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Florida Clerks of Court and Comptrollers. Form 1 Statement of Financial Interests Who, Where, When, Why and How Winter Conference Jacksonville, Florida January 30, 2014. 2012 CE Financial Disclosures.

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florida clerks of court and comptrollers

Florida Clerks of Court and Comptrollers

Form 1Statement of Financial Interests

Who, Where, When, Why and How

Winter Conference

Jacksonville, Florida

January 30, 2014

2012 ce financial disclosures
2012 CE Financial Disclosures
  • 37,532 Florida public officials and employees were required to file financial disclosure forms in 2012.
    • 1413 Constitutional officers filed Form 6
    • 979 Judges filed Form 6
    • 170 Senior Judges filed Form 6
    • 13,483 State offices and employees filed Form 1
    • 21,487 Local officers and employees filed Form 1
who needs to file form 1
Who needs to file Form 1
  • Persons holding any of these positions in local government:
    • chief administrative employee or finance director of a county, municipality, or other political subdivision
    • county or municipal attorney
    • purchasing agent (regardless of title) having the authority to make any purchase exceeding $20,000 for the local governmental unit (NOTE the 2013 change)
  • A person who assumes one of these positions must file within 30 days of taking that position
2013 sb 2 finance director
2013, SB 2, Finance Director
  • The law has added “finance director of a county, municipality, or other political subdivision” to the types of persons who must file Form 1.
  • The Commission on Ethics generally takes a functional approach. For types of positions that do not have uniform job titles, the Commission has looked at job responsibilities.
  • SB 2 does not define "financial director." We can be guided by the language of section 218.403(2), F.S., which includes in its definition of “chief financial officer” a person, “regardless of the title of his or her office, charged with administering the fiscal affairs of a unit of local government.” (The term “fiscal affairs” is not defined in Florida Statutes.)
finance director
Finance Director
  • An employee who meets the following two tests should, in my view, file a Form 1 in 2014:
  • deals with substantial financial matters such as the receipt, investment, or disbursement of significant sums of money, AND
  • operates relatively independently on those financial matters under a broad delegation of duties on essential matters acting without direct approval on a day-to-day basis.
  • Note: “Finance directors" were added to the law effective 5/1/13, the date SB 2 became law.  The financial disclosures that were required to be filed by July 1, 2013, were for the 2012 calendar year (unless the filer chose a different tax year).
    • So the Form 1 filings required in 2013 DID NOT include "finance directors" who will not be included until the July 1, 2014, filings for the 2013 calendar year.
    • The exception would be a newly-hired "finance director" employed on or after May 1, 2013, (the effective date of the new law) who WILL be required to file a Form 1 within 30 days of employment.
purchasing agents procurement employees
Purchasing Agents & Procurement Employees
  • “Purchasing agents” with authority to commit expenditure of public funds in excess of $20,000 are (and have been, see s. 112.3145, F.S.) required to file Form 1 disclosure annually.
  • Do not confuse this with the new SB 2 limitations on gifts (s. 112.3148, F.S.) received by “procurement employees” who participate, even in an advisory capacity, in procurements expected to exceed $10,000 in a fiscal year.
purchasing agent f s excerpts
Purchasing Agent (F.S. excerpts)

112.312 Definitions.

(20) “Purchasing agent” means a public officer or employee having the authority to commit the expenditure of public funds through a contract for, or the purchase of, any goods, services, or interest in real property for an agency, as opposed to the authority to request or requisition a contract or purchase by another person.

112.3145 Disclosure of financial interests and clients represented before agencies.—

(1)(a) “Local officer” means:

3. Any person holding one or more of the following positions: mayor; county or city manager; chief administrative employee of a county, municipality, or other political subdivision; county or municipal attorney; finance director of a county, municipality, or other political subdivision; chief county or municipal building code inspector; county or municipal water resources coordinator; county or municipal pollution control director; county or municipal environmental control director; county or municipal administrator, with power to grant or deny a land development permit; chief of police; fire chief; municipal clerk; district school superintendent; community college president; district medical examiner; or purchasing agent having the authority to make any purchase exceeding the threshold amount provided for in s. 287.017 for CATEGORY ONE, on behalf of any political subdivision of the state or any entity thereof.

