Board of Trustees
[email protected]
(231) 591-2505
Conflict of Interest Policy
| Owner | Administration and Finance |
|---|---|
| Contact | [email protected] |
| Document Type | Policy |
| Issue Date | February 2020 |
| Last Review | January 2024 |
| Related Documents | Conflict of Interest Questionnaire |
Contents
- Requirements
- Definition of Related Persons
- Reporting & Investigating
- Annual Letter
- Conflict of Interest Questionnaire
It is the policy of the University that all officers and employees of the University comply with the constitution and laws of the State of Michigan pertaining to conflict of interest.
The officers and employees of the University (other than the President and the Trustees)
are subject to the
provisions of Act 317 of the Michigan Public Acts of 1968, as amended. Statutory Reference: MCL 15.321 et
seq. (1968 PA 317, as amended)
No related person, as defined below shall be a party, directly or indirectly, to any
contract between himself or
herself and the University (other than an employee’s contract of employment by the
University), nor directly or indirectly interested, as defined below, in any contract
with the University, unless the contract meets all of the following requirements.
A. Requirements
- The employee involved promptly discloses any pecuniary interest in the contract to
the Board, and the
details of such disclosure are included in the minutes. - Unless the employee will directly benefit from the contract in an amount less than
$250.00 and less than 5% of the public cost of the contract and the employee files
a sworn affidavit to that effect with the Board or the contract is for emergency repairs
or services, the disclosure required by subsection (1) shall be made in one of the
following ways:
- If the amount of the direct benefit to the employee is $5,000.00 or less, the employee
may
promptly disclose in writing to the Board Chair the employee’s pecuniary interest in the
contract at least seven (7) days prior to the public formal session at which the Board will vote
on the contract. A written disclosure made under this subsection (a) shall be made public in
the same manner as the public notice of the formal session is given. - If the amount of the direct benefit to the employee is over $5,000.00, or if the amount
of the
direct benefit to the employee is $5,000.00 or less but the employee has not complied with the
disclosure requirements of subsection (a), the employee shall disclose the pecuniary interest at
a public formal session of the Board. Any vote on the contract shall be taken at a public formal
session of the Board held at least seven (7) days after the public formal session at which
disclosure is made under this subsection (b).
- If the amount of the direct benefit to the employee is $5,000.00 or less, the employee
may
- The contract is approved by a vote of not less than two-thirds (2/3) of the Board
of Trustees then in office
in open session. - The minutes include the following information:
- The name of each party involved in the contract.
- The terms of the contract, including the following:
- the duration;
- financial consideration between parties;
- facilities or services of the University included in the contract; the nature and
degree
of assignment of employees of the University for fulfillment of the contract.
- The nature of any pecuniary interest of the employee.
B. Definition of Related Persons
The term “related person” means (a) an employee of the University (other than the President or a Trustee), or (b) a parent, spouse, sibling or child of an employee if the employee is directly or indirectly involved in soliciting, negotiating, authorizing, performing, or enforcing the contract, (c) any firm of which a related person is a partner, member, or employee; or (d) any private corporation in which a related person is a stockholder owning more than one percent (1%) of the total outstanding stock of any class where such stock is not listed on a stock exchange or stock with a present total market value in excess of Twenty-five thousand Dollars ($25,000) where such stock is listed on a stock exchange, or of which he/she is a director, officer or employee; or (e) any trust of which a related person is a beneficiary or trustee.
C. Reporting & Investigating of Possible Conflict of Interest
Persons having information concerning possible conflicts of interest must report such information to the Vice President for Administration and Finance. The Office of the Vice President for Administration and Finance and the General Counsel Office shall have the authority to investigate the circumstances surrounding any alleged conflict of interest, and if upon such investigation a conflict appears to be present, the Vice President for Administration and Finance shall report the same to the President and requests that Board action need to be taken (as outlined in the Requirements). If they are deemed not a conflict, all positive responses are still reported to the Board of Trustees as an informational item only.
D. Annual Letter Regarding Conflict of Interest
The Vice President for Administration and Finance shall advise members of the University Community of the terms of the policy by means of an annual memorandum.