UNIVERSITY OF VIRGINIA
FINANCIAL AND ADMINISTRATIVE PROCEDURES MANUAL
TITLE: PROVIDING NOTICE OF POSSIBLE PROCEDURE: 15-1
CONFLICT OF INTERESTS
Policy Reference: XV.A.1
Purpose
To provide a means of notification of an actual or potential
conflict of interests affecting contracts or transactions to which
the University is a party or in which the University's interests
may be affected.
Background
The employee should address a letter to the appropriate department
head covering the following points:
The nature of the employee's "personal interest" in the
contract or transaction.
The employee's authority, if any, to participate in contracts
or transactions on behalf of the University.
The measures taken to comply with State requirements for
competitive procurement.
Any permissions or opinions obtained from the Attorney
General.
A copy of the contract and other related documents in question
should be attached.
NOTE: The Office of the University General Counsel's Office is not
authorized to give personal legal advice to employees; advice from
the General Counsel's Office must relate to University legal
issues. Therefore, an employee with an actual or potential
conflict of interests should also consider contacting his/her
personal attorney for advice.
Instructions
Process as indicated.
Special Procedure for Research and Development Contracts
Effective July 1, 1991, the Virginia State and Local Government
Conflict of Interests Act (Section 2.1-639.6) was modified to
exempt certain research and development contracts from categories
of previously prohibited contracts.
Special Procedure for Research and Development Contracts, cont'd.
The modification allows an employee to have a "personal interest"
in a research and development contract with the University so long
as the following conditions are satisfied:
The University has established a formal policy regarding such
contracts, approved by the State Council of Higher Education;
The employee's personal interest has been disclosed to and
approved by the University prior to the time the contract is
entered into; AND
The employee has filed a "Statement of Economic Interests"
annually before January 15 of each succeeding year.
The definition of "personal interest" is set forth in Financial and
Administrative Policy XV.A.1, and copies of the Statement of
Economic interests are available from the Office of the Assistant
Vice President for Finance and University Comptroller.
At the time a proposal for sponsored research is submitted for
University review and approval, the employee shall indicate on the
Proposal Approval Sheet that the employee has a personal interest
in a firm, corporation, partnership, or other business entity which
is a party to the proposed contract with the University. That
personal interest shall be disclosed in writing to the employee's
department chair and dean. If the chair and dean determine that
the contract is in the best interests of the University, they shall
so affirm in writing and recommend to the Associate Provost for
Research (APR) that the University accept the contract. If review
by the APR also indicates that the contract is in the best
interests of the University, the APR shall so affirm in writing and
recommend to the Assistant Vice President for Finance and
University Comptroller (AVPF) that the University accept the
contract. Upon notice of final approval of the contract by the
AVPF, the employee shall then promptly file a "Statement of
Ecomonic Interests" with the AVPF, and the employee shall file this
statement annually thereafter on or before January 15 for the
duration of the contract.
For the duration of the contract and on each subsequent renewal,
the department chair, dean, and APR should determine that the
contract continues to be in the best interests of the University.
Decisions made by the department chair, dean, APR, and the AVPF may
be appealed to the appropriate academic Vice President whose
decision shall be final. (Approved by SCHEV on February 3, 1992)
Responsibility Action
Employee 1. Addresses a letter to his/her
department head describing the
situation and requesting approval
for his/her participation.
2. Forwards letter, a copy of any
related contract or subcontract, and
all supporting documents to the
department head.
Department Head * 3. Reviews material forwarded from
employee.
4. Endorses the employee's letter
recommending approval or
disapproval.
5. Forwards all material:
5a. If approval is recommended, to
the Assistant VP for Finance and
Univ Comptroller.
5b. If disapproved, to employee.
Assistant VP for Finance
and Univ Comptroller 6. Reviews material forwarded from
department head.
7. Contacts University General Counsel
if assistance is needed.
8. Approves or disapproves.
9. Notifies department head of action
taken.
10. Directs request packet to the
appropriate office for filing in
contract file, personnel file, etc.
* NOTE: For research and development contracts, the appropriate
dean and the Associate Provost for Research shall also be involved
in the review process.
ISSUED BY: 08/01/92
Assistant VP for Finance
and University Comptroller 15.1.3