Policy Number: 410

Policy: Conflict of Interest and Financial Disclosure

Date Adopted: 12/95

Revision Date: 12/97, 12/06, 08/08

References: MUS Policy 770, MCA 2-2-101, 2-2-202, 2-2-304

Approved By: George M. Dennison, President

1. INTRODUCTION
   

   The University of Montana-Missoula (UM or University) and its employees are committed to conducting all UM work-related activities in accordance with the highest integrity standards and in full compliance with all ethical and conflict of interest legal requirements applicable to the University and its employees. Interactions with the private sector carry an increased conflict of interest risk. This policy sets forth principles for identifying such potential conflicts and procedures for reviewing and addressing potential conflicts that might occur.

2. POLICY
   

   A conflict of interest may exist when an employee's professional actions or decisions may be, are, or have been influenced by considerations of personal or financial gain. This policy covers actual and potential conflicts of interest in sponsored research, in professional activities, and in UM work-related family relationships (nepotism).
   
   This policy does not intend to regulate or eliminate all perceived conflicts of interest, but rather to enable University employees to recognize situations that may raise legal and ethical issues and ensure that such situations are properly reviewed and, if necessary, supervised or monitored in accordance with applicable state law and federal regulations. Thus, an integral part of this policy is a disclosure mechanism whereby UM employees regularly analyze their activities. This policy and accompanying procedures are intended to maintain the professional autonomy of employees inherent in research, scholarship, teaching and all other UM research activities. Compliance with this policy by all UM employees is required.
   
   The disclosure mechanism to be used is a one-page form entitled "Conflict of Interest Disclosure Statement and Certification". The form must be completed by all UM employees and submitted no later than September 30th of each year.

3. APPLICABILITY
   

   This policy applies to all UM employees. Employees are expected to review and understand their obligations under this Policy and to be familiar with their obligations under the laws, regulations and policies referenced in Section VI of this Policy.

4. DEFINITIONS
   1. A conflict of interest. A Conflict of Interest occurs:
      1. When a University employee has a personal interest in a matter that is inconsistent or incompatible with the employee's obligation to the University to exercise the employee's best judgment in pursuit of the interest of the University and its students:
      2. When a non-University activity unreasonably encroaches on the time an employee should devote to the affairs of the University; or
      3. When an employee's non-University activities unreasonably impinge on or compromise the loyalty or commitment to the employee's University duties and responsibilities.
   2. Significant Financial Interest. A Significant Financial Interest is anything of monetary value, including but not limited to, salary or other payments for services (e.g. consulting fees); ownership interests (e.g., stocks, stock options or other ownership interests): and intellectual property rights (e.g., patents, copyrights and royalties from such rights). Significant Financial Interests includes the interests of the employee's Immediate Family. The term does not include
      1. 1. Salary, royalties, or other remuneration received from or through the University;
         2. Any ownership interest in an associated entity approved by the Board of Regents under BOR Policy #407;
         3. Income from seminars, lectures, or teaching engagements sponsored by public or nonprofit entities;
         4. Income from service on advisory committees or review panels for public or nonprofit entities; or
         5. Any interest in a business that does not rise to the level of being "significant." An employee has a significant financial or other interest in a business when the employee and the employee's Immediate Family own more than an aggregate of 5% equity in a business (and that equity's market value exceeds $10,000), serve as paid or unpaid officers and/or directors of a business, or receive more than an aggregate of $10,000 income from a business annually.
         6. A financial interest arising solely from investment in a business by a mutual fund, pension or other institutional investment fund over which the employee does not exercise control.
      2. Immediate Family.
         

         The employee's spouse or domestic partner and dependent children as determined by the definitions of the Internal Revenue Service and State of Montana laws.

      3. Responsible Vice President.

         The Vice President responsible for the employee's organizational component of the University, except that in disclosures related to research, the Responsible Vice President shall be the Vice President for Research and Development (VPRD).

