(A)       Purpose. In accordance with state and federal regulations, the university is required to manage, reduce or eliminate any actual or potential conflicts of interest that may be presented by a significant financial interest of an investigator. Thus, the university requires that investigators disclose all significant financial interests that may present an actual or potential conflict of interest in relation to a sponsored project. These requirements apply to all recipients of subgrants and subcontract.

(B)       Definitions.

(1)       A “potential” conflict of interest occurs when the relationship between an individual's private interests and his or her professional obligations to the university is such that an independent observer might reasonably question whether the individual's professional actions or decisions are determined by considerations of personal gain, financial or otherwise. An “actual” conflict of interest depends on the situation and not on the character or actions of the individual.

(2)       “Investigator” means the principal investigator/project director, co-principal investigator, and any other person who is responsible or involved in the design, conduct, or reporting of research, instructional or service activities funded, or proposed for funding, by an external sponsor. For the purposes of the requirement relating to financial interest, investigator includes spouses and dependent children.

(3)       “Project” means any externally funded scholarly activity such as basic, applied, or developmental research, instructional or curricular activities, student aid, career development, or other activity conducted by faculty or staff members on behalf of the university.

(4)       “Significant financial interest” means anything of monetary value, including, but not limited to:

(a)       Salary or other payments for services (e.g., consulting fees or honoria);

(b)       Equity interests (e.g., stocks, stock options or other ownership interests);

(c)        Intellectual property rights (e.g., patents, copyrights and royalties from such rights).

(5)       The term does not include:

(a)       Salary, royalties, or other remuneration from the university;

(b)       Income from seminars, lectures, or teaching engagements sponsored by public or nonprofit entities;

(c)        Income from service on advisory committees or review panels for public or nonprofit entities; or

(d)       An equity interest that, when aggregated for the investigator and the investigator's spouse and dependent children meets both of the following tests:

(I)         Does not exceed $10,000 in value as determined through reference to public prices or other reasonable measures of fair market value; and

(II)        Does not represent more than a five per cent ownership interest in any single entity.

(e)       Salary, royalties or other payments that, when aggregated for the investigator and the investigator's spouse and dependent children, are not expected to exceed $10,000 during the next twelve month period.

(C)       Requirements.

(1)       All investigators must submit a listing of the following significant financial interests:

(a)       Any significant financial interest that would reasonably appear to be affected by the research, instructional or service activities funded, or proposed for funding, by an external sponsor; or

(b)       Any significant financial interest in an entity whose financial interest would reasonably appear to be affected by the research, instructional or service activities funded, or proposed for funding, by an external sponsor.

(2)       Regardless of the above minimum requirements, a faculty or staff member, in his or her own best interest, is encouraged to disclose any other financial or related interest that could present an actual conflict of interest or be perceived to present a conflict of interest. Disclosure is a key factor in protecting one's reputation and career from potential embarrassing or harmful allegations of misconduct.

(D)       Procedures.

(1)       Each investigator involved in sponsored activities including, but not limited to, Public Health Service or National Science Foundation sponsored activities, whether proposed, pending or funded, must submit to the division of research and graduate studies a completed Conflict of Interest Screening Form and, where appropriate, disclose significant financial interests together with all required supporting documentation. When supporting documentation is required, it must identify the business enterprise or entity involved and the nature and amount of the interest. All financial disclosures must be updated during the period of the award, either on an annual basis or as the new reportable significant financial interests are obtained.

(2)       Prior to submitting a proposal for external support, investigators are required to file with the division of research and graduate studies a Conflict of Interest Screening Form and where appropriate, a list of significant financial interests related to that proposal. If a new reportable significant financial interest arises at any time from the date of the submission of the proposal through the entire period of any resulting award, such significant financial interests must be disclosed on an annual basis, or as new reportable significant financial interests are obtained.

(3)       The vice provost and dean, research and graduate studies, or official designee shall conduct an initial review of all disclosure statements submitted to the division to determine whether a conflict of interest exists and, if so, determine what actions should be taken by the university to manage, reduce or eliminate such conflict of interest. A conflict of interest exists when the reviewer reasonably determines that a significant financial interest could directly and significantly affect the design, conduct, or reporting of the proposed sponsored project. If a determination is made that there may be a potential for conflict of interest, the investigator, in cooperation with his/her dean, chair or director, shall develop and present to the vice provost and dean, research and graduate studies a plan to manage, reduce or eliminate any actual or potential conflict of interest presented by the disclosed significant financial interest. Examples of conditions or restrictions that might be imposed to manage conflict of interest include, but are not limited to:

(a)       Public disclosure of significant financial interests; and

(b)       Monitoring of research by independent reviewers.

(4)       The proposed plan shall be referred to the university conflict of interest review committee (CIRC) which will advise the vice provost and dean. The CIRC shall contain, at a minimum, faculty members representing across section of academic disciplines. Committee members are appointed by the vice provost and dean for research and graduate studies.

