Conflict of Interest Online Course

1. Conflict of Interest Online Course This online course takes approximately 30 minutes to complete. You must successfully pass the exam with an 80%.

2. Introduction The University of New Mexico is a steward of public funds and the public trust. As such, it has the responsibility to assist faculty, staff, and students in identifying activities that put them in situations of conflict and in reducing or managing those conflicts situations to assure that potential Conflict of Interest (COI) do not threaten the integrity of the University’s core activities and values.

3. Introduction continued The University cares about COI because activities undertaken in service of personal interests could unduly influence professional judgment or call into question a faculty, staff, or student’s primary obligations to the University.

4. Introduction continued The common feature among potential COI situations is that they present an overlap between one’s obligation to the University and one’s personal benefit. Policy Reference #: 3720 This training is intended to discuss the non-research aspects of conflict of interest

5. Conflicts of Interest (COI) After taking this course you should be able to: • Describe what types of favors or gratuities you may accept and what types you’re prohibited from accepting. Identify when you’re subject to disclosure requirements under New Mexico law and UNM Policy • Identify the process to comply with the disclosure requirements • Define Arm’s Length and Non Arm’s Length transactions

6. Audience • Researchers • Anyone who is in a position to influence business transactions • All employees (faculty and staff) of the University, to public and student members of University advisory boards and committees, and other volunteers serving in an official capacity

7. Purpose • As one of our UNM Values states: “Integrity that holds us accountable to our students, the community, and all who serve UNM’s mission, to manage our resources wisely and keep our promises.” • The purpose of this conflict of interest training is to protect the integrity, trust and respect of UNM and its academic community is based upon UNM Business Policies and Procedures 3720 – Conflicts of Interest

8. COI Definitions General definition of Conflict of Interest: A situation in which someone in a position of trust or power has competing professional or personal interests. NM legal definition of Conflict of Interest: UNM employees must avoid any conflict of interest that may affect their independent judgment in the impartial performance of their UNM duties and may not use their positions to enhance their direct or indirect financial interest or use confidential information learned as employees for anyone’s private gain.

9. COI Rules for Favors and Gratuities • Employees shall not accept favors or gratuities from any firm, person, or corporation that is engaged in, or attempting to engage in business transactions with the University. • Small items of appreciation e.g. coffee mugs with a company logo may be accepted if they do not have any significant economic value. • If you have a question regarding acceptance of an item, discuss it with your supervisor.

10. Test Your Knowledge about Favors and Gratuities Which of the following items can you keep? • You go to a Banner training session and a notepad and nice pen with the Banner logo are provided • AAA Office Supply Co. sends canvas bags with the AAA logo for each employee • ABC Chemical Supply Company sends $30 movie passes for each employee in the Chemistry Department 4. XYC Computer company takes the Purchasing Department employees to lunch at year end (YES) (YES) (NO) (NO)

11. “Disclosure” Requirements UNM employees (as well as individuals and firms) proposing business transactions with UNM must disclose in advance and in writing any direct or indirect financial interest UNM employees may have in a transaction with UNM.

12. “Disclosure” Requirements • To determine if you are subject to this disclosure requirement, you must ask yourself: • “Do I or any member of my immediate family have a direct or indirect financial interest in an entity proposing business transactions with UNM?” • Terms need to be defined for you to answer this question: • Immediate family • Direct or indirect financial interest • Business transactions with UNM

13. “Disclosure” Requirements Immediate Family Immediate family includes: • Spouse or domestic partner • Children (including in-laws) • Brothers or sisters (including in-laws) • Parents (including in-laws)

14. “Disclosure” RequirementsDirect or Indirect Financial Interest Pertains to any business entity you or an immediate family member: • Has an ownership interest in (other than <1% of a publicly traded corporation) or • Is an employee, partner, officer, director, trustee, or paid consultant of or • Has received gift or grant support from or • Has received support for travel expenses, honoraria, etc. from or • Has a right to receive royalties from.

