Managing Potential Institutional Conflicts of Interest

• Updated: February 2010
• Primary Contact : Lynn Zentner

The University strives to ensure that its research, teaching, outreach and other activities are not compromised or perceived as biased by financial and business considerations. To prevent these situations, procedures are in place to identify and address institutional conflicts of interest. When an institutional conflict of interest is determined, a plan will be implemented to manage, reduce, or eliminate the institutional conflict. Conflicts of Interests that meet the criteria for Regents' approval under Board of Regents Policy: Institutional Conflicts of Interest will be referred to the Regents for review and action.

Potential institutional conflicts of interest typically may arise in one of four areas:

1. when a company that has a financial or business relationship with the University also donates a gift to the University (see Administrative Procedure: Managing Potential Institutional Conflicts of Interest: Gifts);
2. when the University owns equity in a company and the company has a financial or business relationship with the University (see Administrative Procedure: Managing Potential Institutional Conflicts of Interest: Investments);
3. when the University licenses an invention to an entity that also has a financial or business relationship with the University (see Administrative Procedure: Managing Potential Institutional Conflicts of Interest: Licensing and Technology Transfer); and
4. when a vendor or potential vendor also has a financial or business relationship with the University (see Administrative Procedure: Managing Potential Institutional Conflicts of Interest: Purchasing).

 

The procedures outline processes to identify, report, and manage each type of institutional conflict of interest.

Additional safeguards are in place when the financial or business relationship involves conducting research with human subjects (see Administrative Procedure: Managing Potential Institutional Conflicts of Interest: Special Considerations for Human Subjects).

Procedures are also in place for University officials who make decisions on behalf of the institution. These individuals do not conduct research, teaching or faculty service projects in their administrative capacities but may be in a position to influence how they are conducted and reported (see Administrative Procedure: Managing Potential Institutional Conflicts of Interest: Disclosures by University Officials and Other Individuals).

Because it is critical to the mission and reputation of the University to maintain the public's trust, University research, teaching, outreach, and other activities must not be compromised or perceived as biased by financial and business considerations. In addition, because of its numerous and complex relationships with public and private entities, the University must be aware of any relationships involving financial gain that may compromise or appear to compromise its integrity. Therefore, this policy was established to provide an oversight process to manage, reduce or eliminate institutional conflicts of interest.

• Managing Potential Institutional Conflicts of Interest: Gifts
• Managing Potential Institutional Conflicts of Interest: Investments
• Managing Potential Institutional Conflicts of Interest: Licensing and Technology Transfer
• Managing Potential Institutional Conflicts of Interest: Purchasing
• Managing Potential Institutional Conflicts of Interest: Special Considerations for Human Subjects
• Managing Potential Institutional Conflicts of Interest: Disclosures by University Officials and Other Individuals

• UM 1514: Financial Disclosure for University Officials

Institutional Conflict of Interest.

A situation in which the research, teaching, outreach, or other activities of the University may be compromised because of an external financial or business relationship held at the institutional level that may bring financial gain to the institution, any of its units, or the individuals covered by this policy.

Institutional Conflict Review Committee.

A committee established by the president or delegate to evaluate potential institutional conflict of interest situations, develop, review, and assist with enforcement of management plans, review reports of low-risk situations, review information relating to post-approval implementation of conflict resolution plans, and generally serve as a resource for the Conflict of Interest Program, the General Counsel, and other members of the University community. The Committee is comprised of at least seven voting members, including senior faculty from the Twin Cities and one or more coordinate campuses, the University Auditor, Director of Intercollegiate Athletics and at least one member from the community. The Director, Office of Institutional Compliance (OIC), and a representative from the Office of the General Counsel (OGC) will serve as non-voting members of the Committee. The Executive Committee of the Institutional Conflict Review Committee is a subgroup comprised of the Chair,  the Director, OIC, the Associate Program Director, Conflict of Interest Program (COI) and a representative from the OGC.

University Official.

Persons holding the following positions, including those holding these positions in a temporary capacity :

• chancellors and vice chancellors;
• deans, associate deans and assistant deans;
• division I athletic director;
• general counsel;
• president and president's chief of staff;
• provosts, vice provosts, associate vice provosts and assistant vice provosts; and
• senior vice presidents, vice presidents, associate vice presidents and assistant vice presidents.

Principal Investigator:

Complete the conflict of interest section of the human subject research application form.

Department / Unit Head:

Review the Proposal Routing Form and answer the related conflict of interest question. Complete the institutional conflict of interest section of the Report of External and Professional Activities form.

