2006 ETHICS TRAINING FOR NRCS EMPLOYEES

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Conflicting Interests
Review

• Employee must not, as part of Government job

• work on any particular matter
• involving specific parties
• in which the employee has a financial interest
  
• If the matter affects that interest

The prohibition also applies if someone with
whom the employee has certain personal or
business relations has an interest in the matter.
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• Interests that Trigger Disqualification
  Requirement

• Employee
• Spouse or minor child
• General partner
• Outside employer or prospective employer
• Non-Federal organization in which employee is an
  officer, director, trustee, or general partner
• Person with whom employee has or seeks a
  business, contractual or other financial
  relationship
• Member of household or close relative
• Employer of spouse, parent or dependent child
• Non-Fed employer within past 1 year
• Non-Fed organizations in which the employee is
  active, or
• Person or Org for whom spouse, parent or
  dependentchild is a consultant, officer,
  contractor, agent, general partner, etc.

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Interests that trigger disqualification

• No difference
• Employees interest
• Person with whom employee has imputed or covered
  interest, or
• Person represented by such person

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Disqualification is required

• Under COI provision
• Under Impartiality provision

• If the particular matter will have a direct and
  predictable effect on that interest.
• If the particular matter is likely to have a
  direct and predictable effect on that interest
  and
• If relationship would cause a reasonable person
  with knowledge of relevant facts to question
  employees impartiality

Reputation is not a valid consideration
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Disqualification

• Required to avoid conflicting interests
• Responsibility of the employee

• Impact is on NRCS duties, not outside activity

• Example 1. A DC who applies for an NRCS program
  or NRCS assisted program must
  not work on
• Employees own application or
• Application of competing operation

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Disqualification due to Interest in NRCS Programs

• Question Is disqualification requirement only
  triggered when an employee applies Yes or
  No?

Answer No.
Question What else triggers disqualification
due to interest in an NRCS program?

• Answer
• Application by person with imputed interest or
  covered relationship
• Competing operations.

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Conflicting Interests

• A Violation Occurs
• When the employee fails to disqualify and
  performs the NRCS duties anyway
• Example 2
• An employee performs official duties of
  significance to the administrative handling of
  his own or competing applications to participate
  in an NRCS program or NRCS-assisted programs.

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Actual Conflicts of Interests
Example 3 Required Disqualification Due to
Program Interests

• If Jones, a DC, signs up for EQIP, then
• Jones must not work on his own application
• Jones must not work on any EQIP applications with
  which Jones is competing for program dollars.
• Disqualification is from pre-contract functions.
• Failure to disqualify is criminal violation.

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Loss of Impartiality
Example 4
Taylor, a DC, owns a farm that is enrolled under
FRPP. The Fairfax Conservancy (TFC) is the
easement holder.

• Taylor cannot conduct the HEL compliance review
  on Taylors own farm.
• Taylor is also prohibited from conducting HEL
  compliance reviews on other farms that TFC
  manages.

WHY? . Because Taylor has a contract with TFC.
(covered relationship)
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GM Title 110, Part 405
Employee Participation in Programs
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GM Title 110, Part 405 Minimum Level of
Disqualification Matrix (1)
EMPLOYEE PERFORMS WORK ON OWN PARTICIPATING
OPERATION
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GM Title 110, Part 405 Minimum Level of
Disqualification Matrix (2)
EMPLOYEE PERFORMS WORK WITHIN OWN SERVICE AREA(S)
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Disqualification Due to Program interest
Title 110, Part 405 63(b) (6) The geographic
scope from which an NRCS employee who applies to
participate in an NRCS program must be
disqualified varies by NRCS program. It is based
on whether the particular matter will have a
direct and predictable effect on the interest of
the employee-applicant. The extent of
disqualification in the same State may vary by
program, based on how the various program dollars
are set aside for competition by competing
operations. The extent of disqualification
required in the case of a HQ or state office
employee who applies to participate in an NRCS
program might necessarily be different from that
for a field office employee. Emphasis added.
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Disqualification

• Required to avoid COI
• Responsibility of the employee
• Impacts NRCS duties

• Example 5 A DC who applies for an NRCS program
  tells supervisor she cannot work on
• Employees own application
• Applications of competing operations

• Example 6 Sarah, a soil con, knows she cannot do
  NRCS work on her Dads operation. Now, Dad will
  apply for an NRCS program. Sarah tell the AC she
  cannot work on
• Dads operation
• Applications of competing operations

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Example 7 An STC who farms in the same state
applies to participate in EQIP.

