Instruction Guide
Completing Financial Disclosure Statement Form A
General Information
Introduction
Title I of the Ethics in Government Act of 1978, as amended (5 U.S.C. app. 4, § 101 et seq.) requires Members, officers, certain employees of the U.S. House of Representatives and related offices, and candidates for the House of Representatives to file Financial Disclosure Statements with the Clerk of the House of Representatives. The Committee on Standards of Official Conduct, which administers the statute in the House, has prepared these instructions to assist filers of FORM A, for use by Members and certain current officers and employees of the Legislative Branch, as well as terminated Members and employees. A sample completed form is printed immediately following these instructions.
The instructions for completing a FORM B Statement (for use by candidates and new employees) are contained in a separate booklet. Form B filers should contact the Clerk of the House to obtain the instruction booklet for completing that form.
Any filer having questions concerning the reporting requirements or on how to fill out the Financial Disclosure Statement should call or write the Committee on Standards of Official Conduct, Suite HT-2, The Capitol, Washington, D.C. 20515-6328, (202) 225-7103. The Committee can also supply extra copies of the forms. The Committee strongly encourages filers to use the financial disclosure software for completing the form. This software can be downloaded by visiting the Committee’s website at www.house.gov/ethics and clicking on the “Financial Disclosure” link.
Pursuant to its authority under 5 U.S.C. app. 4, § 106(b), the Committee has delegated to the Congressional Budget Office, the Library of Congress, the Architect of the Capitol, the Government Printing Office, and the Capitol Police the responsibility of reviewing and certifying disclosure Statements, and issuing extensions of time for filing, for their own employees. Employees of those agencies should contact their respective general counsels’ offices with any questions about their financial disclosure obligations.
It is the Committee’s opinion that any case in which a filer believes there is an ambiguity in the reporting requirements should be resolved in favor of disclosure or an advisory opinion should be sought from the Committee.
Those who wish further information about standards of conduct that apply in the House may obtain the House Ethics Manual and advisory memoranda by contacting the Committee or by visiting the Committee’s website at www.house.gov/ethics. Copies of the Committee’s Rules will also be provided upon request.
Who Must File and When
The following individuals are required by the Act to file Financial Disclosure Statements on FORM A:
Members: Every Member of the House of Representatives, Delegate to Congress, and the Resident Commissioner of Puerto Rico must file a Financial Disclosure Statement on or before May 15 of each calendar year.
New Members: New Members (i.e., those sworn in since the last May 15 filing deadline) must file a FORM A on May 15. However, Members who were first sworn in to the House in the current calendar year are not required to complete Schedule VI (gifts) or Schedule VII (travel).
Officers and Employees of the Legislative Branch: Each individual compensated at or above 120 percent of the minimum pay for Executive Branch GS-15 (the “senior staff” rate) for at least 60 days in a calendar year must file a Financial Disclosure Statement on or before May 15 of the succeeding calendar year, even if no longer paid at the senior staff rate. The rate triggering disclosure was $114,468in 2008. (The 2009 threshold is $117,787,468.) The Committee on Standards of Official Conduct can verify the rate for other years. Annuities paid by the United States, as well as payments such as overtime, night differential payments, locality pay adjustments, and student loan repayment are not considered in calculating whether an employee is compensated at or above the senior staff rate. As a general rule, “lump sum payments” will not be considered in calculating an employee’s compensation for reporting purposes. (But see the Committee’s advisory memorandum of October 15, 1999 regarding inappropriate use of lump sum payments to avoid financial disclosure requirements.) However, temporary increases in pay that are effective for at least 60 days in a year will trigger the filing requirement. This includes year-end or other bonuses that are paid in two or more pay periods.
In addition to the House of Representatives, these Instructions cover employees of the following Legislative Branch agencies: the Congressional Budget Office, Library of Congress, Architect of the Capitol, United States Botanic Garden, Government Printing Office, the Office of Compliance, and other legislative agencies or commissions established in an odd numbered year, unless otherwise provided by law.
Principal Assistants: A Member is required to designate at least one current employee as a principal assistant to file a Financial Disclosure Statement if the Member does not have an employee paid at or above the senior staff rate. Except in the case of a new Member, an employee who has been designated as a principal assistant must have been employed in the Member’s office for more than 60 days in the calendar year covered by the report. Thus, at least one individual who was an employee in the Member’s office for more than 60 days in the year covered by the report (either an employee paid at or above the senior staff rate or principal assistant) must file a Financial Disclosure Statement by May 15. (See Appendix B, Interpretive Ruling No. 1.)
The Clerk of the House will notify those Members who are required to designate a principal assistant. The Act is silent regarding the position in the Member’s office that such an employee should hold. This is an area in which the employing Member has broad discretion. As the Committee first stated in its 1969 financial disclosure instructions, the designated individual will usually be an employee whose relationship with the Member permits the person, under some circumstances, to act in the Member’s name or with the Member’s authority. A Member is also free to require more than one individual to file a Financial Disclosure Statement.
Termination Filers: Most Members, officers, and employees who are otherwise required to file Financial Disclosure Statements but terminate employment with the government must file termination reports within 30 days of leaving. A termination report submitted after the May 15 Financial Disclosure Statement has been filed must cover the calendar year in which termination occurs through the date of termination. If a May 15 report has not been filed, the termination report must cover both the calendar year in which termination occurs and the preceding calendar year.
No termination report need be filed by an individual who, within 30 days of leaving House employment, assumes another federal government position requiring the filing of a public Financial Disclosure Statement. A requirement to file a confidential financial disclosure statement will not excuse the filing of a termination report. A filer who has assumed a new position with a public Financial Disclosure reporting requirement should notify the Clerk of the House in writing of the new position.
An individual who files only because he or she has been designated as a principal assistant, rather than because of pay level, does not have to file a termination report (unless the individual was principal assistant of a Member leaving Congress). A new principal assistant must be designated in the individual’s place. A termination report does not satisfy the requirement that at least one person in each Member’s office besides the Member must file annually.
Tools to Complete the Form
The following documents may help to provide the information necessary for completing the form:
- A copy of the Financial Disclosure Statement you filed last year (for a new Member, this would be the Statement filed as a candidate);
- For any securities accounts you have, including any retirement accounts that hold securities, account statements covering all of the previous year;
- For your bank accounts that pay interest, and any other kinds of retirement accounts that you have, the previous year’s end-of-year statements;
- Tax forms (W-2s or 1099s) or pay stubs for any outside earned income you or your spouse received in the previous year;
- If you own a business, a copy of the accountant’s annual report for the previous year;
- For other kinds of investments, income, or liabilities you have, for example, rental property, documents indicating the gross revenue, income, debt, or loss for the previous year.
Where to File and Number of Copies
The Financial Disclosure Statement (as well as any amendment of a Statement) must be filed with the Clerk of the House of Representatives, Legislative Resource Center, Room B-106 Cannon House Office Building, Washington, D.C. 20515-6612. Members should submit one original, with an original signature, and two copies of their completed Financial Disclosure Statement. Officers and employees should submit one original and one copy.
Timeliness of Filing
Reports are considered timely if they are received or postmarked on or before the due date. If the date on which a report is required to be filed falls on a weekend or holiday, the filing deadline shall be the next business day.
Financial Disclosure Statements may NOT be filed with the Legislative Resource Center via facsimile machine. Financial Disclosure Statements are frankable.
Extensions
Prior to the date on which a Financial Disclosure Statement or a required amendment is due, the Committee on Standards of Official Conduct may grant reasonable extensions of time for the filing. Under the law, the total of such extensions for one individual in a calendar year may not exceed 90 days.
Extension requests must be made in writing, signed by the filer, directed to the Chair of the Committee on Standards of Official Conduct (or to the General Counsel of the Congressional Budget Office, the Library of Congress, Architect of the Capitol, Government Printing Office, or Capitol Police for employees of those agencies), and must state both the reason for and the length of the extension requested. Any such request must be received by the due date of the report. An extension request is not timely if it was only postmarked, but was not received, by the due date. The Committee will accept extension requests via facsimile machine. The Committee fax number for financial disclosure matters is (202) 225-3713.
Late Filing Fee
An individual who files a Financial Disclosure Statement or any amendment more than 30 days after the later of (1) the date the Statement or amendment is required to be filed, or (2) the last day of any filing extension period that has been granted, must pay a late filing fee of $200. The fee shall be paid by check or money order made out to the United States Treasury and submitted to the Clerk at the filing address along with the Financial Disclosure Statement. Payment of the fee does not preclude the Committee on Standards of Official Conduct from taking other action authorized by law and Rules of the House of Representatives.
The Committee has authority to waive the fee, but only in extraordinary circumstances. Waiver requests must be directed in writing to the Chair of the Committee, must be signed by the filer, and must state the circumstances believed to justify the waiver.
Any late report that is submitted without a required late filing fee shall be deemed procedurally deficient and not properly filed.
Reporting Period
A FORM A Financial Disclosure Statement must include information for the entire preceding calendar year, unless otherwise indicated. However, new Members need not disclose gifts received or travel occurring before they became a Member.
A termination report submitted after the May 15 Financial Disclosure Statement has been filed must cover the calendar year in which termination occurs through the date of termination. If a May 15 report has not been filed, then the termination report must cover both the calendar year in which termination occurs through the termination date and the preceding calendar year.
Calculating Value
Certain financial interests must be disclosed by exact dollar amount; for other interests a category of value will suffice. The following items must be disclosed by exact dollar amount: The filer’s earned income from all sources; payments in lieu of honoraria made to charity; honoraria received by the filer’s spouse; and gifts.
The Act defines “value” as “a good faith estimate of the dollar value if the exact value is neither known nor easily obtainable by the reporting individual.” It is not necessary that property be appraised to ascertain its value. A good faith estimate may be based on such information as recent sales of comparable property. Alternatively, you may use a tax assessment (adjusted to reflect 100 percent valuation), or exact purchase price and date of purchase, however, in these cases, you must list the exact value and describe the method of valuation, rather than merely checking a category of value.
The law requires that you report the gross value of your holdings, not the net. Thus, a mortgage on rental property would not be taken into consideration when reporting its value. The mortgage would, however, be shown as a liability on Schedule V.
Wherever a category of value is required, boxes are provided so that you merely need to check the correct amount. In any instance where the Act calls for a category of value, you may indicate an exact dollar amount if you so desire.
