SUU Seal (for official use only)
 

POLICY #5.7 
SUBJECT: Conflicts of Interest

I. PURPOSE

The purpose of this Policy is to define Conflicts of Interest and outline how they should be managed to ensure that the State of Utah’s legal, ethical, and other conflicts of interest-related requirements are met and University employees act in the best interest of the institution by preventing personal, financial, or other interests from improperly influencing professional decisions and actions. This Policy also promotes the University’s commitment to integrity, public confidence, trustworthiness, and stewardship of public resources.

II. REFERENCES

    1. Southern Utah University Policy 5.18 Nepotism
    2. Southern Utah University Policy 5.24 Purchasing
    3. Southern Utah University Policy 5.52 Intellectual Property
    4. Southern Utah University Policy 6.9 Supplemental and Overload Compensation to Faculty and Academic Administrators
    5. Southern Utah University Policy 6.9.1 Faculty and Academic Administrators Consultation and External Employment
    6. Southern Utah University Policy 6.17 Faculty-Authored Materials
    7. Southern Utah University Policy 6.28 Faculty Professional Responsibility and Due Process
    8. Southern Utah University Policy 6.71 Disclosure of Financial Interests Related to Sponsored Projects
    9. Southern Utah University Policy 7.7 University Contracts
    10. Southern Utah University Policy 8.3.7 Consulting and External Employment Activities
    11. Southern Utah University Policy 8.3.8 Supplemental and Overload Compensation for Staff and non-Academic Administrators
    12. Southern Utah University Policy 8.4 Employment Grievances
    13. Utah Code § 51-8-303 Requirements of member institutions of the state system of higher education
    14. Utah Code § 67-16 Utah Public Officers’ and Employees’ Ethics Act