287.017 Purchasing categories, threshold amounts.—The following purchasing categories are hereby created:

(1) CATEGORY ONE: $20,000.

procurement employee 2013 sb 2
Procurement Employee (2013 SB 2)

112.3148 Reporting and prohibited receipt of gifts by individuals filing full or limited public disclosure of financial interests and by procurement employees.—

(2) As used in this section:

(e) “Procurement employee” means any employee of an officer, department, board, commission, or council, or agency of the executive branch or judicial branch of state government who has participated in the preceding 12 monthsparticipates through decision, approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, or auditing or in any other advisory capacity in the procurement of contractual services or commodities as defined in s. 287.012, if the cost of such services or commodities exceeds or is expected to exceed $10,000$1,000 in any fiscal year.

what you ll report
What you’ll report

If you are required to file a Form 1, you will report your:

  • Primary sources of income
  • Secondary sources of income
  • Real property
  • Intangible personal property
  • Liabilities
  • Interests in specified businesses
disclosure period
Disclosure period
  • The tax year for most filers is the calendar year. You can just check the box.
  • However, if you file your IRS tax return based on a tax year that is not the calendar year, you should specify the dates of your tax year in this portion of the form and check the appropriate box.
  • This is the time frame or "disclosure period" that you will use in completing your Form 1.
filing
Filing
  • If you have nothing to report, you must write "none" or "n/a" in that section.
  • Send in only the first 2 pages of the form (not the instructions).
  • Local officers and employees file with the Supervisor of Elections of the county in which they permanently reside.
  • File originals, facsimiles are not acceptable.
filing1
Filing
  • Initially, each local officer and employee (who is required to file) must file within 30 days of the date of his or her appointment or of the beginning of employment.
  • Annually, local officers and employees are required to file by July 1st following each calendar year in which they hold their positions.
  • Each local officer and employee is required to file a final disclosure form (Form 1F) within 60 days of leaving office or employment.
public record
Public Record
  • Your Form 1 and anything attached to it is a public record. Your Social Security Number is not required and you should redact it from any documents you file. If you are an active or former officer or employee listed in Section 119.071(4)(d), F.S., whose home address is exempt from disclosure, the Commission is required to maintain the confidentiality of your home address if you submit a written request for confidentiality.
  • The Commission encourages persons listed in Section 119.071(4)(d), F.S., to provide an address other than their home address.
slide14

Government is a trust, and the officers of the government are trustees; and both the trust and the trustees are created for the benefit of the people.

Henry Clay

Madam, I may be President of the United States, but my private life is nobody’s damn business.

Chester A. Arthur

penalties
Penalties
  • Your Form 1 is due July 1. If it is not filed or postmarked by September 3, an automatic fine of $25 for each day late will be imposed, up to a maximum penalty of $1,500.
  • You can appeal within 30 days for unusual circumstances.
  • Also, failure to make any required disclosure may be punished by removal, or suspension from office or employment, demotion, reduction in salary, reprimand, or a civil penalty not exceeding $10,000.
appeal of automatic fine
Appeal of Automatic Fine

Reasons listed on the Commission form:

  • Illness or injury (attach statement from attending physician).
  • Lack of notification – Failure to receive notice (provide documentation supporting that you never received certified mail delinquency notice).
  • Previously filed financial disclosure (provide copy of certified mail receipt and/or copy of completed form which had been previously filed, along with a sworn notarized statement).
  • Left public position prior to December 31, 2012 (provide confirmation from agency).
  • Other unusual circumstance (uncommon, rare, or sudden occurrence that prevented timely filing).
2 ways to report
2 ways to report
  • The law gives you the option of reporting based on:
  • Comparative thresholds - usually, based on percentage values, or
  • Dollar value thresholds - based on absolute dollar values.
  • On your Form 1, you must check which method you used. You must use the threshold you choose in every section of your Form 1. (No mixing and matching.)
primary sources of income a
Primary sources of income (A)
  • List the name, address, and principal business activity of each source of your income which exceeded:
    • 5% (Comparative threshold)
    • $2,500 (Dollar value threshold)

of gross income received by you in your own name or by any other person for your use or benefit.

