Policy Number: 410
Policy: Conflict of
Interest and Financial Disclosure
Date Adopted: 12/95
Revision Date: 12/97, 12/06
Approved By: George M.
Dennison, President
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.
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.
I. Statement of Conflict of Interest 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).
The following are not considered conflicts of interest. They are allowable
if consistent with other applicable federal and state laws and policies
of UM and the Montana University System (MUS), including applicable UM
and MUS consulting and intellectual property ownership and disposition
policies:
1. UM Salary or other remuneration;
2. Any ownership interest in an associated entity approved by the Board
of Regents under BOR
Policy #407;
3. Any payments by UM to the employee resulting from royalty or license
fee sharing;
4. Income from seminars, lectures, or teaching engagements sponsored
by public or nonprofit entities;
5. Income from service on advisory committees or review panels for
public or nonprofit entities; or
6. 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 family own more than an aggregate of 5% equity
in a business, serve as officers and/or directors of a business, or
receive more than an aggregate of $10,000 income from a business annually.
II. Conflicts of Interest in Sponsored Research
In sponsored activities, a conflict of interest occurs when the University
determines that an investigator’s financial interests could affect,
or have directly and significantly affected, the design, conduct, or reporting
of a sponsored project.
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.
A. Activities Requiring Disclosure and Possible Conflict Management Plan
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. Administrative Responsibilities – Disclosure is required
when:
a. 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.
b. 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.
7. 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
financial 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.
B. Prohibited Activities
The following activities create a conflict of interest and are not
allowed:
1. 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.
2. Improper employment relationship: An employee receives a significant,
undisclosed financial interest or other benefit in return for employing
another person on a UM project.
III. Conflicts of Interest in Professional Activities
See UM
Policy 101.5: Faculty Consulting Policy and UM
Policy 409: Compensated/Uncompensated Professional Activities Outside
the University (Administrators & Other Contract Professionals).
In addition, 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.
No UM employee may undertake consulting or professional assignments
which would result in a conflict of interest with assigned University
duties.
IV. Conflicts of Interest in Nepotism
See UM Policy
401.3: Nepotism. In addition, all public employees of the State of
Montana are governed by Standards of Conduct – Nepotism, Title
2, Chapter 2, Part 3, MCA.
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