For any part of the report, a computer print-out such as a brokerage statement may be attached in lieu of using the form. Any such attachment must include all the information required by the Form, and you should state on the face of the Form “See Attachment” or similar language. Number each page of the attachment. You should redact or delete from the attachment any confidential information, such as your brokerage account or Social Security numbers, as the attachment will be publicly disclosed. Such alterations must be made before your Statement is filed with the Clerk.
Spouse and Dependent Disclosure
You are required to include on the Financial Disclosure Statement information concerning your spouse and dependent children, as described below:
Earned income: You must report only the source, not the amount, of a spouse’s earned income; however, for honoraria paid to a spouse, show the source and amount. Neither the source nor amount of a dependent child’s earned income need be reported.
Assets, unearned income, transactions, and liabilities: Generally, you must report as much information about your spouse’s and dependent children’s holdings, unearned income, transactions, and liabilities as you would about your own. In listing information, you may indicate that a financial interest belongs to a spouse or dependent child or is jointly held by marking “SP” for spouse, “DC” for dependent child, or “JT” for jointly held in the column reserved for that purpose.
If your spouse or dependent child has income, assets, or liabilities not held jointly with you, and if the amount or value category is more than $5,000,000, the statute permits you to disclose the value as “over $1,000,000.” In those circumstances the category “$1,000,000–$5,000,000” may be checked, although you must then indicate that the particular income, asset or liability is that of your spouse or dependent child by marking “SP” or “DC” in the appropriate column.
Where you, your spouse, and dependent child hold identical interests, you may combine them and report them as one line item. For example, you need not list separately all accounts at the same bank, or separate holdings of the same stock.
Gifts, travel, and reimbursements: You must report any items received by your spouse or dependent child from a non-relative that meet the reporting requirements of the Ethics in Government Act unless circumstances indicate that the gift was totally independent of the recipient’s relationship to you as a Member, officer, or employee of the Legislative Branch. That is, if your spouse or child receives something because he or she is your spouse or child, you must disclose that gift. On the other hand, if it is apparent that the item would have been offered regardless of the individual’s relationship to you as an official, then it need not be disclosed.
Positions and Agreements: In these categories, no information is required regarding your spouse or dependent child.
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Exclusions: In rare circumstances, you may be permitted to exclude information pertaining to a spouse’s finances. You may only exclude an item if (1) you do not specifically know what it is; (2) you in no way contributed towards it; and (3) you do not, and do not expect to, benefit from it. These criteria are explained in detail in the Specific Instructions at pages 7-8 of this booklet. Even if you meet these criteria, you must indicate that you are excluding information by answering “YES” to the “Exemption” question on page 1 of the Statement
You are not required to disclose financial information about a spouse from whom you have separated with the intention of terminating the marriage or providing for a permanent separation. In addition, no reporting is required with respect to any income or obligations arising from the dissolution of a marriage or the permanent separation from a spouse. If you exclude information because of a separation or marital dissolution, you may still answer “NO” to the “Exemption” question on page 1.
The term “dependent child” means one’s child or stepchild who (A) is unmarried, under age 21 and living in the household of the reporting individual, or (B) is a “dependent” of the reporting individual within the meaning of section 152 of the Internal Revenue Code of 1986.
Committee Review
The Committee on Standards of Official Conduct (or its designee) is required to review all Financial Disclosure Statements to determine whether they are filed in a timely manner, appear substantially accurate and complete, and comply with applicable laws and rules. If the review indicates a possible problem, then you will be notified of the additional information believed to be required, or of the law or rule with which you do not appear to be in compliance.
If you concur with the Committee, then you should file an amendment to the Financial Disclosure Statement with the Legislative Resource Center. The same number of copies is required as for the original filing. An amendment may be in the form of a revised Financial Disclosure Statement, corrected pages of a Statement, or an explanatory letter addressed to the Clerk.
If you do not agree that an amendment is needed, you must send a letter to the Committee explaining why you believe the amendment is not required. In all cases, the Committee shall be the final arbiter of whether any report needs clarification or amendment. No communications between the Committee and you will be publicly discussed or released by the Committee.
The Committee is also authorized under the Act to render advisory opinions interpreting the disclosure requirements to any person required to file a Financial Disclosure Statement. Any person who acts in good faith in accordance with a written advisory opinion shall not be subject to any sanction under the Act.
Forms Not Net Worth Statements
Financial Disclosure Statements are not intended as net worth statements, nor are they well suited to that purpose. As the Commission on Administrative Review of the 95th Congress stated in recommending broader financial disclosure requirements: “The objectives of financial disclosure are to inform the public about the financial interests of government officials in order to increase public confidence in the integrity of government and to deter potential conflicts of interest.” Financial Ethics, House Document No. 95-73, page 6 (1977).
Failure to File or Falsifying Disclosure Statements
The Ethics in Government Act of 1978, as amended, provides that the Attorney General may seek a civil penalty of up to $11,000 against an individual who knowingly and willfully falsifies or fails to file or report any information required by the Act (5 U.S.C. app. 4, § 104).
In addition, 18 U.S.C. § 1001, as amended by the False Statements Accountability Act of 1996, is applicable here. That criminal statute, as here relevant, provides for a fine and/or imprisonment for up to five years for knowingly and willfully making any materially false, fictitious or fraudulent statement or representation, or falsifying, concealing or covering up a material fact, in a filing under the Ethics in Government Act.
House Rule 26 provides that title I of the Ethics in Government Act of 1978 shall be deemed to be a Rule of the House insofar as the law pertains to Members, officers, and employees. The House, acting on the recommendation of the Committee on Standards of Official Conduct, may therefore impose penalties on Members, officers, and employees in addition to those noted above.
Public Access
The Clerk of the House of Representatives will make Financial Disclosure Statements available for public inspection within 30 days of filing (or within 30 days of May 15 for reports due by that date). The Clerk is also required to send a copy of each Statement filed by a Member or a candidate to the appropriate state officer in the state represented by the Member or in which the individual is a candidate. Under House Rule 26, annual reports filed by Members must be compiled into a public document by August 1 of each year.
In addition, pursuant to the Honest Leadership and Open Government Act of 2007, the Clerk is now also required to post on the public website of the Office of the Clerk copies of all Member Financial Disclosure Statements. Specifically, the Clerk is required, not later than August 1, 2009, to post on its public website all such statements that the Clerk receives by June 1, 2009. Thereafter, the Clerk shall post all subsequently filed statements not later than the end of each 45-day period following the initial public posting. See § 304, Pub. L. 110-81, 121 Stat. 735, 752 (Sept. 14, 2007).
Statements filed with the Clerk are made available for public inspection in the Legislative Resource Center, Room B-106 Cannon House Office Building, Washington, D.C. 20515. The Clerk may not make any Statements available to any person, or provide a copy of any report to any person, except upon written application by such person stating:
- that person’s name, occupation, and address;
- the name and address of any other person or organization on whose behalf the inspection or copy is requested; and
- that such person is aware of the prohibitions on the obtaining or use of the Statement.
All applications for inspection of Statements shall be made available to the public. In addition, any person requesting a copy of a Statement may be required to pay a reasonable fee to cover the cost of reproduction or mailing. 5 U.S.C. app. 4, § 105(b).
All Financial Disclosure Statements shall be made available for public inspection for six years after receipt, except that in the case of a candidate who was not subsequently elected, the Statement shall remain available for one year after the individual ceases to be a candidate. 5 U.S.C. app. 4, § 105(d).
Unlawful Use
It is illegal for any person to obtain or use a Financial Disclosure Statement: (1) for any unlawful purpose; (2) for any commercial purpose, other than by news and communications media for dissemination to the general public; (3) for determining or establishing the credit rating of any individual; or (4) for use, directly or indirectly, in the solicitation of money for any political, charitable, or other purpose.
The Attorney General may bring a civil action against any person who obtains or uses a Statement for any of the prohibited purposes mentioned above. The court may assess a penalty not to exceed $11,000. 5 U.S.C. app. 4, § 105(c).
Specific Reporting Instructions
Introduction
The following sections correspond in order with the nine schedules on FORM A, the Financial Disclosure Statement to be filed by Members, officers, and employees of the legislative branch. Any filer who is completing a FORM B rather than a FORM A should contact the Clerk for the Instructions governing that form.
The basic statutory requirement is printed in bold at the beginning of each section of these Instructions, followed by more detailed guidance. While the statute often uses “calendar year” or “preceding calendar year” to describe the period for which information must be disclosed, filers of termination reports on FORM A may be required to include information for other periods of time, as discussed on page 3 of these Instructions.
Examples are provided throughout the Instructions, on the Statements themselves, and in a sample completed form immediately following these instructions. The examples are included in an effort to provide as much guidance as possible to reporting individuals; they are not intended to place additional requirements on you.
The forms are perforated along the left edge. They should be separated and only the signature page and necessary schedules filed. At the top of each page, indicate your name, the page number and total pages in the filing. Please type or print clearly in black ink. If you have nothing to report on a schedule, be certain to mark the appropriate “NO” box on the first page. If you mark a “NO” box, do not file the corresponding schedule.
Signature and Certification
Provide your full name, telephone number, and address in the space provided. Please note that this page WILL NOT be made available to the public.
You, as the filer, must also sign and date the signature page after completing the attached Financial Disclosure Statement. By your signature, you are certifying that the attached report (including any accompanying schedules or information) is accurate and complete. This page must be signed by you personally, not by someone acting on your behalf, even if someone else prepared, or assisted you in completing, the Statement.
Any individual who knowingly and willfully falsifies, or who knowingly and willfully fails to file a required Financial Disclosure Statement may be subject to civil penalties pursuant to 5 U.S.C. app. 4, § 104, and criminal sanctions under 18 U.S.C. § 1001.
Preliminary Information
At the top of the first page is a block for your name, telephone number, filer status, and report type. Print your full name and daytime/office telephone number so that Committee staff will be able to contact in case questions arise during the review process. Put your name at the top of each subsequent page, including attachments.
Next, check the box indicating your filer status. A Member should identify the state and congressional district represented. An officer or employee should state the name of the Member, committee, or office by which the filer is employed.
You must also check one of the three boxes indicating the type of report that is being filed: the annual report due on or before May 15, an amendment, or a termination report.
Next, you will see in the middle of the page a series of nine preliminary questions. You must answer “YES” or “NO”to each of these questions. These questions necessarily summarize the actual requirements. Accordingly, before you respond to these questions, you should read the detailed instructions contained in this booklet.
Each of the nine questions corresponds to a Schedule with the same number (e.g., question I corresponds to schedule I). Where the answer to any question is “YES,” you must attach the completed corresponding schedule. By answering “NO” to a question, you are stating that there is no information to report in this area. For any “NO” answer, do not file the corresponding schedule.