• The STC must disqualify from work on

• National program development
• State program development
• Pre-contract work on competing applications
• Application
• Eligibility Determination
• Ranking
• Fund Obligation
• Contract Approval

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Disqualification Example 8

• The employer of a DCs spouse farms in her
  county and applies for an NRCS Program.

Disqualification?

• DCs Disqualification from pre-contract work is
• STATEWIDE ? COUNTYWIDE ? AREA-WIDE ?
• Depends on the Program
• Depends on the State

or parent, brother, dependent child, etc.
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Disqualification from pre-contract work is

• STATEWIDE where applicants compete for funding
  on a statewide basis
• AREA-WIDE where applicants compete for
  funding by area ME Field Office PA
  Field Team TX Zone etc.
• COUNTYWIDE where the competition for funding
  is within each county.
• Large states can contact the NHQ Ethics Office
  to request a smaller area than statewide
  disqualification.

Guidance is different for CSP and CRP
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Disqualification Example 9 Kansas 2004
State where competition varies by program and
resource concern

• Competition for program dollars
• EQIP
• Countywide for 3 resource concerns
• Grazing land health
• Water quality nutrients, pesticides,
  sedimentation
• Soil erosion--wind
• Area-wide for all other resource concerns
• CSP - - Nationwide
• Continuous CRP- - No competition
• Other NRCS Programs - - Statewide

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Kansas Example (continued)
Grace, ASTC, is part owner of an operation in
Wallace County that applies to participate in an
NRCS program.

• Do not participate in national or state program
  development
• Do not perform pre-contract functions during that
  signup
• If EQIP... Countywide If limited to those 3
  resource concerns.
• Area-wide if other resource concern
• If other Program Statewide Except CRP and CSP

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Kansas (continued)
Example 10 -- Bob, a DC in Kansas, has a great
family. His Dad owns an operation in a
neighboring county (outside of his field offices
service area). The Dad will apply in the next
EQIP signup to address concerns due to soil
erosion due to wind.

• Bob cannot participate in national or state
  program development
• Bob can perform his normal duties for his own
  field office.

If, however, the resource concern was competed
for by area, then Bob would have to disqualify
and not perform pre-contract functions area-wide
during that signup.
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Give SEA the states funding arrangements
Receive correct ethics guidance
STC PGMS or SRC
UT 2005
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SEA receives state funding arrangements
SEA can make it simple for employees
Test Your Understanding . . . . Example 11 --
Jones, a DC in the West Region, signs up for
EQIP. Yes or No?

• Can Jones work on other EQIP applications
• in the same county?
• In the state?

No Depends
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Example 11 (continued) - - Jones, a DC, signs
up for EQIP
Can Jones work on other EQIP applications?
In Utah in 2005?

• in the same county?
• In the state?

No No
UT 2005
Follow separate guidance on regular CRP
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES

• You will sign up for AMA
• Yes or No?
• Can you perform work on
• National Program Development
• State Program Development
• Your own operation
• Pre-contract functions for othersin the county
• Pre-contract functions for applicants outside
  your home county

Example 12 UT 2005
No No No No Yes
Would the answers be different if it was a
family member?
No
A non-clerical employee
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Jim Caudle, SRC, AR
AR 2005 funds competition

• Whip statewide
• GRP statewide
• WRP -- statewide plus minimum of 1 easement
  for highest ranked in each of 5 zones
• EQIP
• 70 allocated by counties
• 30 to 9 special needs categories (specific
  locations)
• Initial competition for county allocation.
• 2nd round by special need categories.
• CRP (continuous) no competition
• CRP (regular) See separate guidance

Arkansas 2005
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Disqualify from work on competing applications?
AR 2005 funds competition 1st round Yes 2nd
round STC says yes
always disqualify from TA on own or others with
covered relationship
Follow separate guidance on regular CRP
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES

• If you or a family member, etc. will sign up
  for EQIP
• Yes or No?
• Can you perform work on
• National Program Development
• State Program Development
• Your own operation
• Other EQIP applicants

