Auditor of State Bulletin 2025-012

Auditor of State Bulletin 2025-012

The Auditor of State released Bulletin 2025-012: Ohio Ethics Commission Advisory Opinion 2025-02 Frequent Flyer Miles, Other Rewards, or Discount Programs.

Frequent flyer miles, hotel, gas, credit card, and other reward or discount programs have become widespread since the Ohio Ethics Commission (OEC) first addressed these issues, as early as 1991. Further, the different standards applicable to the various reward programs have caused confusion for public offices on how to account for and manage these rewards. As a result, the OEC has revisited the issue. In Advisory Opinion No. 2025-02, effective immediately, the OEC:

• Revised restrictions from public officials and employees personally using rewards earned during official business, provided: rewards are earned in the same manner as the general public; they do not impose additional costs on the public office; and the airline, hotel, vendor, etc. are not selected just to earn the reward points for themselves.
• Determined personal use of these rewards does not constitute additional compensation.
• Recommended that public offices adopt a policy regarding personal use of these rewards, which can be more restrictive than Ohio Ethics law.
• Overruled OEC Advisory Op. 91-010 and Informal Advisory Op. 2003-INF-0224-1.

The Ohio Auditor of State (AOS) joins the OEC’s recommendation that public offices adopt policies/rules for the personal use of reward program points accrued while conducting public business. While public offices cannot create policies that are less restrictive than the Ethics laws, they can adopt policies that are more restrictive. The AOS recommends public offices adopt policies tailored to their unique circumstances including, but not limited to the following:

• Whether an agency allows its officials or employees to personally use frequent flyer miles or other rewards points accrued during official business.
• Minimum standards that public officials or employees must follow to avoid violating criminal laws.
• A prohibition from selecting an airline, hotel, car rental company, etc., other vendors or services solely to earn reward points for their personal use.
• A requirement to select the lowest reasonable rate.
• Robust internal controls to ensure compliance, including supervisory monitoring mechanisms designed to proactively identify and mitigate the risk of noncompliance.

To read Ohio Ethics Commission Opinion No. 2025-02 in its entirety, please click here. To read AOS Bulletin 2025-012, please click here.