Conflict of Interest
University faculty and staff are subject to a variety of conflict of interest laws, regulations, and requirements depending on their official duties for the University and external financial relationships. University faculty and staff are subject to a variety of conflict of interest laws, regulations, and requirements depending on their official duties for the University and external financial relationships.
What is Conflict of Interest?
A conflict of interest is defined in University policy as the "real or apparent interference of one person's interest with the interest of another person, where potential bias may occur due to prior or existing personal or professional relationships."
From an organizational perspective, this includes situations where a person is in a position to derive personal benefit from actions or decisions made in their official University capacity.
What are your Conflict of Interest responsibilities as a UVA employee?
The primary responsibility is on the individual employee to know, understand, and fulfill their personal compliance obligations concerning conflicts of interest.
As public employees, University employees are charged with stewardship of public funds; therefore, it is our responsibility to appropriately identify and manage both real and apparent conflicts of interest in order to preserve the public trust.
The University's role under Commonwealth laws and regulations is principally to provide mechanisms by which employees may make appropriate disclosures and establish clear procedures for review, approval/disapproval, and reporting of certain types of conflicts to the Commonwealth. University policy FIN-054: Employee Obligation to Report Potential Conflicts of Interest provides references to the various requirements and resources.
If you determine that you need to disclose a procurement- or vendor-related personal interest, complete the Disclosure Statement and submit it as directed on the form. For further guidance on whether or how to properly file the Disclosure Statement, please contact AskFinance@virginia.edu.
Procurement- or Vendor-Related Conflict of Interest
The following are examples of common situations in which you, as a University employee, should determine your obligations to either disclose and/or recuse yourself from participation in procurement activities:
- If you have purchasing authority for the University (e.g., vendor selection, negotiation or payment authorization) and want to contract with a business in which you or an immediate family member holds a financial interest (e.g., ownership and/or equity).
- If your spouse or other immediate family member contracts to provide consulting services to the University.
While the situations listed above indicate a need for further evaluation, the underlying action may not be prohibited due to various value-based ($) thresholds and exceptions described in the underlying requirements.
Gifts to Individuals
Commonwealth conflict of interest rules often also prohibit the solicitation, offer, and acceptance of gifts. While University policy FIN-054: Employee Obligation to Report Potential Conflicts of Interest addresses disclosure requirements, FIN-019: Acceptance of Gifts and Special Benefits from Vendors details University expectations regarding the solicitation and acceptance of gifts from vendors. The following are examples of common scenarios that, if accepted, could constitute a prohibited gift:
- If a supplier offers to give a University employee a benefit (e.g., a certificate for free attendance at a future professional development course) in exchange for getting a certain number of other University employees to attend as paid registrants.
- If a local restaurant offers a University employee a gift certificate for a dinner for two as a thank-you gift for arranging to hold their department Holiday party at the restaurant.
- If a University employee is travelling to a current or potential supplier's facility on approved business travel (e.g., to inspect a medical device the University is considering purchasing) and the supplier offers to pay for the employee's spouse to accompany them on the trip.
Gifts that are allowable may still be subject to a disclosure requirement. As with potential conflicts of interest, it is the employee's responsibility to assess each situation and determine their responsibilities.
Notice
This website provides general information, references, and resources to assist you in meeting your personal obligations to comply with conflict of interest requirements as they related to procurement activities; it is not intended as legal advice and should not be construed as such. Any questions regarding interpretation and application of laws and regulations should be directed to the responsible federal or state government office.
Frequently Asked Questions
What types of activities might create a conflict of interest?
A potential or real conflict of interest can arise from various activities, such as:- Accepting Gifts: receiving gifts, favors, or anything of value from a vendor, contractor, or other party that does business with the University.
- Outside Employment: holding an employment or consulting role with an external party, particularly one that has or seeks a business relationship with the University.
- Family Employment: overseeing or influencing the University’s relationship with an external party at which an immediate family member is employed or has a significant financial interest.
- Research Interests: having a financial interest in a company that benefits from or sponsors research activities conducted by the University.
What steps should I take if a conflict of interest is identified?
Depending on the situation, you may need to:- Disclose the conflict to your supervisor and/or the appropriate office within the University.
- Obtain approval from the University before proceeding with any related activities.
- Recuse yourself from decision-making processes that could be influenced by the conflict.
How frequently should I be completing my Conflict of Interest disclosure form?
Annually, for as long as the potential conflict exists.What are the consequences of not disclosing a conflict of interest?
Failure to disclose a conflict of interest can result in significant penalties, including:- Legal action, such as fines or criminal charges.
- Disciplinary action by the University, up to and including termination.
- Loss of trust and damage to professional reputation.
Where might I seek guidance if I’m unsure about a potential conflict?
For a broad overview of the variety of conflict of interest requirements that apply to University employees, you can visit the UVA Compliance Office COI webpage. Or for more specific questions, you can contact the relevant office:- Statement of Economic Interests – UVA Human Resources or AskHR@virginia.edu
- Procurement- or Vendor-Related Conflicts – Procurement and Supplier Diversity Services or AskFinance@virginia.edu
- Research Conflicts – Research COI Committee or AskResearch@virginia.edu
Which laws and regulations am I personally responsible for understanding and following?
University Policy FIN-054: Employee Obligation to Report Potential Conflicts of Interest contains links to the key laws, regulations and resources available to assist you in determining the regulations that are applicable to your situation.
Please note that the thresholds, exceptions, and definitions for key terms are not consistent among the various requirements. Just because one set of requirements allows (or does not explicitly prohibit) an action does not mean that it will be allowable under the others. For example, “immediate family” is defined differently in the State and Local Government Conflict of Interests Act than it is in the Virginia Public Procurement Act, Ethics in Public Contracting.
| State and Local Government Conflict of Interests Act | Virginia Public Procurement Act |
Definition | "Immediate family" includes a spouse and any other person who resides in the same household as the employee and is a dependent of the employee. | "Immediate family" means a spouse, children, parents, brothers and sisters, and any other person living in the same household as the employee. |
Applicability | This definition is primarily used when addressing conflicts of interest related to the ethical conduct of public officers and employees in general.
It applies when determining whether an employee's personal interests (or those of their immediate family) might conflict with their official duties. | This definition is relevant when the conflict of interest involves procurement activities.
It applies when an employee or their immediate family has a financial interest in a procurement transaction, which could influence the employee’s official responsibilities related to that transaction. |