring mortgages and other liens on or interests in real estate” from the definition of “investment company” and, as a result, REITs will never qualify as mutual fund. Because of these legal requirements, OGE views REITs as operating businesses engaged in the real estate industry, rather than funds that have underlying holdings.

For identification purposes, REITs often have the acronym “REIT” or the word “Trust” in the title of the asset. The name of the asset, however, is not dispositive. Mutual funds that invest solely in REITs also often have REIT in the fund name and are disclosed like other mutual funds. Ethics officials can determine whether an asset is a REIT by looking up the asset on an online financial website (e.g., Yahoo! Finance or Google Finance) or the U.S. Securities and Exchange Commission’s company filing search engine, EDGAR.

Received

General Rule

You have received income when you have the right to exercise control over the income, regardless of whether you have taken actual possession.

Generally, this means income would be “received” for purposes of financial disclosure when received for purposes of federal income tax. Note, however, that income would be reportable on your financial disclosure report even if exempt from federal income tax (e.g., interest on municipal bonds). In other words, your financial disclosure report generally will correspond to your taxable income in terms of when it is counted but not necessarily what is counted.

Example 1: A filer has received dividends on a stock even if the dividends are reinvested.

Example 2: A filer has received a payment for services that has been delivered in the form of a check even though the filer has not cashed the check. Similarly, a filer who defers collecting a check would still have received the payment for purposes of financial disclosure. Filers cannot avoid reporting income by deferring possession of income made available to them.

Aggregation

You, Your Spouse, and Your Dependent Children

To determine whether income from a single source meets the reporting threshold, you must aggregate your income from that source with income that your spouse and dependent children received from that source.

Different Types of Income and Losses from a Particular Source

You must generally report gross income for any income you receive, and you must aggregate all types of income from a particular source in determining whether the income from that source meets the reporting threshold. You may note your net income from a business or real estate as well if you wish to show a loss. Capital losses may be subtracted from any gains and other investment income when calculating the gross amount of investment income received.

Example 1: A filer received $150 in dividends and $150 in capital gains from an asset. The total income of $300 meets the income reporting threshold. If the asset instead produced $300 in dividends but was sold at a loss of $200, the total income of $100 falls below the income reporting threshold.

Example 2: A filer owns a rental property from which the filer received $16,800 in rent during the reporting period. The filer may not subtract the expenses of maintaining the property when determining the amount of income received. The filer, therefore, would select the “$15,001 - $50,000” category for income.

Total Income from Partnership, LLCs, and S-Corporations

You may use net distributive share, rather than gross income, when determining the total amount of income received from any partnerships, limited liability companies, or S-corporations in which you have an interest. However, your net distributive share has been received for purposes of financial disclosure, regardless of whether you have taken a distribution.

Example: A filer operates a business that is structured as a limited liability company. The filer must report income from the business even if all of its profit during the reporting period was reinvested into the business.

Income from the Underlying Assets of Individual Investment Vehicles

If you have an individual investment vehicle (e.g., brokerage account) in which there are no investors other than your spouse and dependent children, look at the income from each asset of the account individually when determining the amount of income received. Note, however, that a special rule applies to income from a tax-deferred plan or account. See below.

Income from the Underlying Assets of Pooled Investment Vehicles

If you have an interest in a pooled investment vehicle (e.g., fund) in which there are other investors, first determine whether the vehicle qualifies as an excepted investment fund or an excepted trust. In such a case, consider only the total income received from the vehicle. If the vehicle does not qualify as an excepted investment fund or an excepted trust, report the amount of income received from each underlying asset attributable to you, your spouse, and your dependent children.

Example: A filer has a 10% interest in a family investment fund. The fund had an overall value of $77,000 at the end of the calendar year and held the following underlying assets: (1) shares of ABC Corporation stock that had a value of $75,000 and produced $3,000 in dividends and (2) bonds issued by XYZ, Inc., that had a value of $2,000 and produced $800 in interest and capital gains.

The filer’s income from the overall fund exceeds the reporting thresholds ($3,800 x 10% > $200). With respect to the underlying assets of the fund, the filer would have reportable income from the ABC Corporation stock ($3,000 x 10% > $200) but not the XYZ, Inc., bonds ($800 x 10% < $200).