III. DEFINITIONS

  1. Board of Trustee Member / Trustee: An appointed or ex officio member of the University’s Board of Trustees. See SUU Policy 5.4.
  2. Conflict Management Plan: A written plan of action developed between the University and an Employee by which an actual or potential Conflict of Interest can be managed, mitigated, or eliminated to ensure that the Conflict of Interest is not interfering with the Employee’s University job duties or the safeguarding of University resources. A Conflict Management Plan typically requires the oversight of the Employee’s immediate supervisor. A Conflict Management Plan should be on the University’s approved template and requires the oversight of the Employee’s immediate supervisor. Any Conflict Management Plan automatically incorporates the prohibitions in this Policy and as otherwise set out in other University policies, whether or not expressly stated therein.
  3. Conflict of Interest: When a University Employee owes a professional obligation to the University, which is or can be compromised by the Employee’s non-university activities or interests.
    1. Conflicts of Interest include but are not limited to the following:
      1. Actual Conflict of Interest: A situation where a Conflict of Interest is currently manifested.
      2. Apparent Conflict of Interest: A situation that may appear to a reasonable observer as a Conflict of Interest, whether or not a Conflict of Interest actually exists.
      3. Potential Conflict of Interest: A situation that may foreseeably develop into an Actual Conflict of Interest.
      4. Financial Conflict of Interest: When an Employee uses or attempts to use the Employee’s University position to substantially further the Employee’s personal economic interest or to secure special privileges or exemptions for himself or others.
      5. Conflict of Independent Judgement: When an Employee’s obligations are divided between responsibilities to the University and an Outside Activity or Financial or Other Interest such that the appearance or potential for influencing of decisions, actions, or judgements potentially leading to biased outcomes compromises an individual Employee’s independence of judgment in the performance of the Employee’s University duties and responsibilities.
      6. Conflict of Obligation: 
        1. When personal or professional activities external to the University position or appointment would interfere with the ethical performance of the Employee’s professional obligations as defined in state code and SUU policy. A Conflict of Ethics can exist whether or not an Employee receives financial gain or remuneration for external or non-assigned activities.
        2. When an Employee’s engagement with an Outside Activity can be expected to require or induce improper disclosure of controlled, private, protected information, or University data, acquired by reason of Employee’s University position or in the course of official duties.
      7. Sponsored Project Conflict of Interest: See SUU Policy 6.71 or additional definitions of Conflicts of Interest for funded research, such as those required by federal regulations.
    2. Examples of Outside Activities that do not generally create Conflicts of Interest can be found in the Conflict of Interest Guide document.
  4. Conflict of Interest Review Group (Review Group): A group of 5-7 Employees (staff and faculty) who have relevant experience or knowledge to provide input on Conflict of Interest-related matters. The group is managed and coordinated by the Office of Enterprise Risk Management, Compliance, and Safety. The Review Group should include a representative from the Provost’s Office, the Office of Human Resources, the Office of Sponsored Programs, Agreements, Research, and Contracts (SPARC), the Office of Enterprise Risk Management, Compliance, and Safety (ERM), and the Purchasing Office as applicable.
  5. Disclosure and Review Process: The process through which Employees disclose Outside Activities and Conflicts of Interest and, as applicable, develop Conflict Management Plans. Employees’ disclosure forms and Conflict Management Plans are reviewed and assessed by the University as described in this Policy. The Disclosure and Review Process shall occur annually, typically before the start of the following fiscal year.
  6. Employee: A person employed by Southern Utah University.
  7. Family Member: Any Immediate Family Member and an employee’s father, mother, sister, brother, grandfather, grandmother, uncle, aunt, nephew, niece, grandson, granddaughter, first cousin, mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, or daughter-in-law. This definition is limited and specific to this policy and does not apply to other policies unless expressly stated.
  8. Immediate Family Member: Immediate Family Member means an Employee’s spouse, or an Employee’s child. This definition is limited and specific to this policy and does not apply to other policies unless expressly stated.
  9. Financial or Other Interest: Anything of monetary value, including but not limited to the ownership, either legally or equitably of at least 10% of the outstanding capital stock of a corporation or a 10% interest in any other Outside Entity, salary or other payments for services, or intellectual property rights (e.g., patents, copyrights, and royalties from such rights). Financial or Other Interest also means the holding of a position as an officer, director, agent, or employee of an Outside Entity. Financial or Other Interest includes such interest held by an Employee or by an Employee’s Family Member. A Financial or Other Interest exceeds a total value of $5,000. For University Employees involved in sponsored funding research or other programs or projects, refer to SUU Policy 6.71 Disclosure of Financial Interests Related to Sponsored Projects for additional obligations.
    1. Financial or Other Interest does not include the following:
      1. Employee wages and salary, travel reimbursements, or other non-royalty remuneration from the University; 
      2. Income less than $100 from one-time seminars, lectures, or presentations at conferences;
      3. Income from service on advisory committees or review panels for a federal, state, or local government agency, an institution of higher education, an academic teaching hospital, a medical center, or a research institute that is affiliated with an institution of higher education; or 
      4. Income from investment vehicles, such as mutual funds and retirement accounts, as long as the Employee does not directly control the investment decisions made in these vehicles. 
  10. Gift or Contribution: A Gift, loan, or Contribution of substantial value or a substantial economic benefit tantamount to a Gift. (See Utah Code 67-16-5).
  11. Outside Activity: Any activity performed as part of the University Employee’s responsibilities for the University as articulated/enumerated in an Employee's job description, appointment and other employment documents, University policy, and other relevant information is not an Outside Activity. Supervisors, in consultation with Human Resources and Provost’s Office, as applicable, determine what activities are within the scope of an Employee’s employment. Any activity that is not performed as part of the Employee’s University responsibilities is an Outside Activity.
  12. Outside Entity: A sole proprietorship/individual, partnership, association, joint venture, corporation, firm, trust, foundation, or other organization or entity that carries on a trade or business, including parent organizations of such entities, or any other arrangement in which an entity operates through a subsidiary. An Outside Entity is entirely external to SUU.
  13. University Administrator: University Employees in a position of administrative leadership of the University where a regular job requirement is to make institutional decisions on behalf of the University.

