Financial Disclosure System Frequently Asked Questions

General Questions

Application Specific Questions

Provided below are generic meanings of terms used within the Public Ethics Law. The Ethics Commission is the authority on the meaning of the Public Ethics Law. Any filer can ask the Commission for informal advice or seek an official advisory opinion on the application of the Public Ethics Law to his or her specific situation by calling the Commission at (240) 777-6676 or via email by selecting this email us link.

Helpful Hints

To help you prepare your statement here are some of the most common reasons Financial Disclosure Statements are returned to filers from their reviewers:

  • Failure to list salary/income from County employment
  • Failure to list spouse salary/income
  • Failure to list source of income in Section 4 including name and address of income source
  • Failure to list debts (mortgage, car loans), especially if real property listed in Section 1 is subject to a mortgage
  • Failure to list address and jurisdiction of house for which mortgage is owed
  • Failure to list mortgage company
  • Failure to list interest rates on all debts
  • Failure to confirm that one has no mortgage or other debts
  • Failure to list family members jobs
  • Failure to list stocks, mutual funds, IRAs, bonds, etc. or to confirm that one owns none of these
  • Failure to disclose details on stocks
  • Failure to disclose details on child working for the County

Why must I file a Financial Disclosure Statement?

Our system of representative government depends, in part, on citizens maintaining the highest trust in their officials and employees. The people have a right to have public officials and employees who are impartial and use independent judgment. The confidence and trust of the people erodes when the conduct of County business is subject to improper influence or even the appearance of improper influence. To guard against improper influence, the Montgomery County Public Ethics Law has been enacted.

The Montgomery County Public Ethics Law sets comprehensive standards for the conduct of County business and requires employees in designated positions to disclose information about their financial affairs in sworn statements/forms. The information, once disclosed, becomes available for review by certainsenior employees including Directors, the Chief Administrative Officer, the Ethics Commission, and for public financial disclosure statements, the public.

Designated positions are listed in the Public Ethics Law itself; in Executive Regulation 27-12AM on Financial Disclosure Statements; and in County Council Resolution 46-467, "Designation of Legislative Branch Employees who must File Financial Disclosure Statements." In addition to identifying the positions whose incumbents are required to disclose, the law and regulations also define the type of disclosure each designated position is required to make. There are three types of disclosure - Public Disclosure, Confidential Disclosure, and Confidential with Limited Public Disclosure.

 

How can I determine if I am required to file and, if so, what type of disclosure am I required to make?

In most cases, filers are notified of their obligation to file disclosures, and the type of disclosure required, by email. If you have a question about the requirements, please call the Ethics Commission at 240-777-6676.

 

What can happen if I don't file?

If a public employee does not file a financial disclosure statement when required to under Section 19A-32, the Chief Administrative Officer (for employees in the Executive branch) or the County Council Staff Director (for employees in the legislative branch) may impose disciplinary action against that employee, up to and including dismissal. A member of a board, commission, or committee may be removed from membership.

Before an employee is removed for failing to file a financial disclosure statement, the County Attorney must give the employee 30 days notice of the proposed removal. The Chief Administrative Officer and the Council staff director must not remove an employee if the employee files the required financial disclosure statement within the time specified in the notice. This section does not apply to elected public employees.

Additionally, the Public Ethics Law authorizes the Ethics Commission to impose fines and seek the imposition of civil and criminal sanctions for violations of the Public Ethics Law.

 

What is the Financial Disclosure On-line Filing System?

Since the County's Public Ethics Law requires certain public employees and volunteers to disclose information about their financial affairs, The Financial Disclosure On-line Filing System has been created to provide a tool for helping them comply with the law. The purpose of the tool is to make the filing of Financial Disclosure Statements and their administration as efficient and effective as possible.

 

How does the Financial Disclosure On-line Filing System work?

The Filing System works in the following manner:

  • The filing system is internet based. You use your web browser software to interact with it. All Financial Disclosure Statements will be filed electronically. If you do not have access to a computer, one will be made available to you. Please call the Ethics Commission at (240) 777-6676 to make arrangements.
  • The system is hosted on Montgomery County servers at the following Internet address: http://www.montgomerycountymd.gov/Ethics/fd/

 

How do I log on to the system?

County Employees- This application uses Single Sign On technology. Therefore, if you have been assigned a county user ID, you will access this system by entering the same county user ID and password that you use in your daily work.

Other Filers - If you are a member of a Board, Committee, Commission or Outside Agency, you will be assigned a user ID and an initial password. You will be required to change your password the first time you log into the system. You will need your user ID and password each time you log into the system. As with any password, it should be easily remembered by you, but not easily determined by others. You should safeguard your password. The purpose of this procedure is to protect your financial information.

 

Since my data will be saved for updating/revision with next year's Filing, how does the system save my data?

The system is designed to save the data you enter. You must click the Save/Update button at the bottom of each individual section.

Use of browser navigation arrows will NOT result in the saving of your data as you move between sections!