Special Treatment of Tax-Deferred Plans and Accounts

OGE does not treat tax-deferred income accruing within a retirement plan or account as having been received because of the limitations on withdrawal and other regulatory requirements governing such plans and accounts. You, however, would report distributions as having been received. You may subtract from the distribution any portion that constitutes an investment into the plan or account. In most cases, though, filers will find it easiest to use the total amount of a distribution during the reporting period.

Example: A filer would not report dividends on a stock as having been received if the stock is held within an individual retirement account. The filer, however, would report distributions from the retirement account as having been received.

Income on Sales Sold Pursuant to a Certificate of Divestiture

A Certificate of Divestiture permits an individual to defer the recognition of capital gains on covered sold assets for purposes of federal income taxation. However, unlike the case of a tax-deferred plan or account, the individual has control over the income. In fact, to make the Certificate of Divestiture effective, the filer must invest that income into permitted property within 60 days, and, if that property produces income, the individual may be able to enjoy that income immediately. Therefore, capital gains income is not exempted from reporting simply because the assets were sold pursuant to a Certificate of Divestiture.

Relative

For purposes of financial disclosure, the term “relative” means an individual who is related to you as your father, mother, son, daughter, brother, sister, uncle, aunt, great uncle, great aunt, first cousin, nephew, niece, husband, wife, grandfather, grandmother, grandson, granddaughter, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister, or who is the grandfather or grandmother of your spouse. “Relative” also includes your fiancé or fiancée.

Reporting Due Dates: OGE Form 278-T

Periodic transaction reporting is subject to two different deadlines. Under the Ethics in Government Act, you need to file a report within 30 days of receiving notification of a transaction, but not later than 45 days after the transaction.

Which due date applies depends on when you receive notification of the transaction. Normally, you need to disclose a transaction within 30 days of receiving the notification. For example, if you receive online confirmation of a transaction that you ordered earlier today, you will file your report within 30 days.

Sometimes, you might not receive notification right away. In that case, the 45-day deadline can shorten the period for filing your report. For example, if today you receive notification of a transaction that occurred early last month, you will need to be sure to file your report no later than 45 days after the transaction occurred. The 45-day period might end sooner than 30 days from today.

Example 1: You purchase a stock on July 1 and receive notification the same day. You need to report the purchase on or before July 31.

Example 2: You receive a statement on August 10 regarding a purchase that occurred on July 31. You need to report the purchase on or before September 9 because September 9 is 30 days after you received notification of the transaction.

Example 3: You receive a statement on August 10 regarding a purchase that occurred on July 1. You need to report the purchase on or before August 15. Although the 30-day period from notification ends September 9, the 45-day period from the date of the transaction ends earlier.

Note: These deadlines do not apply to any voluntary disclosures of Annual and Termination report information that you choose to make in the Periodic Transaction report.

Your agency may grant an extension of up to 45 days for good cause shown with the possibility of an additional extension of up to 45 days. If your report is filed more than 30 days after the date the report is required to be filed, or, if an extension was granted, more than 30 days after the last day of the filing extension period, you will be subject to a $200 late filing fee. A report is considered to be filed when it is received by your agency. Unless waived by your agency, your agency will collect the fee for deposit with the United States Treasury.

Reporting Periods: Annual Report

* Do not include any period when you were not a public financial disclosure filer or an employee of the United States Government.

** Do not include any period when you were not an employee of the United States Government.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, an Annual report was originally due May 15, 2023. The filer received a 30-day extension and filed June 8, 2023. The Part 1 reporting period would start on January 1, 2022, and end on May 15, 2023.

Reporting Periods: Candidate Report

* For example, if today is March 3, 2023, the reporting period would run from January 1, 2022, to March 3, 2023. When valuing assets and revolving charge accounts, you may choose any date that is fewer than 31 days before the filing date. All other liabilities must be valued at the highest amount during the reporting period.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, a report was originally due December 14, 2022. The filer received a 30-day extension and filed January 8, 2023. The Part 2 reporting period would start on January 1, 2021, and end on December 14, 2022.

