CONFLICT OF INTEREST POLICY
ORIGINATOR: Council for Research
DATE: May, 1999 (revised)
POLICY #95-1
I. INTRODUCTION AND DEFINITION
A conflict of interest arises whenever a member of
the University community influences the University's business,
administrative, academic or other decisions in ways that could lead
to personal gain or advantage of any kind. Conflicts of interest may
even arise in situations where an individual is acting on behalf of
the University. In such situations, the individual must act in the
best interest of the University without favor or preference, and
without prejudice to any of the parties involved.
Conflicts of interest have the potential to bias the management
of grants and contracts, the conduct of research, the selection of
equipment and supplies, the promotion or appointment of faculty,
staff or students, and the selection of individuals or organizations
to perform various tasks.
Situations which present potential conflicts of interest are not
uncommon at universities, especially with university-industry
collaborations. Their existence does not constitute wrongdoing. It is
the reaction to the conflict-causing situation that must be managed
in such a way that an independent observer could not reasonably
question the integrity of an individual's actions and determine them
to be for personal gain to the detriment of the University. In many
instances conflicts of interest can be resolved by simple disclosure
while in others they must be managed or eliminated. Apparent
conflicts must be evaluated and managed with the same intensity as
known conflicts of interest.
The University of Rhode Island Policy on Conflicts of Interest
provides a framework and identifies procedures for consultation and
advice on the management of conflict of interest, for avoidance of
situations in which a conflict may exist, and for approval of
exceptions when warranted. It is the purpose of the Policy to provide
guidelines for identifying potential conflicts and the procedures for
reviewing and addressing conflicts that occur.
II. PERSONS COVERED BY THIS POLICY
All employees and paid members of the University
community, faculty, appointed personnel, classified staff, and
student employees, whether full-time, part-time or contract
employees.
III. STATE AND FEDERAL LAW
This Policy is required by the Federal government. It
supplements but does not replace existing Federal and State policies
or laws pertaining to conflict of interest or ethics in government.
It does not supersede or replace existing policies and practices of
the University applicable to outside activities or commitments,
nepotism and intellectual property.*
State and Federal agencies have legitimate concerns that any
research they sponsor is free of bias due to financial or personal
interests of the investigator and institution. Program directors and
Investigators must follow agency guidelines when submitting
proposals. Failure to comply with regulations may jeopardize existing
funding to the University.
*In particular all state and public employees, including
university employees, are governed by the provisions of the state
Code of Ethics found Chapter 14, Title 36 of the General Laws of
Rhode Island and Regulations promulgated by the Rhode Island Ethics
Commission. Members of the university community should be aware that
conduct that does not violate this policy may nevertheless violate
the code of Ethics and should seek guidance in appropriate cases.
IV. DEFINITIONS
1. Funded Projects: Any research, service or
educational activity, for which funding is available from any public
or private source in the form of a contract, grant, agreement or
gift.
2. Family: For the purpose of this Policy family includes, one's
spouse, siblings, parents, children or domestic partner. (See
University policy regarding nepotism).
3. Significant Financial Interest: anything of monetary value,
including but not limited to, salary or other payments for services
(e.g., consulting fees or honoraria); equity interest (e.g., stocks,
stock options or other ownership interests); and intellectual
property rights (e.g., patents, copyrights and royalties from such
rights). This does not include:
a. salary, royalties, or other remuneration from one's
institution:
b. income from seminars, lectures, or teaching engagements
sponsored by outside entities;
c. income from service on advisory committees or review panels.
d. an equity interest that, when
aggregated for the individual and the individual's family, meets both
of the following tests: does not exceed $10,000 in value as
determined through reference to public prices or other reasonable
measures of fair market value, and does not represent more than a 5%
ownership interest in any single entity; or
e. salary, royalties or other payments that, when aggregated for
the individual and the individual's family, are not expected to
exceed $10,000 during the twelve month period.
4. Manager/Investigator: Any individual acting for the University
that is (a) responsible for the choice, design, conduct, or reporting
of Funded Research or Research proposed for funding, or (b)
responsible for the discovery, invention, creation, or development of
intellectual property or other technology that is or may be subject
to a Technology Transfer, or (c) responsible for the purchasing or
contracting for goods or services for the University.
5. Designated Officials: An official representative(s) of the
University appointed to review, in a timely fashion, all financial
and conflict of interest disclosures and determine whether a conflict
exists and if so, recommend what action should be taken by the
University to manage, reduce or eliminate such conflict of interest
or the appearance of conflict of interest.