   3. DISCLOSURE
      

      The following is a representative, though not all inclusive, list of activities and external relationships covered by this policy. Any combination of activity and external relationship not specifically discussed that a faculty member believes or reasonably should believe, constitutes a potential conflict of interest must be reported in writing according to the procedures described within this policy before the UM employee proceeds with such activity.

      1. Activities Requiring Disclosure and Possible Conflict Management Plan
      2. Research and Scholarly Activity - Disclosure is required when an investigator has a significant financial or other interest in a business directly related to the investigator's research interest, would be affected by the investigator's research, or could affect the approval, design, conduct, or reporting of funded research.
      3. Gifts - Disclosure is required when a gift in excess of $10,000/year is made to the University from an associated entity in which the employee has a significant financial or other interest.
      4. Intellectual Property - Disclosure is required when an employee is a named inventor of intellectual property owned by the University and the employee has a significant financial or other interest in a business entity related to the intellectual property.
      5. Board Memberships - Disclosure is required when any UM employee receives research support (sponsored research or a gift) from a business in which the employee or the employee's immediate family serves on the board of directors or advisory board, whether or not compensation is received for such services.
      6. External Activities - Disclosure is required when an employee holds an executive position in a business engaged in commercial or research activities directly related to the employee's UM responsibilities.
      7. Administrative Responsibilities - Disclosure is required when:
         1. An employee has administrative responsibilities (e.g., dean, department chair, or director) on behalf of UM with respect to the operation of UM or any UM affiliated organization that is beneficial to a business in which the employee, the employee's immediate family member, or an associated entity has a significant financial interest.
         2. An employee has administrative responsibilities on behalf of UM with respect to any supported research activity (sponsored research or a gift) in which the employee, an immediate family member, or an associated entity has a significant financial interest in the sponsor or donor.
      8. Professional Referrals - Disclosure is required when an employee, while performing UM duties, makes professional referrals to a business in which the faculty member/employee, an immediate family member, or an associated entity, has a significant financal interest of which the faculty member or employee is aware or reasonably should be aware. The exception to this general rule occurs when the employee is engaged in consulting activities conforming to applicable UM and MUS consulting policies.
   4. Prohibited Activities. The following activities create a conflict of interest and are not allowed:
   5. Purchasing goods or services: An employee participates in decisions to purchase goods or services for UM in a manner which violates applicable federal or state purchasing laws, plus applicable UM or MUS purchasing policies.
   6. Improper employment relationship: An employee receives a significant, undisclosed financial interest or other benefit in return for employing another person on a UM project.
5. OTHER APPLICABLE LAWS, REGULATIONS AND POLICIES. In addition to this Policy, UM employees' ethical conduct is governed by:
6. UM Policy 101.5: Faculty Consulting Policy and UM Policy 409: Compensated/Uncompensated Professional Activities Outside the University (Administrators & Other Contract Professionals). No UM employee may undertake consulting or professional assignments which would result in a conflict of interest with assigned University duties.
7. All public employees of the State of Montana are governed by the Standards of Conduct - Code of Ethics, Title 2, Chapter 2, Part 1 M.C.A.
8. All public employees of the State of Montana are governed by Standards of Conduct - Nepotism, Title 2, Chapter 2, Part 3, MCA as well asUM Policy 401.3: Nepotism.
9. Federal regulations governing sponsored research. The National Institutes of Health requires institutions receiving funding to have a conflict of interest policy which complies with its regulations. This Policy is intended to comply with those regulations.
10. The Montana University System Board of Regents Policy 770: Conflicts of Interest. This UM Policy is intended to implement the requirements contained therein.
11. The Montana University System Board of Regents Policy 407: Approval of University System Employee Equity Interest and/or Business Participation.
12. G. Collective Bargaining Agreement between The University of Montana University Faculty Association and the Montana University System (7/1/2005 - 6/30/2009), Section 12.220: Non-University Sponsored Professional Services; and Section 12.300: Conflict of Interest.