IV. POLICY

  1. Scope of Policy
    1. This Policy applies to all Employees and to all external relationships, financial positions, business endeavors, or other conduct that may create a Conflict of Interest between the University and the Employee. See definition I. “Financial or Other Interest” and definition K. “Outside Activity”.
    2. Employees who are subject to Conflict of Interest-related requirements under federal research laws are subject to both this Policy and SUU Policy 6.71 and must comply with disclosures and other requirements in both policies. Disclosure requirements for sponsored funding may be included in the Disclosure and Review Process required by this Policy.
    3. For guidance regarding employment, supervision, or recommendation of relatives and/or household members SUU Policy 5.18 Nepotism.
  2. Employee Responsibilities
    1. University Employees have a primary professional obligation to act in the best interests of the University and to give their full measure of time and talent to the University. Employees may not engage in any Outside Activity or hold any Financial or Other Interest that creates a Conflict of Interest unless it is appropriately disclosed and adequately managed through a Conflict Management Plan. Conflict Management Plans can (but not always) be utilized to address a potential Conflict of Interest in a way that will allow the Employee to engage in Outside Activities that otherwise might create a Conflict of Interest. If a conflict cannot be managed or eliminated, reassignment, termination, or another alternative must be reached. 
    2. Employees are subject to the Utah Public Officers’ and Employees’ Ethics Act, Utah Code Ann. § 67-16 et seq. (the Ethics Act). Each Employee has a personal obligation to know, understand, and abide by the Ethics Act as a public employee of the State of Utah.
    3. Employees shall not disclose or improperly use controlled, private, or protected information, including but not limited to University data, acquired by reason of Employee’s University position or in the course of official duties in order to substantially further the officer's or Employee's personal economic interest or to secure special privileges or exemptions for Employee or others.
  3. Outside Employment and Commitments
    1. The University recognizes the importance of encouraging and supporting Employees in professional learning and career development opportunities, which may involve Outside Activities. The University desires for its Employees to have professional development opportunities, provided that they do not interfere with the Employees’ duties or otherwise materially disadvantage the University.
    2. Without proper disclosure and management, Employees shall not engage in Outside Activities:
      1. That would unreasonably interfere with services that should reasonably be provided through the scope of their employment at the University;
      2. that interferes with the hours or job duties (non-exempt (FLSA) Employees) or the scope and commitment required for University job duties (exempt (FLSA) Employees) that the Employee is expected to perform under the direction or control of the University, unless the Employee takes authorized leave during the time engaged in the Outside Activity;
      3. that the Employee might reasonably expect would require or induce them to improperly disclose controlled, private, or protected information.
    3. An Employee shall not accept other employment that the Employee might expect would impair or interfere with the Employee’s independence of judgment in the ethical performance of the Employee’s public duties or otherwise impact their ability to fulfill duties in the best interest of the University.
    4. Consulting
      1. See Policy 6.9.1 for Faculty and Academic Administrator Consultation and External Employment.
      2. See Policy 8.3.7 for Consulting and External Employment Activities.
      3. Notwithstanding the terms of those University consulting policies, Employees must disclose any consulting activities in advance through the annual Disclosure and Review Process. Such arrangements are subject to and must receive prior approval of applicable administrators.
  4. University Authority in Academic Setting
    1. University Employees who evaluate students or Employees may not base these evaluations, in whole or in part, on participation (or refusal to participate) in Outside Activities involving Outside Entities in which the evaluating Employee or Employee’s Family Member has a Financial or Other Interest.
    2. Faculty members must adhere to Policy 6.17 Faculty-Authored Materials regarding the selection and sale of course materials from which they may derive royalties or other personal gain.
    3. Employees may not participate in academic decisions directly affecting Immediate Family Members, including but not limited to decisions about admissions, financial aid, grades, and academic advancement.
    4. Employees may teach students who are Family Members in their courses. In the case of credit-bearing courses, the department chair or next-level authority must develop a plan in collaboration with the faculty member to ensure that grading is fair, transparent, and applied as objective as possible. This may include but does not require having another faculty member grade the Family Member’s work. In a course taught by a chair or dean, they will designate another appropriate Employee (who is not a Family Member of the student) such as a faculty member or teaching assistant to grade the student’s academic coursework and assign a final grade for the course.
