Presentation on theme: "Ethics in the Treasury Securing and Maintaining the Public Trust California Municipal Treasurers Association September 21, 2012 Cal Poly Pomona Kellogg."— Presentation transcript:
Ethics in the Treasury Securing and Maintaining the Public Trust California Municipal Treasurers Association September 21, 2012 Cal Poly Pomona Kellogg West Conference Cente r Presented By: Michael D. Martello Interim City Attorney, Sunnyvale, CA Special Counsel, Ethics Project Institute for Local Government
ILG Mission: Promote good government CMTA Code #2
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)
Ultimate Objectives Your success & happiness as a public servant Prevent missteps Public trust
What to Do? Sources of guidance –CMTA Code –Law Other examples Long-term versus short-term thinking
Thomas Jefferson Honesty is the first chapter in the book of wisdom
A Framework: Ethics Versus Ethics Laws
Ethics Versus Ethics Laws Ethics = what we ought to do Laws = what we must do –PenaltiesSometimes severe –Minimum standards –Legal ethical
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
What Would You Do? Vacation accounting irregularities Agency credit card misuse Agency supplies & equipment Double-dipping on expenses Extravagant expenses
What Would You Do? Laundering Money Shifting Expensesindoor sports Reimbursement for Losses – theft/damage Gifts from Brokers The question in the group meeting: Does anyone see a problem with this?
Thomas Jefferson In matters of style, swim with the current; in matters of principle, stand like a rock.
Resources on Ethics Laws No personal financial gain No perks Transparency Fair process Rest of Story: AB 1234
Short Term Strategies Remind people about audits Encourage colleagues to consult with your agency attorneys Recognize that people often make decisions in the own self interest
Long Term Goals Help create an ethical environment –Work on a code of conduct –Incorporate standards into you written investment policy –Keep track of the questionable gymnastics –Put together a presentation for the broader audience
Ethics in the Treasury: Hard Choices Right versus right Personal cost –Loss of job –Long-term thinking
Promoting Public Service Ethics The Three Strategies
The Three Strategies 1.Good Practices 2.Your Education 3.Educate Others
Good Practices Checks and balances: Minimize likelihood wrongdoing goes undetected –Internal controls –Audits –Transparency –Hiring for ethics CMTA Code #4: Observe professions technical (and legal) standards
Educate Yourself CMTA Code #4: Continuous improvement CMTA Code #2: Promote good government –AB 1234: Take the training –Understand and promote ethics
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 theres Ethics in the Treasury
Resource to Help Includes GFOA recommendations on financial transparency Sent to finance directors in early January Available online at ilg.org/financialmanagement without chargewww.ca- ilg.org/financialmanagement
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.