The information presented in these slides including any ... of Interest Seminar.pdf · The...

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The information presented in these slides including any opinions, findings, and conclusions or recommendations are the expressed views and opinions of Karen Wilson as the NOAO Chief Compliance Officer and as a compliance representative of the Association of Universities for Research in Astronomy (AURA) and do not necessarily reflect the views of the National Science Foundation (NSF).

  Reason for Conflict of Interest (COI) Policy   Definition of Conflict of Interest   AURA Employee Responsibilities   Types of Possible Conflicts   Procurement Ethics and Conflict of Interest   On-line Conflict of Interest Form and Website   Management of Possible Conflicts   Scenarios   Question and Answer Session

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  Required by Federal Agency Regulation for NSF Centers - NSF Section 510 of the NSF Grants Policy Manual

  And 2 Code of Federal Regulation (CFR) 215 – Office of Management and Budget (OMB) Circular A110

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  It is critical to the mission and reputation of AURA, AURA Centers and it’s affiliates, to maintain the public's trust, that the operations and management, research, outreach, and other activities are not compromised, or perceived as biased by financial and business considerations.

  The AURA Conflict of Interest policy was established to provide an oversight process to manage, reduce or eliminate institutional and individual employee conflicts of interest.

  The AURA Policy - Professional Conduct and Business Ethics for Procurements

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  A COI policy is established to provide appropriate institutional safeguards…

  to create a climate in which AURA Center operations, management, procurement, sponsored projects, research, and technology transfer are carried out responsibly…

  and in so doing foster an atmosphere of openness and integrity.

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  Employees may become involved in situations where their job functions are conflicted by, or perceived to be in conflict by, the opportunity for personal gain.

  Senior Managers/Leadership and supervisors may find that its professional judgments with respect to its operational, scientific and public obligations may be affected by entrepreneurial and financial aspirations.

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  AURA has the responsibility to ensure public stewardship and use of such funds and those related activities including research, observatory operations, community participation and public education and outreach.

  The public community should be confident that such activities remain unencumbered by potential conflicts of interest that might affect the sound judgment of all staff.

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  In addition, because of its numerous and complex relationships with public and private entities, the AURA Centers must be aware of any staff or institutional relationships involving financial gain that may compromise or may appear to compromise its integrity.

  The appearance of a conflict may be as serious and potentially damaging as an actual distortion of processes or outcomes.

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  A possible conflict of interest exists when an individual has an external interest or affiliation that affects or provides an incentive to affect the individual's conduct of her or his AURA duties and/or research activities.

  Possible conflicts of interest can arise naturally from an individual's engagement with the world outside AURA, and the existence of a conflict of interest does not necessarily imply wrongdoing on anyone's part.

When possible conflicts of interest do arise, however, they must be recognized, disclosed, and either properly managed or eliminated.

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  All full-time employees are required to give AURA their primary professional loyalty and to arrange their financial interests and other non-AURA activities so as not to conflict or interfere with their commitment to AURA.

  All employees must be aware as to the possible effects of their non-AURA activities on the objectivity of their decisions, on the fulfillment of their job obligations and discharge of the organization’s responsibility to the general public.

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  Employees should refrain from engaging in any non-AURA activities that interfere with the proper discharge of their AURA duties, nor should they engage in business, accept employment outside of AURA, or otherwise engage in any non-institutional activity when such business, employment, or activity creates a conflict of interest or a conflict of commitment as defined in AURA and AURA Center specific policy.

  Staff must, in a timely manner, make full disclosure of relevant information on potential conflicts of commitment and/or interest via the Conflict of Interest Disclosure Form.

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  Each center will designate a Conflict of Interest Officer.

 AURA provides business services for NOAO, NSO, ATST, LSST, WIYN and SOAR

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  The family of an AURA employee includes his or her spouse, significant partners, parents, siblings, children or other blood relatives or extended families of those who reside in their household. This also may include cultural family relationships such as “hanni” in Hawaii and “compadres” in Chile.