On FORM A, the subjects of the questions (and the corresponding schedules) are as follows:
- Earned income Schedule I
- Payments made to charity in
- lieu of honoraria Schedule II
- Assets and “unearned” income Schedule III
- Transactions Schedule IV
- Liabilities Schedule V
- Gifts Schedule VI
- Travel Schedule VII
- Positions Schedule VIII
- Agreements Schedule IX.
Sometimes more than one schedule is printed on a page. Where there is information to be reported for one schedule but not for the other, you need not complete the schedule for which the answer was “NO.” Leave it blank, or write “N/A” or “Not Applicable.”
Exclusion of Spouse, Dependent, or Trust Information
In this section on the lower portion of page 1, there are two questions you must answer “YES” or “NO” by checking the appropriate boxes. If either of these questions is not answered, the Statement may be deemed deficient.
Trust Disclosure
Details regarding “Qualified Blind Trusts” approved by the Committee on Standards of Official Conduct and certain other “excepted trusts’’ need not be disclosed. Have you excluded from this report details of such a trust benefiting you, your spouse, or a dependent child?
Generally, you must disclose information not only about your own assets and income, but also those of your spouse and dependent children. This includes assets of a trust in which you, your spouse, or a dependent child has a beneficial interest. If you and your family members have no trusts, or if your Statement fully discloses any trust assets, check the box marked “NO.”
If you have an excepted trust, qualified blind trust, or qualified diversified trust, as described below, you need not disclose its assets, but you must then check “YES” in response to the “Trust” question on page 1. You must still disclose the value and income of the trust on Schedule III.
There are three circumstances where disclosure of trust assets is not required. The first is for trusts termed “excepted trusts” that meet the following criteria: (1) The trust was not created directly by you, your spouse, or any dependent; and (2) None of you has specific knowledge of the holdings or sources of income of the trust. For these types of trusts, filers must indicate the general type of holdings to the extent known and report the income of the trust (but not its total value) on Schedule III.
The second exception from disclosure of trust assets is for trusts which are “qualified blind trusts” as defined in the Ethics in Government Act (5 U.S.C. app. 4, § 102(f)(3)). In summary, such a trust must meet the following requirements: (1) the trustee is an independent financial institution, lawyer, certified public accountant, broker, or investment adviser; (2) there are no restrictions on the disposition of the trust assets unless such restrictions are expressly approved by the Committee on Standards of Official Conduct; (3) the trust instrument restricts communications between the trustee and interested parties sufficiently to avoid disclosure of assets; and (4) the proposed trust instrument and the name of the trustee have been submitted to and approved in writing by the Committee. For these types of trusts, you must disclose the aggregate income attributed to you, your spouse, and dependent children on Schedule III. The total value of the trust must also be disclosed on Schedule III for all qualified blind trusts established after July 24, 1995.
In the event that a newly formed trust is approved by the Committee as a qualified blind trust, all assets transferred to the trust upon its creation and subsequently (for as long as the trustor is required to file Financial Disclosure Statements) must be identified, valued, and made available to the public in the same manner as are Financial Disclosure Statements. The Ethics in Government Act itself should be consulted for the specific requirements concerning a qualified blind trust (see Appendix A, pages A-6 through A-9).
The third exception from disclosure of trust assets is for a “qualified diversified trust” as described in the Ethics in Government Act (5 U.S.C. app. 4, § 102(f)(4)(B)). Because you must give up almost total control of your finances, the use of such a financial arrangement is rare. A qualified diversified trust created for the benefit of you, your spouse, or a dependent child must consist of a well-diversified portfolio of readily marketable securities. None of the assets may consist of securities of entities having substantial activities in the area of your primary responsibility. The trust instrument must prohibit the trustee from making public or informing any interested party of the sale of any securities. The trustee must be given power of attorney to prepare your personal income tax returns and similar documents which may contain information relating to the trust. As with a qualified blind trust, the trustee and trust instrument must be approved in advance and in writing by the Committee on Standards of Official Conduct.
Spouse and Dependent Disclosure Exemption
Have you excluded from this report any assets, “unearned” income, transaction, or liabilities of a spouse or dependent child because they meet all three tests for exemption?
This question asks you to indicate if you have omitted any information about your spouse or dependent children under the three statutory standards for exemption discussed below. In those rare instances where information may be excluded, check the “YES” box. You should confer with the staff of the Committee on Standards of Official Conduct before claiming the exemption. If you have included all information regarding the finances of a spouse or child, or if you have no spouse or child, then the box marked “NO” should be checked.
You may omit disclosure of certain financial interests and liabilities of a spouse or dependent child only if all three of the following criteria are met: (1) the item is the sole financial interest or responsibility of your spouse or dependent child and you have no specific knowledge of the item; (2) the item was not, in any way, past or present, derived from your income or assets; and (3) you do not derive or expect to derive any financial or economic benefit from the item. If you omit any reporting because these three circumstances are met, you must check the “YES” box on the first page of the Statement in response to the “Exemption” question.
An explanation of the three criteria for exemption follows.
(1) To satisfy the “knowledge test,” you must have no detailed or specific knowledge of a financial interest or responsibility of your spouse or dependent child. For example, if you know that your spouse has inherited stock in a number of different corporations, but you do not know the identity of the corporations or the extent of the stock holdings, you would be considered to have no knowledge of those financial interests for purposes of this exemption. Knowledge would be presumed, however, if you filed a joint tax return which included information regarding the assets in question.
(2) To satisfy the “independence test,” the financial interest or responsibility must be solely that of your spouse or child, and must have been obtained through your spouse’s or child’s own activities or financial resources (as would be the case with a bequest, inheritance, gift, or other means totally unrelated to you). If any part of your income, financial interests, or activities contributed in any way to the acquisition or disposition of the item, then the item would not meet this criterion.
(3) The “benefit test” should be interpreted very broadly. The law requires that you neither derive nor expect to derive any financial or economic benefit from the item. 5 U.S.C. app. 4, § 102(e)(1)(E). You benefit under this standard if income from the holdings of your spouse or dependent child is used, for example, for your vacations, the education of your dependents, or the maintenance of your home. In addition, you stand to benefit from interests held by a spouse or dependent child if you have the possibility of inheriting the interest.
Schedule I
Earned Income
The source, type, and amount or value of [earned] income . . . from any source (other than from current employment by the United States Government), and the source, date, and amount of honoraria from any source, received during the preceding calendar year, aggregating $200 or more in value . . . . [5 U.S.C. app. 4, § 102(a)(1)(A)]
The source of items of earned income earned by a spouse from any person which exceeds $1,000 and the source and amount of any honoraria received by a spouse, except that, with respect to earned income (other than honoraria), if the spouse is self-employed in business or a profession, only the nature of such business or profession need be reported. [5 U.S.C. app. 4, § 102(e)(1)(A)]
Explanation
The term “income,” as defined in the Act, is intended to be comprehensive. For reporting purposes, “income” is divided into two categories, “earned” income and “unearned” income.
Earned income refers to earnings from employment or compensation for personal efforts. Such income, when it totals $200 or more from any one source, must be disclosed on Schedule I. You must indicate any earned income (other than income from your current U.S. government employment) received in the preceding calendar year.
Pension and retirement payments must be disclosed here, except for income from U.S. government retirement programs and benefits received under the Social Security Act. You must also report on Schedule I benefit payments from state or local governments such as unemployment compensation.
Report the source, type, and dollar amount of earned income. Identify the source by naming the organization, corporation, or other entity making the payment. It is not necessary that individual clients of a business be named, only that the business be named. For example, on Schedule I, an accountant would report his or her firm as the source of earned income, not the clients for whom the work was performed. Describe the type of income as salary, commissions, fees, pension, etc., as appropriate.
The law requires that gross amounts be used for reporting income. Thus, you must disclose the gross amount of salary or fees without first deducting expenses. Likewise, you must report the gross income of an unincorporated business such as a sole proprietorship you own. You may report the net income in addition to, but not in place of, the gross income figure.
Spouse and Children. Except for honoraria, disclose only the source and type of your spouse’s earned income, not the amount. Disclose each source that paid more than $1,000, including the federal government. The one exception is for honoraria, where you must disclose the source and amount of any fees paid to your spouse for speeches, appearances, or articles. You do not need to disclose any information regarding the earned income of a dependent child.
Income Cap. The outside earned income of Members of the House has been limited for a number of years. Beginning with calendar year 1991, all Members, officers, and employees paid at or above the “senior staff” rate ($114,468 in 2008) for more than 90 days in a calendar year became subject to an annual earned income limit of 15 percent of the Executive Level II salary. For calendar year 2008, the earned income cap for Members and senior staff was $25,830. For calendar year 2009 the senior staff rate has increased to $117, 787, and the outside earned income cap is $26, 550. Contact the Committee on Standards of Official Conduct for information on the limit in other years. Where a Member or senior employee inadvertently receives earned income in excess of the cap, he or she may be permitted to donate the excess to a qualified charitable organization, subject to certain conditions. You must still disclose the income, but indicate that it was donated to charity.
Certain types of earned income, such as pensions from prior employers or deferred compensation for services rendered prior to current legislative employment, do not count against the earned income limit. Nonetheless, such income must be reported on the Financial Disclosure Statement. You may wish to note parenthetically that such income is for services rendered prior to House employment.
Fiduciary Limits. Regardless of whether the outside earned income cap has been reached, certain compensated professional activities are barred for Members, officers, and those employees earning at or above the senior staff rate for more than 90 days in a calendar year. If you fall into one of these categories, you may not receive compensation for providing professional services involving a fiduciary relationship, or for being employed by an organization that provides such services. Further, you may not be compensated for serving as an officer or member of the board of any association, corporation, or other entity (including charitable or political organizations, or family businesses). Finally, you may not teach for compensation without prior written approval of the Committee on Standards of Official Conduct.
A more detailed discussion of the outside earned income limits for Members and staff is included in the House Ethics Manual.
Exclusions
Income of the filer from current U.S. government employment (including military pay such as from the National Guard or Reserve), federal retirement programs, and benefits received under the Social Security Act need not be disclosed. Life insurance proceeds need not be shown. Except for honoraria, report only the source (including U.S. government employment) and type, but not the amount, of a spouse’s earned income which exceeds $1,000. Earned income of a dependent child need not be reported.
Definitions
The term “income” means “all income from whatever source derived, including but not limited to the following items: compensation for services, including fees, commissions, and similar items; gross income derived from business (and net income if the individual elects to include it) . . . .”
