Conflict of Interest and Financial Disclosure Policy

G1.02 Conflict of Interest and Financial Disclosure

1. Purpose

All members of the Board of Governors and University employees (faculty and staff) are expected to understand and abide by Missouri statutory requirements conflicts of interest and to avoid situations which may have the appearance of a conflict of interest. The purpose of this policy is to define potential conflicts of interest as they pertain to University employees and to prescribe a policy for the disclosure and evaluation of possible conflicts of interest.

The process for members of the Board of Governors to disclose conflicts of interest is delineated in Article XII of G1.01 Bylaws of the Board of Governors.

2. Definitions

Unless the context clearly requires otherwise, the following terms used in this policy shall mean:

Business with which he/she is associated

Any sole proprietorship owned by the person, their spouse, or any dependent child in their custody;

Any partnership or joint venture in which the person, or their spouse, is a partner, and any corporation or limited partnership in which he/she is an officer or director or of which the person, their spouse, or dependent child in their custody, whether singularly or collectively, owns in excess of ten percent (10%) of the outstanding shares of any class of stock or partnership units; or

Conflict of interest

A situation in which an Employee allows improper outside influences on institutionally related decisions or activities or uses their position or the property of the University for their personal financial or political gain.

Dependent child, or dependent child in their custody

All children, stepchildren, foster children, and wards, under the age of eighteen (18) residing in an Employee’s household who receive in excess of fifty percent (50%) of their support from said Employee.

Employee

Any person employed by the University on either a full-time or part-time basis, including contracted employees (e.g. athletic coaches).  Employee includes both faculty and staff.

Employee with delegated budgetary or contracting authority

An Employee to whom has been delegated budgetary or contracting authority, as defined by G1.18 Contract Authorization Policy and/or Op8.05 Delegation of Contracting Authority.

Substantial interest

Ownership by an Employee , their spouse, or dependent children, whether singularly or collectively, directly or indirectly, of ten percent (10%) or more of any business entity or of an interest having a value of Ten Thousand Dollars ($10,000.00) or more, or the receipt by such an individual, their spouse, or their dependent children, whether singularly or collectively, of a salary, gratuity, or other compensation or remuneration of Five Thousand Dollars ($5,000.00), or more, per year from any individual, partnership, organization, or association within any calendar year.

Substantial personal or private interest in any measure or action

Any interest in a measure or action (e.g., budgetary decision, contract, expenditure etc.) which results from a substantial interest in a business entity.

University

Missouri State University.

3. General Policy

No Employee of the University shall:

Outside Interests

Knowingly engage in any outside matters of financial interest incompatible with the impartial, objective, and effective performance of their University duties. They shall not use their decision-making authority to realize personal or political gain in any form or which would improperly influence the conduct of their University duties. They shall not knowingly use University property, funds, position or power for personal or political gain.

Use of Confidential Information

Use confidential information obtained in the course of or by reason of employment in any manner, with intent to result in financial or political gain for the Employee, their spouse, dependent child in their custody, or any business with which they are associated.

Disclosure of Confidential Information

Disclose confidential information obtained in the course of or by reason of their employment or official capacity in any manner with intent to result in financial or political gain for the Employee or any other person.

Financial or Political Gain

Use their decision-making authority for the purpose of obtaining a financial or political gain which materially enriches themself, their spouse, or dependent children, by acting or refraining from acting for the purpose of coercing or extorting from another anything of actual pecuniary value.

Selling, Renting, Leasing of Property

Participate in any matter, directly or indirectly, in which they attempts to influence any decision of the University, when they know the result of such decision may be the acceptance of the performance of a service, or the sale, rental, or lease of any property to the University for consideration in excess of Five Hundred Dollars ($500.00) value per annum to themself, to their spouse, to a dependent child in their custody, or to any business with which they are associated, unless the transaction is made pursuant to an award on a contract let or sale made after public notice and in the case of property other than real property, competitive bidding, provided that the bid or offer accepted is the lowest received and in all such cases the Governor or Employee shall disclose their personal interest and abstain from any consideration or decision on any vote taken on any of such matters.

Outside Compensation

Perform any services during the time of their office, appointment or employment for any consideration from any person, firm or corporation, other than the compensation provided for the performance of their official duties, by which service they attempt to influence a decision of the University.

