Inspector General Robert P. Storch announced today that the Department of Defense Office of Inspector General (DoD OIG) released the “Management Advisory: Timeliness of Public Financial Disclosure Reports of Senior DoD Officials.” The DoD OIG reviewed more than 15,000 public financial disclosure reports of senior executive branch employees from across 15 DoD Designated Agency Ethics Offices to determine whether the reports were submitted and reviewed in a timely manner.
The DoD OIG found that three of the five types of public financial disclosure reports were generally timely, with submission and timeliness rates above 90 percent. However, the DoD OIG also found that senior DoD officials did not consistently submit two types of reports—new entrant disclosures and periodic transaction—within the filing due dates.
“The timely submission and review of financial disclosure reports of senior executive employees is of critical importance in identifying and preventing potential and actual conflicts of interest,” said IG Storch. “A robust financial disclosure program not only helps to ensure the DoD’s compliance with federal ethics regulations, but it also demonstrates senior DoD officials’ strong commitment to transparency and ethical behavior.”
The DoD OIG did not make recommendations because, during the audit, the DoD issued an updated Joint Ethics Regulation (JER). The update expanded the requirement for organizations to report personnel actions affecting senior DoD officials to responsible ethics officials. The policy change should improve compliance with federal laws regarding the timelines for submitting and reviewing senior DoD officials’ public financial disclosure reports.
This is the first of two products the DoD OIG will issue as part of the Audit of Senior DoD Officials Public Financial Disclosures. The second product will determine whether DoD ethics officials took appropriate action to identify and address potential conflicts of interest in public financial disclosure reports in accordance with applicable laws and policies.