Example 13 AR 2005
No No No No countywide
pre-contract
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES

• If you or a family member, etc. will sign up
  for GRP
• Yes or No?
• Can you perform work on
• National Program Development
• State Program Development
• Your own operation
• Other GRP applicants

Example 14 AR 2005
No No No No statewide
pre-contract
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES

• CSP - - Nationwide
• If employee, family member, etc. will sign up
• Yes or No?
• Can employee work on
• National Program Development
• State Program Development
• Own operation (or family members, etc.)
• Other applicants for CSP

Example 15
No No No Yes
pre-contract
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES

• Continuous CRP- - Nationwide
• If employee, family member, etc. will sign up
• Yes or No?
• Can employee work on
• National Program Development
• State Program Development
• Your own operation
• Other applicants for continuous CRP

Example 16
No No No Yes
pre-contract
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
NRCS continues to perform the following pre-contra
ct activities for regular CRP Discussions
pre-planning activities such as reviewing the
specifications with the potential participant
talking with participants about the expected
results of the practices responding to questions
about the program and generally "selling"
conservation. NRCS employees must disqualify and
not perform pre-contract functions for operations
applying for regular CRP if they would do so
either (1) working alone or (2) as the Team
Leader responsible for performing those functions.
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES

• Example - - DC applies for regular CRP
•  
• Employees must never provide conservation
  technical assistance on their own operation (or
  that of another with whom there is a covered
  relationship.)
• The DC (not working as a team member) is
  disqualified from performing pre-contract
  functions on other operations that also apply for
  regular CRP in the same county
• The DC is also disqualified from performing
  pre-contract functions area-wide if working alone
  (versus as part of a Team).

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES

• Example, - - DC applies for regular CRP
  (continued)
•  
• If working as a Team member (versus Team Leader),
  the DC can perform the limited pre-contract
  functions that are still performed by NRCS on
  other operations applying for regular CRP.
• However, the DC can not work as Team Leader to
  perform pre-contract functions for competing
  operations.
• Note Examples 1 5 of required
  disqualification due tothe employees own
  application also apply if an applicant is a
  family member or has another covered
  relationship.

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Employee Interest in Programs -- Summary
Disqualification requirements from performing
NRCS pre-contract functions on others operations

• There are fewer restrictions when the program
  is regular CRP versus EQIP, WRP, AMA, etc.  
• The least restrictions occur with CSP and
  continuous CRP. 
• The differences in the extent of disqualification
  required by program are due to differences in how
  our programs operate.
• Each SEA Asst STC (or SRC) must work together
  to correctly determine specific requirements in
  each state.

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Not Included in Handouts
2006 ETHICS TRAINING FOR NRCS EMPLOYEES
WA 2006 funds competition

• EQIP
• 1st Round
• Teams - 11 multi-county teams - 90 of available
  funds
• Statewide for Tribal - 10 of available funds
• 2nd Round
• Unobligated Team and Tribal - Distributed to
  unfunded Team applications
• CSP - - Nationwide
• WHIP - - 3 Administrative Areas
• Continuous CRP- - No competition
• WRP, GRP - - Statewide

SEA and ASTC Pgms
Washington 2006
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Not Included in Handouts
2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Washington 2006
Disqualification Requirement

• Do not work on program development
• Do not work on own (pre or post contract)
• Do not work on persons with covered relationship
  (pre or post contract)

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Not Included in Handouts
2006 ETHICS TRAINING FOR NRCS EMPLOYEES

• Question
• How to deal with staff between the local team and
  the state office. For example, an area office
  staff member that has land they wish to contract.
  Should they be restricted from the team where the
  land is located? The area? State?

Washington 2006

• Answer
• Matters they can not work on are (1) there own,
  (2) family members, and (3) those with which
  employee or family ( other covered
  relationships) are competing (precontract
  functions).
• Area of disqualification is based on where LAND
  is located versus where they work
• Extent of disqualification is based on the
  geographic scope of the competition for funds.

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Not Included in Handouts
2006 ETHICS TRAINING FOR NRCS EMPLOYEES

• Question How to deal with staff between the
  local team and the state office. For example, an
  area office staff member that has land they wish
  to contract. Should they be restricted from the
  team where the land is located? The area? State?

