Conflict of Interest

A conflict of interest arises when a faculty or staff member is in a position to influence the business, research, or other decisions of the University in relationship to an outside organization in ways that could lead directly or indirectly to financial gain for the faculty or staff member or the family of the faculty or staff member, or give improper advantage to others to the detriment of the University.

Section 7.2, Purchase of Goods and Services of the Business and Financial Policies and Procedures manual prohibits purchases from University employees unless such purchases are essential to University operations, or from members of the immediate family of University employees unless such purchases are beneficial to University operations, and are approved in advance by the President of the University or his designee.

Contracts, or purchase orders, with people who are directly or indirectly connected with the University, are subject to rejection under these circumstances:

• Contracts with members of the University's governing Board of Trustees are prohibited under all conditions.

• Contracts with University officers or employees who have sole or principal ownership in a business are prohibited. The only exception to this is if the purchase or contract is considered essential to University operations. The President of the University or delegate's approval of the conflict of interest exception filed with the purchase order or contract serves as documentation for acceptable contracts.

• Contracts with immediate family members of a University officer or employee who are major officers or primary employees of a corporation are prohibited. The only exception to this is if the purchase or contract is considered beneficial to the University's operations, academic, or research needs. Acceptable contracts are approved by the President of the University or delegate and filed with the purchase order or contract.

Any purchase order from a University officer, employee, or their immediate family (spouse, parents, or children) must have a letter from the appropriate dean or director justifying the exception. Send the letter to the campus Office of Business and Financial Services, Purchasing Division where the request will be reviewed, necessary recommendations made, and submitted for approval. (See Section 2.2, Approval of Financial Documents and Section 7.2, Purchases of Goods and Services of the Business and Financial Policies and Procedures manual for additional information regarding conflict of interest in approval of business transactions and payments.)

Last Updated: March 26, 2008