The term “honorarium” means a payment of money or any thing of value for an appearance, speech, or article, excluding any actual and necessary travel expenses incurred by such individual (and one relative) to the extent that such expenses are paid or reimbursed.
Schedule II
Payments Made to Charity
in Lieu of Honoraria
[E]ffective January 1, 1991, the source, date, and amount of payments made to charitable organizations in lieu of honoraria, and the reporting individual shall simultaneously file with the applicable supervising ethics office, on a confidential basis, a corresponding list of recipients of all such payments, together with the dates and amounts of such payments. [5 U.S.C. app. 4, § 102(a)(1)(A)]
Since 1991, Members, officers, and employees of the House of Representatives have been prohibited by both federal law and House rules from receiving honoraria. (An exception to the honoraria prohibition for employees paid below the “senior staff” level in certain circumstances was approved in the 106th Congress; see House Rule 25, clause 1(a)(2).) Honoraria are payments for speeches, appearances, and articles.
Even under this prohibition, payments in lieu of honoraria may be made to qualified charities by sponsors of speeches, appearances, and articles. Such payments must be made directly by the sponsor of an event to the charity; the Member, officer, or employee may not serve as intermediary. The maximum that may be directed to charity for any one speech, appearance, or article is limited by statute to $2,000, and no payment may be made to an organization from which the Member, officer, or employee, or a parent, sibling, spouse, child, or dependent relative of that individual derives any financial benefit.
On Schedule II of FORM A, filers must list under “source” the sponsor of each event for which a payment was made to charity in lieu of an honorarium being paid. The type of activity—i.e., speech, appearance, or article—must be identified, as well as the date and dollar amount. The date will either be the date of a speaking engagement or appearance or, in the case of an article, the date the payment was made.
The House gift rule (House Rule 25, clause 5) imposes an additional requirement regarding the reporting of charitable contributions in lieu of honoraria. The rule provides that where the charitable contribution is made by a registered lobbyist or an agent of a foreign principal (under the Foreign Agents Registration Act), the House Member, officer, or employee who recommended or designated the recipient charity must file a report with the Clerk of the House within 30 days. This reporting requirement—which applies only where the donor is a registered lobbyist or foreign agent—is in addition to the requirement for the reporting of payments on Financial Disclosure Statements. The text of the gift rule appears as Appendix C, and the provision that addresses charitable contributions in lieu of honoraria is clause 5(d)(2) of House Rule 25.
Confidential Report of Recipient Charities
A FORM A filer who knows that a payment has been made to charity on account of a speech, appearance, or article must report that fact on Schedule II, even though the sponsor of the event made the donation directly. You need not identify the recipient charities on the Statement itself. However, the Act requires that you simultaneously submit to the Committee on Standards of Official Conduct a confidential list of the charities receiving the payments, including the dates and amounts of such payments.
Where a payment is to be made by a registered lobbyist or foreign agent at the request of a House Member, officer, or employee, the reporting requirement of the gift rule summarized above also applies. The information required to be reported under the gift rule includes identification of the recipient charity. Any charity identified on a gift rule report should also be identified on either Schedule II or the confidential list of charities submitted to the Committee.
The Committee has not prepared a separate form for the reporting of charities that received payments in lieu of honoraria. Instead, you are free to use any format that is compatible with your personal record-keeping. The report should include your name, the year, the names of each charity known to have received payments because of speeches, appearances, and articles, the amount, the entity making the payment to charity, and the date of the event or the date the payment was made or requested (the same date as on the public Statement).
The Committee recognizes that you may not always know that a charity has received a payment. For example, you may have requested that a payment be made, but did not receive confirmation that the request was honored. Or, you may have a policy of suggesting that the sponsor of an event choose from among several charities, but not know which organization was the actual recipient. If you have requested that a payment be made to charity, then the sponsor, date, and amount should be disclosed on your public report. If you do not know whether a charity received the payment, simply indicate in the confidential report what request was made of the sponsor (i.e., the names of the charities), but state that you do not know which charity received the payment, or whether the requested payment was made.
The Committee has included in each Member’s filing package a green envelope to use for submitting the confidential report. Officers and employees may obtain envelopes upon request or use their own envelopes. Indicate on the envelope your name and state and district (if a Member) or employing office (if an officer or employee). After enclosing the confidential report, seal the envelope and send it directly to the Committee on Standards of Official Conduct, Room H2-508, Ford House Office Building, Washington, D.C. 20515. The Committee will retain the envelope in its files. It will be unsealed only if the Committee determines that examination of the information is essential to an investigation by the Committee.
Schedule III
Assets And “Unearned” Income
The identity and category of value of any interest in property held during the preceding calendar year in a trade or business, or for investment or the production of income, which has a fair market value which exceeds $1,000 as of the close of the preceding calendar year, excluding any personal liability owed to the reporting individual by a spouse, or by a parent, brother, sister, or child of the reporting individual or of the reporting individual’s spouse, or any deposits aggregating $5,000 or less in a personal savings account. For purposes of this paragraph a personal savings account shall include any certificate of deposit or any other form of deposit in a bank, savings and loan association, credit union, or similar financial institution. [5 U.S.C. app. 4, § 102(a)(3)]
The source and type of income which consists of dividends, rents, interest, and capital gains, received during the preceding calendar year which exceeds $200 in amount or value, and an indication of which . . . categor[y] the amount or value of such item of income is within. [5 U.S.C. app. 4, § 102(a)(1)(B)]
The category of the total cash value of any interest of the reporting individual in a qualified blind trust, unless the trust instrument was executed prior to July 24, 1995 and precludes the beneficiary from receiving information on the total cash value of any interest in the qualified blind trust. [5 U.S.C. app. 4, § 102(a)(8)]
Explanation
“Unearned” income consists of rents, royalties, dividends, interest, capital gains, and similar amounts received as a return on investment. FORM A filers must disclose the following on Schedule III:
- Real and personal property held for investment or production of income and valued at more than $1,000 at the close of the reporting period, together with the category value of the asset; or
- Any asset that generated income of more than $200 during the reporting period, together with its category of value.
Filers must also include the type (dividends, rent, interest, etc.) and amount of income derived from for assets that meet either of these reporting thresholds in Blocks C and D, respectively. Do not leave these blocks blank. If a reportable asset did not generate any imcome during the calendar year, you must check the “None” box.
FORM A filers must also indicate in the “Transaction” column (Block E) if they had purchases, sales, or exchanges totaling over $1,000 in any asset during the reporting period. Any transaction (or series of transactions involving the same asset) indicated in Block E of Schedule III must also be listed on Schedule IV. Be sure to use the same asset name on your Schedule III and IV entries.
You need not disclose personal property that is not principally held for investment or the production of income (e.g., household furniture, automobiles, jewelry, and artwork). Thus, a painting held in your home for your enjoyment does not have to be listed unless the painting was sold during the reporting period and generated more than $200 in profit. If you are in the business of buying and selling paintings for profit, however, you must disclose the paintings and their category of value under “Assets.” Other items you need not report include checking accounts that do not pay interest, the cash value of (or income from) a life insurance policy, and interests in federal retirement programs (e.g., the Thrift Savings Plan).
Real property is treated in the same manner as personal property. You must report only real property held in a trade or business, for investment, or for the production of income. You need not disclose a personal residence (including any gain from its sale) unless it generated rental income, including, for example, from the rental of the basement or a single room (in which case you must report the value of the entire residence). A second home, vacation house, or other property that is held purely for recreational purposes and is not rented at any time during the reporting period need not be reported. For information on real estate holding companies, see page 15 of this booklet.
Reportable items include the gross value of business interests, stocks and bonds, real estate, savings accounts, private retirement accounts (e.g., IRAs and 401(k)s), education savings accounts (529s), trust assets, loans to others (except to your spouse, or to your or your spouse’s parent, brother, sister, or child), and any other investment or income-producing property. Reportable holdings also include interests in property which are less than outright ownership, such as a life estate or a remainder interest, but only if the interests are vested (i.e., the interests are not contingent).
Each asset held during the calendar year must be listed if its value at the close of the reporting period was greater than $1,000, or if it generated more than $200 in income during the reporting period. If the property is no longer worth more than $1,000 to you because all or part of it was sold during the year, then any sale valued at more than $1,000 must be reported as a “Transaction” on Schedule IV.
Columns are included in the “Value” portion of the form to indicate that an asset was worth less than $1,001 to you or had no value to you at the end of the reporting period. This might be the case, for example, if an asset that generated more than $200 in income during the reporting period was sold or was no longer worth more than $1,000. If the asset declined in value to below the $1,000 threshold and did not generate more than $200 in income, it need not be reported.
You need not disclose your personal account number for any holding.
Reporting Particular Holdings
Securities. Stocks, bonds (including savings bonds), stock options, and other securities held by you, your spouse, or a dependent child, as well as income from those securities, must be reported in accordance with the requirements summarized above. You must disclose each security held in your portfolio that meets the asset or income threshold. If securities are held through an investment firm, the firm will normally provide periodic statements from which you may obtain the information required to be disclosed regarding each holding. Write out the name of the company or security; do not use stock trading symbols.
For options, list the value of the options contract. If the value is not known, list the specific stock name, the number of shares, the purchase price under the option and the date on which the option will expire.
While you must identify the issuing authority, you need not include such information as the number of shares, maturity date, or interest rate. However, for securities that are not publicly traded, you must also provide a description of the issuer’s trade or business and geographic location, since this information is not listed in investment manuals. If you own different types of securities issued by the same authority, such as U.S. Treasury obligations or municipal bonds, it is not necessary to provide an itemized list of each security worth over $1,000. Rather, you may simply report the aggregate value of the securities issued by the same authority and identify the type of securities. For example, “U.S. Treasury bonds and notes” and “New York Port Authority Bonds” are acceptable descriptions; “Municipal bonds” is insufficient since the issuing authority is not identified.
Securities pay interest in different ways. On many bonds, interest accrues during the lifetime of the instrument, but is not paid until maturity. If you can determine the interest that has accrued in a particular period, you may report that amount. However, you may find it easier to wait until a bond matures and report all of the interest at that time. That approach is acceptable as long as you use it consistently.
Mutual Funds and Similar Investments. You need not disclose specific stocks held in a widely diversified investment trust or mutual fund, as long as (1) the holdings of the trust or fund are a matter of public record (or the fund is publicly traded) and (2) you have no ability to exercise control over the specific holdings. Both of these requirements must be satisfied in order to list the name of the fund rather than the individual holdings. If you possess the legal power to exercise control over specific holdings, you must disclose each holding that exceeds $1,000, whether or not you exercise that power.
