CONNECTICUT POLICE CHIEFS ASSOCIATION
Conflict of Interest Policy and Annual Statement
I.
PURPOSE
A. The purpose of the CPCA Conflict of Interest Policy is to protect the CPCA’s interests when
it is contemplating entering into a transaction or arrangement that might benefit the private
interests of an elected officer, member of the Board of Directors, independent contractor,
employee, or member of the CPCA or might result in a possible excess benefit transaction.
These interests may not in fact constitute an actual conflict of interest; however the
appearance of such could be construed as being detrimental to the ethical standards of the
CPCA.
B. This policy, in conjunction with the CPCA by-laws, is intended to supplement, but not
replace, any applicable state and federal laws governing conflicts of interest applicable to
nonprofit and charitable organizations.
II.
DEFINITIONS
A. Interested person - Any elected officer, member of the Board of Directors, independent
contractor, employee, member, or member of a committee with authorized delegated
powers, who has a direct or indirect financial interest, as defined below, is an interested
person.
B. Financial interest - A person has a financial interest if the person has, directly or indirectly,
through business, investment, or family:
1. An ownership or investment interest in any entity with which the CPCA has a
transaction or arrangement,
2. A compensation arrangement with the CPCA or with any entity or individual with
which the CPCA has a transaction or arrangement, or
3. A potential ownership or investment interest in, or compensation arrangement with,
any entity or individual with which the CPCA is negotiating a transaction or
arrangement.
C. Regulatory Interest – Any elected officer, member of the Board of Directors, member, or
member of a committee, while acting on behalf of the CPCA, and who as a result of their
authority as a law enforcement executive may exercise direct or indirect regulatory control
over any entity with whom the CPCA is contemplating a business arrangement of any
description shall be deemed to have a “regulatory interest” that shall be disclosed as per
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CONNECTICUT POLICE CHIEFS ASSOCIATION
Section 3.
D. Conflict of Interest – A conflict, or the appearance of a conflict, between the private interests
and official responsibilities of any “interested person” as defined in 2a (above).
A financial interest is not necessarily a conflict of interest. A person who has a financial
interest may have a conflict of interest only if the Board of Directors, in accordance with this
Policy, decides that a conflict of interest exists.
E. Compensation - Compensation includes direct and indirect remuneration as well as gifts or
favors that are not insubstantial.
III.
PROCEDURES
A. Duty to Disclose - In connection with any actual or possible conflict of interest, an
interested person must, as soon as possible and prior to any action in furtherance of
said transaction, disclose the existence of the financial or regulatory interest and be
given the opportunity to disclose all material facts to the Board of Directors.
“Financial interest,” as used here, shall include gifts or favors that are not
insubstantial.
B. Recusal of Self - Any person covered by this Policy may recuse himself or herself at any
time from involvement in any decision or discussion in which that person believes he or
she has or may have a conflict of interest, without going through the process for
determining whether a conflict of interest exists.
C. Determining Whether a Conflict of Interest Exists - After disclosure of the financial or
regulatory interest and all material facts, and after any discussion with the interested person,
he/she shall leave the Board of Directors meeting while the determination of a conflict of
interest is discussed and voted upon. The remaining Board of Directors shall decide if a
conflict of interest exists.
D. Procedures for Addressing the Conflict of Interest
1. An interested person may make a presentation at the Board of Directors meeting,
but after the presentation, he/she shall leave the meeting during the discussion of,
and the vote on, the transaction or arrangement involving the possible conflict of
interest.
2. The President shall, if appropriate, appoint a disinterested person or committee to
investigate alternatives to the proposed transaction or arrangement.
3. After exercising due diligence, the Board of Directors shall determine whether the
CPCA can obtain with reasonable efforts a more advantageous transaction or
arrangement from a person or entity that would not give rise to a conflict of interest.
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CONNECTICUT POLICE CHIEFS ASSOCIATION
4. If a more advantageous transaction or arrangement is not reasonably possible under
circumstances not producing a conflict of interest, the Board of Directors shall
determine by a majority vote of the disinterested directors whether the transaction or
arrangement is in the CPCA’s best interest, for its own benefit, and whether it is fair
and reasonable. In conformity with the above determination, it shall make its decision
as to whether to enter into the transaction or arrangement.
