Conflict of Interest
Online Course
This online course takes approximately 30 minutes to
complete. You must successfully pass the exam
with an 80%.
Introduction
The University of New Mexico is a steward of
public funds and the public trust. As such, it has
the responsibility to assist faculty, staff, and
students in identifying activities that put them in
situations of conflict and in reducing or managing
those conflicts situations to assure that potential
Conflict of Interest (COI) do not threaten the
integrity of the University’s core activities and
values.
Introduction continued
The University cares about COI because
activities
undertaken in service of personal interests
could
unduly influence professional judgment or call
into
question a faculty, staff, or student’s primary
obligations to the University.
Introduction continued
The common feature among potential COI
situations is that they present an overlap
between one’s obligation to the University and
one’s personal benefit.
Policy Reference #: 3720
This training is intended to discuss the non-research aspects of
conflict of interest
Conflicts of Interest (COI)
After taking this course you should be able
to:
• Describe what types of favors or gratuities you may
accept and what types you’re prohibited from accepting.
Identify when you’re subject to disclosure requirements
under New Mexico law and UNM Policy
• Identify the process to comply with the disclosure
requirements
• Define Arm’s Length and Non Arm’s Length transactions
Audience
• Researchers
• Anyone who is in a position to influence
business transactions
• 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
Purpose
• As one of our UNM Values states:
“Integrity that holds us accountable to our students,
the community, and all who serve UNM’s mission,
to manage our resources wisely and keep our
promises.”
• The purpose of this conflict of interest training is to
protect the integrity, trust and respect of UNM and
its academic community is based upon UNM
Business Policies and Procedures 3720 – Conflicts
of Interest
COI Definitions
General definition of Conflict of Interest:
A situation in which someone in a position of trust or power has
competing professional or personal interests.
NM legal definition of Conflict of Interest: UNM employees
must avoid any conflict of interest that may affect their
independent judgment in the impartial performance of their UNM
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.
COI Rules for Favors and Gratuities
• Employees shall not accept favors or gratuities from any
firm, person, or corporation that is engaged in, or
attempting to engage in business transactions with the
University.
• Small items of appreciation e.g. coffee mugs with a
company logo may be accepted if they do not have any
significant economic value.
• If you have a question regarding acceptance of an item,
discuss it with your supervisor.
Test Your Knowledge about Favors and
Gratuities
Which of the following items can you keep?
1.
You go to a Banner training session and a notepad
and nice pen with the Banner logo are provided
(YES)
1.
AAA Office Supply Co. sends canvas bags with the
AAA logo for each employee
(YES)
3.
ABC Chemical Supply Company sends $30 movie
passes for each employee in the Chemistry
Department (NO)
4.
XYC Computer company takes the Purchasing
Department employees to lunch at year end
(NO)
“Disclosure” Requirements
UNM employees (as well as individuals and
firms) proposing business transactions with
UNM must disclose in advance and in writing
any direct or indirect financial interest UNM
employees may have in a transaction with
UNM.
“Disclosure” Requirements
• To determine if you are subject to this disclosure
requirement, you must ask yourself:
– “Do I or any member of my immediate family have a direct or
indirect financial interest in an entity proposing business
transactions with UNM?”
– Terms need to be defined for you to answer this question:
• Immediate family
• Direct or indirect financial interest
• Business transactions with UNM
“Disclosure” Requirements Immediate Family
Immediate family includes:
•
•
•
•
Spouse or domestic partner
Children (including in-laws)
Brothers or sisters (including in-laws)
Parents (including in-laws)
“Disclosure” Requirements
Direct or Indirect Financial Interest
Pertains to any business entity you or an
immediate family member:
• Has an ownership interest in (other than <1% of a
publicly traded corporation) or
• Is an employee, partner, officer, director, trustee, or
paid consultant of or
• Has received gift or grant support from or
• Has received support for travel expenses, honoraria,
etc. from or
• Has a right to receive royalties from.
“Disclosure” Requirements
Direct or Indirect Financial Interest
NOTE:
Donors and grantors are entitled to participate on even
terms with other potential vendors, so there is a special
procedure to follow if the financial interest is gift or grant
support and the business transaction is procurement of
goods and services. The goal is to ensure the existing
relationship between UNM and the donor or grantor does
not impact the procurement or the likelihood that the donor
or grantor will be selected as the vendor.