Disclose the full name of the trust or mutual fund. For example, you would list “Fidelity Magellan Fund” or “Janus 20 Fund.” Listing “Fidelity funds” or “mutual funds” would be insufficient since the specific investment would not be identified. The category of value of the interest held, and the type and amount of any income, even if reinvested, must also be disclosed.
Family Partnerships and Investment Clubs. Where you, your spouse, or a dependent child has an interest in a corporation or partnership (including a family partnership) that is not actively engaged in a trade or business, but instead is operated for investment purposes, you must also separately list each asset held through the partnership or corporation where your interest (or that of your spouse or dependent child) in any particular asset exceeds $1,000, or your share of income from any one source exceeds $200. Similarly, if you participate in an investment club, you must disclose your share of the holdings to the extent your interest (or that of your spouse or dependent child) in any particular asset exceeds $1,000, or your share of income from any one source exceeds $200. Your share of transactions exceeding $1,000 should also be disclosed on Schedule IV.
Bank Accounts. Interest-bearing checking or savings accounts held by you, your spouse, or a dependent child must be reported only if their total value exceeds $5,000 as of the end of the reporting period. If the total does exceed $5,000, list each institution holding accounts worth more than $1,000. If no single institution holds more than $1,000, you need not report any bank accounts. Bank accounts that do not pay interest are excluded in making these calculations.
Thus, the $5,000 threshold does not mean that any account of less than $5,001 need not be reported. Instead, all interest-bearing personal savings accounts of you, your spouse, and dependent children at all institutions should be added together; if the total value at the end of the reporting period is more than $5,000, then you must report each institution holding accounts valued at more than $1,000. You must also report any account that generated more than $200 in interest in the year, even if it was valued at less than $1,001 at the close of the reporting period, and even if your total deposits were less than $5,000.
The accounts to be reported under these rules include interest-bearing, cash-deposit accounts at banks, credit unions and savings and loan associations, including interest-bearing checking accounts, passbook and other savings accounts, money market accounts, NOW accounts, certificates of deposit, and IRAs held in the form of savings accounts or CDs.
Report money market brokerage and similar accounts that function as bank accounts in the same way that you report bank accounts. Thus, you need not report each deposit or withdrawal over $1,000 even though these transactions may technically be purchases and sales of shares in the account.
All accounts at one institution, including those of a spouse or dependent child, may be combined as one entry. Thus, for example, you may report a checking account, savings account, and certificate of deposit at the First National Bank of Georgia by stating “First National Bank of Georgia accounts,” together with the combined year-end value and interest earned.
If you are listed on an account purely for custodial reasons and you do not assert any ownership rights to the assets in the account (for example, if you are a joint tenant with an elderly relative), you need not report the account.
IRAs, Pension Programs, and Other Retirement Accounts. While the law explicitly exempts from reporting financial interests in U.S. Government retirement programs, including the Thrift Savings Plan, there is no such exemption for other types of retirement programs. Thus, the assets held in non-federal retirement programs (including state government programs), Individual Retirement Accounts (IRAs), annuities, and Keogh plans must be reported. The reporting requirements for retirement accounts differ depending on whether or not the account is “self-directed,” i.e., whether you have the power to direct the investments in your account.
If you have the power to direct your investments (as is the case with most such plans), you must provide information about specific holdings of the account in the same detail as non-retirement assets and income. That is, you must list each of the assets held by the account (i.e., the specific stocks, mutual funds, or other assets in which your money is invested within the account), the value of each of those individual holdings at the end of the reporting period, and the amount of income earned by each asset in the account during the reporting period. You must report the income earned even if it was simply reinvested in the account, and even though it may not be subject to federal taxation. However, you are not required to report as income the amount of any new funds contributed to the plan by you or your employer during the reporting period, nor are you required to report as income any increase in value of the assets held in the plan. You must provide this level of disclosure if you have the authority to change or direct your investments, even if you did not exercise that power during the reporting period. All IRAs are self-directed.
If you lack the power to make specific investment decisions within the plan (i.e., it is not self-directed), only the name of the plan or location of the account and its overall value at the end of the reporting period need be shown. “NA” may be indicated for type and amount of income only for those accounts where you do not have the power to choose specific investments. As with self-directed accounts, you do not have to report the amount of any new funds contributed to or accumulated in the plan during the reporting period. Non self-directed accounts are extremely rare; if you believe your account may be of this type, you are encouraged to contact the Committee prior to filing.
You do not have to report as a transaction a change in retirement account custodians or a “roll over” of funds from one retirement account to another. However, you should parenthetically explain any change on Schedule III where you list the new account (e.g., “Fidelity Asset Management Fund (IRA rolled over from Lincoln pension plan)”).
Education Savings Accounts. For education savings accounts (529s), follow the instructions for IRAs listed above. You must list such accounts when they are in the name of, or for the benefit of, yourself, your spouse, or your children.
Interest in an Active Business. If you, your spouse, or a dependent child has an interest in a proprietorship, partnership, or corporation that is actively engaged in a trade or business, state the name of the trade or business, the nature of its activities, and its city and state in Block A of Schedule III. It is not necessary to provide an itemized list of the assets of the business. For example, you need only list the total value of your interest in an accounting firm, not such items as “office equipment.”
S Corporations. State the name of the corporation, describe the nature of its activities, and state its geographic location (city and state) in Block A of Schedule III.
Under the Internal Revenue Code, a small business may elect to have its income taxed directly to its shareholders even though it is incorporated for liability purposes. This income is passed through to shareholders in the form of dividends. However, particularly in the case of personal service businesses, dividends may actually reflect the value of work performed by the recipient. Where your personal services generate significant income for the business, you should report the payments on Schedule I as earned income, rather than as “unearned” income on Schedule III. On the other hand, where the dividends truly reflect a return on investment, you should report them as “unearned” income on the appropriate schedule. No matter how the dividends are characterized, you must list the value of the business on Schedule III.
Limited Partnerships. Limited partnerships are entities which possess attributes of both corporations and regular partnerships. The liability of limited partners is limited to the amount invested, but income and losses flow directly to the partners. In Block A of Schedule III, you must state the name of the limited partnership, describe the nature of its activities, and state its geographic location. Regarding a limited partnership formed to purchase real estate, see the Column-by-Column instructions below for Block A. If the partnership is not actively engaged in trade or business, refer to the instructions on Family Partnerships and Investment Clubs at page 12, above.)
A limited partner generally receives a Schedule K-1 (IRS Form 1065) at the end of each tax year summarizing the partner’s share of income, deductions, and credits. If you hold a limited partnership interest, you need not report separately each type of income in which you shared (e.g., “ordinary income,” “portfolio income,” “capital gain,” and “investment income”). Instead, you may combine the income types and report the total as “Partnership Income.” This total normally will be the sum of lines 1 through 7, 19, and 20 of your K-1 form. Your share of income must be reported even if you do not physically receive the funds. On the other hand, as long as amounts received do not exceed the total invested, withdrawals and distributions from your capital account need not be reported, since you are receiving your own money back.
Debts Owed to the Filer. If you have loaned more than $1,000 to anyone other than your spouse, a parent, a sibling, or a child of you or your spouse and you are charging interest on the loan, you must disclose the name of the person or entity and their city and state of residence, the category of value of the loan, and the category of value of the interest received. Loans to a campaign committee must be disclosed if interest is being charged.
Holdings in Trust or Other Financial Arrangements. If you, your spouse, or a dependent child receives income from or has a beneficial interest in principal or income in a trust or other financial arrangement, each asset held by the trust which had a fair market value of more than $1,000 at the end of the reporting period must be disclosed. You must disclose the assets of the trust even if you currently receive no income from the trust but have a vested interest in the principal.
If you are not the sole beneficiary, disclosure may be done in one of two ways. You may report each asset of the trust in which your interest exceeded $1,000. For example, if you had a one-fifth interest, you would disclose all assets worth more than $5,000, together with a category of value that reflects the value of your interest. Alternatively, you may disclose each asset of the trust that has a value in excess of $1,000, and indicate your percentage interest in the trust or other financial arrangement. You must clearly state which of these two alternatives you are using.
Holdings of an estate or trust for which you are merely an administrator or executor, receiving no income and having no beneficial interest in the corpus, need not be reported. Similarly, disclosure is not required if your interest is strictly contingent. For example, if you stand to inherit certain property, but the current owner could dispose of it in the meantime, you need not report the property. Report such a holding only when your rights to it have been legally established, i.e., upon completion of probate.
In certain circumstances, detailed earlier in these Instructions at page 7, disclosure of trust assets may not be required. In those instances, you must nonetheless disclose the name of the trust and the category of value of the “unearned” income received from the trust. (The total value of the holdings of the trust need not be disclosed except for qualified blind trusts established after July 24, 1995.) In addition, if you do not disclose the holdings of a trust because the trust is a qualified blind trust or meets the other standards for exemption, you must so indicate on the front page of the Financial Disclosure Statement by answering “YES” to the “Trusts” exemption question near the bottom of the page.
Insurance Policies
The type of insurance policy you own will determine whether, and to what extent, you must disclose your ownership interest in this type of asset. If you own a variable life insurance policy, which can be invested at the discretion of the owner into a variety of investment products, you must disclose the name of the insurance company, the type of policy, and the identity of each investment you have selected. You must then separately provide the year-end category of value and income generated, if any, for each specific investment. For whole life or universal insurance policies, which simply have a cash value, you must disclose only the name of the insurance company, the type of policy, and the category of the policy’s year-end cash value. There is no requirement to disclose a term life insurance policy.
Asset Comparison on Successive Filings
As part of its review, the Committee on Standards of Official Conduct (or its designee) compares the assets listed on a filer’s previous Financial Disclosure Statement with those reported on the current year’s. If an asset appears for the first time, or if a previously reported asset is no longer disclosed, the reviewers look for a corresponding report of a purchase, sale, or exchange on the “Transactions” schedule. If none appears, the Committee may contact the filer to make certain that the item was not inadvertently omitted. There are, however, instances where a reportable transaction has not occurred. For example, an asset disclosed in a previous year may have decreased in value to below the reporting threshold without any sale or exchange, the property may have belonged to a child who is no longer a dependent, or the property may have belonged to a spouse from whom the filer is permanently separated or divorced. Other assets may be reported for the first time because of an increase in value, acquisition through inheritance, because the assets of a new spouse are included, the asset was acquired through a spinoff from a previously-held asset, or the name of a stock or asset changed.