V. GUIDELINES FOR ALLOWABLE
ACTIVITIES
The following are offered as examples of activities
that are not considered conflicts of interest. They are exempt from
reporting requirements, unless they are so extensive in time and
effort that they constitute a potential conflict of commitment. (See
Conflict of Commitment and Transfer of Technology Policy)
1. Receiving honoraria, stipends, and/or royalties for published
scholarly works and other writing, creative works, lectures and/or
presentations providing it does not conflict with guidelines
established by the Office of Management and Budget (OMB).*
2. Participating at professional conferences for the purpose of
making scholarly presentations, conducting seminars or workshops.
3. Receiving honoraria for serving as a special reviewer or on a
review panel for academic, governmental or not-for-profit
organizations providing it does not conflict with the OMB guidelines.
4. Income from royalties or license fees generated through the
University's intellectual property policy. However, activities on
behalf of companies that might generate royalty or license fee income
to the University at a later date should be evaluated carefully.
5. Preparing books, articles, software and other creative works
relevant to University duties.
*The state Code of Ethics prohibits the acceptance of honoraria,
fees or rewards, or other compensation relating to a person's
official duties and responsibilities unless they have no decision
making authority over the source of the compensation, use their own
time and do not make improper use of public materials or resources.
Ethics Commission Regulation 36-14-5010
6. Earning income from passive investments such as
interest or dividends from banks, mutual funds, or stocks and bonds
unrelated to the individuals University activities.
Members of the University community involved in business ventures
as owner, or major investor must be alert to the possibility that a
conflict of interest may arise. If the enterprise or business entity
does no business with the University, the area of conflict may be in
commitment to University obligations. If the enterprise does business
with the University, or might do business with the University,
disclosure is necessary.*
*Such members should also be aware that the state Code of Ethics
prohibits gain not only to them and members of their family but also
to their business associates and business entities.
VI. GUIDELINES FOR ACTIVITIES LEADING TO
CONFLICTS
The following activities represent examples of
potential or actual conflict of interest situations. This list is not
inclusive and is intended to be used as a guide.
1. Using University resources to conduct research that is
sponsored by an entity in which the investigator or his/her family
member holds a substantial financial interest.
2. Serving in an executive or managerial capacity or holding
significant financial interests In for-profit or not-for-profit
entities doing business with the University.
3. Serving on the board of directors or major advisory committee
of an external entity that sponsors one's research or provides gift
funds for the use of one's research or gift funds for the use of
one's department.
4. Utilizing University students or employees in consulting
activities, activities supported by gift funds, and/or research
sponsored by an entity in which the investigator has financial I
interests.
5. Conducting testing or clinical trials of products, devices, or
services owned or controlled by a business in which the investigator
or a member of his/her family has a financial interest or receives
remuneration.
6. Diverting research opportunities from the University to
another academic institution, federal laboratory, business, or
consulting entity for private gain.
7. Directing purchasing or subcontracting opportunities to a
family owned company or an associated entity.
8. Inappropriate use of confidential information.
9. Managers accepting honoraria from employees.
10. Program directors(with control of funds) submitting proposals
to their own programs, or submitting proposals that involve inclusion
of family.
11. The unreimbursed use of University resources for private
gain.
12. Reviewing, approving, or administratively controlling
contracts when the contract is between the University and a company
in which the individual has a substantial financial interest or when
the contract is with a member of the employee's family, or when a
member of the employee's family is directly involved with activities
included under the contract or has a substantial interest in the
contractor.
VII. SUBMISSION REQUIREMENTS FOR FINANCIAL
DISCLOSURE
REPORTING POTENTIAL OR ACTUAL
CONFLICTS
Managers, faculty, alumni, and partners must address
public concerns and demands for accountability while protecting and
fostering the freedom of inquiry that is the core the higher
education mission. Full disclosure is necessary for successful
implementation of any conflict of interest policy. The responsibility
for avoiding conflict of interest rests with the individual and is
shared by all University employees. It is prudent to note, however,
that this does not include frivolous or vindictive disclosures
against another employee.*
*It should be noted that the State Code of Ethics also prohibits
any person from knowingly and willfully making a false or frivolous
complaint. R.I.G.L. d36-14-5(k)
1.The University's Vice Provost for Research,
Graduate Studies, and Outreach shall appoint the "designated
official(s)" responsible to review conflict of interest and/or
financial disclosure statements.