  • You do not have to disclose the amount of income received.
  • You do not have to list your public salary from serving in the position which requires you to file the form, but this amount should be included when calculating your gross income for the disclosure period.
  • You do not need to disclose the income of your spouse. But, if you and your spouse receive joint income from property you own jointly (such as interest or dividends from a bank account or stocks), you should include all of that income when calculating your gross income and disclose the source of that income if it exceeded the threshold.
primary sources of income a1
Primary sources of income (A)
  • "Gross income" means the same as it does for federal income tax purposes, even if the income is not actually taxable, such as interest on tax-free bonds.
  • Examples include: compensation for services, income from business, gains from property dealings, interest, rents, dividends, pensions, IRA distributions, social security, distributive share of partnership gross income, and alimony, but not child support.
primary sources of income a2
Primary sources of income (A)

Examples:

  • You were employed by a company that manufactures computers and received more than
    • 5% (Comparative threshold)
    • $2,500 (Dollar value threshold)

List the name of the company, its address, and its principal business activity (computer manufacturing).

  • You were a partner in a law firm and your distributive share of partnership gross income exceeded
    • 5% (Comparative threshold)
    • $2,500 (Dollar value threshold)

List the name of the firm, its address, and its principal business activity (practice of law).

primary sources of income a3
Primary sources of income (A)

Examples:

  • You were the sole proprietor of a retail gift business and your gross income from the business exceeded
    • 5% (Comparative threshold)
    • $2,500 (Dollar value threshold)

List the name of the business, its address, and its principal business activity (retail gift sales).

  • You received income from investments in stocks and bonds. Rather than aggregating all of your investment income, list only each individual company from which you derived more than
    • 5% (Comparative threshold)
    • $2,500 (Dollar value threshold)
primary sources of income a4
Primary sources of income (A)

More examples:

  • More than
    • 5% (Comparative threshold)
    • $2,500 (Dollar value threshold)

of your gross income was gain from the sale of property (not just the selling price). List as a source of income the name of the purchaser, the purchaser’s address, and the purchaser’s principal business activity.

    • If the purchaser’s identity is unknown, such as where securities listed on an exchange are sold through a brokerage firm, the source of income should be listed simply as "sale of (name of company) stock," for example.
  • More than
    • 5% (Comparative threshold)
    • $2,500 (Dollar value threshold)

of your gross income was in the form of interest from one particular financial institution (aggregating interest from all CD’s, accounts, etc., at that institution). List the name of the institution, its address, and its principal business activity.

secondary sources of income b
Secondary sources of income (B)
  • Disclose major customers, clients, and other sources of income to businesses in which you own an interest.
  • Do not for report income from second jobs in this section. That income is reported under Primary Sources of Income.
secondary sources of income b1
Secondary sources of income (B)
  • You will not have anything to report unless, during the year, you:
    • Owned (either directly or indirectly in the form of an equitable or beneficial interest) during the disclosure period more than 5% of the total assets or capital stock of a business entity (a corporation, partnership, LLC, limited partnership, proprietorship, joint venture, trust, firm, etc., doing business in Florida); and

(Comparative threshold)

    • Received more than 10%of your gross income during the disclosure period from that business entity; and
    • Received more than $1,500 in gross income from that business entity.