Washington 2006

• Answer re Area Staff (continued)
• When competition is _______ disqualification is
  ________.
• Competition Disqualification
• Area-wide area ? Area where the land it located
• Statewide ? Statewide
• Field Team ? Field team's area where land is

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Not Included in Handouts
2006 ETHICS TRAINING FOR NRCS EMPLOYEES
New Mexico
2006 funds competition
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Not Included in Handouts
2006 ETHICS TRAINING FOR NRCS EMPLOYEES
New Mexico
2006 Disqualification Requirement

• Do not work on program development
• Do not work on own (pre or post contract)
• Do not work on persons with covered relationship
  (pre or post contract)

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Employee must not work on a particular
matter if a close relative or other person with
an imputed or covered relationship has an
interest in the matter.
Employee Interest in NRCS Initiatives
Example 17 Employee w/ relationship to TSP
Disqualification

• Required to avoid COI
• Responsibility of the employee
• Impacts NRCS duties

.
But it can!

• Normally does not impact outside interest

non-clerical
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When Employee Must DisqualifyManagement Options

• Employee disqualifies - notifies supervisor
• Supervisor notifies state office
• If the state thinks disqualification is not
  required or should be waived, the STC should
  request a determination from the DCH Mgt.
• Substantial Conflict Determination in limited
  circumstances.

See 5 CFR 2635.403(b)
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Substantial Conflict Determination
Effect To prohibit employee from having
financial interest Criteria

• Employees ability to perform the duties of the
  position would be materially impaired, or
• It adversely affects efficient accomplishment of
  the agencys mission because another employee
  cannot be readily assigned to perform the work

• Example To prohibit an individual employee from
  having interest in an NRCS program or TSP in the
  same area the employee serves.
• Through self, spouse or minor child.

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Substantial Conflict Determination

• Who has authority to make determination?
• Can STC delegate?

• Depends on Matter
• STC if NRCS Program
• STC if TSP
• DCH MGT for ALL other
• No

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STC Authority

• STC has authority to make a substantial conflict
  determination, after consultation with NRCS
  Ethics Officer, that limits employees
  participation in NRCS programs or TSP.
• Includes participation by
• Employee
• employees spouse
• minor child
• Does not apply to participation of other family
  members

• Authority to make any other type of substantial
  conflict determination is reserved to the DCH
  MGT.

See 5 CFR 2635.403(b)
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• Example 18 Impact on outside interest
• Situation Spouse is TSP in same area AND either
• Employee must disqualify from matters so central
  to the employees position that the employee
  essentially cannot perform his/her position, or
• Another employee cannot readily be assigned to do
  that work.
• Then
• The STC may make substantial conflict
  determination to prohibit employee from having
  TSP interest in same area

• Result
• Spouse could not be TSP in same area.

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• Example 19 Impact on outside interest
• Situation Spouses employer is TSP in same area
  AND either
• Employee must disqualify from matters so central
  to the employees position that the employee
  essentially cannot perform his/her position, or
• Another employee cannot readily be assigned to do
  that work.
• Then
• The STC may make a substantial conflict
  determination to prohibit employee from having
  that TSP interest.

• Result
• Spouse could not work for that company.

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
STC Authority and Options (continued)
Substantial Conflict Determination

• Must meet criteria at 5 CFR 2635.403(b).
• No blanket determinations
• Use on a case-by-case basis only
• Consult with the Director, NRCS Ethics Office,
  prior to issuance
• Provide copy to the Director, NRCS Ethics
  Office

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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Prohibitions Against Representation

• Officially or Personally
• Can not ask the DC to meet with his Cousin, or
  attend an NRCS meeting with his Cousin.
• Officially
• Can not look up the status of the Cousins
  application.
• Personally
• Can help Cousin with application (behind the
  scenes)
• Can not sit at the kitchen table and help Cousin
  with application if compensated.

Slide 51
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Re Misuse of Position No favoritism
See 5 CFR 2635 Subpart G

• Do not ask another employee to
• Look out for the application of a friend or
  family member
• Keep you informed
• Etc.

No endorsement
Except 1. SARE Advisory Councils 2.
Rural Development Councils
Slide 52
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2006 ETHICS TRAINING FOR NRCS EMPLOYEES
Questions?