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  Any individuals holding any executive position or membership on a board regardless of compensation.

  Holding any ownership interests, or administrative interest or influence which may effect decision making of the company.

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  Anything of monetary value where the value equals or exceeds: ◦  an aggregated equity interest in a business representing

ownership of five percent (regardless of worth) or a value of $10,000. (CHP$ 5,000,000.*) as determined through reference to public prices or other reasonable measures of fair market value;

◦  an aggregated annual income of all types from a business of $10,000 (CHP$ 5,000,000.*) over the next 12 months; or

◦  a commitment for future royalties from a business beyond the next 12 months that are expected to be $10,000 (CHP$ 5,000,000.*) in aggregated annual income

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*Based on CHP$ 500/US$ 1.00

  Salary, royalties or other remuneration from AURA;

  Income from seminars, lectures, or teaching engagements sponsored by public or nonprofit entities;

  Income from service on advisory committees or review panels for public or nonprofit entities;

  An equity interest that, when aggregated for the employee and the employee’s spouse and dependent children, meets both of the following tests: does not exceed $10,000 (CHP$ 5,000,000.) in value as determined through reference to public prices or other reasonable measures of fair market value, and does not represent more than a 5% ownership interest in any single entity; or

  Salary, royalties or other payments that, when aggregated for the employee and the employee’s spouse and dependent children, are not expected to exceed $10,000 (CHP$ 5,000,000.) during the twelve month period.

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*Based on CHP$ 500/US$ 1.00

  The COI Disclosure for Non-AURA Activities and Financial Interest Form or other forms developed for specific procurements or committees are the primary forms for reporting potential or actual conflicts of interest.

  New employees will be required to complete the Conflict of Interest Disclosure Form at the time of hire.

  Employees will be required to complete it at least annually and each time a new change occurs in a employee financial interest, causing a need for disclosure.

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  An updated COI Disclosure form available (Spanish/Chilean version is available)

 HR announcements for reminding employees to update annually

  Changes in the new form ◦  Reformatted to for clarity. ◦  Additional information for procurement integrity. ◦  Allows for improved web access.

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COI Home Page http://www.noao.edu/oc/coi-dfn.php

COI Disclosure Form http://www.noao.edu/oc/coi.php

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  Many employees either have positions that allow them to influence AURA decisions or procurements, or they have been entrusted with the authority to make decisions or procurements for AURA.

  A possible conflict of interest exists if an employee's position or authority may be used to influence or make decision’s that lead’s to any form of financial or personal gain for that employee or for his/her family (as described in the AURA Policies).

  Note that disclosure of information may or may not be deemed as a conflict of interest, however if an apparent conflict exists, a management plan must be reviewed and approved by the Center COI and an annual COI report may be required to be submitted by the employee.

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  The purpose of this policy is to provide written standards of conduct and business ethics guidance to AURA Center procurement personnel, agents, or assigns.

  This policy is applicable to all AURA personnel and all procurement activities.

  Avoid any conflict of interest or even the appearance of a conflict of interest in all AURA-supplier relationships.

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  Will be conducted in a manner above reproach and with complete impartiality.

Avoid any action or circumstances, such as a gratuity (a payment or gift to obtain favorable treatment or influence the award of a purchase), a kickback (a payment or gift to acknowledge receipt of an order), family and personal relationships, culturally recognized relationships (for example: compadres, hanai, significant others, domestic partners), outside business or financial interest, etc. that might conflict with the proper performance of their duties or compromise AURA’s acquisition process.

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No employee engaging in a procurement activity shall knowingly:

◦  Employees should not solicit or accept, directly or indirectly, any favor, entertainment, loan, or anything of monetary value from anyone who is seeking to obtain business from AURA.

◦  Disclose any proprietary or source selection information regarding a procurement to anyone not authorized to receive such information.

◦  At all times employees should conduct themselves in a manner that maintains trust and confidence in the integrity of AURA’s procurement process.