(5)       The CIRC shall review the plan and recommend it as presented, or suggest conditions or restrictions which may include the following:

(a)       Modification of the research plan;

(b)       Disqualification from participation in all or the portion of the funded research that would be affected by the significant financial interest;

(c)        Divestiture of significant financial interests; or

(d)       Severance of relationships that create conflicts.

(6)       If the CIRC determines that imposing conditions or restrictions would be inequitable, or that the potential negative impacts that may arise from a significant financial interest are outweighed by interests of scientific progress, technology transfer, or public health and welfare, then the CIRC may recommend that the research go forward without imposing such conditions or restrictions.

(7)       The plan, if approved by the vice provost and dean, research and graduate studies, shall be incorporated into a memorandum of understanding that details the conditions or restrictions imposed upon the investigator in the conduct of the project and/or the relationship with the business enterprise or entity. The memorandum of understanding shall be signed by the investigator and the investigator's cognizant university official (usually a dean, chair or director) and the vice provost and dean, research and graduate studies. Actual or potential conflicts of interest must be satisfactorily managed, reduced, or eliminated in accordance with these guidelines prior to expenditure of any funds under the award. If actual or potential conflict cannot be satisfactorily managed, the sponsoring agency must be informed.

(8)       Records of investigator financial disclosures and of actions taken to manage actual or potential conflicts of interest shall be retained by the division of research and graduate studies until at least three years from the date of submission of the final expenditure report, or the resolution of any government action involving those records.

(9)       Whenever an investigator is found to have violated this policy or the terms of the memorandum of understanding, the CIRC may recommend to the appropriate vice president that sanctions be imposed consistent with procedures established by university policy and/or an applicable collective bargaining agreement affecting the employee and his/her employment relationship with the university. Disciplinary action may range from a letter of reprimand to dismissal and termination of employment. If the violation results in a collateral proceeding under university policies regarding misconduct in science, the CIRC shall defer a decision on sanctions until the misconduct in science process is completed.

(10)     In cases of violation the vice provost and dean, research and graduate studies will notify the appropriate funding agency.

(E)       Background.

(1)       Favoring of outside interests. When a university staff member (administrator, faculty member, professional staff member, or employee) undertaking government-sponsored work has a significant financial interest in, or a consulting arrangement with, a private business concern, it is important to avoid actual or apparent conflicts of interest between his/her government-sponsored university research obligations and his/her outside interests and other obligations. Situations in which conflicts of interest may arise include but are not limited to the following:

(a)       The orientation of the staff member's university research to serve the research or other needs of the private firm without disclosure of such orientation to the university and to the sponsoring agency;

(b)       The purchase of major equipment, instruments, materials, or other items for university research from the private firm in which the staff member has an interest without the disclosure of such interest;

(c)        The transmission to the private firm, or other use for personal gain, of extramurally or internally funded sponsored work products, results, materials, equipment, records, or information that are not made generally available. (This does not preclude appropriate licensing arrangements for inventions where there is significant additional work by the staff member independent of his/her government-sponsored research);

(d)       The use for personal gain or other unauthorized use of privileged information acquired in connection with the staff member's government-sponsored or university sponsored activities;

(e)       The negotiation or influence upon the negotiation of contracts relating to the staff member's government-sponsored research between the university and private organizations with which the staff member has consulting or other significant relationships;

(f)         The acceptance of gratuities or special favors from private organizations with which the university does or may conduct business in connection with a government-sponsored research project, or extension of gratuities or special favors to employees of the sponsoring governmental agency, under circumstances that might reasonably be interpreted as an attempt to influence the recipients in the conduct of their duties.

(2)       Distribution of effort. There are competing demands on the energies of a faculty member (for example, research, teaching, committee work, outside consulting). The way in which he/she divides his/her effort among these various functions does not raise ethical questions unless the government agency supporting the research is misled in its understanding of the amount of intellectual effort she/he is actually devoting to the research in question. A system of precise time accounting is incompatible with the inherent character of the work of a faculty member, since the various functions she/he performs are closely interrelated and do not conform to any meaningful division of a standard work week. On the other hand, if a research agreement contemplates that a staff member will devote a certain portion of his/her effort to the government-sponsored research, or agrees to assume responsibility in relation to such research, a demonstrable relationship between the indicated effort or responsibility and the actual extent of his/her involvement is to be expected.

(3)       Consulting for government agencies or their contractors. When a staff member engaged in government-sponsored research also serves as a consultant to a federal agency, his/her conduct is subject to the provisions of the Conflict of Interest Statutes (18 USC 202-209 as amended). When he/she consults for one or more government contractors, or prospective contractors, in the same technical field as his/her research project, care must be taken to avoid giving advice that may be of questionable objectivity because of its possible bearing on his/her other interests. In undertaking and performing consulting services, she/he should make full disclosure of such interests to the university and to the contractor insofar as they may appear to relate to the work at the university or for the contractor. Conflict of interest problems could arise, for example, in a university staff member's participation in an evaluation for the government agency or its contractor of some technical aspect of the work of another organization with which she/he has a consulting or employment relationship or a significant financial interest, or in an evaluation of a competitor to such organization.

Effective: June 1, 2007
Prior Effective Dates: March 22, 1996