9.03 Management of Conflicts of Interest in Projects with External Funding
In response to recently adopted regulations by NSF and NIH, all universities
and colleges must adopt a policy on Conflict of Interest in order to remain
eligible to apply for NSF or NIH funds, as well as other federally funded
grants and contracts.
The University of Northern Iowa requires investigators on proposals to all
external agencies, public or private, to disclose to the University, prior
to submittal of the proposal, any significant financial interest (including
those of spouse and dependent children) that would reasonably appear to
be affected by the project. Such a disclosure is facilitated by a question
on the University's Request for External Funds form. If there is a potential
or actual conflict of interest, the University's Financial Disclosure Form
must be completed by the investigator(s).
The University of Northern Iowa and its employees have interacted with government
bodies, private companies and individuals external to the institution. As
interest grows in stimulating technology transfer and encouraging economic
development, the number and types of external relationships will grow correspondingly.
The University of Northern Iowa's increasing interactions with non-university
entities raises for faculty and staff members a variety of issues and concerns.
Central to these is ensuring that all parties to an agreement are fully
aware of any personal or contractual relationships that might have relevance
to or compete with a particular project.
I. DEFINITION OF CONFLICT OF INTEREST
A conflict of interest may take various forms but arises when a faculty
or staff member is or may be in a position to influence the university's
business, research, or other decisions in ways that could lead to any form
of personal gain for the faculty or staff member or others closely associated
with that university employee.
II. PURPOSE OF POLICY
This policy provides a mechanism for:
1. identifying conflicting non-university relationships
2. informing those with a need to know about conflicting relationships through
disclosure
3. taking remedial steps to protect the interests of all concerned
III. REQUIRED DISCLOSURES
Investigators must disclose to the University of Northern Iowa all significant
financial interests:
1. that would reasonably appear to be affected by the research or educational
activities funded or proposed for funding; and
2. in entities whose financial interests would reasonably appear to be affected
by such activities
A significant financial interest means anything of monetary value, including
but not limited to salary or other payments for services (e.g., consulting
fees or honoraria), equity interests (e.g., stocks, stock options, or other
ownership interests); and intellectual property rights (e.g., patents, copyrights,
and royalties). "Investigator" means the principal investigator,
co-principal investigator, and any other person at the University of Northern
Iowa who is responsible for the design, conduct, or reporting of the research
or educational activities funded or proposed for funding. A significant
financial interest includes the aggregate interest for the investigator,
the investigator's spouse, and dependent children.
Investigators are required to update these financial disclosures during
the time in which the proposal is pending and during the period of an award,
on an annual basis or as new reportable significant financial interests
are obtained.
IV. EXEMPTED FROM DISCLOSURE
Investigators need not disclose:
1. salary, royalties, or other remuneration from the University of Northern
Iowa;
2. ownership interest in a business enterprise which is an applicant under
Phase One of the Small Business Innovation Research or Small Business Technology
Transfer programs,
3. income from lectures or teaching engagements sponsored by public or non-profit
entities;
4. income from service on advisory committees or review panels for public
or non-profit entities,
5. equity interests in business enterprises or entities if the value of
such interests is both under $10,000 and less than five percent of the enterprise
or entity (when aggregated for the investigator, the investigator's spouse
and dependent children); and
6. salary, royalties or other payments that when aggregated for the investigator
and the investigator's spouse and dependent children over the next twelve
months, are not expected to exceed $10,000.
V. ASSESSMENT OF POTENTIAL CONFLICTS
A faculty or staff member's consulting relationship with, equity interest
in, or a management role within a non-university entity does not necessarily
constitute a conflict of interest. A potential conflict may arise, however,
when such relationships interfere or compete with one another or with an
employee's relationship to the university. Because of the variety of possible
combinations and complexities, it is not feasible to describe all potentially
conflicting situations. Therefore, the following are to be viewed only as
examples of relationships that may require disclosure.
Consulting Activity. A potential for conflict arises when an individual
seeks or is awarded a grant or contract for sponsored research through the
same entity for which paid consulting is being or has been done. Similarly,
if one person is serving as a consultant for two or more clients who are
themselves in competing or conflicting relationships, then the potential
for a conflict of interest does exist.
Equity Interest. As with consulting, the existence of an equity interest
does not alone constitute a conflict of interest. But if an employee with
such an interest is asked to consult for or is provided research funding
from that company or one of its competitors, then the potential for a conflict
of interest does exist.
Management Role. If the management role is directly related to research,
marketing, or other activities either for the university or for a competing
company, then the potential for a conflict of interest does exist.