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A procurement official or AURA employee who wishes to discuss possible conflicts or future employment or a business opportunity with a vendor may be eligible for recusal (disqualification from participating in a particular procurement)

Recusal Procedures:   The procurement official/employee proposes in writing to disqualify himself

from the conduct of any procurement related to the competing contractor/awardee.

  The head of the procuring activity of such procurement official/agency employee approves the recusal in writing.

  Competing contractors may engage in discussions with a procurement official/employee if the procurement official/agency employee has been recused.

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  Serve on an Advisory Board (AB)   Serve on a Board of Directors (BOD)   Consulting (other than AB or BOD membership) Position in the company   Adjunct Faculty   Honoraria or royalties for books or publications   Honoraria for lectures   Stocks (excluding, mutual funds) Stock Options Partnership, warrants, or

other ownership interest Royalties for inventions (licensing revenues)   Speaking Fees or   Other In aggregate, is the total financial relationship with this company/

organization greater than $10,000 (CHP$ 5,000,000)?   Hours to be spent providing service Hours/Year

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  In research, the term conflict of interest refers especially to situations in which financial or other personal considerations may compromise, or have the appearance to comprising the principal investigator's professional judgment in conducting or reporting research.

  The bias can affect collection, analysis, interpretation of data, procurement of materials, hiring of staff and use of statistical methods.

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  Do you currently serve as a principal investigator for a funded research project of any kind?

  Do you anticipate seeking research funding from a sponsor or donor during the next twelve months?

  Do you have a role in the design, conduct or reporting of any funded research?

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  An entity related to a current or proposed research project means:

◦  Supplier of equipment, materials, or services;

◦  or business commercializing in a produce that the research is intended to evaluate or further develop;

◦  or party whose financial interests would seem to be directly and significantly affected by the research; or sponsor of your research.

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  Are you the inventor, co-inventor, or creator of intellectual property that has been licensed through AURA?

  Is this intellectual property the subject matter of or related to any sponsored research project which you are involved? If yes, please describe.

  Do you receive royalties from a sponsor of any of your research projects? If yes, please describe.

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  Where research funded by the public is involved, management of conflicts may include, but is not limited to: ◦  public disclosure of significant financial interests; monitoring of

research by independent reviewers; modification of the research plan;

◦  disqualification from participation in all or a portion of the research funded an agency;

◦  divestiture of significant financial interests;

◦  or severance of relationships that create actual or potential conflicts.

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  By submitting this form electronically you attest that all the information is correct –

  That you have read the AURA COI and Professional Conduct and Business Ethics for Procurement policies and procedures –

  That you understand them –

  That you will abide by them including updating forms when new possible conflicts may arise –

  That you will submit an annual report on the management of the conflict if required.

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  If you answered "YES" to any of the questions on the COI Disclosure form, a possible conflict of interest may exist and a proposed management plan may be needed to be submitted to your AURA Center Conflict of Interest Officer.

  Describe how you would propose to manage the conflict if it is determined to be significant.

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  Refraining from engaging in the proposed activity;

  Seeking permission from the AURA or the appointed AURA Center official (COIO) to engage in the activity if the conflict necessarily can be reduced or restructured to be compatible with the required standard for the employee to properly perform her or his responsibilities; and/or,

  Seeking approval of the activity conditioned upon the implementation of a procedure to monitor the situation.

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  Suggest a management plan on the COI disclosure form form.

  Have COI Officer review and approve. (A formal conflict resolution form may need to be completed and approved if it is complex.)

  COI Officer determines if it needs further review by the Conflict Resolution Board (CRC).

  If no review is needed, plan is implemented.

  Employee may if requested, need to submit a report annually to the COI Officer for review, including requesting renewal or final closure of the conflict of interest.

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  Define the conflict.

  Propose a management plan to eliminate the conflict.

  Must eliminate both the conflict and the appearance of a conflict.

  Copies to Supervisor, HR and Procurement if necessary depending on the situation.

  Included in the annual audit report.

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https://www.noao.edu/oc/coi.php

  Employee Number (True for all NSF Centers and AURA Corporate staff located in D.C.)

