Download - Ethics in the Treasury
Ethics in the Treasury
Securing and Maintaining the Public Trust
California Municipal Treasurers Association
Presented By: Michael D. Martello
Special Counsel, Ethics Project
Institute for Local Government
April 22, 2011 San Diego
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• ILG Mission: Promote good government
• CMTA Code #2
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Session Objectives
1. Provide tools for analyzing ethical dilemmas
2. Identify steps to take to promote good government in your office and beyond
3. Share resources (and get your input)
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Ultimate Objectives
• Your success & happiness as a public servant
• Prevent missteps
• Public trust
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What to Do?
• Sources of guidance– CMTA Code– Law
• Other examples
• Long-term versus short-term thinking
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Thomas Jefferson
• “Honesty is the first chapter in the book of wisdom”
A Framework: Ethics VersusEthics Laws
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Ethics Versus Ethics Laws
• Ethics = what we ought to do
• Laws = what we must do– Penalties—Sometimes severe– Minimum standards– Legal ≠ ethical
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The Political Reform Act
• Called You Out!!
• All the Heavy-duty State officials. . .and then:
“. . .city managers, city attorneys, city treasurers, city councils and other public officials who manage public investments “
. . . not the police chief or city clerk
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What Would You Do?
• Vacation accounting irregularities
• Agency credit card misuse• Agency supplies &
equipment• Double-dipping on
expenses• Extravagant expenses
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What Would You Do?
• Laundering Money
• Shifting Expenses—indoor sports
• Reimbursement for Losses – theft/damage
• Gifts from Brokers
• The question in the group meeting: “Does anyone see a problem with this?”
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Thomas Jefferson
• “In matters of style, swim with the current; in matters of principle, stand like a rock.”
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Resources on Ethics Laws
• No personal financial gain
• No perks
• Transparency
• Fair process
• Rest of Story: AB 1234
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Short Term Strategies
• Remind people about audits
• Encourage colleagues to consult with your agency attorneys
• Recognize that people often make decisions in their own self interest
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Long Term Goals
• Help create an ethical environment– Work on a code of conduct– Incorporate standards into your written
investment policy– Keep track of the questionable gymnastics– Put together a presentation for the broader
audience
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Ethics in the Treasury:
Hard Choices
• Right versus right
• Personal cost – Loss of job– Long-term thinking
Promoting Public Service Ethics
The Three Strategies
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The Three Strategies
1. Good Practices
2. Your Education
3. Educate Others
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Good Practices
• Checks and balances: Minimize likelihood wrongdoing goes undetected– Internal controls– Audits– Transparency– Hiring for ethics
• CMTA Code #4: Observe profession’s technical (and legal) standards
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Educate Yourself
• CMTA Code #4: Continuous improvement
• CMTA Code #2: Promote good government– AB 1234: Take the training – Understand and promote
ethics
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Educate Others
• Decision-makers– Tool: Financial Management for Elected Officials– Oversight is a form of check and balance
• The Public– Website/transparency– What does the public need to know to
• Participate in democratic processes?• Prevent corruption? (Most important political office . . .) • Know that there’s “Ethics in the Treasury”
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Resource to Help
• Includes GFOA recommendations on financial transparency
• Sent to finance directors in early January
• Available online at www.ca-ilg.org/financialmanagement without charge
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Thomas Jefferson
• “I have the consolation of having added nothing to my private fortune during my public service, and of retiring with hands clean as they are empty.”
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