Dean:

Review the Proposal Routing Form and answer the related conflict of interest question. Complete the institutional conflict of interest section of the Report of External and Professional Activities form.

General Counsel:

Use the Institutional Conflict Review Committee as appropriate for advising the Regents on a plan to manage, reduce or eliminate conflicts of interest related to individual Regents as defined by the Code of Ethics for Members of the Board of Regents. Advise the President or delegate on proposed conflict management plans before they are presented to the Regents for review and action.

Executive Committee - Institutional Conflict Review Committee:

Gather information to assist full committee. Evaluate risk potential and when appropriate forward potential situations to full committee.

Institutional Conflict Review Committee.

Evaluate potential institutional conflict of interest situations. Develop and review institutional conflict of interest management plans to ensure that the plans appropriately consider and address the issues. Forward management plans that meet the criteria for Regents approval to President or delegate and General Counsel for review and recommendation to Regents. Review information relating to implementation of conflict resolution plans. Determine whether post-approval implementation is proceeding appropriately and whether further action is necessary. Serve as a resource to the Conflict of Interest Program, General Counsel, and other members of the University community.

Office of Investments and Banking:

Consult with Institutional Conflict Review Committee before voting on behalf of the University on an issue involving a company in which the University holds equity.

Office of Technology Commercialization:

Generate royalty earnings report. Inform Office of Investments and Banking about companies in which the University holds equity because of a license. When preparing equity or licensing agreements, check for potential institutional conflicts of interest and forward them to the Associate Program Director, Conflict of Interest Program.

Board of Regents:

Report and resolve possible and actual conflicts of interest involving Regents as required by Board of Regents Policy: Code of Ethics for Members of the Board of Regents. Review and act on management plans involving institutional conflicts of interest as required by Board of Regents Policy: Institutional Conflict of Interest.

President (or delegate):

Review management plans that meet the criteria for Regents' approval. After consulting with the General Counsel, recommend approval, amendment or denial. Forward management plans and recommendations to Regents for final approval, amendment or denial.

Director, Office of Institutional Compliance:

Evaluate royalty earnings report. Evaluate gift reports. Receive and review applicable Proposal Routing Forms, Report of External and Professional Activities (REPAs) forms, Invention Disclosure forms, and human subjects research applications. Facilitate annual reporting of financial interests by senior administrators. Gather information to assist Institutional Conflict Review Committee with evaluation. Forward potential conflict situations involving human subjects to Institutional Conflict Review Committee. Compile reports of low-risk situations and distribute to Regents. Assist Institutional Conflict Review Committee with post-approval monitoring.

University Official:

Complete annual financial disclosure form. Comply with management plan.

Sponsored Projects Administration:

Provide information to the Conflict of Interest Program and to the Institutional Conflict Review Committee as requested. Before releasing sponsored projects funds, ensure that individuals have completed or updated their disclosure forms (REPAs) and all disclosed conflicts have been managed.

• Flowchart: Summary of Potential Institutional Conflict of Interest Management Process (PDF)

1. Who do I contact to get additional questions answered?

   The first point of contact for filers of a Financial Disclosure for University Officials (UM 1514) is the Conflict of Interest Associate Program Director, who may be reached at REPAmail@umn.edu or 612-626-4727. If you need technical assistance while completing a Financial Disclosure for University Officials (UM 1514), please call the EGMS helpline at 612-624-1600.

Policies:

• Board of Regents Policy: Code of Ethics for Members of the Board of Regents
• Board of Regents Policy: Institutional Conflict of Interest
• Board of Regents Policy: Individual Business or Financial Conflict of Interest
• Administrative Policy: Individual Conflicts of Interest
  
• Minnesota State Law - Statute 15.43, Acceptance of Advantage by State Employee

Resources:

• Association of American Universities (AAU), Report on Individual and Institutional Financial Conflict of Interest (October 2001)
• Association of American Medical Colleges (AAMC), Protecting Subjects, Preserving Trust, Promoting Progress II: Principles and Recommendations for Oversight of an Institution's Financial Interests in Human Subjects Research (October 2002)
• Council on Governmental Relations (COGR), Approaches to Developing an Institutional Conflict of Interest Policy (2002)
• HHS/PHS Office of Human Research Protections (OHRP), Financial Relationships and Interests in Research Involving Human Subjects: Guidance for Human Subject Protection (May 2004)

Amended:

Updated Administrative Procedure: Managing Potential Institutional Conflicts of Interest: Special Considerations for Human Subjects with additional language about IRB involvement in evaluation and management of conflicts.

Effective:

June 2006