15. “Disclosure” RequirementsDirect or Indirect Financial Interest NOTE: Donors and grantors are entitled to participate on even terms with other potential vendors, so there is a special procedure to follow if the financial interest is gift or grant support and the business transaction is procurement of goods and services. The goal is to ensure the existing relationship between UNM and the donor or grantor does not impact the procurement or the likelihood that the donor or grantor will be selected as the vendor. These procedures are developed by UNM officials and must be reviewed by the President to ensure the integrity of the procurement.

16. “Disclosure” Requirements Business Transaction with UNM Any of the following transactions in which UNM is either acquiring from or providing to a business entity in which you have a direct or indirect financial interest. • Procurement of supplies, equipment, or other good or • Procurement of professional, technical, or any other service or • Rental, lease, or contract for use of UNM employees, equipment, facilities, labs, rooms, or any other UNM resource

17. How to Comply with “Disclosure” Requirements “Do I or any member of my immediate family have a direct or indirect financial interest in an entity proposing business transactions with UNM?” If your answer is YES, then you must: • Complete Exhibit A of Policy 3720 which can be found at http://www.unm.edu/~ubppm/ubppmanual/3720ex_a.htm • Submit Exhibit A to your dean or director, and • Submit Exhibit A to UNM’s Purchasing Department if UNM is acquiring the good or service or if UNM is providing the good or service submit Exhibit A to the UNM department providing the good, service, or space

18. Test Your Knowledge #1 Disclosure Requirements • I am an accountant at the Physical Plant • I have a week-end catering business and the Law School wants me to cater a reception Saturday night for the Dean of Yale Law school. Do I need to complete the disclosure form? (YES)

19. Test Your Knowledge #2 Disclosure Requirements • I am an HR representative in the Biology Department • My brother-in law is a partner in PC Support. • PC Support wants to provide computer training courses at Continuing Education. Do I need to complete the disclosure form? (YES)

20. Test Your Knowledge #3 Disclosure Requirements • I am a lab technician at the Center for High Tech materials • When the clean room is not being used by UNM we rent space to other high tech companies in Albuquerque • My son works for ABC tech company and they want to rent the space Do I need to complete the disclosure form? (YES)

21. Test Your Knowledge #4 Disclosure Requirements • I am an administrative assistant in the Education Department. • My best friend works for a law firm that does business with UNM. • She invites my daughter to go to an Isotopes game and sit in the Sky box. Do I need to complete the disclosure form? (NO)

22. Test Your Knowledge #5 • I am a buyer in the Purchasing Department • My wife works at ABC Office Supply Co. • UNM departments buy office supplies from ABC Office Supply Co. Do I need to complete the disclosure form? (NO)

23. Test Your Knowledge #6 Disclosure Requirements • I am a Director in HR and serve on a taskforce charged with recommending changes to a UNM system. • Prevention, Inc. is a company that specializes in this particular type of computer system. • Prevention, Inc. tells me about a process used by UCLA that saved $200,000 and suggests I attend a conference in Hawaii where UCLA is making a presentation about their process. Prevention waives my conference registration fee and pays for my hotel and airfare expenses. • One year later the taskforce recommends UNM purchase a state-of-the-art computer system from Prevention, Inc. Do I need to complete the disclosure form? (YES)

24. Arm’s Length Transactions Definition The main purpose of the arm’s length transaction is to ensure there are no hints of a conflict of interest that would give one or both companies an undue advantage in the market. Note: Just because you have to disclose the transaction doesn’t mean it can’t take place.

25. What I need to know about“Arms Length Transaction” If its arms-length and financial disclosure has been made it must go through the normal approval procedures listed in section 3.1 of the policy. It is non-arm's length and financial disclosure has been made in order to be approved it: • Must be related to a sponsored project • Must meet all the requirements listed in Section 5.1. of the policy, and • Requires approval of the Vice President for Research (see section 5.2). If the transaction is approved it must then follow the procedures listed in section 3.1 of the policy

26. What I need to know about “Arms Length Transaction” • UNM may enter into a contract in which an employee has a financial interest if the transaction is one at “arms length” and full disclosure has been made. • In exceptional circumstances related to sponsored projects UNM may enter into a non “arms length” transaction if it meets specific criteria and is approved by UNM’s Vice President for Research. To qualify as an “arms length” transaction, it must meet both of the following criterion.

