REGULATIONS GOVERNING CONFLICT OF
INTEREST AND DISCLOSURE OF ECONOMIC INTERESTS WHEN FEDERAL AWARD FUNDS ARE
UTLIZED
CONFLICTS OF
INTEREST
These
regulations are intended to augment Policy BBFA Conflict of Interest &
Disclosure of Economic Interests to ensure compliance with Federal requirements
that may exceed Policy BBFA and ensure that members of the School Board and
employees avoid potential and actual conflicts of interest, as well as the
perception of a conflict of interest.
Each
employee and member of School Board shall be responsible to maintain standards
of conduct that avoid conflicts of interest. The School Board prohibits members
of the Board and employees from engaging in conduct that constitutes a conflict
of interest as outlined in this policy.
All
members of School Board and employees shall be provided with a copy of these
regulations and acknowledge in writing that they have been made aware of them.
Additional training shall be provided to designated individuals.
1. Definitions
a. Confidential Information Shall mean information not obtainable
from reviewing a public document or from making inquiry to a publicly available
source of information.
b. Conflict or Conflict of Interest Shall mean use by a member of School
Board or employee of the local government of his/her office or employment, or
any confidential information received through his/her holding public office or
employment, for the private pecuniary benefit of him/herself, a member of
his/her immediate family or a business with which s/he or a member of his/her
immediate family is associated. The term does not include an action having a de
minimis economic impact, or which affects to the same degree a class consisting
of the general public or a subclass consisting of an industry, occupation or
other group which includes the member of School Board or employee, a member of
his/her immediate family or a business with which s/he or a member of his/her
immediate family is associated.
c. Apparent Conflict of Interest Shall mean a situation in which a
reasonable person would perceive that a decision-makers (member of School
Board or employee) judgment is likely to be compromised.
d. De Minimis Economic Impact Shall mean an economic consequence
which has an insignificant effect.
e. Financial Interest Shall mean any financial interest in
a legal entity engaged in business for profit which comprises more than five
percent (5%) of the equity of the business or more than five percent (5%) of
the assets of the economic interest in indebtedness.
f. Honorarium Shall mean payment made in
recognition of published works, appearances, speeches and presentations, and
which is not intended as consideration for the value of such services which are
nonpublic occupational or professional in nature. The term does not include
tokens presented or provided which are of de minimis economic impact.
g. Immediate Family Shall mean a parent, parent-in-law,
spouse, child, spouse of a child, brother, brother-in-law, sister,
sister-in-law, or the domestic partner of a parent, child, brother or sister.
h. Business Partner Shall mean a person who, along with
another person, plays a significant role in owning, managing, or creating a
company in which both individuals have a financial interest in the company.
2. Disclosure of Financial Interests No
member of School Board shall be allowed to take the oath of office or enter or
continue upon his/her duties, nor shall s/he receive compensation from public
funds, unless s/he has filed a statement of financial interests as required by law.
3. Standards of Conduct The School Board
maintains the following standards of conduct covering conflicts of interest and
governing the actions of its employees and members of School Board engaged in
the selection, award and administration of contracts.
a. No employee or member of School Board
may participate in the selection, award or administration of a contract
supported by a Federal award if s/he has a real or apparent conflict of
interest as defined above, as well as any other circumstance in which the
employee, member of School Board, any
member of his/her immediate family, his/her business partner, or an
organization which employs or is about to employ any of them, has a financial
or other interest in or a tangible personal benefit from a firm considered for
a contract.
b. The School Board shall not enter into
any contract with a member of School Board or employee, or his/her spouse or
child, or any business in which the person or his/her spouse or child is
associated valued at $500 or more, nor in which the person or spouse or child
or business with which associated is a subcontractor unless the School Board
has determined it is in the best interests of the School Board to do so, and
the contract has been awarded through an open and public process, including
prior public notice and subsequent public disclosure of all proposals
considered and contracts awarded. In such a case, the member of School Board or
employee shall not have any supervisory or overall responsibility for the
implementation or administration of the contract.