Reporting Periods: New Entrant Report

* For example, if today is March 3, 2023, the reporting period would run from January 1, 2022, to March 3, 2023. When valuing assets and revolving charge accounts, you may choose any date that is fewer than 31 days before the filing date. All other liabilities must be valued at the highest amount during the reporting period.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, a New Entrant report was originally due December 14, 2022. The filer received a 30-day extension and filed January 8, 2023. The Part 2 reporting period would start on January 1, 2021, and end on December 14, 2022.

Reporting Periods: Nominee Report

* For example, if today is March 3, 2022, the reporting period would run from January 1, 2020, to March 3, 2022. When valuing assets and revolving charge accounts, you may choose any date that is fewer than 31 days before the filing date. All other liabilities must be valued at the highest amount during the reporting period.

Reporting Periods: Termination Report

* Do not include any period when you were not a public financial disclosure filer or an employee of the United States Government.

** Do not include any period when you were not an employee of the United States Government.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, a Termination report was originally due December 14, 2022. The filer received a 30-day extension and filed January 8, 2023. Assuming an Annual report was filed, the Part 2 reporting period would start on January 1, 2022, and end on the filer’s termination date.

Reporting Periods by Part: Part 1

New Entrant, Nominee, or Candidate Report

The reporting period for a New Entrant, Nominee, or Candidate report is the current calendar year and the preceding two calendar years.

For example, if today is October 15, 2022, the reporting period is January 1, 2020, through October 15, 2022.

Annual Report

The reporting period for an Annual report is the preceding calendar year and the current calendar year up to the date of filing.

Termination Report

The reporting period includes the current calendar year up to the date of your termination. In addition, if you are required to file an Annual report for the preceding calendar year but you have not yet done so, your Termination report must cover the preceding calendar year as well.

For example, if you terminate October 15, 2022, and filed an Annual report on May 15, 2022 for calendar year 2021, the reporting period for your Termination report is January 1, 2022, through October 15, 2022.

Annual/Termination Report

The reporting period for a combined Annual/Termination report is the preceding calendar year and the current year up to your date of termination. For example, if you terminate March 15, 2022, and you have not yet filed your Annual report for calendar year 2021, the reporting period for your Termination report is January 1, 2021, through March 15, 2022.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, a New Entrant report was originally due December 14, 2022. The filer received a 30-day extension and filed January 8, 2023. The Part 1 reporting period would start on January 1, 2020, and end on December 14, 2022.

Reporting Periods by Part: Parts 2, 5, and 6

New Entrant, Nominee, or Candidate Report

The reporting period for a New Entrant, Nominee, or Candidate report is the current calendar year and the previous calendar year.

For example, if today is October 15, 2022, the reporting period is January 1, 2021, through October 15, 2022.

When valuing an asset for these Parts, you may pick any date that is fewer than 31 days before your filing date.

Annual Report

The reporting period for an Annual report is the preceding calendar year.

Termination Report

The reporting period includes the current calendar year up to the date of your termination. In addition, if you are required to file an Annual report for the preceding calendar year but you have not yet done so, your Termination report must cover the preceding calendar year as well.

For example, if you terminate October 15, 2022, and filed an Annual report on May 15, 2022 for calendar year 2021, the reporting period for your Termination report is January 1, 2022, through October 15, 2022.

Annual/Termination Report

The reporting period for a combined Annual/Termination report is the preceding calendar year and the current year up to your date of termination. For example, if you terminate March 15, 2022, and you have not yet filed your Annual report for calendar year 2021, the reporting period for your Termination report is January 1, 2021, through March 15, 2022.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, a New Entrant report was originally due December 14, 2022. The filer received a 30-day extension and filed January 8, 2023. The Part 2 reporting period would start on January 1, 2021, and end on December 14, 2022.

Reporting Periods by Part: Part 3

New Entrant, Nominee, or Candidate Report

If you are filing a New Entrant, Nominee, or Candidate report, report only agreements or arrangements in which you continue to participate as of the date of filing.

Annual Report

The reporting period for an Annual report is the preceding calendar year and the current calendar year up to the date of filing.

Termination Report

The reporting period includes the current calendar year up to the date of your termination. In addition, if you are required to file an Annual report for the preceding calendar year but you have not yet done so, your Termination report must cover the preceding calendar year as well.