When the appearance or disappearance of any asset is not reflected as a transaction, you may wish to explain it parenthetically in Block A of Schedule III (e.g., “XYZ Corp. stock, spun off from Allied Corp.” or “Big Corp., formerly Medium Corp.”).
Column-By-Column Instructions for Schedule III
Spouse, Dependent Child, or Jointly Held (in Block A): As discussed previously (pages 4 and 7-8), you must generally report information regarding the assets and “unearned” income of your spouse or dependent children to the same extent you would report your own. If you wish to indicate that an item is that of a spouse or dependent child, or is jointly held, you may do so by including an “SP” for spouse, “DC” for dependent child, or “JT” for jointly held property in the first column of Block A.
Identity of Assets and/or Income Sources (Block A): Each asset listing should provide clear information regarding its identity, including the nature of the holding and its location, where appropriate.
For real property, give the street address, city and state. For property with no specific street address (such as unimproved property), give a brief description (such as type and amount of property) and its location (city and state) (e.g., “10 acres unimproved property, Ames, Iowa”). Identifying information used when the property is recorded with local officials will suffice for parcels with no street address.
The specific property must be disclosed even when it is held in partnership or by someone else for your benefit. For example, if you own an interest in a limited partnership established to purchase real estate, the property should be identified, as well as the partnership (e.g., “Tysons Limited Partnership, owning Tysons Corner Center, Tysons, Virginia”). An exception to the requirement that you must disclose underlying holdings is large public partnerships which are publicly traded (e.g., “Carlyle 1991 Limited Real Estate Partnership”).
The identity of a personal property holding should include the name of the corporation, partnership, financial institution, trust, or other entity in which the interest is held, and the type of interest (such as common stock, bonds, savings account, sole beneficiary, etc.) You may disclose your percentage ownership interest (e.g., “¼ interest,” “51%”), but you are not required to do so.
When listing securities, report separately each stock holding that was worth more than $1,000 on the last day of the reporting period, or that generated more than $200 in income during the reporting period. The number of shares need not be reported. If the shares are not publicly traded, provide a description of the issuer’s trade or business and geographic location.
For banks and savings institutions, give the location if not apparent from the name (e.g., “1st National Bank of Milwaukee;” “First National Bank and Trust, Minneapolis, Minnesota”). Only the names of national brokerage houses need be given, while brokers operating in a limited area should be identified in greater detail (e.g., “Merrill Lynch Money Market Account;” “Money Market Account, Smith Investments, McLean, Virginia”).
Value of Assets (Block B): Indicate the fair market value of an item as of the end of the year or other reporting period by marking with an “X” the appropriate category, designated A through L. As discussed previously in these Instructions, “value” is defined in the law as “a goodfaith estimate of the dollar value if the exact value is neither known nor easily obtainable by the reporting individual.” See page 3 of the Instructions and the definition section on page 17 for more information on “value.”
It is not necessary that you have your property appraised to ascertain its value. Your good faith estimate may be based on such information as recent sales of comparable property. Alternatively, you may use a tax assessment (adjusted to reflect 100% valuation), or exact purchase price and date of purchase of real property; the book value of a corporation whose stock is not publicly traded; the net worth of a business partnership; the equity value of an individually owned business; or, with respect to other holdings, any recognized indication of value. If you use such an alternative valuation method, attach an explanation of the method used. If you use the purchase price and date or the adjusted tax value, the law requires that you report the exact purchase price or adjusted assessment amount in lieu of category of value.
The value section includes a “None” box. This should be marked if an asset has been sold and therefore has no value to you at the end of the reporting period, although it must be included because it generated income of more than $200.
The fair market value of rental property or other real estate should not reflect any mortgage on such property. The law requires that the gross value of property and the gross rent receipts be reported. Any mortgage on the property should be shown as a liability on Schedule V. The gross value of the entire property should be reported even if only part of the property (e.g., the basement of a residence) is used for rental purposes.
Type of Income (Block C): “Unearned” income derives from the assets and other income sources listed in Block A. It includes but is not limited to such items as interest, rents, dividends, and capital gains. Place an “X” in the appropriate column, or, if you have some other type of “unearned income,” write a brief description (e.g., “Farm Income”) in this block. If you had no income from a particular asset, you must check “None” under both Block C and Block D. Do not leave the columns blank.
Amount of Income (Block D): “Unearned” income must be reported on the Financial Disclosure Statement when it totals more than $200 in a calendar year from any one source. As is the case in reporting the value of assets, the amount or value of income is indicated by marking the column of the appropriate category. Note that the categories for reporting “unearned” income are different from those used elsewhere on the form. Thus, they are identified by Roman numerals (I through XI) rather than letters. There is also a “None” category. If an asset did not generate any income during the reporting period, you must check the “None” box; do not leave the column blank. Dividend and interest income must be disclosed even if reinvested.
In reporting income (including that from a business), the gross dollar amount or value must be used. The one exception is in the case of capital gains, where the net gain over basis is shown in Block D, while the gross value of the sale is shown on Schedule IV as a transaction. You may also report the net value separately if you so choose (see sample form at page SF-5).
Transaction (Block E): If a listed asset was purchased, sold, or exchanged in transactions totaling over $1,000 during the year, you should indicate “P” (for purchase), “S” (for sale), or “E” (for an exchange) in this block. In each case, you must also report the details of these transactions on Schedule IV.
As noted previously, there are circumstances where an asset disclosed in a previous year is no longer reported, or an asset is reported for the first time, but no reportable purchase, sale, or exchange has occurred. For example, an asset may increase or decrease in value, an asset may be the property of a new spouse or a former spouse or dependent, or an asset may have been acquired through inheritance. Because the Committee compares the current year’s filing with the previous year’s and questions assets which appear or disappear without a corresponding transaction, filers may wish to explain such occurrences parenthetically on Schedule III.
Note on Partial Sales of Assets: Where only a portion of an asset is sold (e.g., half of your shares in Mega Corporation), please so indicate in Block E as follows: “S (partial).” See sample form at page SF-5.
Note on Brokerage Statements: For any part of the Schedule, a computer print-out such as a brokerage statement may be attached in lieu of using the form. However, any such attachment must include all the information required by the form. You must still list each account on Schedule III, and state “see attachment” or similar language in Block B. Number each page of an attachment. You should redact or delete from the attachment any confidential information, such as your account number or Social Security number, as the attachment will be publicly disclosed as part of your Statement. Such alterations must be made before your Statement is filed with the Clerk. Since tax forms do not track the Financial Disclosure requirements, they may not be used.
Exclusions
Personal liabilities owed to you by your spouse, or by a parent, brother, sister, or child of you or your spouse, need not be disclosed.
Deposits in personal savings accounts need not be disclosed unless all interest-bearing accounts total more than $5,000 as of the close of the calendar year, in which case all accounts valued at more than $1,000 must be reported. The term “personal savings account” includes any certificate of deposit or any other form of deposit in a bank, savings and loan association, credit union, or similar financial institution.
A personal residence, or other real property not held for investment purposes (e.g., a second residence, timeshare, or vacation home) need not be disclosed unless it generated rental income during the reporting period.
Personal property that is not principally held for investment or the production of income (e.g., furniture, automobiles, jewelry, and artwork) does not have to be reported.
Financial interests in or income derived from any federal retirement system, including a Thrift Savings Plan account, need not be reported.
Definitions
The term “income” means all income from whatever source derived, including but not limited to the following items: gross income derived from business (and net income if the individual elects to include it); gains derived from dealings in property; interest; rents; royalties; dividends; annuities; pensions; income from discharge of indebtedness; distributive share of partnership income; and income from an interest in an estate or trust.
“Value” means a good faith estimate of the dollar value if the exact value is neither known nor easily obtainable.
The alternative methods of valuation that may be used if the current value of an interest in property is not ascertainable without an appraisal are as follows:
Real property—
- the purchase price and date of purchase; or
- the assessed value for tax purposes, adjusted, if necessary, to reflect the fair market value if the assessed value is computed at less than 100 percent of market value.
If either of these two methods is used, exact purchase price or adjusted assessed value must be disclosed in lieu of the category of value.
Personal property—
- the book value of a corporation whose stock is not publicly traded;
- the net worth of a business partnership;
- the equity value of an individually owned business; or
- the assessed value for tax purposes, adjusted, if necessary, to reflect the fair market value if the assessed value is computed at less than 100 percent of market value.
The reporting individual may use any other recognized indication of value, provided that a full and complete description of the method used is included with the Financial Disclosure Statement.
Schedule IV
Transactions
A brief description, the date, and category of value of any purchase, sale or exchange during the preceding calendar year which exceeds $1,000—
- in real property, other than property used solely as a personal residence of the reporting individual or his spouse; or
- in stocks, bonds, commodities futures, and other forms of securities.
Reporting is not required under this paragraph of any transaction solely by and between the reporting individual, his spouse, or dependent children. [5 U. S.C. app. 4, § 102(a)(5)]
Explanation
You must report each purchase, sale, or exchange of real property or securities by you, your spouse, or dependent child when the category of value of the transaction, or series of transactions in one type of property, exceeds $1,000 in a calendar year. Transactions of personal property, such as the purchase or sale of an automobile, are not to be reported here. Dividend reinvestment in a particular security that exceeds $1,000 in the calendar year must be reported on the transaction schedule.
Practically any security or real property that you purchased, sold, or exchanged during the year will have to be reported on both Schedule III and Schedule IV of FORM A.
As used here, the term “securities” includes corporate stocks, bonds and stock options; government obligations; mutual funds and unit investment trusts; limited partnerships; futures and options; and mortgage-backed instruments.
The property should be identified in the same manner used for the reporting of assets and income sources on Schedule III of the Financial Disclosure Statement. On the same line, mark the appropriate box as to the type of transaction (purchase, sale, or exchange). In addition, for exchange transactions, indicate parenthetically a brief description of the nature of the transaction (e.g., “Cingular stock exchanged for AT&T wireless”).
For stocks, stock options, and most other securities, the transaction date is generally the settlement date. If during the calendar year there were two or more of the same type of transaction in the same security which together totaled more than $1,000, then report the aggregate category of value of all the transactions. The manner in which you report the date depends upon the quantity of transactions. If there are only a few transactions, state each date separately (e.g., “May 5 and November 6, 2008,” for two purchases of XYZ Company Stock). When the same item is both purchased and sold in the course of the year, the item may be identified once on a single line. In such an instance, check both the purchase and sale boxes, but give the date for the purchase and sale separately (e.g., “6/18/2008 P; 11/27/2008 S”).