Only those specifically authorized to see your data will have access to it. Once your data has been reviewed and approved, it will be retained on file for a period of six years. Next year, or earlier, should you have need to update your form, a copy will be made available to you to revise/update/add an addendum and resubmit for review and approval.

 

Once I am satisfied that my form is complete and accurate, how do I submit it?

To submit your form click the "Submit Finalized Form" button on the summary page. Be sure to complete all sections before submitting.

 

How do I provide feedback on the Financial Disclosure On-line Filing System?

For feedback on the policy and substance of the Financial Disclosure System, you should direct your comments to the Ethics Commission Staff at 240 777-6676 or e-mail us at [email protected]

 

What measures have been taken to ensure the security of the submitted information?

Several steps have been taken to ensure information security:

  • only authenticated and authorized individuals are able to use Single Sign On and access the application
  • access to the application is encrypted using 128bit SSL

 

To what extent are these files insulated from external - and internal - unauthorized access?

The County employs a multi-tier approach to security:

  • the servers hosting this application are behind industry-standard firewalls
  • the County utilizes intrusion detection, intrusion prevention, and log correlation products which assist us in identifying unauthorized access
  • security audits and system lockdown/patching occur on a regular basis

 

How successful has the County's security system been up to now in preventing unauthorized access to County data?

Since the DTS Security Team was formed in September 2002, we have not had a known incident of data theft or unauthorized disclosure of sensitive data.

 

Why does the system redirect me back to the page while I am filing my statement?

The system has an automated session time out every 30 minutes. To avoid the system log out, be sure to enter and save data within the 30 minute allotment.

 

Why does my data disappear after I choose save?

Once data is saved, it appears in a summary section at the top of the reporting form. To view the data once again, simply choose the 'select' link and the data will be filled into the reporting form once again. To return it to the summary section, select update at the bottom of the reporting form.

 

I have filled in the individual reporting forms, but there are no green check marks on the cover (front) page of the statement. Why?

In order for green check marks to appear, filer must indicate they have information to report, fill in the information, and select the 'section complete' button at the top of the reporting form.

 

Why does the system return error messages when I put in monetary values?

Commas and dollar signs are not required characters and should not be used when entering actual values.

 

Why are there so many formatting errors within the application? Why does the system not accept the year in the yyyy format as displayed?

We find that many of these types of errors occur when using Netscape as a browser. We have found that the statement is best viewed using Internet Explorer 6.0 or better.

 

I am required to complete a public and a confidential statement because I am a County Employee in a required position and also serve on a Board, Committee or Commission that is required to file. Do I really need to complete two separate disclosure statements?

Enhancements have been made to the application that will allow you to complete one disclosure statement that will be forwarded to the appropriate reviewer(s) from your submission.

 

How do I determine what type of disclosure I need to file?

The system will automatically determine if a filer needs to file a confidential, public or limited public disclosure based on the position in which a filer serves.

 

I filed electronically last year. How do I copy over what I filed to this year's statement?

A new cover (front) page was added to the statement. This page contains links to every section. Every section must be viewed as there are specific instructions for each section. If you select 'yes' at the bottom of the instruction page, you will be directed to a reporting form. A 'copy data from previous year' button is located at the top of the reporting form. If you have data available from last year, selecting this button will populate the data into a summary section located at the top of the form. To view each item, simply choose the 'select' link and review your data. To return the data to the summary section, choose update at the bottom of the reporting form.

 

Who has the authority to view my submitted statement?

Once a statement is submitted, it is sent to the department reviewer (generally a department director) for review. Once the reviewer completes the review, the statement is forwarded to the Ethics Commission for storage. 

 

Questions related to sections 3 and 4:

Sources of Income and Business Holdings, Acquisitions, or Transfers (stocks, bonds): Both sections, Source of Income and Business Holdings, Acquistion, or Transfers (stock, bonds) involve application of the term “economic interest” as defined in the Public Ethics Law. Section 3 requires the filer to provide information about each business in which the filer held an economic interest during the reporting period. Section 4 requires the filer to list each source of $500 or more of income from an economic interest not disclosed elsewhere on the form. 

 

Is an insurance settlement a source of income?

Yes. This falls within the definition of an economic interest. But an economic interest does not include “an interest in an insurance policy, endowment policy, or annuity contract under which an insurance company promises to pay a fixed number of dollars, whether in a lump sum or periodically for life or some other specified period.”

 

Do I have to report income from a certificate of deposit?

No, an economic interest does not include an interest in a time deposit (for example, Certificate of Deposit) or demand deposit (for example: savings account in a financial institution) or in a money market fund with assets of at least $10,000,000.

 

Do I have to report a 529 college savings plan?

