Officer Disclosure of Interests
Sets forth university requirements for the submission and review of an annual disclosure of outside financial interests and activities by officers and other employees designated by officers.
This policy implements Regent Policy 3-B, Conflict of Interest--University Staff, which requires all officers to submit an annual disclosure of outside financial interests and activities to be reviewed for possible conflicts of interest. The purpose of the policy is to identify all outside interests (not just conflict of interests) in order to:
- determine all potential conflict of interestsConflict of InterestSituations defined in the Administrative Policy Statement Conflict of Interest Policy in which financial or other personal considerations may compromise, or have the appearance of compromising, an employee's professional judgment in administration, management, instruction, research and other professional activities. This includes situations in which an employee might derive private gain due to her/his association with the University. have been properly mitigated;
- fulfill the university’s obligation to disclose related party transactions under Generally Accepted Accounting Principles (GAAP); and
- fulfill the university’s obligation to include certain organizations in the university’s financial reporting entityFinancial Reporting EntityAs defined by generally accepted accounting principles, the University plus all organizations that meet the following criteria: 1. organizations for which the University is financially accountable (equivalent to control by the University as an entity or its Regents or Officers); 2. a legally separate, tax-exempt organization: whose economic resources are entirely or almost entirely for the direct benefit of the University's financial reporting entity or its constituents, where the University has the ability to access (broader than control and is demonstrated by the ability not the occurrence in a given year) a majority of its economic resources, and such economic resources are Material to the University; 3. organizations for which the nature and significance is such that exclusion would be misleading to the University's financial statements; or 4. organizations closely related to or financially integrated with the University as exhibited through policies, practices or organizational documents of either entity. under GAAP.
The responsibility to report annually under this policy does not relieve officers of their obligation on a prospective basis to identify, seek guidance and mitigate conflicts of interest as they arise.
II. Policy Statement
- University Controller Responsibility
The University Controller shall establish officer disclosure requirements, which at a minimum shall include the information specified in Section II.B. The campuses may identify additional disclosure requirements at their discretion.
The University Controller shall also develop an officer disclosure form and submission process for system officers, which the campuses may choose to adopt pursuant to Section II.C.
- Officer Responsibility
Consistent with the University Controller’s disclosure requirements, all officers must disclose annually the following types of information in any case where associated compensation exceeds $5,000:
- outside employment;
- outside professional association, nonprofit or business board service;
- outside financial interests (but excluding the value of managed investment accounts);
- immediate family membersImmediate Family MembersImmediate family is a spouse, SGDP, civil union partner or dependent child.’ professional services to the university; and
- other interests related to the university.
As part of the annual disclosure process, officers must also disclose in good faith any other outside interest or activity which may give rise to a perceived conflict of interestConflict of InterestSituations defined in the Administrative Policy Statement Conflict of Interest Policy in which financial or other personal considerations may compromise, or have the appearance of compromising, an employee's professional judgment in administration, management, instruction, research and other professional activities. This includes situations in which an employee might derive private gain due to her/his association with the University., regardless of dollar amount.
Disclosures that do not involve doing business with the university or competing with the university are considered to be confidential personnel matters. Disclosures that involve doing business with the university or competing with the university are considered to be matters of public record. The disclosure of outside financial interests and activities is deemed to be included in the personnel file of the individual who submitted it.
- Campus Responsibilities
Each campus is responsible for:
- determining whether or not to expand the disclosure population to employees beyond the officer level based upon fiscal roleFiscal RoleThe categorization of Employees to indicate their fiscal responsibilities to the University as defined in Administrative Policy Statement Fiscal Roles and Responsibilities. Categories include Officers, Fiscal Principals, Fiscal Managers and Fiscal Staff. and level of fiscal authority;
- designing its own online disclosure form, submission process and timeframe should the campus determine any of these are more appropriate than the system form, process and/or timeframe;
- developing a process to review disclosure statements after they have been submitted, including (at minimum) a review of all employee disclosures by the respective personnel appointing authorityPersonnel Appointing AuthorityA University Employee with delegated authority for personnel matters, such as appointments, terminations, title changes, salaries, leave approvals, evaluations, and acceptance of resignations and retirements.;
- designating a campus coordinator to oversee and monitor compliance with the disclosure; and,
- determining the appropriate action to take when an officer, or other designated individual, fails to submit the disclosure report.
Specifically, the designated campus coordinator is responsible for:
- providing the University Controller with all information received through the disclosure process that will impact the university’s financial statements; and,
- sharing with the University Controller information included in any disclosure statement that meets the definition of related party transaction so that a determination can be made as to whether or not the information should be disclosed in the university’s annual financial statements in accordance with Generally Accepted Accounting Principles (GAAP).
III. Procedures, Forms, Guidelines and Resources
- Related Administrative Policy Statements (APS)
- Related Forms
Disclosure forms are online. Each campus may have its own unique form.
Italicized terms used in this Administrative Policy Statement are defined in the Policy Glossary of Terms.
- Revised: July 1, 2015 to identify a materialityMaterial/MaterialityA measurement or threshold to gauge the significance of a fiscal transaction. Determining materiality often involves the reasonable person test; there are two ways to gauge this question: 1. By quantity: In the University, items that are in excess of $200,000 or in excess of 5% of the revenue or expense base (whichever is less) are always considered material. 2. By quality: No matter what the amount, an item is material if the misstatement or omission makes it probable that the judgment of a reasonable person, who was relying on the information to make a decision or to take an action, would be changed or influenced. threshold per change in underlying Regent Policy 3.B.
- Revised: January 17, 2013 to include information from the rescinded Finance Procedural Statement Officer Disclosure of Interests and to update links to campus forms
- Revised: December 1, 2007
- New as of June 30, 2005
VI. Key Words
Officer, disclose, disclosure, interests, financial, outside, activities