If there are multiple transactions throughout the year involving the same asset, it is adequate to state the number of transactions, without all of the dates (e.g., “Monthly dividend reinvestment,” for the purchase of shares of XYZ Company; or, “18 times on various dates throughout the year” for purchase of S&P 500 call options). When there are many transactions, you may choose to attach brokerage firm printouts to the Financial Disclosure Statement. See the note on page 16 for more information on the use of such attachments.
The amount to be reported is the category of value of the total purchase price or total sales price (or the fair market value in the case of an exchange). The extent of any capital gain or loss on the transaction is irrelevant for the purposes of this Schedule.
Stock and commodity options, futures contracts, and bonds (both corporate and government) are types of securities. You should thus report transactions in these items on Schedule IV of FORM A.
Partnership Transactions. If you have an interest in a partnership that is organized for investment or the production of income and that is not actively engaged in a trade or business, then you must disclose any transactions of the partnership wherein your share of the transaction exceeds $1,000 in value. Transactions of a trust in which you have a beneficial interest must also be reported to the extent your share exceeds $1,000 in value.
Note on Partial Sales of Assets: Where only a portion of an asset is sold (e.g., half of your shares in Mega Corporation), please so indicate in the asset description on Schedule IV as follows: “Mega Corporation (partial).” See sample form at page SF-7.
Exclusions
Any purchase or sale of property used solely as your personal residence need not be reported, including a secondary residence or vacation home not used for rental purposes.
Any transactions solely by and between you, your spouse, and dependent child are excluded.
Bequests and inheritances need not be shown as transactions.
Stock splits, the opening or closing of bank or similar accounts (such as money market funds), deposits to and withdrawals from such accounts (including checks written on money market and mutual funds), the purchase or sale of certificates of deposit, and contributions to or the rollover of IRAs and other retirement plans (except to purchase individual stocks) need not be reported.
Schedule V
Liabilities
The identity and category of value of the total liabilities owed to any creditor other than a spouse, or a parent, brother, sister, or child of the reporting individual or of the reporting individual’s spouse which exceed $10,000 at any time during the preceding calendar year, excluding—
- any mortgage secured by real property which is a personal residence of the reporting individual or his spouse; and
- any loan secured by a personal motor vehicle, household furniture, or appliances, which loan does not exceed the purchase price of the item which secures it.
With respect to revolving charge accounts, only those with an outstanding liability which exceeds $10,000 as of the close of the preceding calendar year need be reported under this paragraph. [5 U.S.C. app. 4, § 102(a)(4)]
Explanation
You must list personal obligations on the Financial Disclosure Statement, including those of your spouse and dependent children, totaling over $10,000 at any time during the year, regardless of the repayment terms or interest rates. Thus, a loan which had over $10,000 in principal due at some point in the year, but was paid off or paid below that amount, must be listed. (You are free to include additional information, such as the fact that the loan was satisfied during the year.)
Any student loans exceeding the reporting threshold must be disclosed here.
All information regarding a single creditor may be reported on a single line. If you have more than one liability owed to the same creditor, add up the loans to determine if the $10,000 threshold has been met.
The identity of the creditor is the name of the person or organization to which the liability is owed and, unless obvious from the name, the city and state (e.g., “Jane Jones, Miami, Florida;” “Federal Bank of Boston”).
Following the name of the creditor, list the type of liability. Examples are “personal loan,” “business loan,’’ “demand note,’’ “margin account,’’ and “mortgage on rental property.’’ When there are several of the same type of loan, further information should be provided. Thus, if you show only one rental property as an asset, “mortgage on rental property’’ is sufficient. If, on the other hand, you have multiple rental properties, state the property to which each obligation relates, together with the type of liability (e.g., “Mortgage on 123 Main Street, Dover, Del.’’).
In most cases, report the category of value of the largest amount owed during the calendar year. The one exception is revolving charge accounts (i.e., credit cards). Debt owed on a particular credit card account must be disclosed only if the balance on that card exceed $10,000 at the end of the reporting period (which is December 31 for May 15 filers), regardless of the balance owed on the card at any other point during the year. Mark the box which corresponds to the category of value. The categories for reporting liabilities are the same as those for reporting the value of assets and transactions, except that they begin with Category B and $10,001, since loans below that amount need not be reported.
Exclusions
Any contingent liability, such as that of a guarantor, endorser, or surety may be excluded. (However, if you are shown on the loan document as jointly obligated with another person, you must report the loan even though you may have co-signed to help the other person obtain credit.) The liabilities of a business in which you have an interest may also be excluded. This includes mortgages on rental or investment property held in a partnership or limited liability company. You also need not disclose loans secured by the cash value of a life insurance policy or any tax deficiencies. Further, you need not disclose professional fees (such as legal or medical fees) that you incur and are paying on a regular basis. However, fees of this kind that remain unpaid for a prolonged period, thus resulting in a debtor-creditor relationship, must be disclosed.
The Act specifically excludes the following from the disclosure requirements:
Liabilities owed to a spouse, or a parent, brother, sister, or child of you or your spouse;
Any mortgage secured by real property which is a personal residence (including a loan secured by a secondary residence or vacation home), as long as the property is not used for rental purposes; and
Any loan secured by a personal motor vehicle, household furniture, or appliance, which loan does not exceed the purchase price of the item which secures it.
The exclusion for mortgages on personal residences includes home equity loans and home equity lines of credit. However, a mortgage must be reported if any part of the residence (such as the basement) is used for rental purposes. In that case, the entire amount of the outstanding mortgage on the residence must be disclosed.
Schedule VI
Gifts
The identity of the source, a brief description, and the value of all gifts aggregating more than the minimal value as established by section 7342(a)(5) of title 5, United States Code, or $250, whichever is greater, received from any source other than a relative of the reporting individual during the preceding calendar year, except that any food, lodging, or entertainment received as personal hospitality of an individual need not be reported, and any gift with a fair market value of $100 or less, as adjusted at the same time and by the same percentage as the minimal value is adjusted, need not be aggregated for purposes of this subparagraph. [5 U.S.C. app. 4, § 102(a)(2)(A)]
Explanation
The House gift rule (House Rule 25, clause 5) substantially limits the ability of House Members, officers, and employees to accept gifts. The text of the gift rule is reprinted in Appendix C, and explanatory materials on the rule are available from the House Standards Committee. Members who were sworn in on or after January 1, 2009 are not required to complete Schedule VI and should indicate “N/A” to question VI on page 1 of their Statement.
Notwithstanding the limitations on gift acceptance, there are gifts which a House Member, officer, or employee may accept under the specific provisions of the gift rule and as to which disclosure must be made on his or her Financial Disclosure Statement. Examples of such gifts include gifts provided on the basis of personal friendship, contributions to a legal expense fund, and commemorative items that exceed the reporting threshold. The definition of “minimal value” under title 5 of the U.S. Code, § 7342(a)(5) for calendar year 2008 was $335. However, under the House gift rule, a gift exceeding $250 in value cannot be accepted on the basis of personal friendship without a written determination from the Committee.
Whether any particular gift may be accepted by a House Member, officer, or employee is determined solely by reference to the House gift rule. The requirements for disclosure of acceptable gifts may be summarized as follows.
In general, you must disclose on your Financial Disclosure Statement all gifts totaling more than $335 from a single source other than a relative.
The terms “gift’’ and “relative’’ are defined in the Act, and certain categories of gifts are specifically exempted from disclosure (see below). You must disclose gifts from third parties to your spouse or dependent children unless the gifts are totally independent of the relationship to you as a Member, officer, or employee of the Legislative Branch. You need not report gifts received before you became a Member, officer, or employee of the Legislative Branch.
The value of all gifts from the same source received during the calendar year must be totaled to determine if the reporting threshold of $335 has been met, except that any gift with a fair market value of $134 or less need not be counted. For example, if you received a $120 gift and a $225 item from the same source, neither item would have to be disclosed, since the $120 gift falls below the $134 aggregation threshold and the remaining item is valued at less than $335.
You, your spouse, and dependent children do not have separate $335 limits. Thus, if you, your spouse, and a dependent child each receive gifts from the same source, all those gifts would be tallied to determine if the reporting threshold has been met. For example, if an employee and spouse each received $170 items from the same source, these gifts would total $340 in value and would have to be reported.
All types of gifts, including travel-related expenses provided for your personal benefit, must be reported on Schedule VI. However, travel (including food and lodging) in connection with official duties is reported separately on Schedule VII, as discussed below. (Entertainment provided while on a fact-finding tour and reimbursements in excess of your travel expenses are considered gifts and may be accepted by a House Member, officer, or employee, if at all, only in accordance with the provisions of the House gift rule.) Gambling and lottery winnings, as well as scholarships, should also be disclosed on Schedule VI.
In disclosing a gift, you must report the source, briefly describe it, and state the value. If you do not know the exact value of a gift, you may use a good-faith estimate of its fair market value (which may be different from its cost to the donor). A group of items received from the same source at the same time are considered one gift and the total value should be added together. For gifts of transportation on privately-owned aircraft, the value is actual cost of the flight. Please note, however, that acceptance of such transportation is highly restricted. The text of the applicable rule (clause 15 of House rule 23) is reprinted in Appendix C following the Gift Rule. The Committee on Standards of Official Conduct may, in an unusual case, grant a written request for a waiver from the requirement to report a gift. Waivers are generally granted for weddings and in other instances where it is determined that the relationship between the recipient and the donor, and the motivation for the gift, are purely personal, and there is no countervailing public purpose requiring the disclosure of the nature, source, and value of the gift. The request for such a waiver is made publicly available in the same manner as Financial Disclosure Statements.
Exclusions
Gifts from relatives and gifts of personal hospitality, as defined in the Act (see below) are exempt, and gifts with a fair market value of $134 or less need not be counted towards the $335 disclosure threshold.
A gift to your spouse or a dependent child need not be reported if it was received totally independent of the relationship to you as a Member, officer or employee of the Legislative Branch. However, if your spouse or dependent child receives a gift based on his or her relationship to you, and you have reason to believe it was given because of your official position, the gift must be reported. For example, you would not have to report a rare book valued at $340 received by your spouse from a former college roommate who has no association with you. If, on the other hand, your spouse (or you) were to be given the same book by a personal friend of yours, you need to seek written approval of the Committee on Standards of Official Conduct in order to retain it (because it is valued at more than $250), and list the book on your Financial Disclosure Statement, even though the donor had no involvement in the legislative process.
No reporting is required for gifts of food, lodging, transportation, or entertainment provided on an official basis by federal, state, or local governments.