The Employees of the University are hired to perform professional and skilled duties. Any outside employment or business interests must be clearly subordinate to and not interfere with the Employee's obligations to the University.

Except during the summer when they are  not under contract to the University, a full-time faculty member who engages in outside activities for which they are remunerated must report each such activity to their Academic Unit Head prior to, when possible, the commencement of the activity. If in the Academic Unit Head's judgment the activity will interfere with the faculty member's performance of duties at the University or constitute a conflict of interest, it is the responsibility of the Academic Unit Head to discuss and attempt to resolve the problem with the faculty member. The Academic Unit Head must identify the specific nature and extent of the faculty member's diminished effectiveness or the conflict of interest. If an agreement cannot be reached, the matter will be taken to the College Dean who will attempt to reach a resolution satisfactory to both the individual and the administration. If resolution is not possible at the college level, the Provost will make a final determination.

Because University faculty members are hired primarily to teach, outside teaching by full-time faculty members is permitted only with the knowledge of and written consent of the Provost, except during the summer when University faculty members are not under contract.

Faculty Consultation Activity

Consultation by the faculty, whether income-producing or otherwise, is the application of professional and scholarly expertise in the external community. It is a significant means of professional improvement as well as a form of community service. However, consultation may, in some instances, also constitute a business interest requiring disclosure and approval when the entity for which the faculty member consults also transacts business with the University or is in competition with the University, or where the consultation itself competes with the work of the University. It is the policy of the University to permit consulting activities that:

1. are related to the professional interest and development of the faculty member or other exempt person;
2. do not interfere with regular duties;
3. do not utilize University materials, facilities or resources except as specifically authorized by the appropriate dean;
4. do not compete with the work of the University, and are not otherwise contrary to the best interest of the University;
5. do not violate federal or state law; and
6. do not represent a conflict of interest under other policies of the University.

Each department shall make an annual report to the Provost indicating the aggregate time and the nature of the service performed for each individual engaged in consulting. Any potential conflict of interest shall be reviewed by the Director for Internal Audit and Risk Management.  These reports shall be transmitted annually to the President.

Prohibited Services after Termination of Office or Employment

No Employee shall:

1. Perform any service for consideration, during one year after termination of their office, appointment or employment, by which performance they attempt to influence a decision of the University, except that this provision shall not be construed to prohibit any person from performing such service, and receiving compensation therefore, in any adversary proceeding or in the preparation or filing of any public document or to prohibit an Employee from being employed by any other department, division or agency of the executive branch of state government.
2. Perform any service for any consideration for any person, firm or corporation after termination of their office or employment in relation to any case, decision, proceeding or application with respect to which they were directly concerned or in which they personally participated during the period of their service or employment.

Receipt of Gifts Policy

No Employee should accept any personal gifts or favors exceeding the amount provided in          § 105.485.2(8) R.S.MO., as amended, (currently $200) in monetary value in any calendar year from any single person, company, or firm which transacts, or wishes to transact, business with the University. This is not intended to be applicable to meals/functions conducted at the initiative of the University and involving University purposes or business, or to compensation or fringe benefits provided by the University. Any exception to this policy requires the written approval of the Employee's supervisor and vice president (if applicable), based on a written explanation for the requested exception.

4. Disclosing Outside Interests

Within the first thirty (30) days of hire, and then on an annual basis each January thereafter, each Employee with Budgetary and/or Contracting Authority must complete an Outside Activities and Conflicts of Interest disclosure form. In addition, at any time during employment where conflict of interest appears to exist, the Employee with Budgetary and/or Contracting Authority shall immediately fully disclose the conflict to the Director for Internal Audit and Risk Management through the Outside Activities and Conflicts of Interest disclosure form. The Office of Internal Audit and Risk Management shall be responsible for ensuring compliance with completion of the disclosure form.

Upon receipt of the disclosure form, the Director for Internal Audit and Risk Management shall review the forms for any potential conflict of interest.  If a possible conflict is determined to exist, the Director for Internal Audit and Risk Management, or appointed designee, shall forward the disclosure form to Employee with Budgetary and/or Contracting Authority’s supervisor.  The supervisor must investigate the possible conflict and attempt to make a determination if a conflict exists within 20 days from determination of a possible conflict.  The supervisor shall provide their conclusions in writing to the Director for Internal Audit and Risk Management.

