1. V IRGINIA A SSOCIATION OF S CHOOL B OARD O FFICIALS F ALL C ONFERENCE O FFICE OF THE S TATE I NSPECTOR G ENERAL 1

2. OVERVIEW OF OFFICE OF THE STATE INSPECTOR GENERAL STATE AND LOCAL GOVERNMENT CONFLICT OF INTEREST ACT COMMON VIOLATIONS OBJECTIVES 2

3. Core Responsibilities Investigate allegations of fraud, waste, and abuse in management and operations of state agencies and non-state agencies Administer the State Fraud, Waste, and Abuse Hotline and the Whistleblower Reward Fund Conduct performance reviews of state agencies to enhance efficiency and effectiveness of Executive Branch agencies Coordinate and require standards for internal auditing programs Provide training to the Commonwealth’s internal auditors 3

4. PERFORMANCE REVIEW: Direct Aide to Public Education DAPE is a holding account for pass-through funding for Local Education Agencies (LEAs), which is administered by the Virginia Department of Education. Of DAPE’s $6.8 billion budget in FY 2014; $5.9 billion was allocated to State Education Assistance Programs and $900 million was allocated to Federal Education Assistance Programs OSIG Scope Data collection Legal and regulatory compliance DOE resources State grant management Survey of local school officials OSIG Recommendations 4

5. DAPE SURVEY OF LOCALITIES Does your school district have adequate personnel to ensure data collections are accurate and complete as required by the DOE? Do you understand the SOQ calculation enough to be able to determine whether your SOQ payments were calculated accurately? How well do you understand the classification requirements for expenditures to be reported on the ASRFIN? How would you evaluate the overall clarity of guidance and instruction you receive (directly or by accessing via website) to accurately record and submit data to the DOE? How effective is DOE at communicating changes that will impact the timing of payments to be received? Regarding the DOE data collections, do you have any ideas for how to make the data collections more streamlined? 5

6. DAPE OBSERVATIONS/RECOMMENDATIONS Automation of calculation process Staffing resources to support the DAPE processes Policies and procedures Compliance monitoring functions Self monitoring checklists for localities 6

7. STATE AND LOCAL CONFLICT OF INTERESTS ACT 2 Code of Virginia Chapter 31. State and Local Government Conflict of Interests Act Article 1. General Provisions Article 2. Generally Prohibited and Unlawful Conduct Article 3. Prohibited Conduct Relating to Contracts Article 4. Prohibited Conduct Relating to Transactions Article 5. Disclosure Statements Required to Be Filed Article 6. School Boards and Employees of School Boards Article 7. Penalties and Remedies Article 8. Orientation for State Filers 7

8. CONFLICT OF INTERESTS ACT – GENERAL PROVISIONS Any officer required to file a disclosure shall be provided a copy of this chapter within two weeks of employment, election or appointment. Definitions – Gifts – Personal interests – Immediate family Changes to definitions: January 1, 2016 8

9. GENERALLY PROHIBITED AND UNLAWFUL CONDUCT Solicit or accept money or other thing of value for services performed within the scope of his official duties. Offer or accept any money or other thing of value for or in consideration of obtaining employment, appointment, or promotion of any person with any governmental or advisory agency. Accept any money, loan, gift, favor, service, or business or professional opportunity that reasonably tends to influence him in the performance of his official duties. Accept gifts from sources on a basis so frequent as to raise an appearance of the use of his public office for private gain. 9

10. CERTAIN GIFTS PROHIBITED Shall not solicit, accept or receive any single gift with a value in excess of $100 or any combination of gifts with an aggregate value in excess of $100 within any calendar year. – Exception for widely attended events Includes self of member of immediately family members. Received from: – Lobbyist or lobbyists principal – Person, organization, business who is or is seeking to become a party to a contract of the local agency – Does not include personal friends 10

11. ADDITIONAL LIMITATIONS § 2.2-3104.02. Prohibited conduct for constitutional officers – Subsequent employment – 1 year § 2.2-3104.1. Exclusion of certain awards from scope of chapter – Local government employees/teachers of local school boards § 2.2-3104.2. Ordinance regulating receipt of gifts. 11

12. PROHIBITED ACTS RELATING TO CONTRACTS Article 3. Prohibited Conduct Relating to Contracts § 2.2-3107. Prohibited contracts by members of county boards of supervisors, city councils and town councils. § 2.2-3108. Prohibited contracts by members of school boards. § 2.2-3109. Prohibited contracts by other officers and employees of local governmental agencies. 12

13. OTHER ARTICLES Article 4. Prohibited Conduct Relating to Transactions Article 5. Disclosure Statements Required to Be Filed POPULATION > 3500 TO COUNCIL ISSUE BONDS OR EXPENSES > 10,000 TO COUNCIL Article 6. School Boards and Employees of School Boards 13

14. CONFLICT OF INTEREST ETHICS ADVISORY COUNCIL On line system available July 1, 2016 System will provide function to download and analyze statements System will check for incorrect forms On line training Advisory opinions available to all local employees required to file 14

15. COMMON CONCERNS/VIOLATIONS – Failure to file – Failure to disclose Gifts Business relationships Other employment – Employer unaware of employee filings 15

16. PENALTIES KNOWING VIOLATION > MISDEMEANOR ADVISORY OPINIONS > – LOCAL COMMONWEALTH ATTORNEY – CONFLICT OF INTEREST ETHICS ADVISORY COUNCIL – Chris Piper, Executive Director cpiper@dls.virginia.gov – General inquiries ethics@dls.virginia.gov 16

17. Questions and Answers 17