27. “Arms Length Transaction” Criteria • The employee with a financial interest must not be in a position to exert influence over the transaction because of his or her employment at UNM. (As a matter of policy, transactions will not be considered "arm's length" where a University employee has a financial interest in the proposed transaction and that employee reports to the same dean or director as the University unit proposing the transaction.)

28. “Arms Length Transaction” Criteria • AND The employee must not have participated directly nor indirectly in UNM’s decision with respect to the transaction such as: • Helping prepare the specifications; or • Having input or influence in deciding to whom the contract is awarded.

29. Non “Arms Length” Transaction For a non “arms length transaction to be approved by the VP for Research the UNM employee 1) must have made full financial disclosure and 2) guarantee the employee has not and will not engage in any official act directly affecting the employee’s financial interest. In addition the transaction must: • Be related to sponsored projects; • Comply with federal conflict of interest regulations; • Be in UNM’s best interest and potentially benefit the state; and • Demonstrate that the employee’s benefit from the transaction will not adversely affect NM state interest and that any procurement functions can be carried out without favoritism or bias.

30. Test Your KnowledgeArm’s Length and Non Arm’s Length #1 • I am an accountant at the Physical Plant • I have a week-end catering business and the Law School wants me to cater a reception Saturday night for the Dean of Yale Law school. Is this an arms length transaction? (YES)

31. Test Your KnowledgeArm’s Length and Non Arm’s Length #2 • I am an accountant at the Physical Plant • I have a week-end catering business and the Physical Plant wants me to cater a BBQ Saturday for United Way campaign Is this an arms length transaction? (NO, because in same department) Yes, if approved by the VP

32. Test Your KnowledgeArm’s Length and Non Arm’s Length #3 • I am an HR representative in the Biology Department • My brother-in law is a partner in PC Support • PC Support wants to provide computer training courses at Continuing Education Is this an arms length transaction? YES - Employee is not required to disclose because the employee nor those in power in her direct line of supervision has the direct power to influence contract decisions.

33. Test Your KnowledgeArm’s Length and Non Arm’s Length #4 • I am a lab technician at the Center for High Tech materials • When the clean room is not being used by UNM we rent space to other high tech companies in Albuquerque • My son works for ABC tech company and they want to rent the space. Is this an arms length transaction? (NO, because in same department)

34. Test Your KnowledgeArm’s Length and Non Arm’s Length #5 • I am an administrative assistant in the Education Department • My best friend works for a law firm that does business with UNM • She invites my daughter to go to an Isotopes game and sit in the Sky box. Is this an arms length transaction? (N/A because no financial interest-remember didn’t need to disclose)

35. Test Your KnowledgeArm’s Length and Non Arm’s Length #6 • I am a buyer in the Purchasing Department • My wife works at ABC Office Supplies • Departments buy office supplies from ABC Office Supplies. Is this an arms length transaction? Only if the buyer does not oversee office supply procurement.

36. Test Your KnowledgeArm’s Length and Non Arm’s Length #7 • I am a Director and serve on a taskforce charged with recommending changes to UNM’s computer systems. • Prevention, Inc. is a company that specializes in these computer systems. • Prevention, Inc. tells me about a process used by UCLA that saved $200,000 and suggests I attend a conference in Hawaii where UCLA is making a presentation about their process. Prevention waives my conference registration fee and pays for my hotel and airfare expenses. • One year later the taskforce recommends UNM purchase a state-of-the-art computer system from Prevention, Inc. Is this an arms length transaction? (Problematic—would need to work to develop special procurement procedures to ensure process integrity—Director should not have accepted payment for travel)

37. Conflicts of Interest (COI) You should now be able to determine: • What types of favors or gratuities you may accept and what types you’re prohibited from accepting • And if you are, how you comply with the disclosure requirements • The definition of Arm’s Length Transactions

38. Conflicts of Interest (COI) When in doubt … disclose.

39. Resources Reporting violations: • Contact your Supervisor • Whistleblower Policy: • http://www.unm.edu/~ubppm/ubppmanual/2200.htm • Anonymous UNM Hotline: • 1-888-899-6092 • Internal Audit: • 277-5016 • http://www.unm.edu/~iaudit/