On an annual basis, each Faculty member must complete the Outside Activities and Conflicts of Interest disclosure form.  Faculty outside activities and conflicts of interest will be handled pursuant to this policy and Section 10 of the Faculty Handbook.

Additional disclosures may be required when applying for grants or other external funding sources for the purpose of research and development.

Employee with Budgetary and/or Contracting Authority Duty to Disclose; Timing

Whenever any conflict of interest appears to exist at any time during employment, the Employee with Budgetary and/or Contracting Authority shall immediately fully disclose that conflict to the Director for Internal Audit and Risk Management. The Director for Internal Audit and Risk Management shall then forward the Disclosure Form to the Employee with Budgetary and/or Contracting Authority’s supervisor.  The supervisor must investigate the possible conflict and attempt to make a determination if a conflict exists within twenty (20) days from determination of a possible conflict.  The supervisor shall provide their conclusions to the Director for Internal Audit and Risk Management.

Waivers

If it is determined that a conflict exists or may exist, a waiver may be requested by the Employee.  A copy of the waiver request form may be requested from the Director of Internal Audit and Risk Management.  Upon receipt of the waiver request, the Director of Internal Audit and Risk Management, in consultation with the General Counsel & Vice President for Legal Affairs & Compliance, shall determine whether the waiver will be granted or denied based on the competitive nature of the procurement and/or the contracting process, or other controls applied to ensure no undue influence will be applied to university transactions.

5. No Discrimination for Filing Reports

No person with supervisory authority shall discipline, discharge, threaten, retaliate or otherwise discriminate against a person or employee acting on behalf of a person, regarding compensation, terms, conditions, location, or privileges of employment because:

1. The person or employee acting on behalf of the person reports or is about to report, verbally or in writing, a violation or suspected violation of this policy or of law.
2. A person or employee acting on behalf of the person is requested by the Missouri Ethics Commission to participate in an investigation, hearing, or inquiry held by the Commission or any related court action.

6. Personal Financial Interest Statements

Members of the Board of Governors, the President of the University, the Vice Presidents identified above, the Treasurer, the Purchasing Officer, and any other persons identified in the minutes of the Board of Governors as decision-making public servants, are required to file personal financial interest statements prescribed by Mo. Rev. Stat. § 105.483. The President of the University may designate additional employees as decision-making public servants through Op8.05 Delegation of Contracting Authority Memorandum. The financial interest statements, as required by law, are to be filed with the Missouri Ethics Commission on an annual basis not later than the first (1st) day of May in each year, after January 1, 1993, and with the Secretary of State prior to that time.

7. Nepotism

No Governor, officer, faculty member, or employee shall participate, either directly or indirectly, in a decision to appoint or hire an employee of the University, either part-time or full-time, who is related to such person within the fourth degree of consanguinity (blood) or affinity (marriage). It also shall be a violation of this policy for an employee to supervise, either directly or indirectly, the work of another employee who is related within such fourth (4th) degree, unless the supervisory role is specifically approved by the President of the University

8. Limitation on Gift Acceptance

An Employee shall not accept gifts or benefits from any person holding contracts for supplies or services to the University, or from any bidder on contracts for such services or supplies.

However, this provision shall not apply to acceptance of gifts, benefits, gratuities, amenities, or favors based on obvious family, friendship, or personal relationships where the circumstances make it clear that it is those relationships rather than the business of the University, which are the motivating factors.

9. Transactions with Students

Instructors

Textbooks, tapes, software and other materials authored by the course instructor may be assigned to be purchased by students for a course taught by the author if the royalties arising from the purchase of the assigned materials are returned to the University, another educational institution, a charitable organization, or a not-for-profit foundation. Any proceeds from other University uses of such materials, such as purchase by the library, shall be the property of the faculty member.

10. Stationery

While not a conflict of interest, official University stationery may not be used in outside business, personal and other private or political activities of employees.

11. Logo

While not a conflict of interest, it is a violation of University policy to employ the name of the University or any of its graphic identification symbols in printed materials intended to endorse or promote individual enterprises or to otherwise enhance private gain without the written permission of the University President.

Line of authority

Responsible administrator and office:  Director of Internal Audit & Risk Management

Contact person in that office:  Director of Internal Audit & Risk Management

Effective date

Approved by Board of Governors:  June 21, 2024