An Improved Financial Disclosure System

FPCD-77-14: Published: Jan 26, 1977. Publicly Released: Jan 26, 1977.

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The financial disclosure system of the Energy Research and Development Administration (ERDA) was examined to determine if the agency adequately reviewed financial disclosure statements and detected and acted on any apparent or potential conflicts of interest.

ERDA financial disclosure system is effective for detecting and resolving questionable financial interests held by employees, and agency reviewers are detecting potential conflicts of interest. It appears that ERDA's regulations provide an adequate mechanism for avoiding conflicts in contracting with private industry for supplies and services. In some cases, employees have not been advised in writing of potential conflicts and necessary remedial action. Reviewing officials do not always report to the ethics counselor the results of efforts to resolve potential conflicts, and not all agency reviewing officials have taken action to ensure that employees are disqualified from matters in which they have financial interests. In August 1976, ERDA issued new regulations tightening standards of conduct and requiring more information to be submitted in its financial disclosure system.

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