These procedures are developed by UNM officials and
must be reviewed by the President to ensure the integrity of
the procurement.
“Disclosure” Requirements
Business Transaction with UNM
Any of the following transactions in which UNM is
either acquiring from or providing to a business
entity in which you have a direct or indirect
financial interest.
• Procurement of supplies, equipment, or other good or
• Procurement of professional, technical, or any other
service or
• Rental, lease, or contract for use of UNM employees,
equipment, facilities, labs, rooms, or any other UNM
resource
How to Comply with
“Disclosure” Requirements
“Do I or any member of my immediate family have
a direct or indirect financial interest in an entity
proposing business transactions with UNM?”
If your answer is YES, then you must:
1. Complete Exhibit A of Policy 3720 which can be found at
http://www.unm.edu/~ubppm/ubppmanual/3720ex_a.htm
2. Submit Exhibit A to your dean or director, and
3. Submit Exhibit A to UNM’s Purchasing Department if UNM is
acquiring the good or service or if UNM is providing the good
or service submit Exhibit A to the UNM department providing
the good, service, or space
Test Your Knowledge #1 Disclosure Requirements
1. I am an accountant at the Physical Plant
2. I have a week-end catering business and the
Law School wants me to cater a reception
Saturday night for the Dean of Yale Law school.
Do I need to complete the disclosure form?
(YES)
Test Your Knowledge #2 Disclosure Requirements
1. I am an HR representative in the Biology
Department
2. My brother-in law is a partner in PC Support.
3. PC Support wants to provide computer training
courses at Continuing Education.
Do I need to complete the disclosure form?
(YES)
Test Your Knowledge #3 Disclosure Requirements
1. I am a lab technician at the Center for High Tech
materials
2. When the clean room is not being used by UNM
we rent space to other high tech companies in
Albuquerque
3. My son works for ABC tech company and they
want to rent the space
Do I need to complete the disclosure form?
(YES)
Test Your Knowledge #4 Disclosure Requirements
1. I am an administrative assistant in the Education
Department.
2. My best friend works for a law firm that does
business with UNM.
3. She invites my daughter to go to an Isotopes
game and sit in the Sky box.
Do I need to complete the disclosure form?
(NO)
Test Your Knowledge #5
1. I am a buyer in the Purchasing Department
2. My wife works at ABC Office Supply Co.
3. UNM departments buy office supplies from ABC
Office Supply Co.
Do I need to complete the disclosure form?
(NO)
Test Your Knowledge #6
Disclosure Requirements
1.
I am a Director in HR and serve on a taskforce charged with
recommending changes to a UNM system.
2.
Prevention, Inc. is a company that specializes in this
particular type of computer system.
3.
Prevention, Inc. tells me about a process used by UCLA
that saved $200,000 and suggests I attend a conference in
Hawaii where UCLA is making a presentation about their
process. Prevention waives my conference registration fee
and pays for my hotel and airfare expenses.
4.
One year later the taskforce recommends UNM purchase a
state-of-the-art computer system from Prevention, Inc.
Do I need to complete the disclosure form?
(YES)
Arm’s Length Transactions Definition
The main purpose of the arm’s length transaction is to
ensure there are no hints of a conflict of interest that
would give one or both companies an undue advantage
in the market.
Note: Just because you have to disclose the transaction
doesn’t mean it can’t take place.
What I need to know about
“Arms Length Transaction”
If its arms-length and financial disclosure has been
made it must go through the normal approval
procedures listed in section 3.1 of the policy. It is
non-arm's length and financial disclosure has been
made in order to be approved it:
1. Must be related to a sponsored project
2. Must meet all the requirements listed in Section 5.1. of the
policy, and
3. Requires approval of the Vice President for Research (see
section 5.2). If the transaction is approved it must then
follow the procedures listed in section 3.1 of the policy
What I need to know about “Arms Length
Transaction”
• UNM may enter into a contract in which an employee
has a financial interest if the transaction is one at “arms
length” and full disclosure has been made.
• In exceptional circumstances related to sponsored
projects UNM may enter into a non “arms length”
transaction if it meets specific criteria and is approved
by UNM’s Vice President for Research.
To qualify as an “arms length” transaction, it must meet
both of the following criterion.