For example, if you terminate October 15, 2022, and filed an Annual report on May 15, 2022 for calendar year 2021, the reporting period for your Termination report is January 1, 2022, through October 15, 2022.

Annual/Termination Report

The reporting period for a combined Annual/Termination report is the preceding calendar year and the current year up to your date of termination. For example, if you terminate March 15, 2022, and you have not yet filed your Annual report for calendar year 2021, the reporting period for your Termination report is January 1, 2021, through March 15, 2022.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, a New Entrant report was originally due December 14, 2022. The filer received a 30-day extension and filed January 8, 2023. The Part 3 reporting period reflects agreements and arrangements as of December 14, 2022.

Reporting Periods by Part: Part 7

Annual Report

The reporting period for an Annual report is the preceding calendar year.

Termination Report

The reporting period includes the current calendar year up to the date of your termination. In addition, if you are required to file an Annual report for the preceding calendar year but you have not yet done so, your Termination report must cover the preceding calendar year as well.

For example, if you terminate October 15, 2022, and filed an Annual report on May 15, 2022 for calendar year 2021, the reporting period for your Termination report is January 1, 2022, through October 15, 2022.

Annual/Termination Report

The reporting period for a combined Annual/Termination report is the preceding calendar year and the current year up to your date of termination. For example, if you terminate March 15, 2022, and you have not yet filed your Annual report for calendar year 2021, the reporting period for your Termination report is January 1, 2021, through March 15, 2022.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, a Termination report was originally due December 14, 2022. The filer received a 30-day extension and filed January 8, 2023. The Part 7 reporting period would start on January 1, 2022, and end on the filer’s termination date.

Reporting Periods by Part: Part 8

New Entrant, Nominee, or Candidate Report

The reporting period for a New Entrant, Nominee, or Candidate report is the current calendar year and the previous calendar year.

For example, if today is October 15, 2022, the reporting period is January 1, 2021, through October 15, 2022.

When valuing a revolving charge account for this Part, you may pick any date that is fewer than 31 days before the filing date. All other liabilities must be valued at the highest amount during the reporting period.

Annual Report

The reporting period for an Annual report is the preceding calendar year.

Termination Report

The reporting period includes the current calendar year up to the date of your termination. In addition, if you are required to file an Annual report for the preceding calendar year but you have not yet done so, your Termination report must cover the preceding calendar year as well.

For example, if you terminate October 15, 2022, and filed an Annual report on May 15, 2022 for calendar year 2021, the reporting period for your Termination report is January 1, 2022, through October 15, 2022.

Annual/Termination Report

The reporting period for a combined Annual/Termination report is the preceding calendar year and the current year up to your date of termination. For example, if you terminate March 15, 2022, and you have not yet filed your Annual report for calendar year 2021, the reporting period for your Termination report is January 1, 2021, through March 15, 2022.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, a New Entrant report was originally due December 14, 2022. The filer received a 30-day extension and filed January 8, 2023. The Part 8 reporting period would start on January 1, 2021, and end on December 14, 2022.

Reporting Periods by Part: Part 9

Annual Report

The reporting period for an Annual report is the preceding calendar year.

Termination Report

The reporting period includes the current calendar year up to the date of your termination. In addition, if you are required to file an Annual report for the preceding calendar year but you have not yet done so, your Termination report must cover the preceding calendar year as well.

For example, if you terminate October 15, 2022, and filed an Annual report on May 15, 2022 for calendar year 2021, the reporting period for your Termination report is January 1, 2022, through October 15, 2022.

Annual/Termination Report

The reporting period for a combined Annual/Termination report is the preceding calendar year and the current year up to your date of termination. For example, if you terminate March 15, 2022, and you have not yet filed your Annual report for calendar year 2021, the reporting period for your Termination report is January 1, 2021, through March 15, 2022.

Extensions Do Not Change the Reporting Period

The reporting period is tied to a report’s original due date and is unaffected by any extensions. For example, a Termination report was originally due December 14, 2022. The filer received a 30-day extension and filed January 8, 2023. The Part 9 reporting period would start on January 1, 2022, and end on the filer’s termination date.

