Conflict of Interest Guidelines
(revised 1/23/08)

When departments attempt to contract with UNM employees (or individuals who were employed within the last 12 months), the transaction must be “arm’s-length”.  That is, the employee cannot participate directly or indirectly in the University’s decisions with respect to the proposed transaction (such as by influencing the decision to enter into the transaction, helping to prepare the specifications, or having input or influence in deciding to whom the contract is awarded).

In addition, University employees, as well as individuals and firms proposing business transactions with the University, shall disclose in advance and in writing any direct or indirect financial interest employees may have in a transaction with the University. Normally employees with a direct or indirect financial interest in a transaction may not participate in any University decisions related to such transaction, except as specified in Policy 3720 “Conflicts of Interest”.

These situations will be evaluated case-by-case, but the general guidelines are:

1. If the employee works for a different department than is trying to hire him/her as an independent contractor, and the scope of work is different than the scope of employment, it’s generally okay to submit a PR.
   
   
2. If the employee works for a different department than is trying to hire him/her as an independent contractor, and the scope of work is the same as or similar to the scope of employment, it must be determined if the transaction is “arm’s-length”.  Payment via the Non-Standard Payment process through Payroll may be the most appropriate method of payment in this situation.
   
   
3. If the employee works for the same department that is trying to hire him/her as an independent contractor, and the scope of work is different than the scope of employment, it may be okay to submit a PR, but it must be determined if the transaction is “arm’s-length”.  If not, payment must be made through Payroll via the Non-Standard Payment form.
   
   
4. If the employee works for the same department that is trying to hire him/her as an independent contractor, and the scope of work is the same as or similar to the scope of employment, this would generally not be allowed; the employee’s regular salary would generally cover this work.

Regardless of the situation, the “Disclosure of Direct or Indirect Financial Interest” form, which is accessible via a link in Policy 3720 “Conflicts of Interest” MUST be completed and submitted to Central Accounting PRIOR to work being done.  If it’s determined that there is a conflict of interest, payment may be made via the Non-Standard Payment process, or by the bid process through Purchasing.  Also, as with all PRs for services, a Service Provider Questionnaire (SPQ) must be submitted.