2.When it appears that a conflict of interest or potential
conflict exists between the personal interest of an employee and
his/her responsibility to the University, the employee shall notify
the appropriate administrator by submitting a written statement
describing the nature of the possible conflict. If an apparent
conflict comes to the attention of the administrator (e.g.,
department chair, division supervisor, vice president, etc.), that
individual may request a written statement from the employee.
a. If an employee is in doubt whether he/she is
confronted with a potential conflict of interest, the employee should
consult with the appropriate administrator to determine if the
outside interests could conflict with the employee's obligation to
the University.
b. Where proposals involve program management staff and/or their
family, it is the responsibility of the University to consider the
nature of the relationship and determine, in consultation with the
appropriate administrator, a course of action.
3. The University shall require that each individual who is
planning to participate in funded projects certify to the Research
Office that no known existing or potential Significant Financial
Interest exists that would be affected or appear to be affected by
the research for which funding is sought; nor in entities whose
financial interest would be affected or appear to be affected by said
research. If the individual feels that a Significant Financial
Interest exists he/she must submit a Disclosure of Significant
Financial Interest Statement of his/her known Significant Financial
Interests and those of his/her family.
a. All financial disclosures must be made to the
Research Office prior to any new application or proposal for funded
projects and must be updated during the period of the award or
funding either on an annual basis or as new reportable Significant
Financial Interests are obtained.
4. The University shall maintain records of all Financial
Disclosures and all actions taken to resolve conflicts of interest
for at least three years beyond the termination or completion of the
grant to which they relate, or until the resolution of any NSF action
involving those records, whichever is longer.
VIII. MANAGEMENT OF CONFLICTS
1. The University Designated Official shall make a
preliminary review of all conflict of interest disclosures and
disclosures of Significant Financial Interest to determine whether a
conflict of interest situation reasonably appears to exist. Depending
on the circumstances of the relationship, a potential conflict of
interest can be classified as; acceptable, subject to institutional
review and/or management, or not acceptable.
The purpose of the preliminary review process shall be to
identify and resolve conflicts of interest or the appearance of
conflicts of interest at the earliest possible stage before
expenditure of any funds under an award.
a. If a conflict of interest does not appear to
exist, the designated official shall make a notation to that effect
on the Disclosure Statement and provide a copy to the University
employee.
b. If the appearance of a conflict of interest does exist, the
designated official shall so inform the employee who will then be
afforded the opportunity to meet with the designated official for
further review of the apparent conflict prior to final determination
or recommendation of remedial action.
2. A successful resolution of a potential conflict of interest
resulting from the preliminary review process described above shall
be reduced to writing and signed by the University employee and
designated official. The designated official may, on the basis of
this resolution, certify that the identified conflict of interest has
been managed, reduced or eliminated as the case may be.
3. If the preliminary review process does not result in a
successful resolution of a potential conflict of interest then a full
review of the Disclosure Statement or potential conflict of interest
shall be made by the designated official together with the
appropriate Dean or Director. Following the full review, the
designated official shall determine whether a conflict of interest or
appearance of conflict of interest continues to exist, and if so,
recommend to the Vice Provost for Research, Graduate Studies, and
Outreach what action should be taken by the University to manage,
reduce or eliminate such conflict of interest. The Vice Provost for
Research, Graduate Studies, and Outreach has full authority to
impose, on behalf of the University, such actions as may be necessary
to manage, reduce, or eliminate the conflict of interest.
4. The University shall provide the required certifications,
reports and information necessary to comply with federal law and
regulations, which may include notification of the funding agency
that a conflicting interest has not been resolved in compliance with
this policy.
IX. SANCTIONS/APPEALS
A complaint or charge for violations of this policy
shall be in writing and filed by the appropriate administrator having
specific authority over the individual or activity which is the
subject of the complaint or charge. Such charges or violations shall
be carefully examined with due regard for the academic freedom and
rights of the employee and the interests of the University and as
further specified in the relative collective bargaining agreement.
Charges will be processed through the normal reporting channels, and
sanctions may range from reprimands to dismissals, in addition to any
proceedings for recovery of damages, misappropriated funds or
property and other sanctions as may be legally available to the
University.
Examples of conditions or restrictions that might be recommended
by the designated official(s) and imposed by the University to manage
conflicts of interest include:
a. Public disclosure or disclosure to the appropriate
authorities;
b. Monitoring by independent reviewers;
c. Modification of research plan or program;
d. Disqualification from participation in all or a portion of
research;
e. Severance of relationships that create actual or potential
conflicts.
The employee may appeal the administrator's decision to the
Provost or to the appropriate vice president.