No. A college savings plan is excluded from the definition of an economic interest. Also, an economic interest does not include (1) an interest in a common trust fund or a trust that forms part of a pension plan or profit sharing plan that (a) has more than 25 participants; and (b) the Internal Revenue Service has determined to be a qualified trust under the Internal Revenue Code or (2) an interest in a deferred compensation plan that (a) has more than 25 participants; and (b) the Internal Revenue Service has determined qualifies under Section 457 of the Internal Revenue Code.

 

Does the term “domestic partner,” as used in the defined terms “immediate family” and “relative,” include an opposite sex “significant other”?

No. The financial disclosure form requires the filer to report certain interests and debts held by a relative. The form also requires the filer to list each member of the filer’s immediate family who was employed in any capacity by a County agency during the reporting period. The definitions of relative and immediate family include a filer’s domestic partner if the partner is receiving County benefits. A domestic partner is a person who meets the definition of a domestic partner set out in § 33-22 of the County Code.

 

Do I have to report gifts from a relative?

Yes, under certain circumstances. A gift from a relative is subject to the same criteria applicable to a gift from any person (i.e., you must report the gift if the person (1) is registered, or is required to register, as a lobbyist on a matter that is or could be considered by the County agency with which the filer is affiliated; (2) does business with a County agency with which the filer is affiliated; or (3) owns or operates a business that is regulated by the County agency with which the filer is affiliated). A gift from a relative is also subject to the same exclusions (e.g., gift under $50).

 

Do I have to report an office I hold in a home owners’ association or the PTA?

Yes, if (1) the entity is a “business” and (2) if it does business with a County agency; is regulated by a County agency; has an office in the County; or has, as far as you know, an interest in any real estate located in the County. A home owner’s association or a PTA will probably meet the definition of the term “business,” which is broadly defined as any for profit or non profit enterprise, including a corporation, general or limited partnership, sole proprietorship, joint venture, association, firm, institute, trust or foundation. Business does not include a County agency, but includes an independent fire department or rescue squad. You must report an office even if you did not receive any compensation for serving in the office.

 

Do I have to report child support payments as a debt?

Yes, unless the payments are made to a relative. For example, a filer would not have to report child support payments as a debt if a court ordered the filer to begin making payments to a spouse before a divorce is finalized. Or, the child might be in the custody of another relative (the filer’s parents).

 

Would the County Attorney’s Office defend an employee against an Ethics Commission complaint?

No. In fact, the Public Ethics Law provides that the County prosecutes cases where the Ethics Commission finds reasonable cause to believe that an ethics violation has occurred. State law does requires the County to provide for its employees a legal defense in any civil action that alleges damages resulting from tortious acts or omissions committed by an employee within the scope of employment and without actual malice.

 

How do I report an inheritance?

An asset received from a decedent's estate is a gift and the filer must report it to the extent required in section 5 (generally, a filer need not report a gift from a relative unless the giver is a lobbyist, does business with the filer's agency, or owns/operates a business regulated by the filer's agency).

Depending upon the nature of the asset, a filer may also have to report an asset received from a decedent's estate under another section of the form as an economic interest. For example, depending on its location, a filer must report ownership of real property under section 1. Similarly, a filer must report ownership of stocks and bonds under section 3. The filer must treat the asset as an economic interest after the decedent dies, even if the estate has not yet distributed that asset, because the filer has an equitable economic interest in a known asset once the decedent dies. For example, if the decedent dies in 2012, but the estate does not distribute the asset until 2013, the filer must still report receipt of a known asset in 2012. 

 

Do I have to report work as a personal representative for an estate?

Compensation for acting as the personal representative (an administrator or an executor) for an estate is a source of income that a filer must report under section 4. You need not report the contents of the estate.

 

I serve on the Cable Communications Advisory Committee, Montgomery Community Television, Arts and Humanities Council or the Cable Compliance Commission. What specifically do I need to disclose?

Cable Communications Advisory Committee> (limited by § 8A-30(e): Members are subject to Chapter 19A, except that financial disclosure statements are confidential and limited to communications-related activities and interests)

Montgomery Community Television (limited by § 8A-32(c)(3): A community access organization must require that each officer, director, and executive director file a confidential financial disclosure statement in accordance with Chapter 19A with respect to all communications-related activities and interests)

Arts and Humanities Council (limited by § 5A-4(d): The Arts and Humanities Council must require each officer and director, and the executive director to file a confidential financial disclosure statement under Chapter 19A covering all activities and interests related to arts and humanities organizations, programs, or funding. Each officer and director, and the executive director of the Arts and Humanities Council is a public employee under Sections 19A-11 and 19A-14 for any matter in which the person participates for the Council. The Council must adopt and apply policies and procedures to ensure that its actions are fair, unbiased, and non-partisan.)

Cable Compliance Commission (subject to § 8A-31(e): Each member of the Commission is subject to Chapter 19A, except that the member or prospective member must file a limited public financial disclosure statement regarding any communication-related activities and interests and a full confidential financial disclosure statement.) 

 

Sec. 33-22. Benefits for Domestic Partner of Employee.
Click Here for Official Site of Code 33-22