Avoiding the Headline Test -Managing Conflict of Interest

1. Avoiding the Headline Test -Managing Conflict of Interest 3-18-09 8:15 and 9:45

2. Workshop Presenter(s) • Kathy Young, Director- Office of Sponsored Programs and Research Administration kyoung@illinois.edu 333-2187 • Melanie Loots, Associate Vice Chancellor for Researchmloots@illinois.edu 333-0034 • Lea Ann Gross, Director of Stewardship Services – UI Foundationgross@uif.illinois.edu 333-8668

3. Workshop Presenter(s) • Sandy Ehler, Director, University Payables sehler@uillinois.edu 265-8129 • Mary Nielsen, Assistant to the Director, Purchasing Division mnielsen@uillinois.edu 333-1408

4. Please … • Turn off cell phones. • Avoid side conversations. • Hold questions until the end. • Sign the attendance roster. • Complete the evaluation at the end of the workshop.

5. Workshop Objectives • Develop an understanding of the Conflict of Interest regulations and policies • Apply that understanding using a case study approach • Take home some tips for recognizing conflicts

6. Topics • What is COI • Why is it important? • Managing COI • Issues/Cases

7. What is COI? • Conflict can exist for: • Individual • Institution • Types of Conflict • Financial • Time Commitment

8. Individual - Financial • What is individual financial COI? • An instance where the individual’s financial interests may influence his or her professional activities, decisions, or judgment • “Good people in a bad situation” (James Wallace) • A determination of “Real” or Technical, “Apparent,” “Potential” or “Perceived” will require the situation to be managed, reduced, or eliminated

9. “Significance” • Federal Research Regulations relating to COI define “Significant” as: • Financial interests in business enterprises or entities that exceed $10,000, or • Financial interests in business enterprises or entities that represent more than 5% ownership • The dollar amount represented by more than 5% is irrelevant. It’s the principle of authority and decisionmaking. applies to spouses and dependent children

10. Why is it important? • Benefits of conflict management: • Maximizes the credibility of the activity • Ensures objectivity • Maintains public trust • Guards the Institution’s reputation • Protects the research participants • Reduces risk and liability

11. Why is it Important ?(cont…) • Risks of not managing conflict: • Sanctions • Individual • Institution • Increases vulnerability for audit • Fines and reimbursements • Ramifications • Debarment

12. Managing COI • Resolution is on a case-by-case basis dependent upon facts of the situation • Should always begin with disclosure • Disclosure alone is not always sufficient • May involve a combination of activities

13. Managing COI • Management Techniques: • Independent review or monitoring by an objective party or committee • Full disclosure to affected parties (students, fellows, or researchers), and in publications or other notices • Recusal from activity, such as data collection or entry, or analysis

14. Issues/Cases • Common Situations • Consulting • Speakers’ Bureaus; Honoraria, etc. • Licensing University Technology • Research/Clinical Trials • Gifts • Procurement

15. Procurement Process How are conflicts identified? Vendor Add Form Solicitations Audits Departmental Identification Purchasing determines if conflict is “technical” or “real” In either case the department will be contacted for the appropriate justification and/or conflict management plan Purchasing will assist in the navigation of the President’s review process

16. Points to Consider • Contact us early to discuss any issues • Unit Head has responsibility; make sure they understand the situation • Only the President can authorize a contract with an entity in which a University employee has an interest, even if the conflict has been managed • Keep it simple • WHEN IN DOUBT – DISCLOSE

17. Workshop Summary • Defined COI • Explained its importance • Tips for managing COI • Provided Cases

18. Questions / Concerns?