(Dollar value threshold)

    • Received more than $5,000 of your gross income during the disclosure period from that business entity.
secondary sources of income b2
Secondary sources of income (B)
  • If you exceeded the thresholds, then for that business entity you must list every source of income to the business entity which exceeded 10% of the business entity’s gross income (computed on the basis of the business entity's most recently completed fiscal year), the source’s address, and the source's principal business activity.
secondary sources of income b3
Secondary sources of income (B)

Examples:

  • You are the sole proprietor of a dry cleaning business, from which you received more than
    • 10% of your gross income, an amount more than $1,500 (Comparative threshold)
    • $5,000 (Dollar value threshold)

If only one customer, a uniform rental company, provided more than 10% of your dry cleaning business, you must list the name of the uniform rental company, its address, and its principal business activity (uniform rentals).

  • You are a 20% partner in a partnership that owns a shopping mall and your partnership income exceeded the thresholds. You must list each tenant of the mall that provided more than 10% of the partnership's gross income, the tenant's address and principal business activity.
real property c both thresholds
Real property (C)(Both thresholds)
  • List the location or description of all real property in Florida in which you owned directly or indirectly at any time during the previous tax year in excess of 5% of the property’s value.
  • Do not list your residences and vacation homes.
  • Indirect ownership includes:
    • (1) you are a beneficiary of a trust that owns the property,
    • (2) you are more than a 5% partner in a partnership or stockholder in a corporation that owns the property.
real property c both thresholds1
Real property (C)(Both thresholds)
  • Value of the property may be based on the most recent assessed value for tax purposes, in the absence of a more current appraisal.
  • The location or description of the property should be sufficient to enable anyone who looks at the form to identify the property.
    • A legal description of the property may be used, but is not required.
    • Simple descriptions, such as "duplex, 115 Terrace Avenue, Tallahassee" or "40 acres located at the intersection of Hwy. 60 and I-95, Lake County" are okay.
intangible personal property d
Intangible personal property (D)
  • Give a general description of intangible personal property that, at any time during the year, was worth more than
    • 10% of your total assets (Comparative threshold)
    • $10,000 (Dollar value threshold)

State the business entity to which the property related.

  • Intangible personal property includes things like money, stocks, bonds, certificates of deposit, interests in partnerships, beneficial interests in a trust, promissory notes owed to you, accounts receivable by you, assets held in IRA’s, DROP accounts, Florida Prepaid College Plan accounts, and bank accounts.
  • Things like automobiles, houses, jewelry, and paintings are not intangible property.
  • Intangibles relating to the same business entity may be aggregated; for example, certificates of deposit and savings accounts with the same bank.
  • Property owned as tenants by the entirety or as joint tenants with right of survivorship should be valued at 100%.
intangible personal property d comparative threshold only
Intangible personal property (D)(Comparative threshold only)
  • Calculations: In order to decide whether the intangible property exceeds 10% of your total assets, you need to total the value of all of your assets (including real property, intangible property, and tangible personal property such as automobiles, jewelry, furniture, etc.).
  • Do not subtract any liabilities (debts) that may relate to the property—add only the fair market value of the property.
  • Multiply the total figure by 10% to arrive at the disclosure threshold.
  • List only the intangibles that exceed this threshold amount.
  • Property that is only jointly owned property should be valued according to the percentage of your joint ownership. Property owned as tenants by the entirety or as joint tenants with right of survivorship should be valued at 100%.
  • Neither your calculations nor the value of the property should be disclosed on the form.
intangible personal property d comparative threshold only1
Intangible personal property (D)(Comparative threshold only)

Example:

  • You own 50% of the stock of a small corporation that is worth $100,000, the estimated fair market value of your home and other property (bank accounts, automobile, furniture, etc.) is $200,000. As your total assets are worth $250,000, you must disclose intangibles worth over $25,000. Since the value of the stock exceeds this threshold, you should list "stock" and the name of the corporation. If your accounts with a particular bank exceed $25,000, you should list "bank accounts" and bank’s name.
liabilities e
Liabilities (E)
  • List the name and address of each creditor to whom you owed:
  • any amount that, at any time during the year, exceeded your net worth. (Comparative threshold)
  • more than $10,000, at any time during the year. (Dollar value threshold)
  • Do not list the amount of any indebtedness or your net worth.
  • You do not have to disclose any of the following: credit card and retail installment accounts, taxes owed (unless reduced to a judgment), indebtedness on a life insurance policy owed to the company of issuance, or contingent liabilities.
    • A “contingent liability” is one that will become an actual liability only when one or more future events occur or fail to occur, such as where you are liable only as a guarantor, surety, or endorser on a promissory note. If you are a “co-maker” and have signed as being jointly liable or jointly and severally liable, then this is not a contingent liability; if the total amount of the debt exceeds $10,000 it should be reported.
liabilities e comparative threshold only
Liabilities (E)(Comparative threshold only)
  • Calculations: In order to decide whether the debt exceeds your net worth, you will need to total all of your liabilities (including promissory notes, mortgages, credit card debts, judgments against you, etc.). Subtract this amount from the value of all your assets as calculated in Part D. This is your "net worth."
  • You must list on the form each creditor to whom your debt exceeded this amount unless it is one of the types of indebtedness listed previously (credit card and retail installment accounts, etc.).
  • Joint liabilities with others for which you are jointly and severally liable (you may be liable for either your part or the whole), should be included in your calculations at 100% of the amount owed.
liabilities e comparative threshold only1
Liabilities (E) (Comparative threshold only)

Example:

  • You owe $15,000 to a bank for student loans, $5,000 for credit card debts, and $60,000 (jointly with your spouse) to a savings and loan for a home mortgage. Your home (owned by you and your spouse) is worth $80,000 and your other property is worth $20,000. Since your net worth is $20,000 ($100,000 minus $80,000), you must report only the name and address of the savings and loan.
interests in specified businesses f both thresholds
Interests in specified businesses (F)(Both thresholds)
  • The types of businesses covered in this disclosure include: state and federally chartered banks; state and federal savings and loan associations; cemetery companies; insurance companies; mortgage companies; credit unions; small loan companies; alcoholic beverage licensees; pari-mutuel wagering companies, utility companies, entities controlled by the Public Service Commission; and entities granted a franchise to operate by either a city or a county government.
interests in specified businesses f both thresholds1
Interests in specified businesses (F)(Both thresholds)
  • You must disclose the fact that you owned during the year an interest in, or held any of certain positions with, those types of businesses.
    • You must make this disclosure if you own or owned (either directly or indirectly in the form of an equitable or beneficial interest) at any time during the disclosure period more than 5% of the total assets or capital stock of one of those types of businesses.
    • You must make this disclosure for each of these types of businesses for which you are, or were at any time during the disclosure period, an officer, director, partner, proprietor, or agent (other than a resident agent solely for service of process).
  • You should list the name of the business, its address and principal business activity, and the position held with the business (if any). If you own(ed) more than a 5% interest in the business, you must indicate that fact and describe the nature of your interest.
slide37

Contrariwise . . . if it was, it might be; and if it were so, it would be: but as it isn’t, it ain’t. That’s logic.

Tweedledee

form 1f final statement of financial interests
Form 1F Final Statement of Financial Interests
  • You leave the public position for which you were required to file a statement of financial interests (Form 1).
  • Within 60 days of leaving the position, you must file a final statement covering the period from January 1 to your last day in the position,
  • unless you take another position within that 60 day period which requires filing either a statement of financial interests or full and public disclosure covering that disclosure period.
form 1x amendment to form 1 statement of financial interests
Form 1X Amendment to Form 1 Statement of Financial Interests
  • You may amend your previously filed Form 1s to add to or modify the information originally reported at any time.
  • If the amendment addresses the subject of a complaint filed against you, the Commission will consider the timing of the amendment as a mitigating factor
slide40

Florida Commission on Ethics

(850) 488-7864

-----

County Disclosure Coordinator

List

open meetings
Open meetings
  • The law may apply to advisory boards even when they only make non-binding recommendations
  • Staff meetings are usually not covered
  • Staff committees may be covered if they are deemed to be part of the “decision making process” rather than performing traditional staff roles of gathering and organizing information
  • For example, a committee composed of staff could be given the authority to screen and reject applicants from further consideration