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Explanation:

The following individuals must disclose financial and business interests that could present institutional conflict of interest situations:

• department and unit heads;
• University officials;
• other individuals listed in Section II of this procedure; and
• Regents.

Because of their supervisory and institutional decision-making functions, these individuals encounter conflict of interest situations beyond those faced by most faculty and other administrators. They often 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. Their business and significant financial relationships with external entities must be disclosed to prevent any real or perceived institutional conflicts of interest.

Example of a potential conflict situation:
A department head is on the Board of Directors of a company that sponsors research. A conflict would arise if faculty in that department were conducting research funded by that sponsor.

Process for Potential Conflict Identification and Management

Section I: This section applies to:

• Department/unit heads
• Deans

1. Identify the potential conflict

   Potential conflicts of interest are identified when deans and department heads are asked to evaluate a Proposal Routing Form involving a company in which they have a significant financial or business interest. "Significant financial or business interest" is defined the same as it is in the individual conflict of interest policy ($10,000, 5% interest, or a board or executive position). Potential conflicts are also identified by employees or other individuals who are concerned about possible conflicts of interest and report the situation to University officials.

2. Disclose the potential conflict

   If deans or department heads have potential conflicts of interest, they must answer 'yes' to the associated question on the Proposal Routing Form (i.e., do you have a significant financial interest in the sponsor of this project). The EGMS system will send them an email asking them to disclose the potential conflict by updating or completing an Institutional Conflict of Interest Report (ICIR) form and forwarding the ICIR number and approval date to the Regulatory Affairs Officer. The Regulatory Affairs Officer and principal investigator will also be notified.

   Deans and department heads can approve a Proposal Routing Form even if they answer 'yes' to the institutional conflict of interest question. However, before staff in Sponsored Projects Administration set up any award, they will ensure that these individuals have completed or updated their disclosure forms (ICIRs) and all potential conflicts have been managed.

3. Review the potential conflict

   The Regulatory Affairs Officer will evaluate the risk of an institutional conflict, consulting with individuals and offices involved as necessary. For deans, copies of Annual Financial Disclosure for Senior University Officials Form (#1514) will be accessible to the Regulatory Affairs Office and used for risk evaluation.

   • If the proposed project will involve human subjects, the Regulatory Affairs Officer automatically refers the disclosure to the Institutional Conflict Review Committee.
   • If there is little risk that the arrangement can affect research, teaching, outreach or other University activity, the Regulatory Affairs Officer notifies the University official who submitted the disclosure. The disclosure will be included in a report that is submitted to the Board of Regents and shared with the Institutional Conflict Review Committee.
   • If there is a risk that the arrangement can affect or appear to affect the conduct of or reporting of research or other University activity, the Regulatory Affairs Officer refers the disclosure to the Institutional Conflict Review Committee.

4. Create a management plan, if needed.

   If a management plan is appropriate, the Institutional Conflict Review Committee will develop it.

5. Determine whether the potential conflict management plan must be approved by the Regents.

   The Regulatory Affairs Officer and the Executive Committee of the Institutional Conflict Review Committee will evaluate whether the potential conflict management plan fits the criteria for Regents' approval (it presents an unusually significant financial impact, it involves the president, it raises serious policy issues or has a significant public impact on the University's mission or reputation, or it needs their review under the Reservation and Delegation of Authority policy). If so, the President or delegate will bring the plan to them for review and action. If not, the Regulatory Affairs Officer will summarize the management plan in an annual report to the Regents.

6. Implement the management plan, if needed

   Once the Institutional Conflict Review Committee or Regents approve the management plan, the appropriate University official will implement it.

7. Oversight

   The Institutional Conflict Review Committee verifies post-approval compliance with the management plan and addresses any issues that arise. The Committee will also review reports of low-risk situations and may request inquiries into specific situations.

Section II: This section applies to:

• 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;
• senior vice presidents, vice presidents, associate vice presidents and assistant vice presidents;
• directors of the following units: Affiliated organizations (4-H, Arboretum, University Foundation), Asset Management, Compliance Office, Office of Business Development, Office of Technology Commercialization, Purchasing, and Sponsored Projects Administration;
• research directors at Crookston, Duluth, Morris, and Rochester campuses; and
• all licensing and marketing professionals in the Office of Technology Commercialization.

1. Identify and disclose the potential conflict

   Potential institutional conflicts of interest are identified when the Regulatory Affairs Officer evaluates the Annual Financial Disclosure for Senior University Officials Form.

Potential conflicts are also identified by employees or other individuals who are concerned about possible conflicts of interest and report the situation to University officials.

2. Review the potential conflict

   The Regulatory Affairs Officer reviews information disclosed by the University official and evaluates the risk of an institutional conflict. Copies of Annual Financial Disclosure for Senior University Officials Form (#1514) are accessible to the Regulatory Affairs Office and may be used for risk evaluation.

   • If there is little risk that the potential institutional conflict of interest can affect or appear to affect research, teaching, outreach or other University activities, the Regulatory Affairs Officer will respond to the University official who submitted the disclosure. The disclosure will be included in a report that is shared with the Institutional Conflict Review Committee and the Board of Regents.

   • If there is a risk that the business or financial relationship can affect or appear to affect research, teaching, outreach or other University activities, the Regulatory Affairs Officer will refer the disclosure to the Institutional Conflict Review Committee.

3. Develop a management plan, if needed.

   If a management plan is appropriate, the Institutional Conflict Review Committee will develop it, with the assistance of the senior officer's immediate supervisor. For the president, the Chair of the Board of Regents serves as the supervisor.

4. Determine whether the potential conflict management plan must be approved by the Regents

   The Regulatory Affairs Officer and the Executive Committee of the Institutional Conflict Review Committee will evaluate whether the potential conflict management plan fits the criteria for Regents' approval (it presents an unusually significant financial impact, it involves the president, it raises serious policy issues or has a significant public impact on the University's mission or reputation, or it needs their review under the Reservation and Delegation of Authority policy). If so, the President or delegate will bring the plan to the Regents for review and action. If not, the Regulatory Affairs Officer will summarize the management plan in an annual report to the Regents.

5. Implement the management plan

   Once the Institutional Conflict Review Committee or Regents approve the management plan, the appropriate University official will implement it.

6. Oversight

   The Institutional Conflict Review Committee works with the appropriate senior officer to implement conflict management decisions as needed. The committee also verifies post-approval compliance with the management plan and addresses any issues that arise. They will also review reports of low-risk situations and may request inquiries into specific situations.

Section III: This section applies to:

• Regents of the University of Minnesota.

1. Identify and disclose the potential conflict

   Regents identify their potential institutional conflicts of interest according to the Regents' policy on the Code of Ethics for Members of the Board of Regents.

   Potential conflicts may also identified by employees or other individuals who are concerned about possible conflicts of interest and report the possible conflict to the Board.

2. Disclose the potential conflict

   A Regent should disclose any potential conflict of interest to the Chair of the Board of Regents. The Regent is encouraged to consult with the General Counsel to determine whether a conflict exists under either the Code of Ethics policy or this policy.

3. Review the potential conflict and recommend a management plan, if needed.

   If a potential institutional conflict of interest develops involving the Board of Regents, the General Counsel may use the Institutional Conflict Review Committee as appropriate to advise the Regents on a plan to manage, reduce or eliminate the conflict. The chair, or an ad hoc group of Regents appointed by the chair, will decide the conflict of interest issue and report the resolution to the full Board which retains final authority on conflict questions.