Executive Order 12565—Prescribing a Comprehensive System of Financial Reporting for Officers and Employees in the Executive Branch

By the authority vested in me as President by the Constitution and statutes of the United States of America, including section 7301(a) of title 5 of the United States Code, and section 207(a) of title 5 of the United States Code Appendix 4, as amended, and section 301 of title 3 of the United States Code, it is hereby ordered as follows:

Section 1. Executive Order No. 11222 of May 8, 1965, as amended, is further amended by:

(a) Striking section 306 of part III;

(b) Striking sections 401-406 of part IV and inserting in lieu thereof:

"Section 401. Policy. In order to maintain public confidence in the integrity of the Government and to preserve and promote ethical standards, a system of non-public (confidential) financial reporting shall be established for officers and employees of the Executive Branch. Such non-public (confidential) reporting shall complement the public financial disclosure system established by title II of the Ethics in Government Act of 1978, as amended.

Section 402. Definition. For purposes of this Part, the term

(a) The "Act" refers to the Ethics in Government Act of 1978, as amended.

(b) "Employee" means any officer or employee of an agency, including a special Government employee (as defined in 18 U.S.C. see. 202(a)).

(c) "Executive Branch" includes each Executive agency (as defined in 5 U.S.C. see. 105) and any other entity or administrative unit in the Executive Branch unless such agency, entity or unit is specifically included in the coverage of title I or III of the Act.

Section 403. Comprehensive System of Financial Reporting. There shall be a comprehensive system of financial reporting for employees in the Executive Branch pursuant to title II of the Act. Such comprehensive system shall require

(a) Reports subject to public disclosure by those employees whose positions are covered under section 201 of the Act; and

(b) Non-public (confidential) reports by those employees whose positions have been designated for this purpose pursuant to section 404 of this Part. These reports shall be held in confidence as required by section 207 of the Act and as authorized by the Freedom of Information Act at 5 U.S.C. sec. 552(b) (3), (4) and (6). Any disclosure of the reports must satisfy the terms of the Privacy Act at 5 U.S.C. 552a.

Section 404. The Office of Government Ethics. Notwithstanding any other provision of this Order, the Office of Government Ethics shall be responsible for administering this part by-

(a) Developing, in consultation with the Attorney General and the Office of Personnel Management, regulations setting forth (1) criteria for the guidance of agencies of the Executive Branch in designating the positions for which non-public (confidential) reports will be required and the type of information to be obtained in such reports in light of applicable conflict of interest statutes and regulations and the authorized activities of each agency; and (2) the time and place for submission of such reports;

(b) Assuring that each Agency of the Executive Branch designates its respective positions for which non-public reports will be required from employees holding such positions; and

(e) Assuring that implementing regulations issued by the agencies of the Executive Branch are properly administered."

Sec. 2. Savings Provision. To preserve the confidentiality of the current system of financial reporting, financial reports filed pursuant to the authority of Executive Order No. 11222, 5 C.F.R. Part 735, and individual agency regulations in which confidentiality for such reports has been assured shall continue to be held in confidence.

RONALD REAGAN

The White House,

September 25, 1986.

[Filed with the Office of the Federal Register, 10:12 a.m., September 26, 1986]