  Passwords ◦ Timesheet/ReqlessPassword for most employees

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If the COI Officer determines a review is needed by CRC:

  The CRC will review and and may re-define the management plan.

  Employee can appeal decision to AURA VP of Administration.

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  Conflict Resolution Committee (CRC) Members:

◦ COI Officer ◦ HR Manager or other HR designee ◦ AURA Center Director or Designee ◦ Ad Hoc member(s) assigned by AURA Center

Director or Large Project Manager in consultation COI Officer depending on conflict/issue

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  Employee must submit the report to annually if requested.

  The report should include a description of the activity, the management plan and how it was used to overt a conflict of interest.

  Any other requests or changes ◦  If the conflict resolution management plan will need to be

extended into the next fiscal year ◦  or is the activity no longer relevant.

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  Allegations of non-compliance must be reported to the COI Officer.

  Allegations must be in writing and shall be treated as confidential.

  Allegations must include documentation of possible non-compliance.

  If the allegation includes the COI Officer then it must be reported to the Center Director.

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  If after a preliminary review, the COI Officer determines that there is a potential violation then it shall be referred to the COI Resolution Committee (CRC).

  The individual subject to the allegation shall have an opportunity to present materials for the CRC to review.

  If the CRC finds no violation, it shall so inform the employee in writing, and provide a copy of the finding to the COI Audit File.

  If the CRC finds non-compliance with this Policy, the COI shall make a written finding including any recommendations for sanctions and send it to the employee, their supervisor, COI Officer, Employee File and the COI Audit File

  Employees may appeal any decisions in accordance with AURA policy.

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  Non-compliance may result in disciplinary action, up to and including termination from employment or removal from a committee or project and required reporting to appropriate funding agencies.

  Any determination by the CRC of non-compliance may disqualify employees from an award, committee and/or a contract/sub-award selection.

  Termination or procedures for imposing sanctions and the sanctions used shall be governed by existing AURA and Observatory Policies including those regarding grievances and/or termination.

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  Any significant problems relating to the administrative or financial aspects of an NSF award, and disclosed to or found by the COI Officer and reviewed by the CRC; will be reviewed by the AURA Vice President for Administration and notification by AURA in writing will be sent to NSF or other federal agencies as necessary.

  The NSF Office of the General Counsel will be appropriately informed in writing if AURA is not able to satisfactorily manage a conflict of interest. Any penalties that may be imposed by an external funding agency shall be deemed separate from any imposed by the AURA Center.

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  Aura Employee is involved in a large procurement and is writing the statement of work

  The Employee’s spouse owns a company that could possibly submit a proposal to AURA for the work.

  The AURA employee discusses what is needed in the statement of work with their spouse.

  Is there a conflict of interest? Can it be managed? If yes how?

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  https://www.noao.edu/oc/coi-dfn.php

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  Aura employee works on the mountain as a cook

  The same employee’s spouse works for a construction company in town who currently does a large amount of business with AURA.

  Is there a possible conflict of interest that needs to be disclosed? If yes when or how should it be disclosed?

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  A new AURA employee is filling out their COI Non AURA Activities Disclosure Form.

  The employee’s significant other’s son also works for AURA for another AURA Center

  Does this need to be disclosed? If yes when or how should it be disclosed?

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  The existence of a conflict of interest does not necessarily imply wrongdoing on anyone's part.

  The disclosure of information may or may not be deemed as a conflict of interest.

  However if an apparent conflict exists, a management plan must be reviewed and approved by the Center COI Officer and an annual COI report may be required to be submitted by the employee.

The appearance of a possible conflict may be as serious and potentially damaging.

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  The Conflict of Interest Disclosure Form or other forms developed for specific procurements or committees are the primary forms for reporting potential or actual conflicts of interest.

  Employees will be required to complete the COI Disclosure Form at least annually and each time a new change occurs in a employee financial interest, causing a need for disclosure.

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  When in doubt ask - Your friendly Conflict of Interest Officer

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Questions?