Restricted Stock

Restricted stock is a grant to an employee of company stock that has limitations on the employee’s rights (usually, the right to sell the stock) until the shares vest. Specific terms, such as the vesting period and whether the employee will be paid dividends before vesting, are spelled out in an agreement between the employee and employer. Once the shares vest, the employee usually owns the stock without limitations and can sell it at any time. Generally, the employee forfeits restricted stock if the employee leaves the company before the restricted stock vests.

Restricted Stock Unit (RSU)

A restricted stock unit (RSU) is a grant to an employee valued in terms of company stock. No actual stock is issued at the time of the grant. Instead, the grant of stock or its cash equivalent is deferred until the restricted stock units vest, which is based upon a set date or an occurrence described in a restricted stock unit plan or agreement. Once the vesting requirement is satisfied, the company ordinarily distributes the shares or their cash equivalent to the employee; however, the distribution may be deferred in some plans. Generally, the employee forfeits restricted stock units if the employee leaves the company before the restricted stock units vest.

Sale

For purposes of financial disclosure, a sale generally occurs when a security or real property is transferred to another party for consideration in the form of money (dollars, euros, yen, etc.). A transfer for a note that is repaid in money would also be considered a sale rather than an exchange (i.e., an installment sale).

Note that, at present, virtual currencies are deemed to be property rather than money. Depending on the specific facts of the case, a virtual currency may or may not be a security.

Schedule C Employee

A Schedule C employee is an employee in a position that is excepted from the competitive service because of its policy-determining nature or because it involves a close and confidential working relationship with the agency head or other top appointed official. Persons with this type of appointment range from secretaries and chauffeurs to policy advisors.

Security

Unless otherwise noted, something deemed to be a “security” for purposes of federal securities law would be deemed a “security” for purposes of financial disclosure. This would include such items as stock, corporate or municipal bonds, government agency securities, options, futures, mutual funds, exchange-traded funds, unit investment trusts, limited partnership interests, and other investment funds. For purposes of financial disclosure, the term does not include cash accounts, money market mutual funds, Treasuries and U.S. savings bonds, life insurance policies, or annuity contracts.

Self-Funded Defined Benefit Plan

Self-funded defined benefit plans are funded by individuals instead of employers. The individual invests money to meet a certain benefit amount in the future. The returns on the investments will fund the future benefits to be paid to the individual. If the investments do not perform as well as expected, the required contribution amounts will increase.

At retirement, participants often roll their balances into IRAs or purchase annuities; however, continued participation in the plan is possible as well.

Severance Payment

A severance payment is a payment for past services that is paid by an employer upon the departure of an employee. Severance payments may be pursuant to the employer’s standard policy or pursuant to an employment agreement with a specific employee.

Short Sale

A short sale is the sale of securities that an investor has borrowed from a broker. The investor, who does not actually own the securities, must eventually purchase an equal number of the same securities and return them to the broker.

• Open Position: When the investor acquires and subsequently sells the initial borrowed securities from the broker, but has not yet purchased the replacement securities, the investor is in an “open short position.”
• Closed Position: When the investor purchases the replacement securities and returns them to the broker, the investor is in a “closed position.”

Generally the investor’s goal is to purchase replacement securities at a price lower than the price at which the investor initially sold them. The investor will realize a profit as a result of this price discrepancy if the value of the securities decreases. However, the investor will lose money if the value of the securities increases before the investor purchases them. In either case, the investor pays interest on the loan.

Special Purpose Acquisition Company (SPAC)

A special purpose acquisition company (SPAC) is a corporate structure generally formed to solicit investor funds through an initial public offering (IPO) and then to use those pooled funds to acquire or merge with a private operating company. If and when that acquisition or merger occurs, the result is a publicly traded company with the previously private operating company’s line of business. In effect, investors in a SPAC are buying a chance to own a piece of the to-be-determined operating company. If the SPAC does not complete an acquisition or merger within a specific period of time, the SPAC dissolves and investors receive a pro rata share of the funds that had been raised and held within the SPAC for the acquisition or merger. Typically, a SPAC holds its funds in safe, interest-bearing instruments, but the permissible forms of investment can vary, depending on the offering terms.

