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| Section: |
General Administration |
Section Number: |
1.7 |
| Subject: |
Conflict-of-Interest Policy |
Date of Present Issue: |
03/25/93 |
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Date of Previous Issues:
05/92 |
- STATEMENT OF PURPOSE
All employees of, consultants to, and members of the Board of Regents
of Lake Superior State University serve to protect the public interest
and shall conduct all affairs of the University in a manner consistent
with this fiduciary responsibility. Administrative and policy decisions
are to be made solely to promote and protect the best interests of the
University and the public good, rather than to serve or further any personal
gain or interest.
This policy is designed to foster ethical standards of conduct by insuring
that actual, or the appearance of, conflict-of-interest situations are
avoided.
Nothing in this policy shall be considered to conflict with applicable
State laws governing the conduct of public officials and public employees.
- DEFINITIONS
- Employee: As used hereafter, the term "employee" means an
individual holding a regular, full-time or part-time position, regardless
of classification or rank, or a consultant to the University, its administration
or the Board of Regents.
- Financial Interest: The term "financial interest" means any
material interest, direct or indirect, in the financial success or
failure of an organization, corporation, or company with whom the University
conducts business, regardless of how such interest was acquired. A "financial
interest" includes owning stocks or bonds, being a partner, employee,
or creditor, or any other arrangement that results in an interest in,
or claim upon, the assets or income of the corporation, company or
organization.
Immaterial interests are excluded, that is, interests of such a general
or insignificant nature that the University's transactions with the
organization or company will not result in direct benefit to the individual.
A "financial interest" includes any interest of the employee, Regent,
or an employee's or Regent's spouse; and any interest of those who
are related to any of the foregoing as parents, children, or siblings.
- Gift: A "gift" means anything of value. Exclusions are listed
below. A "gift" may be in the form of money, goods, entertainment,
services, price concessions not available to all employees or to the
public, use of property or facilities, loans except loans based upon
regular terms from a lending institution, or in any other form. Specifically
excluded from the term "gift" are advertising items or promotional
materials of token value, or food and beverages consumed at a business
meeting.
- POLICY
University employees and members of the Board of Regents ordinarily
should not have a personal financial interest in any financial transactions
with the University. Recognizing that financial interests may be, on
occasion, unavoidable, there should be immediate and full disclosure
of any such interest, in advance of final University action, and special
approval of the transaction is required as set forth herein to insure
that the University's welfare is of paramount consideration. The specific
terms of this policy are to be interpreted under the broad objectives
set forth above in the statement of purpose.
- No employee or Regent shall recommend or determine to enter into
any purchase on behalf of the University when such a purchase involves
an organization in which the employee or Regent, or in which a member
of the immediate family of the employee or Regent, has a financial
interest without the prior approval of the President of the University
or the Board of Regents as specified in Article IV.
- The University may enter into purchases from organizations in which
an employee or Regent or a member of either's immediate family has
a financial interest, provided that the employee or Regent has no involvement
in the decision-making process leading to the purchase and provided
that the employee is not a member of the University department seeking
to make the purchase. It shall be the responsibility of the University's
Purchasing Department, as specified in Article V, to insure that these
provisions are met.
- Immediate family members shall be defined as the spouse, daughter,
son, mother, father, sister, brother, of the employee or Regent or
of their spouse; or son-in-law, daughter-in-law, aunt, uncle, niece,
nephew, step-parent, step-child.
- Acceptance by an employee or a Regent of a gift from an individual
or organization that engages in financial or commercial transactions
with the University is prohibited. If a gift is received, it must be
returned, unless a statement is filed with the University President,
or a Regent, describing the gift and justifying its retention in terms
of preserving the University's interests.
- An employee or Regent must inform the University of any outside interest,
consulting service, or other relationship that might interfere with
his/her University duties and responsibilities, or raise a question
of conflict of interest. In cases in which an employee's outside relationship
substantially interferes with the employee's ability to carry out his/her
job responsibilities and/or act in the University's best interests,
the employee must either terminate the outside relationship, or terminate
his/her employment with the University.
- A Regent must abstain from voting on any matter when to do so would
place, or appear to place, the Regent in a conflict-of-interest situation.
The minutes of Board meetings shall record all such abstentions.
- EXCEPTIONS TO THIS POLICY
- No employee or Regent of the University shall have the authority
to authorize, approve, ratify, or confirm any transaction which is
an exception to this policy, except as provided below.
- The President of the University, or his/her designee, may approve
exceptions to this policy which involve University employees if it
is in the University's interest. Any such exception shall be made in
writing. Exceptions involving the President, or a Regent, must be approved
by the Board of Regents. Any approved exceptions to this policy must
be made in writing and filed in the office of the Board Secretary and
the reasons must be stated.
- Approval of an exception shall be based upon a finding that the transaction
is fair, reasonable, and in the best interests of the University.
- ROLE OF THE UNIVERSITY'S PURCHASING DEPARTMENT
The Purchasing Department is authorized to delay the processing of any
requisition that appears to be in violation of this policy, in order
for the University to investigate the circumstances surrounding the proposed
transaction. If, following the investigation, the transaction appears
to be a violation, the matter will be referred to the President, or to
the Finance Committee of the Board of Regents if it involves the President.
Any purchase order or contract issued by the University is subject to
cancellation if any University employee or Regent involved in the matter
has a relationship or history of activity with the vendor that is violative
of this policy. All purchase orders and contracts shall contain a clause
to this effect.
- POLICY DISSEMINATION
The University will communicate this policy to Regents and University
employees upon its adoption. The policy shall be published in the University's Procedures
Manual.
Adopted by the Board of Regents on March 25, 1993.
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