Multiple Interests or Roles. An individual faculty or staff member may simultaneously
become involved in consulting relationships, have equity holdings, and serve
as an officer in one or more companies. Each of these relationships may
well be independent of all the others and no conflict among them may exist.
The independence or interdependence of such relationships may be difficult
to assess, however, unless the individual fully discloses the nature and
extent of the relationships.
VI. DISCLOSURE AND CONFLICT OF INTEREST PLAN
All parties participating in relationships involving university employees
and non-university entities should be fully aware of the nature of those
relationships if a potential for conflict exists. It is the responsibility
of the individual who has entered into potentially conflicting relationships
to file the University's Financial Disclosure Form with his or her department
head or immediate supervisor in order to disclose the nature and degree
of such relationships.
Investigators on proposals to all external agencies, public and private,
should respond to the question on the University's Request for External
Funds form as to whether a potential conflict of interest exists. If the
investigator indicates on the University's Request for External Funds form
that a potential conflict of interest exists, then he or she must complete
the Universities Financial Disclosure Form. Plans for resolving conflicts
of interest should be reported on the University's form for Conflict of
Interest Plan. The grantees may apply for and receive awards but may not
spend any funds from the granting agency prior to the resolution of conflicts.
VII. TIMING OF THE DISCLOSURE
Disclosures should be made as early as possible to enable those reviewing
them to consider what action, if any, needs to be taken regarding any potential
conflicts of interest. At the latest, a disclosure statement must accompany
the submission of a contract or grant proposal when it is submitted to a
department head for his or her approval
A conflict of interest does not have to be resolved prior to the submission
or awarding of a grant or contract, but the conflict of interest must be
resolved by the investigator's (s') compliance with all restrictions specified
in the University's Conflict of Interest Plan to manage, reduce, or eliminate
actual or potential conflicts of interest BEFORE SPENDING ANY FUNDS from
the granting agency.
VIII. REVIEW OF DISCLOSURES
The designated official(s) must: Review all financial disclosures; and determine
whether a conflict of interest exists and, if so, determine what actions
should be taken by the institution to manage, reduce, or eliminate such
conflicts of interest. It is expected that most disclosures will be reviewed
and acted on at the departmental level. If, however, the department head
is unable or unwilling to deal with the actual or potential conflict of
interest that a disclosure reveals, then the department head should forward
the disclosure to the appropriate college dean. If the college dean is unable
or unwilling to deal with the potential conflict of interest that a disclosure
reveals, then the college dean should forward the disclosure to the Provost.
Disclosure at each of the three levels is described below.
Departmental Level. A department head is responsible for reviewing any disclosures
made. If, in his or her opinion no potential or actual conflict of interest
exists, further review is unnecessary. Where a potential or actual conflict
exists, the department head must decide if it is serious enough to require
intervention to satisfactorily manage, reduce, or eliminate the conflict
of interest. At this level, the department head is responsible for proposing
the conditions and restrictions as well as the plan for handling conflict
of interest on the University's form for the Conflict of Interest Plan.
A department head may choose to rely on the advice of a departmental ad
hoc peer review committee to assist in the evaluation. Information contained
in a disclosure statement accompanying a proposal shall remain confidential
to the extent allowed by law. If a contract or grant is awarded, however,
any relevant disclosures shall be made public and the contracting or granting
entity shall be informed. For employees not affiliated with an academic
department, the immediate supervisor serves in place of a department head
as the reviewer of disclosures.
College Level. If a department head is unable or unwilling to deal with
the actual or potential conflicts of interest that a disclosure reveals,
then he or she should forward the disclosure to the appropriate college
dean for review. As in the case of departmental review, if a dean believes
that no conflict of interest exists, further review is unnecessary. Where
a potential or actual conflict exists, the dean must decide if it is serious
enough to require intervention to satisfactorily manage reduce, or eliminate
the conflict of interest. At this level, the dean is responsible for proposing
the conditions or restrictions as well as the plan for handling conflict
of interest on the University's form for the Conflict of Interest Plan.
A dean may choose to rely on the advice of a college-constituted committee
in reviewing disclosures. For employees not affiliated with an academic
department, the immediate supervisor may forward disclosures to the administrator
to whom he or she reports.
University Level. If a dean or other administrator is unable or unwilling
to deal with the actual or potential conflicts of interest that a disclosure
reveals, then he or she should forward the disclosure to the Provost for
review. The Provost may seek advice from a university committee constituted
for that purpose to determine whether a conflict of interest exists and
is serious enough to require intervention to satisfactorily manage, reduce,
or eliminate the conflict of interest. At this level, the Provost is responsible
for proposing the conditions and restrictions as well as the plan for handling
conflict of interest on the University's form for Conflict of Interest Plan.