Special Government Employee (SGE)

A special Government employee is defined at 18 U.S.C. § 202 to include an officer or employee who is retained, designated, appointed, or employed by the Government to perform temporary duties, with or without compensation, for not more than 130 days during any period of 365 consecutive days. The term also includes a Reserve officer of the Armed Forces or an officer of the National Guard while on active duty solely for training, or if serving involuntarily.

At the time of appointment, the appointing official determines whether the employee will be reasonably expected to work more than 130 days in the 365 days after the appointment date. If an agency designates an employee as an SGE, based on a good faith estimate, but the employee unexpectedly serves more than 130 days during the ensuing 365-day period, the individual still will be deemed an SGE for the remainder of that period. However, upon the commencement of the next 365-day period, the agency should reevaluate whether the employee is correctly designated as an SGE, (i.e., expected to serve no more than 130 days).

For additional information, see the memorandum issued by OGE DAEOgram DO-00-003 and DO-00-003A (February 15, 2000).

Stable Value Fund

A stable value fund is an investment vehicle that is generally offered as an investment option within an employee benefit or retirement plan. Stable value funds typically invest in bonds and interest-bearing contracts. Some stable value funds are mutual funds that are registered with the U.S. Securities and Exchange Commission, but not all stable value funds are registered mutual funds.

Stock

Stock shares represent an equity (ownership) interest in a corporation and entitle the holder to a claim on corporate assets and earnings.

Corporations issue two basic types of stock: common and preferred. Differences between the two types involve shareholder voting rights, dividend variability, price sensitivity, and the priority for payment of dividends and liquidation claims. For purposes of financial disclosure, these differences are ordinarily not significant, and there is no requirement to specify the type of stock in a financial disclosure report.

Stock Appreciation Right

A stock appreciation right is a contract between an employer and an employee that grants the employee the right to receive a payment tied to any increase in the value of the employer’s stock. When granting a stock appreciation right, the employer does not grant the employee any shares of the employer’s stock. Instead, the employer grants the employee a right that tracks the value of a specified number of shares over a specified period of time. The employer designates a “grant price,” and the employee will have a right in the future to receive a payout equivalent to the difference between the market price of the stock and the grant price.

If the value of the shares increases, the employee can exercise the stock appreciation right by requesting a payment equivalent to the increase in value of the shares. For example, if the employee has a stock appreciation right tied to 100 shares and the value of the shares increases by 50 cents per share, the employee may request a payment of $50. In some cases, the employer may let the employee elect to receive the payment in the form of $50 worth of the employer’s stock at current market value.

Like stock options, a stock appreciation right typically has a vesting requirement and an expiration date. The employee may not exercise the stock appreciation right before it vests or after it expires. The employee normally forfeits a stock appreciation right if the employee terminates from the company before the stock appreciation right vests.

Student Loan

A student loan is a loan given by a lender to a borrower for the purpose of paying education-related expenses.

Sweep Account

For purposes of financial disclosure, a sweep account is a type of account in which funds over a predetermined average balance are automatically transferred (or “swept”) from the primary cash account into secondary investment accounts (often money market mutual funds). This allows the account owner to earn a higher interest on the excess cash with minimum personal intervention.

Often, public financial disclosure filers have sweep accounts within brokerage accounts that they use primarily for investing in stocks and other securities. Cash from sales of the stocks and other securities can be moved into the sweep account pending reinvestment.

Third-Party Escrow Agreement

For purposes of financial disclosure, a third-party escrow agreement refers to an escrow agreement that is designed to make funds available for the purchaser of a business that the filer has sold. The purpose of such an agreement would be to protect the purchaser against unforeseen liabilities or expenses that arise after the sale but stem from matters predating the sale. At the end of a specified period of time, any unused funds will be returned to the seller. The agreement is a purely negotiated (i.e., non-standard) item in connection with the sale of a business and, as such, will vary from case to case.

TIAA: Definition

TIAA (formerly TIAA-CREF) is a non-profit entity that provides a variety of financial services, including retirement plans.

TIAA holdings may consist of annuities, various forms of insurance, cash accounts, and mutual funds.

