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University Business Policies and Procedures Manual |
3720
CONFLICTS OF INTEREST
Effective Date: July 30, 1982
Revised: 03/10/06, 08/01/06, 07/01/10
Subject to Change Without Notice
Authorized by: UNM Regents' Policy 6.4 "Employee Code of
Conduct and Conflicts of Interest"
Process Owner: University Counsel
1. General
Employees of the University shall maintain the highest standards of business
ethics in transactions with the University, with state, federal, and local
governments, and with the public. Employees are expected to perform their
duties faithfully and efficiently and never to give rise to suspicion of
improper conflict with interests of the University. Subject to specific
University administrative policies, employees must avoid any conflict of
interest that may affect their independent judgment in the impartial
performance of their duties and may not use their positions to enhance their
direct or indirect financial interest or use confidential information learned
as employees for anyone's private gain. 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 this policy. Transactions in which the University President has
any financial interest must be approved by the Board of Regents. This policy
applies to all employees (faculty and staff) of the University, to public and
student members of University advisory boards and committees, and other
volunteers serving in an official capacity. For the purposes of this policy,
the term "employee" shall include all of these individuals. Members
of the Board of Regents are governed by Regents' Policy 1.8
"Regent Code of Conduct and Conflicts of Interest Policy."
All employees shall comply with state conflict of interest laws (including primarily the Governmental Conduct Act, Section 10-16-1. et seq., NMSA 1978, and the Procurement Code, Sections 13-1-25, et seq., NMSA 1978), the requirements of which are incorporated in this policy, as well as other applicable University policies. No employee shall have any direct or indirect financial interest in any contract for building or improving or for furnishing of supplies or services to the University except as permitted pursuant to the University Research Park Act or unless such contract complies with the provisions of the New Mexico Governmental Conduct Act and the Procurement Code. Any employee who violates this policy or related administrative policies shall be subject to disciplinary action, up to and including dismissal. The purpose of this policy is to set principles for identifying potential conflicts and required procedures for reviewing and addressing those potential conflicts that occur to assure that they do not improperly affect the University's educational, research and public service missions, or violate state and federal laws.
2. Favors and Gratuities
Employees shall not directly or indirectly accept favors or gratuities from any firm, person, or corporation that is engaged in, or attempting to engage in, business transactions with the University. On occasion companies doing business with the University will send employees small items of appreciation, e.g., coffee mugs with a company logo. Such gifts may be accepted if they do not have any significant economic value. If an employee has any question regarding the acceptance of a favor or gratuity, he or she should discuss the matter with a supervisor or other appropriate University official for a determination of the proper course of action. Deans, directors, or department heads may adopt more restrictive policies if appropriate for the department.
3. Disclosure of any Financial Interest
At the beginning of each fiscal year the University President, the executive vice presidents, and all other vice presidents must file a Financial Disclosure Statement with University Counsel and the Executive Vice President for Administration on the form promulgated by the Secretary of State under the Financial Disclosure Act, 10-16A-1, NMSA 1978. The form can be found at http://www.nmaging.state.nm.us/altsd/Human_Resources_pdf_files/HR_Form_4-001_Financial_Disclosure.pdf. The Financial Disclosure Statement form shall be supplemented to the extent necessary to set forth financial interests as defined in this policy.
All employees and all vendors or other contractors with the University must disclose any financial interest a University employee may have in a proposed contract or other business transaction with the University in advance and in writing to the employee's dean or director and the applicable office listed in Section 3.1. below. University units proposing a contract or other business transaction in which they know or reasonably believe that a University employee has a financial interest must also disclose that fact to the dean or director to whom the unit reports and to the applicable office listed in Section 3.1. below. In addition, any contractor proposing a contract or other business transaction with the University involving $20,000 or more must fill out and sign the form attached to this policy as Exhibit A. and submit it to the office specified in Section 3.1. below, regardless of whether or not a University employee has a financial interest.
