A.    Purpose.

To assist employees in avoiding situations where conflict of interest may arise.

Applies to all University employees.

1.    General Statement.
The following guidelines have been established to assist employees in identifying and avoiding conflict of interest situations.

NOTE:   For faculty employees, primary sources for defining conflict situations, in addition to this procedure, are the Faculty Handbook and guidelines provided by the UNC General Administration. For staff employees, this procedure serves as the primary source.

In most situations where a conflict of interest question arises, the best method of resolution is discussion between the employee and management.

2.    Definition.
The following situations constitute conflict of interest.

a.   University resources are utilized for personal gain.
b.  An employee utilizes the influence of his/her position within the university to profit
     personally.
c.  An employee knowingly fails to uphold the trust of the state or agency by which
     he/she is employed.
In some cases, even the appearance that personal gain was the primary motivating factor can constitute conflict of interest. In any situation, employees should always uphold common standards of professional ethics and character.

3.    Disciplinary Action.
An employee engaging in activities found to be conflicts of interest will receive disciplinary action, ranging from a reprimand to dismissal, depending on the severity of the situation. See Procedure HR 6.10 (SPA Employee Progressive Disciplinary Action).

The remaining policy statements (4-14), identify areas within the university where conflict of interest situations would more likely occur. Reference sources are provided to assist employees needing further clarification.

4.    Vendor Relationships.
The university administration has established a single channel, Purchasing Services, for the purpose of procuring materials and services required by the university. Use of this office is required to ensure compliance with state purchasing regulations and to ensure outside vendors are approached in a consistent and appropriate manner.

Contact:           a) Director of Purchasing

Sources:           a) State of N.C. Purchasing Regulations
                        b) Doing Business on Campus: National Association of
                            Educational Buyers, Inc.
                        c) UNCW Administrative Procedure PUR 1.00
                        d) UNCW Administrative Procedure ACG 2.60

5.    Secondary and Dual Employment.
Secondary employment of UNCW employees is permitted as long as the secondary employment does not adversely affect university interests. Dual employment situations are governed by the policy on dual employment. The second position, whether classified as secondary or dual employment, cannot interfere with the employee's ability to perform adequately in his/her existing capacity at the university.

Contact:           a) Director of Human Resources
                        b) Appropriate Senior Officer

Sources:           a) State of N. C. Personnel Manual
                        b) UNCW Administrative Procedure HR 1.20
 

6.    Use of University Resources.
University resources, including supplies, equipment, vehicles, non-movable facilities and computing resources, should be used only for the purpose of furthering the institution's goals of teaching, research and public service. Use of university resources by employees for personal use is prohibited. Senior officer approval is needed if you wish to use university resources for community service.
Contact:           a) Computing Resources: Director of Info. Systems
                        b) Supplies and Equipment: Director of Purchasing
                        c) Non-movable Equipment: Chancellor's Facilities Task Force
                        d) Vehicles: Director Auxiliary Services

Sources:           a) Computing Resources: UNCW Computing Resources Use Advisory
                        b) Supplies and Equipment: UNCW Administrative Procedures
                           PUR 1.00 and ACG 2.60
                        c) Vehicles: UNCW Administrative Procedure AUX 7.10
 

7.    Contractual Arrangements.
Contracts with private industry, government agencies and other entities shall be governed by the applicable North Carolina statutes, regulations and the policy set forth by the Board of Governors. Due to the various specialized areas in which contracts may originate, a number of sources are provided below:
Contact:           a) Director of Purchasing (Materials/Services)
                        b) Director of Sponsored Programs (Contract & Grants)
                        c) Special Assistant to Chancellor - Legal Affairs
                        d) Vice Chancellor for Business Affairs

Sources:           a) UNCW Administrative Procedures PUR 1.30 and ACG 2.60.
                        b) N. C. Statutes Nos. 143-63.1, 14-234
                        c) Any applicable N. C. Board of Governors policy statements
 

8.    Research: Publication of Findings.
Agreements which delay the publishing of research results for more than one year are not permitted.
Contact:           a) Vice Chancellor for Academic Affairs

Sources:           a) UNCW Faculty Handbook
                        b) Institutional Patent and Copyright Procedures for UNCW
 

9.    External Professional Activities.
The university encourages employees to participate in professional activities and maintain professional affiliations. Employees should avoid involvement in activities that interfere with day-to-day university responsibilities. At times an employee may be unsure whether involvement in certain activities would be considered "official University business". In these cases, the appropriate senior officer should be contacted prior to engaging in the activity in an official capacity.

Finally, external professional activities are classified according to consideration received by the faculty or staff member. The university has established guidelines to govern each situation to ensure conflict of interest situations are avoided.

Contact           a) Vice Chancellors

Source:           a) UNCW Faculty Handbook
                       b) Board of Governors Policy
 

10.    Political Activities.
The university recognizes the privilege of all employees to exercise their freedoms by engaging in political activities, including running for office. A policy has been issued by the Board of Governors and adopted by the university ensuring that political activities undertaken by its employees do not create a conflict of interest with regard to their primary responsibilities as university employees.

Generally, an employee who announces candidacy for a full- or part-time public office for which compensation is more than nominal, or who is elected or appointed to a full- or part-time public office, is presumed to have a conflict of interest with university employment. As a result, the employee is considered to have resigned.

In cases where it can be established that the candidacy or holding of public office does not create a conflict of interest, an unpaid leave of absence of up to two years may be arranged, if approved by the Chancellor. Where compensation for serving in part-time public office is only nominal, a conflict of time and interest is generally presumed not to exist.

Contact:         a) Chancellor's Office

Source:          a) UNCW Faculty Handbook
                      b) Board of Governors Policy
 

11.    Nepotism.
The university is committed to a practice of filling all positions with the individual most qualified through consideration of professional qualifications and performance. Cognizant that this policy may lead to situations where related individuals are employed by the university, guidelines have been established to avoid conflict of interest situations in this context.
Contact:           a) Chancellor's Office
                        b) Director Human Resources
                        c) Office of the Provost

Source:            a) UNCW Administrative Procedure HR 1.10
 

12.    Management of Contracts and Grants.
A university employee who is designated as the principal investigator on an awarded contract or grant is prohibited from personal profit in connection with these activities. Additionally, no employee shall participate in the selection, award or administration of a contract in which grant funds are used to benefit personal interests. Solicitation for an employee's personal benefit is similarly prohibited.

University employees who personally have, or whose immediate family have, related business interests with regard to a grant may not be involved in the bidding and award process; neither may any contractor developing bid specifications participate in bidding.

Contact:          a) Director of Research

Source:           a) Federal Register, Vol. 41, No. 14
 

13.    Management and Use of Financial Resources.
Each University employee is responsible for the careful management and use of institutional financial resources placed under his/her stewardship. Financial resources shall be utilized only to further the institution's goals of teaching, research, and public service.
Contact:         a) Vice Chancellor for Business Affairs

Source:          a) University Mission Statement
                      b) Approved Divisional and Departmental Mission Statements.
 

14.    Reporting of Fraud, Theft or Potential Conflicts of Interest.
It is the responsibility of each university employee to report to the proper authorities any knowledge of fraud, theft, or potential conflicts of interest, including but not limited to illegal activities.
Contact:           a) Director Campus Police
                        b) Director of Internal Audit

Source:             a) UNCW Administrative Procedure PSD 1.10