Advisory Opinion No. 95-31

Re: Ernest A. Almonte, CPA

On December 16, 1994, you wrote to the Executive Director of the Rhode Island Ethics Commission requesting guidance on two matters. The first matter, relating to attendance by your offices in connection with a seminar sponsored by a local certified public accounting firm, which has previously been the subject to earlier correspondence.

On March 29, 1995, the Commission considered your additional request regarding the possibility of your office organizing joint training meetings with local CPA firms and the sharing of the cost for such training meetings. You advised there is a shortage of courses offered in governmental accounting and auditing and that such joint training would increase the selection and decrease the cost to the state.

We understand that certain CPA firms with whom you may be working in connection with these training programs also serve as auditors for the state and are subject to work paper and audit spec review procedures by your offfice.

Our concern is to enforce the policy of the Code of Ethics requiring public officials to adhere to the highest standards of ethical conduct, be open, accountable, and responsibile, and avoid any appearances of impropriety. In this case our concern would be to ensure that any CPA firms with whom you have a working relationship by virtue of joint training meetings would not impair your independence of judgment if your offices were responsibile for review of the activities of the CPA firm in connection with unrelated state work.

In order to avoid any impropriety, we conclude that the training seminar should be organized exclusively by your offices, with program rates, qualifications, and conditions set by your office. Open invitations to all CPA firms interested in such training meetings should be offered to all CPA firms interested in such activities. At all times you should take steps to ensure that your personnel involved in such joint training meetings in no way discuss any non-related audit work paper and spec review procedures involving the CPA firms participating with the training meetings. Steps should be taken to notify your personnel that no courtesies or gratuities should be accepted by any local CPA firms which are performing audit work for the state which may be subject to review by your offices. Your personnel should be provided with a copy of the Code of Ethics, with particular reference to the prohibited activities section R.I. Gen. Laws § 36-14-5 which proves that no person subject to the Code of Ethics may have any interest in substantial conflict with the proper discharge of his duties of employment in the public interest, that no person may accept employment which would impair his independence of judgment as to his official duties or induce that person to disclose confidential information and that no person may use in any way his or her public office or confidential information received through such office to obtain financial gain other than that provided by law.

We conclude that such training meetings may serve an important and beneficial purpose to the members of your offices and would result in a cost saving benefit to the state. Under the circumstances, we believe such activities, as conditioned by the terms and conditions of this opinion, may be carried on without violation of the Code of Ethics.

We also urge you to return to the Commission if any further questions or issues arise in connection with your anticipated training seminars and meetings, and thank you for your interest in the work of the Ethics Commission.

Keywords

Professional Service Contracts

Public-Private Partnerships

Agency Benefit