For the purposes of this policy, "financial interest" includes 1) any direct or indirect financial interest; 2) any transaction between the University and the employee or a member of the employee's immediate family (immediate family includes the employee's spouse, domestic partner, brother, sister, parent, child, or in-law); or 3) any transaction between the University and a business entity (business entity means corporation, sole proprietorship, partnership, LLC, or similar entity) if the employee or a member of the employee's immediate family meets one or more of the five criteria listed below:
(1) has an ownership interest (other than as owner of less than one percent (1%) of the stock of a publicly traded corporation) in the business entity of a University vendor or contractor;
(2) is an employee, partner, officer, director, trustee, or paid consultant to such business entity;
(3) has received grant support or benefited from a donation from such business entity (when a procurement is being proposed refer to Section 5.3. herein for additional information);
(4) has received support for travel expenses, honoraria, or similar forms of remuneration from such business entity; or
(5) has a right to receive royalties from such business entity.
3.1. Approving Offices
Based on the nature of the transaction, full disclosure of the circumstances of the employee's financial interest should be sent to the applicable office listed below. That office will determine whether the transaction is one at "arm's length," as defined in Section 4. herein, whether there are other reasons the transaction should not go forward, and whether other reviews and approvals are necessary.
3.1.1. Purchasing Goods by or for the University
All proposed transactions in which the University would be purchasing goods and in which a University employee appears to have a financial interest must be approved by the University Purchasing Department or the University Hospital Purchasing Office.
3.1.2. Purchasing Services by or for the University
All proposed transactions in which the University would be purchasing services and in which a University employee appears to have a financial interest must be approved by the applicable accounting office before final approval by the Purchasing Department or Hospital Purchasing Office. In appropriate cases a Service Provider Questionnaire (SPQ) must be submitted in accordance with "Purchasing Services from Independent Contractors" Policy 4325, UBP.
3.1.3. Agreement for the Use of University Resources or Purchase of University Services
All proposed agreements for the use of University space, equipment, or personnel, or for the purchase of services from University personnel by an entity in which a University employee appears to have a financial interest must be approved by the dean or director responsible for the space, equipment, or personnel.
4. "Arm's Length" Transactions
The University may enter into a contract in which an employee has a financial interest if the transaction is one at "arm's length." Full disclosure as required by Section 3. herein, must have been made in advance of any such transaction. To qualify as an "arm's length" transaction, the employee with a financial interest must not be in a position to exert influence over the transaction because of his or her employment with the University. Moreover, the employee must not have participated directly nor indirectly in the University's decision with respect to the 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). An example of an "arm's length" transaction might be a contract in which an employee has a week-end catering business and caters a reception for a college in which the employee is not employed.
As a matter of policy, transactions will not be considered "arm's length" where a University employee has a financial interest in the proposed transaction and that employee reports to the same dean or director as the University unit proposing the transaction. In addition, transactions involving technology created or developed at UNM will not be considered "arm's length."
5. Transaction not Qualifying as "Arm's Length"
Transactions in which employees have any financial interest that do not meet the narrow definition of "arm's length" transactions in Section 4.
5.1. Procedure for Reviewing Transactions not Qualifying as "Arm's Length"
- disclose any financial interest he or she may have in a proposed contract or other business transaction with the University;
- provide a detailed description of his or her financial interest in the proposed business transaction;
- describe fully the nature of the proposed undertaking;
- demonstrate to the satisfaction of the reviewing offices and the President that the proposed undertaking will be in the University's best interest and, in the case of a proposed transfer of University technology for economic development, may benefit the economy of this state;
- demonstrate to the satisfaction of the reviewing offices and the President that the proposed undertaking will not adversely affect research, public service, or instructional activities at the University;
- demonstrate that the employee's interest in the proposed contracting entity, or the employee's benefit from the interest, will not adversely affect any substantial state interest and that any procurement function of the employee can be carried out without favoritism or bias; and
- demonstrate that the employee has not and will not engage in any official act directly affecting the employee's financial interest.
5.2. Transactions not Qualifying as "Arm's Length" Related to a Sponsored Project
5.3. Transactions in which the Financial Interest is Gift or Grant Support
6. University Employees Within the Preceding Twelve (12) Months
Exhibit A. - Disclosure of Direct or Indirect Financial Interest
Comments
may be sent to UBPPM@UNM.edu
http://www.unm.edu/~ubppm