“Arms Length Transaction” Criteria
1. The employee with a financial interest must
not be in a position to exert influence over the
transaction because of his or her employment
at UNM.
(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.)
“Arms Length Transaction” Criteria
2. AND The employee must not have participated
directly nor indirectly in UNM’s decision with
respect to the transaction such as:
–
Helping prepare the specifications; or
–
Having input or influence in deciding to whom the
contract is awarded.
Non “Arms Length” Transaction
For a non “arms length transaction to be approved by
the VP for Research the UNM employee 1) must have
made full financial disclosure and 2) guarantee the
employee has not and will not engage in any official act
directly affecting the employee’s financial interest. In
addition the transaction must:
•
•
•
•
Be related to sponsored projects;
Comply with federal conflict of interest regulations;
Be in UNM’s best interest and potentially benefit the state; and
Demonstrate that the employee’s benefit from the transaction
will not adversely affect NM state interest and that any
procurement functions can be carried out without favoritism or
bias.
Test Your Knowledge
Arm’s Length and Non Arm’s Length #1
1. I am an accountant at the Physical Plant
2. I have a week-end catering business and the
Law School wants me to cater a reception
Saturday night for the Dean of Yale Law
school.
Is this an arms length transaction?
(YES)
Test Your Knowledge
Arm’s Length and Non Arm’s Length #2
1. I am an accountant at the Physical Plant
2. I have a week-end catering business and the
Physical Plant wants me to cater a BBQ Saturday
for United Way campaign
Is this an arms length transaction?
(NO, because in same department)
Yes, if approved by the VP
Test Your Knowledge
Arm’s Length and Non Arm’s Length #3
1. I am an HR representative in the Biology
Department
2. My brother-in law is a partner in PC Support
3. PC Support wants to provide computer
training courses at Continuing Education
Is this an arms length transaction?
YES - Employee is not required to disclose because the employee
nor those in power in her direct line of supervision has the direct
power to influence contract decisions.
Test Your Knowledge
Arm’s Length and Non Arm’s Length #4
1.
I am a lab technician at the Center for High Tech
materials
2.
When the clean room is not being used by UNM we
rent space to other high tech companies in
Albuquerque
3.
My son works for ABC tech company and they want
to rent the space.
Is this an arms length transaction?
(NO, because in same department)
Test Your Knowledge
Arm’s Length and Non Arm’s Length #5
1. I am an administrative assistant in the Education
Department
2. My best friend works for a law firm that does
business with UNM
3. She invites my daughter to go to an Isotopes
game and sit in the Sky box.
Is this an arms length transaction?
(N/A because no financial interest-remember didn’t need to disclose)
Test Your Knowledge
Arm’s Length and Non Arm’s Length #6
1. I am a buyer in the Purchasing Department
2. My wife works at ABC Office Supplies
3. Departments buy office supplies from ABC Office
Supplies.
Is this an arms length transaction?
Only if the buyer does not oversee office supply procurement.
Test Your Knowledge
Arm’s Length and Non Arm’s Length #7
1.
I am a Director and serve on a taskforce charged with recommending
changes to UNM’s computer systems.
2.
Prevention, Inc. is a company that specializes in these computer systems.
3.
Prevention, Inc. tells me about a process used by UCLA that saved
$200,000 and suggests I attend a conference in Hawaii where UCLA is
making a presentation about their process. Prevention waives my
conference registration fee and pays for my hotel and airfare expenses.
4.
One year later the taskforce recommends UNM purchase a state-of-the-art
computer system from Prevention, Inc.
Is this an arms length transaction?
(Problematic—would need to work to develop special procurement procedures to ensure process
integrity—Director should not have accepted payment for travel)
Conflicts of Interest (COI)
You should now be able to determine:
• What types of favors or gratuities you may accept and
what types you’re prohibited from accepting
• And if you are, how you comply with the disclosure
requirements
• The definition of Arm’s Length Transactions
Conflicts of Interest (COI)
When in doubt …
disclose.
Resources
Reporting violations:
• Contact your Supervisor
• Whistleblower Policy:
– http://www.unm.edu/~ubppm/ubppmanual/2200.htm
• Anonymous UNM Hotline:
– 1-888-899-6092
• Internal Audit:
– 277-5016
– http://www.unm.edu/~iaudit/