Local meals (i.e., food and beverages not consumed in connection with a gift of overnight lodging) need not be aggregated towards the reporting threshold.
Political campaign contributions are specifically exempted, as are gifts received when you were not an officer or employee of the federal government.
Definitions
“Gift’’ means a payment, advance, forbearance, rendering, or deposit of money, or any thing of value, unless consideration of equal or greater value is received by the donor, but does not include—
- bequests and other forms of inheritance;
- suitable mementos of a function honoring the reporting individual;
- food, lodging, transportation, and entertainment provided by a foreign government within a foreign country or by the United States Government, the District of Columbia, or a State or local government or political subdivision thereof;
- “local meals,” i.e., food and beverages which are not consumed in connection with a gift of overnight lodging;
- communications to the offices of a reporting individual, including subscriptions to newspapers and periodicals; or
- consumable products provided by homestate businesses to the offices of a reporting individual who is an elected official, if those products are intended for consumption by persons other than such reporting individual.
“Relative’’ means an individual who is related to the reporting individual as father, mother, son, daughter, brother, sister, uncle, aunt, great aunt, great uncle, 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 the spouse of the reporting individual, and shall be deemed to include the fiancé or fiancée of the reporting individual.
“Personal hospitality of an individual’’ means food, lodging, and entertainment extended for a nonbusiness purpose by an individual, not a corporation or organization, at the personal residence of, or on property or facilities owned by that individual, or his or her family. The personal hospitality exemption is limited. It does not extend, for example, to hotel lodging paid for by an individual, corporation, or other organization, or to air travel to get to the location where the hospitality is provided. Furthermore, if the hospitality is to qualify as personal, the host may not take a tax deduction on account of the visit, nor have the expenses of the hospitality reimbursed by another source.
Schedule VII
Travel Payments and
Reimbursements
The identity of the source and a brief description (including a travel itinerary, dates, and nature of expenses provided) of reimbursements received from any source aggregating more than the minimal value as established by section 7342(a)(5) of title 5, United States Code, or $250, whichever is greater and received during the preceding calendar year. [5 U.S.C. app. 4, § 102(a)(2)(B)]
Explanation
The House gift rule includes provisions which generally allow House Members, officers, and employees to accept travel expenses in certain circumstances, including (1) from a private source for travel in connection with official duties, (2) for travel in connection with the individual’s outside business or other activities, or the business activities of his or her spouse, (3) from a political organization for travel in connection with a campaign or fundraising event, (4) travel provided by a nonprofit group in connection with your attendance at a charity fundraising event, and (5) travel paid for by a foreign government under the Mutual Educational and Cultural Exchange Act (MECEA) (22 U.S.C. § 2458a). The text of the gift rule is reprinted in Appendix C, and explanatory materials on the rule are available from the House Standards Committee. Members who were sworn in on or after January 1, 2009 are not required to complete Schedule VII; they should indicate “N/A” to question VII on page 1 of their Statement.
The gift rule also requires that a disclosure statement be filed with the Clerk of the House regarding any officially-related trip taken at private expense within 15 days of return. The requirement for disclosure of officially-related travel on your Financial Disclosure Statement is in addition to the House gift rule disclosure requirement. In other words, House Members and reporting officers and employees must disclose each privately funded trip taken in connection with official duties on both a Travel Disclosure Form filed with the Clerk and Schedule VII of his or her Financial Disclosure Statement.
On Schedule VII, you must disclose travel and travel-related expenses valued at more than $335 provided by any private source other than a relative (with certain exceptions noted under the Exclusions section below). Thus, you must disclose in this section travel for such activities as speaking engagements, conferences, or fact-finding events related to official duties. You must also disclose privately paid travel that, while not related to your official duties, was not provided merely for your personal benefit; for example, travel paid for by corporations that you or your family own, travel that is necessary in connection with your service as an officer or board member of any organization, travel for job interviews, and travel taken in connection with your spouse’s employment must be disclosed here. Such expenses must be disclosed whether the expenses were reimbursed or paid directly by the sponsoring organization.
In contrast, travel-related expenses provided merely for your personal benefit (for example, a vacation paid for by a personal friend) are subject to the reporting requirements for gifts on Schedule VI, described above.
All travel, food, and lodging expenses received from one source in a calendar year must be counted in determining if the total exceeds $335. Unlike the treatment of gifts, there is no $134 minimum threshold for counting travel reimbursements. Thus, if you received airfare and lodging worth $260 on one occasion from one source, and on a separate occasion received lodging worth $60 from that same source, you must report both events.
You do not have to report the cost of travel on Schedule VII. However, House Members, officers, and employees must report the cost of each officially related trip on the Post-Travel Disclosure Form required by the gift rule. As to any other travel, you should make a good faith estimate of the value to determine whether it was worth more than $335. While travel paid for by a congressional or other federal campaign committee need not be reported on Schedule VII (see below), other political trips must be reported. Thus, as a general matter, a filer who is a candidate for a state or local office will have to report trips taken in connection with that campaign.
Column-By-Column Instructions for Schedule VII
In disclosing travel, it is not necessary to indicate the dollar value or provide an itemized accounting of the expenses provided. Furthermore, you need not disclose whether travel was on private or commercial carrier. Only the name of the organization providing the travel, together with the dates of travel and a brief description of the itinerary and nature of expenses, is required. Schedule VII includes seven columns prompting the necessary information.
Source. Provide the name of the sponsor or organization that actually paid for or provided the travel in the first column of Schedule VII. For example, “XYZ Trade Association’’ or “International Visitors Board.’’ There may be more than one sponsor for a particular trip.
Date(s). (Time Not Spent at Sponsor’s Expense). The inclusive dates of all travel are required by statute. If all of the travel occurred on one date, state this date. Otherwise, list the starting and ending dates of each trip in the second column, i.e., the first day on which any travel was accepted and the last day on which any travel was accepted. Subject to certain limitations, it is permissible to extend a trip for a limited period of time at your own expense, accepting return travel from the sponsor, but you must list the inclusive dates of travel. However, to avoid suggesting that travel was accepted for a longer period of time than was actually the case, you should indicate the number of days of any time not spent at the sponsor’s expense in the last column of Schedule VII.
Itinerary and Nature of Expenses Accepted. State the starting point, destination(s), and return location in the third column of Schedule VII. Indicate in the fourth and fifth column whether lodging and food was included. In the sixth column, indicate if travel or travel expenses were accepted to permit a family member to accompany you. Anyone who accompanied you at your own expense need not be indicated.
You may also wish to describe parenthetically the nature of the trip by indicating that it was provided in connection with a speaking engagement, MECEA trip, spouse’s employment, etc.
Exclusions
Travel provided to your spouse or dependent children need not be reported if the travel is totally independent of the relationship to you as a Member, officer, or employee of the Legislative Branch. However, if your spouse or dependent child receives travel based on his or her relationship to you, and you have reason to believe it was given because of your official position, the travel must be disclosed.
You need not report on your financial disclosure form travel provided on an official basis by federal, state, or local governments, or travel provided by a foreign government which is separately reportable pursuant to the Foreign Gifts and Decorations Act (5 U.S.C. § 7342).
You need not report travel provided by a federal political committee, such as to a campaign or fundraising event, nor travel that occurred in a period when you were not employed by the federal government.
Definitions
“Reimbursement” means any payment or other thing of value received by the reporting individual, other than gifts, to cover travel-related expenses of such individual other than those which are—
- provided by the United States Government, the District of Columbia, or a State or local government or political sub-division thereof;
- required to be reported by the reporting individual under section 7342 of title 5, United States Code (Foreign Gifts and Decorations Act); or
- required to be reported under section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. § 434).
Schedule
VIII
Positions
The identity of all positions held on or before the date of filing during the current calendar year (and, for the first report filed by any individual, during the two year period preceding such calendar year) as an officer, director, trustee, partner, proprietor, representative, employee, or consultant of any corporation, company, firm, partnership, or other business enterprise, any nonprofit organization, any labor organization, or any educational or other institution other than the United States. This subparagraph shall not require the reporting of positions held in any religious, social, fraternal, or political entity and positions solely of an honorary nature. [5 U.S.C. app. 4, § 102(a)(6)(A)]
Explanation
You must report your nongovernmental positions (whether compensated or uncompensated) with organizations held at any time during the current calendar year up to the date of filing. If you no longer hold the position, you may wish to so indicate.
Report the title or nature of the position, and the name of the organization. No reporting of any monetary value is required in this part. However, if you receive income over $200 as a result of holding the position, report that income on Schedule I. Note, however, that in general, Members and reporting officers and employees may not be compensated for serving as an officer or board member of a corporation, association, or other entity. Thus, if the position is unpaid, you may wish to indicate that parenthetically on the Statement. Any travel totaling more than $305 provided by an organization for purposes such as to attend meetings should be reported on Schedule VII.
Exclusions
Positions held in any religious, social, fraternal, or political entities, and positions solely of an honorary nature are excluded. Excludable positions with political entities are limited to political parties and campaign organizations, not special interest and lobbying groups. The exemption for honorary positions applies, for example, where you are the honorary chairman of some organization but do not actively participate in the organization’s operations. However, if you are on the board of directors and attend directors’ meetings or have operational responsibilities for the organization, you must report the position. Service as a trustee or executor need not be listed as a position unless it is for an organization.
Only positions held by you need be reported. Do not report positions held by your spouse or dependent children.
Schedule IX
Agreements
A description of the date, parties to, and terms of any agreement or arrangement with respect to: (A) future employment; (B) a leave of absence during the period of the reporting individual’s Government service; (C) continuation of payments by a former employer other than the United States Government; and (D) continuing participation in an employee welfare or benefit plan maintained by a former employer. [5 U.S.C. app. 4, § 102(a)(7)]
Explanation
This provision requires the reporting of certain specified employment-related arrangements. It requires the reporting, for example, of an agreement between a House employee and his or her former employer that upon leaving the government at any time within the next five years, that employee can return to the former employer at a specified salary. Continued payments or benefits from a former employer would include interest in or contributions to a pension fund, profit-sharing plan, or life and health insurance; buyout agreements; severance payments; and continuing payments from a former employer, including severances and payments not yet received for previous work . Finally, this provision requires the disclosure of signed agreements with book publishers whether or not royalties have actually been received.
Members and employees who file termination reports should list under “Agreements’’ any jobs they have accepted while in office. The compensation of the position need not be listed when describing the agreement, only the employer, position title and starting date. While any employment agreement—oral or written—that is reached while in office must be disclosed, employment negotiations that did not result in an agreement prior to then need not be disclosed.
