Policy Number: 410
Policy: Conflict of
Interest and Financial Disclosure
Date Adopted: 12/95
Revision Date: 12/97, 12/06,
08/08
Approved By: George M.
Dennison, President
I. 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.
II. 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.
III. 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.
IV. DEFINITIONS
A. Conflict of Interest. A Conflict of Interest occurs:
- 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:
- When a non-University activity unreasonably encroaches on the time
an employee should devote to the affairs of the University; or
- When an employee's non-University activities unreasonably impinge
on or compromise the loyalty or commitment to the employee's University
duties and responsibilities.
B. 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. 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.
C. 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.
D. 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).
V. 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.
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 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.
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.
VI. OTHER APPLICABLE LAWS, REGULATIONS AND POLICIES. In
addition to this Policy, UM employees' ethical conduct is governed by:
A.
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.
B. 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.
C. All public employees of the State of Montana
are governed by Standards of Conduct – Nepotism, Title
2, Chapter 2, Part 3, MCA as well as UM
Policy 401.3: Nepotism.
D. 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.
E. The Montana University System Board
of Regents Policy 770: Conflicts of Interest. This UM Policy is
intended to implement the requirements contained therein.
F. The Montana University System Board
of Regents Policy 407: Approval of University System Employee Equity
Interest and/or Business Participation.
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.
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