IV.
VIOLATIONS OF THE CONFLICTS OF INTEREST POLICY
A. If any officer or member has reasonable cause to believe a member has failed to disclose
actual or possible conflicts of interest, they shall inform the President of the basis and
circumstances for such belief and the member(s) involved. Once a complaint is received,
the President shall cause an impartial investigation to be undertaken and a proper written
report of the findings of said investigation to be forwarded to the Board of Directors, the
complainant, and the subject(s) of the investigation. Any investigation shall include
documentation of any information or response received regarding the complaint from the
member(s) against whom the complaint is made.
B. If, after receiving said report from the President the Board of Directors determines the
member has failed to disclose an actual or possible conflict of interest, it shall take
appropriate disciplinary and corrective action up to and including dismissal.
C. In the event any allegation of a potential conflict of interest shall involve the President,
the officer or member wishing to make a complaint may do so to any Vice-president, who
shall then act in accord with the provisions of this section.
V.
RECORDS OF PROCEEDINGS
The minutes of the Board and all committees with board delegated powers shall contain:
A. The names of the persons who disclosed or otherwise were found to have a financial
interest in connection with an actual or possible conflict of interest, the nature of the
financial or regulatory interest, any action taken to determine whether a conflict of
interest was present, and the Board of Directors decision as to whether a conflict of
interest in fact existed.
B. The names of the persons who were present for discussions and votes relating to the
transaction or arrangement, the content of the discussion, including any alternatives to
the proposed transaction or arrangement, and a record of any votes taken in connection
with the proceedings.
VI.
COMPENSATION
A. Any elected officer, member of the Board of Directors, committee member, employee,
or member who receives compensation, directly or indirectly, from the CPCA for
services is precluded from voting on matters pertaining to that member's compensation.
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CONNECTICUT POLICE CHIEFS ASSOCIATION
VII.
ANNUAL STATEMENTS
A. Each elected officer, member of the Board of Directors, or member of a committee with
Board delegated powers shall annually sign a statement, which affirms such person:
1.
2.
3.
4.
Has received a copy of the conflict of interest policy,
Has read and understands the policy,
Has agreed to comply with the policy, and
Understands the CPCA, in order to maintain its federal tax exemption, must engage
primarily in activities which accomplish one or more of its tax-exempt purposes.
B. If at any time during the year, the information in the annual individual statement changes
materially, said individual shall immediately disclose and forward to the Board of Directors
such changes and revise the annual disclosure form.
C. The Board of Officers shall regularly and consistently monitor and enforce compliance
with this policy by reviewing annual statements and taking such other actions as are
necessary for effective oversight.
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CONNECTICUT POLICE CHIEFS ASSOCIATION
Annual Conflict of Interest Statement
Name: ___________________________________
A. Position:
a.
b.
c.
d.
Are you an elected officer?
Yes No
Are you an elected member of the Board of Directors? Yes No
Are you a member of any committee? Yes No
If yes, list committee(s):________________________________________________
B. I affirm the following:
a.
b.
c.
d.
I have received a copy of the CPCA Conflict of Interest Policy. ______ (initial)
I have read and understand the policy. ______ (initial)
I agree to comply with the policy.
______ (initial)
I understand that the CPCA in order to maintain its federal tax exemption it must engage in
activities primarily related to its tax exempt purposes. ______ (initial)
C. Disclosures:
a.
Do you have a financial interest (current or potential), including a compensation
arrangement, as defined in the Conflict of Interest policy with the CPCA? Yes No
i. If yes, please describe it: ______________________________
ii. If yes, has the financial interest been disclosed, as provided in the Conflict of Interest
policy?
Yes No
b.
In the past, have you had a financial interest, including a compensation arrangement, as
defined in the Conflict of Interest policy with the CPCA?
Yes No
i. If yes, please describe it, including when (approximately):
_______________________________________________________________
ii. If yes, has the financial interest been disclosed, as provided in the Conflict of Interest
policy? Yes No
Date:
Adopted 3/2/2010
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Signature:
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