c. When advertised formal bidding is not
required or used, an open and public process shall include at a minimum:
ท
Public
notice of the intent to contract for goods or services;
ท
A
reasonable amount of time for potential contractors to consider whether to
offer quotes; and
d. Post-award public disclosure of who made
bids or quotes and who was chosen. Any member of School Board or employee who
in the discharge of his/her official duties would be required to vote on a
matter that would result in a conflict of interest shall abstain from voting
and, prior to the vote being taken, publicly announce and disclose the nature
of his/her interest as a public record.
e. No public official or public employee
shall accept an honorarium.
f. Members of School Board and employees
may neither solicit nor accept gratuities, favors or anything of monetary value
from contractors or parties to subcontracts, unless the gift is an unsolicited
item of nominal value. Gifts of a nominal value may be accepted in accordance
with policy.
4. Improper Influence
a. No person shall offer or give to a
member of School Board, employee or nominee or candidate for the School Board,
or a member of his/her immediate family or a business with which s/he is
associated, anything of monetary value, including a gift, loan, political
contribution, reward or promise of future employment based on the offeror's or
donor's understanding that the vote, official action or judgment of the member
of School Board, employee or nominee or candidate for the School Board would be
influenced thereby.
b. No member of School Board, employee or
nominee or candidate for the School Board shall solicit or accept anything of
monetary value, including a gift, loan, political contribution, reward or
promise of future employment, based on any understanding of that member of School
Board, employee or nominee or candidate that the vote, official action or
judgment of the member of School Board, employee or nominee or candidate for
the School Board would be influenced thereby.
5. Organizational Conflicts Organizational
conflicts of interest may exist when, due to the School Boards relationship
with a subsidiary, affiliation or parent organization that is a candidate for
award of a contract in connection with Federally funded activities, the School
Board may be unable or appear to be unable to be impartial in conducting a
procurement action involving a related organization.
In the event of a potential
organizational conflict, the potential conflict shall be reviewed by the Superintendent
or designee to determine whether it is likely that the School Board would be
unable or appear to be unable to be impartial in making the award. If such likelihood
exists, this shall not disqualify the related organization; however, the
following measures shall be applied:
a. The organizational relationship shall be
disclosed as part of any notices to
potential contractors.
b. Any School Board employees or officials
directly involved in the activities of the related organization are excluded from
the selection and award process.
c. A competitive bid, quote or other basis
of valuation is considered.
d. The School Board has determined that
contracting with the related organization is in the best interests of the program involved.
6. Reporting
Any perceived conflict of interest that
is detected or suspected by any employee or third party shall be reported to
the Superintendent. If the Superintendent is the subject of the perceived
conflict of interest, the employee or third party shall report the incident to
the School Board chairperson.
Any perceived conflict of interest of a
member of School Board that is detected or suspected by any employee or third
party shall be reported to the School Board chairperson. If the School Board chairperson
is the subject of the perceived conflict of interest, the employee or third
party shall report the incident to the Superintendent.
The non-Federal entity must disclose in
writing any potential conflict of interest to the Federal awarding agency or
pass-through entity in accordance with applicable Federal awarding agency
policy.
No reprisals or retaliation shall occur
as a result of good faith reports of conflicts of interest.
7. Investigation
Investigations based on reports of
perceived violations of this policy shall comply with state and Federal laws
and regulations. No person sharing in the potential conflict of interest being
investigated shall be involved in conducting the investigation or reviewing its
results.
In the event an investigation determines
that a violation of this policy has occurred, the violation shall be reported
to the Federal awarding agency in accordance with that agencys policies.
8. Disciplinary Actions
If an investigation results in a finding
that the complaint is factual and constitutes a violation of this policy, the School
Board shall take prompt, corrective action to ensure that such conduct ceases
and will not recur. School Board staff shall document the corrective action
taken and, when not prohibited by law, inform the complainant.
Violations of this policy may result in
disciplinary action up to and including discharge, fines and possible
imprisonment. Disciplinary actions shall be consistent with School Board
policies, procedures, applicable collective bargaining agreements and state and
Federal laws.
Approved: September 16, 2019
*Policy per Robinson, Farmer, Cox
Associates (RFCA) and modified by ACPS
________________________________________________________________________________________________________________________________________________________
Cross
Ref: BBFA Conflict of Interest & Disclosure of Economic Interests