    5. Employees may not assign their students, interns, or other trainees to University projects sponsored by or benefiting any Outside Entity in which the Employee or their Immediate Family Member has a Financial or Other Interest.
  5. Intellectual Property.
    1. Employees may not negotiate any transfer of intellectual property rights or royalties on behalf of the University with Outside Entities in which an Employee or an Employee’s Family Member has a Financial or Other Interest, and must otherwise comply with SUU Policy 5.52 Intellectual Property.
    2. Employees shall disclose when an Employee has a Financial or Other Interest in an Outside Entity related to or using intellectual property owned by the University.
  6. Procurement / Purchasing.
    1. An Employee may not participate in a Procurement or be a Procurement Participant (as defined in SUU Policy 5.24) in which the Employee or Employee’s Family Member is an officer, director, agent, employee, or owner of a Substantial Interest.
      1. If the Employee seeks an exception to this requirement, the Employee shall make that request in writing to the Chief Procurement Officer. The request is considered a public record. The request shall disclose the Outside Entity relationship. The request is subject to approval by the Chief Procurement Officer, the Utah Attorney General’s Office designee, and the Employee’s immediate supervisor.
    2. Employees must not allow Family Members to provide services to the University through private business interests unless and until proper disclosures are made by the Employee (and approvals obtained through the Disclosure and Review Process) and a public process of disclosure or bidding is completed under applicable procurement law(s) and University policies. Employee shall disclose the relationship as soon as the Employee becomes aware of the potential business dealing.
    3. Employees shall disclose any Financial Interest with any person or entity desiring to do any business dealings with the University. The Employee shall disclose that relationship as soon as the Employee becomes aware of the potential business dealing.
    4. If an Employee has a Financial or Other Interest in a non-University entity that provides goods or services, and the University provides the same or similar goods and services, and the Employee is in a position to direct potential purchasers of the goods and services away from the University and to the Outside Entity, the Employee must disclose that Financial or Other Interest on the disclosure form.
    5. The Chief Procurement Officer will review situations where a Conflict of Interest may exist related to state purchasing laws, and may give input to the applicable Employee’s supervisor, and take steps to ensure the University’s compliance with state procurement laws; provided however, any employment action against an Employee shall follow the University’s applicable disciplinary and misconduct related employment policies (e.g., SUU Policy 6.28 and SUU Policy 8.4).
    6. Former Employees who have worked at the University within the last 12 months, may not be employed by the University as an independent contractor or otherwise provide to the University the services which were formerly part of their University employment duties through an arrangement with an Outside Entity. Any exceptions to the prohibition in this paragraph must be approved by the Vice President of Finance and Administration in advance of any services, and such exceptions will be extremely limited.
    7. Employees of the University may not be employed by the University as an independent contractor or otherwise provide to the University the services which are part of their University employment duties. These types of services or engagements must be considered and reviewed under applicable employment policies, such as SUU Policy 8.5.1, SUU Policy 6.9, and SUU Policy 8.3.8.
  7. External Gifts
    1. An employee may not receive a Gift related to the negotiation of a contract or a procurement solicitation in which they are participating. Please refer to SUU Policy 5.24 Purchasing for procurement guidelines.
    2. An Employee shall not knowingly directly or indirectly receive, accept, or solicit, a Gift from an Outside Entity:
      1. that would tend to influence a reasonable person in the person's position to depart from the faithful and impartial discharge of their duties;
      2. that a reasonable person in that position should know is meant to reward the Employee for official action taken or avoided; or
      3. if the Employee recently has been, is now, or in the near future may be involved in any action directly affecting the donor or lender, unless a disclosure of the Gift and other relevant information has been made in the manner provided in section IV.G.3.
    3. Generally, an Employee may not receive or agree to receive compensation for assisting any person or business entity in any transaction involving the University. In other words, Employees may not receive a bonus or “tip” from an Outside Entity for the Employee performing, avoiding, or altering their University duties. If the Employee wants to request an exception to this prohibition, the Employee shall file a sworn, written statement through the Disclosure and Review Process containing:
      1. the name and address of the employee(s) involved;
      2. the name of the University;
      3. the name and address of the person or business entity being or to be assisted; and
      4. a brief description of:
        1. the transaction as to which service is rendered or is to be rendered; and
        2. the nature of the service performed or to be performed.
      5. Such a statement must be filed in advance of receiving the compensation and is subject to receiving the approval of at least the Office of the Attorney General, the University President, and the Employee’s immediate supervisor.
  8. Disclosure and Review Process
    1. Employees shall disclose (and update with changes as they occur) all Conflicts of Interest and through a Conflict Management Plan manage or eliminate Conflicts of Interest. The Disclosure and Review Process is outlined in the University’s Conflict of Interest Guide document. Employees and supervisors are required to be familiar with the Disclosure and Review Process and complete it to the best of their knowledge. When in doubt, it is strongly recommended that an employee disclose a potential conflict. All Employees should engage in the process with an aim towards transparency, while Supervisors should engage in the process with an aim towards allowing the most opportunities for Outside Activities while protecting time devoted to, commitment to, and resources of the University.
    2. Conflict Management Plan Requirements
      1. An Employee’s Conflict Management Plan must be approved by their supervising AVP-level administrator (or equivalent).
        1. An immediate supervisor or AVP-level administrator may, in order to make a more informed decision, request input and perspective from the Review Group or a Review Group member on a Conflict of Interest Management Plan or disclosure.
      2. If a Conflict Management Plan is approved, the supervisor shall visit at least annually with the Employee with an aim of ensuring that the Conflict Management Plan is complete and adequate.
    3. The Office of Enterprise Risk Management, Compliance and Safety Designee Responsibility. The University office designated as responsible for University compliance coordination shall maintain responsibility for the administration of the processes set out in this Policy, reminders about annual Disclosure and Review Process deadlines, and tracking completion of disclosure forms and Conflict Management Plans, when applicable. The Compliance designee may inform supervisors of any Employees that have not completed the Disclosure and Review Process, but immediate supervisors remain responsible for monitoring and ensuring timely completion of disclosure forms and Conflict Management Plans by Employees under their supervision.
    4. Human Resources Responsibility. Human Resources is responsible for providing Employees disclosure forms at the start of a new position or new employment with the University, and coordinating with the Compliance designee for maintenance of those disclosure forms and any related documentation.
  9. Training Responsibility. Human Resources, in coordination with the Compliance and Provost’s designees, is responsible for notifying and training Employees and supervisors on their obligations under this Policy.
  10. Confidentiality. Unless otherwise required by applicable law, all records and information provided by an Employee for the purpose of disclosure and management of a conflict shall be considered private and/or protected records under Government Records Access and Management Act (GRAMA) will be used only as necessary to administer University policy, and may not be used for any other purpose unless required by lawful court or government agency order or other law.
  11. Violations by Employees. Supervisors shall address violations of this Policy with Employees who report to them, including but not limited to, failing to complete the disclosure form when required as mandated by state law, consistent with prudent supervisor-Employee professional development and when necessary, applicable disciplinary policies. Violations of this policy may result in disciplinary action under University Policy. See SUU Policy 6.28 and SUU Policy 8.4.
  12. No Additional Rights. This Policy is implemented to govern University requirements for its Employees and Trustees related to Conflicts of Interest and relevant state ethics laws. It is not intended to and does not create any additional rights or contractual obligations for the benefit of Employees, Trustees, or other third parties.

V. RELEVANT FORMS/LINKS

VI. QUESTIONS/RESPONSIBLE OFFICE

The responsible office for this Policy is the Vice President for Finance. For questions about this Policy, contact the Provost’s Office for matters related to faculty, research, and/or intellectual property. Contact Human Resources; Office of Sponsored Programs, Agreements, Research, and Contracts (SPARC); Office of Enterprise Risk Management, Compliance, and Safety; or the Purchasing Office with other questions as applicable to their responsibilities listed under this Policy.

VII. POLICY ADOPTION AND AMENDMENT DATES

Date Approved: November 29, 2001

Amended: July 1, 2024 (temporary authorization); March 28, 2025