TIAA: How to Report a CREF Account or TIAA Real Estate

CREF accounts (e.g., “CREF Stock” or “CREF Money Market”) and TIAA Real Estate are variable annuity accounts that are offered as part of retirement plans.

Part 2 (for you) or Part 5 (for your spouse)

Report a CREF account or TIAA Real Estate if its value was more than $1,000 at the end of the reporting period or if more than $200 in income was received during the reporting period.

Description: Provide the exact name of the asset held (e.g., “CREF Inflation-Linked Bond” rather than “CREF Fixed Income”).

EIF: CREF accounts and TIAA Real Estate qualify as excepted investment funds (EIF).

Value: Select the category that corresponds to its value.

Income Type and Income Amount: In most cases, distributions or payments related to a CREF account or TIAA Real Estate are made at the level of a retirement plan or individual retirement account, which may commingle income from other sources. In these cases, report all of the income at the level of the retirement plan or individual retirement account rather than attempt to attribute the income to individual investments. See the defined contribution plan and individual retirement account entries for more information.

TIAA: How to Report TIAA Traditional

A TIAA Traditional Annuity is a fixed annuity.

Part 2 (for you) or Part 5 (for your spouse)

Report a TIAA Traditional Annuity if its value was more than $1,000 at the end of the reporting period or if more than $200 in income was received during the reporting period. Income is ordinarily reported when the annuity begins making the payments.

Description: Write “TIAA Traditional.”

EIF: Select “N/A.”

Value: Select the category that corresponds to its value.

Income Type: If applicable, describe the type of income received as “cash payments” or “cash distributions.”

Income Amount: Provide the exact amount of income over $200. If you do not have such income to report, select the category for “None (or less than $201).”

Note: If you hold TIAA Traditional through a defined contribution plan or other retirement account, you would generally report any distributions or payments at the level of the plan or account. See the defined contribution plan and individual retirement account entries for more information.

Travel Reimbursement

Travel reimbursement means any payment or other thing of value received (other than gifts) to cover travel-related expenses, unless a reporting exception applies. See the "Gifts and Travel Reimbursements". entry for a list of reporting exceptions.

Trust (irrevocable)

An irrevocable trust is a trust from which assets cannot be removed, except as described in the trust document.

Trust (revocable living)

In a typical revocable living trust (sometimes called a “revocable inter vivos trust” or a “living trust”), the person who created the trust – often called the grantor, settler, or donor – transfers ownership of assets into a trust, which is managed by the trustee for the benefit of the trust’s beneficiaries. The grantor, who often serves as trustee, can revoke the trust and make other changes, such as substituting beneficiaries or taking assets out of the trust, at any time. The trust becomes irrevocable upon the grantor’s death. A revocable living trust is widely recognized as a will substitute.

UGMA or UTMA Account

A Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account is an account into which property is set aside for a minor’s benefit. Whether a UGMA or UTMA account is used depends on the state in which the account is established.

Transfers made to a UGMA or UTMA account are irrevocable and belong to the child in whose name the account is registered; however, the account is controlled by the custodian until the child reaches a certain age, which varies by state (usually 18 or 21).

Unit Investment Trust

A unit investment trust (UIT) is a type of investment company regulated under the Investment Company Act of 1940. A UIT buys a relatively fixed portfolio of securities and holds them with little or no change until the UIT’s termination date.

Virtual Currency

For purposes of financial disclosure, “virtual currency” describes a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value that has an equivalent value in real currency or that acts as a substitute for real currency (i.e., a “convertible virtual currency” within the meaning of IRS Notice
2014-21). Examples of virtual currencies include Bitcoin, Bitcoin Cash, and Litecoin. The term virtual currency includes both cryptocurrencies and stablecoins.

Warrant

A warrant is similar to an option in that it is a contract that provides the holder the right to buy or sell a security. Unlike an option, warrants are generally issued by the company associated with warrant and fulfilled by the company (i.e., the warrant holder buys or sells the underlying security from/to the company rather than a secondary market participant). Warrants also generally do not expire as quickly as options. A warrant can be acquired in connection business or employment activities or through passive investment activities. Warrants are sometimes granted to passive investors in connection with bond issuances.