For employees not affiliated with an academic unit, the vice president to
whom their unit ultimately reports rather than the Provost is responsible
for review at this level.
Appeal. If a faculty or staff member disagrees with a decision made at the
departmental or college level, he or she can request that the disclosure
be referred for review to the next higher administrative level as described
above.
IX. ENFORCEMENT OF POLICY
As noted above, disclosure is the responsibility of the faculty or staff
member who becomes involved in activities that may be in conflict. Failure
to disclose those relationships is a serious matter which may, in certain
instances, be considered an act of academic misconduct. Consequently, an
allegation of a failure to fully disclose a potential conflict of interest
should bebrought to the attention of the Vice President and Provost and
to the University's Grants and Contracts Officer. The Provost will handle
the matter in accordance with the University of Northern Iowa's Policies
and Procedures on Uniform Rules of Personal Conduct. Employees who are not
faculty members may be subject to the conduct policies applicable to their
employment classification.
X. NOTIFICATION OF FUNDING AGENCY
The Grants and Contracts Officer for the University of Northern Iowa will
promptly notify the funding agency if the University finds that it is unable
to satisfactorily manage, reduce, or eliminate an actual or potential conflict
of interest situation within a funded project.
XI. RECORDS
In accord with federal regulations, the University of Northern Iowa will
maintain records of all financial disclosures and of all actions taken to
resolve actual or potential conflicts of interest until at least three (3)
years after the termination or completion of the grant to which they relate,
or the resolution of any civil, government, or university action involving
those records.
Graduate Council Approved, 9/14/95
President's Cabinet Approved, 9/18/95
UNIVERSITY OF NORTHERN IOWA FINANCIAL DISCLOSURE FORM
NAME________________________________________ DATE____________________
DEPARTMENT__________________________________________________________
The University of Northern Iowa requires investigators on proposals to
all external agencies, public and private, to disclose to the University,
prior to submittal of the proposal, any significant financial interest
(including those of spouse and dependent children) that would reasonably
appear to be affected by the project. Please see the University of Northern
Iowa's Conflict of Interest policy for the complete statement of policy.
REQUIRED DISCLOSURES
Investigators must disclose to the University of Northern Iowa all significant
financial interests:
1. that would reasonably appear to be affected by the research or educational
activities funded or proposed for funding,
2. in entities whose financial interest would reasonably appear to be affected
by such activities.
EXEMPTED FROM DISCLOSURE
Investigators need not disclose:
1. salary, royalties, or other remuneration from the University of Northern
Iowa.
2. ownership interest in a business enterprise which is an applicant under
Phase I of the Small Business Innovation Research or Small Business Technology
Transfer programs;
3. income from lectures or teaching engagements sponsored by public or nonprofit
entities;
4. income from service on advisory committees or review panels for public
or nonprofit entities;
5. equity interests in business enterprises or entities if the value of
such interests is both under $10,000 and less than 5% of ownership interest,
for any one enterprise or entity when aggregated for the investigator and
the investigator's spouse and dependent children.
6. salary, royalties or other payments that when aggregated for the Investigator
and the investigator's spouse and dependent children over the next twelve
months, are not to exceed $10,000.
DISCLOSURE
Please describe in the space below the financial interest which might reasonably
appear to be affected by funding of the project. Use an additional page
if necessary.
Investigators are required to update these financial disclosures during
the time in which the proposal is pending and during the period of an award,
on an annual basis or as new reportable significant financial interests
are obtained.
The above is an accurate and current statement of all my financial interests
which might be directly and significantly affected by the proposed project.
I have read and understand the University of Northern Iowa's Conflict of
Interest Policy.
Signature_____________________________________Date______________________
CONFLICT OF INTEREST PLAN
EXAMPLES
Conditions or restrictions that might be imposed to manage, reduce, or eliminate
actual or potential conflicts of interest include, but are not limited to:
* public disclosure of significant financial interests;
* monitoring of project by independent reviewers;
* modification of the project plan;
* disqualification from participation in the portion of the funded project
that would be affected by the significant financial interests;
* divestiture of significant financial interests; or
* severance of relationships that create actual or potential conflicts.
PLAN FOR HANDLING CONFLICT OF INTEREST
Please describe in the space below the plan for handling the conflict of
interest.
I approve the above plan for handling the conflict of interest and will
comply with any conditions and restrictions imposed by the institution to
manage, reduce, or eliminate conflicts of interest.
Principal Investigator(s)________________________________Date_______________
___________________________________________________Date_______________
We approve the above plan for handling the conflict of interest identified
by the principal investigator(s).
Department Chair_____________________________________Date_______________
Dean_______________________________________________Date_______________
Division Vice President________________________________Date_______________
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