A common question that we receive from both federal employees and government contractors is, “what is an incident report?” Whether the issue involves a financial problem, a foreign contact, an arrest, workplace termination or a possible security violation, many clearance holders are unsure when a security concern will become the subject of an official incident report reported to the government.
What Is an Incident Report?
An incident report is a formal notification submitted by security officials when a security concern may affect an individual’s eligibility to hold a security clearance. Not every security issue reported results in an incident report. However, when a report is required, it generally alerts the government that additional review or adjudication may be necessary.
Incident reports are adjudicated by an assigned government review authority. For most cleared personnel, incident reports are documented within one of the government’s primary personnel security systems. For example, the Defense Information System for Security (DISS) holds these reports for the Department of War/Defense and most defense contractors. Other federal agencies have their own internal databases which also hold incident reports.
An incident report does not automatically mean that a security clearance will be suspended, revoked, or denied. In many cases, it simply begins the process of gathering additional information.
What Does the Government Do When They Receive an Incident Report?
When the government receives an incident report, the following actions take place:
1. Initial Screening
The adjudicator reviews the submitted report against established guidelines (such as national security or workplace conduct standards) to see if the facts are clear or if the item is minor enough to close immediately.
2. Fact-Finding
If details are needed, the adjudicator may order a partial investigation, interview witnesses, or request further documentation and formal written statements from the involved individual.
3. Case Closure
Security clearance adjudicators will then make a decision about the incident report and decide to favorably close the matter or pursue it further. If closed favorably, there is no further need for an individual to respond.
4. Adverse Determination
If an incident report is unresolved, that may lead to the security clearance appeals process. For serious issues (e.g., criminal conduct or major security concerns), the authority may issue a formal notice of intent to suspend or revoke clearance eligibility, allowing the appeals procedures required by Executive Order 12968 to begin.
What Happens to an Incident Report When You Leave an Employer Before it is Resolved?
When you leave an employer before an incident report is adjudicated, it can cause problems later. Sometimes, that cannot be helped if you were terminated. If you leave an employer before an incident report is adjudicated, individuals can fall into what is known as Loss of Jurisdiction.
Loss of jurisdiction (LOJ) in security clearance processing means that a government agency stops reviewing an open incident report because you left your job or lost company sponsorship before they could finish their review. It is an administrative pause, not a denial or a permanent revocation.
However, it often causes delays in the cleared individual’s ability to return to the cleared workspace. We have seen cleared employees who did not know that they received an incident report leave for a new employer, only to later find that the new employer could not onboard them because of the remaining issues on their security clearance.
Possible LOJ issues should definitely be considered when leaving one cleared employer for another.
What Should You Do If You Become the Subject of an Incident Report?
If you learn that an incident report has been submitted regarding your security clearance, remain calm and cooperate fully with your Facility Security Officer or agency security office. Do not assume your clearance has already been revoked, and do not attempt to “fix” the problem by withholding information or avoiding questions from investigators.
Instead:
- Promptly respond to requests for information.
- Provide truthful and complete written statements.
- Supply documentation that may mitigate the concern.
- Continue complying with all reporting requirements.
- If the matter could jeopardize your clearance, consider consulting an attorney experienced in security clearance law before providing detailed written responses.
Early cooperation often helps adjudicators understand the circumstances and may lead to a faster resolution.
Final Thoughts
Incident reports are an important part of the security clearance process, but they are often misunderstood. An incident report is not a finding of wrongdoing, nor does it automatically place a clearance in jeopardy. Instead, it is a mechanism that allows the government to evaluate whether a particular event raises legitimate security concerns. If you need advice reach out to your FSO or other security officer. In serious cases, it is best to speak with counsel on these issues.
This article is for informational purposes only and should not be construed as legal advice. Security clearance reporting requirements, agency policies, and contractor obligations may vary, and readers should consult their Facility Security Officer, agency security office, or legal counsel regarding their specific circumstances.
