Conflict of Financial Interest Policy
This policy identifies procedures and guidelines to be followed in resolving actual and potential grant applicants' conflicts of financial interests pertaining to grants and sponsored research projects funded by Federal agencies having specific conflict of interest requirements, such as the National Science Foundation and the Department of Health and Human Services.
A financial interest is defined as 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, royalties from such rights). A "significant" financial interest would exceed $10,000 in value per year (in terms of income) or would represent more than a 5% ownership in a given organization.
UW-La Crosse benefits from faculty and staff participation in grants and sponsored research projects. The University has no interest in setting forth detailed rules that may interfere with faculty and staff outside interests. However, full-time and part-time faculty must ensure that their outside financial interests, and participation in outside activities, do not conflict or interfere with their obligations to the University.
This policy specifically addresses conflicts of financial interests, situations in which grant applicants may have the opportunity to influence the University's business decisions in ways that could lead to personal gain or give improper advantage to themselves, co-applicants (anyone involved in the design, conduct and reporting of the research results), or their spouses or dependents. Such conflicts could affect the design, conduct or reporting of research results.
When the University engages in or intends to engage in a sponsored research project with a Federal agency, a significant conflict of financial interest may occur when a grant applicant's affiliation with an external organization meets any of the following criteria:
A. The grant applicant is an officer, director, partner, trustee, employee, advisory board member or agent of the organization or corporation either funding a sponsored project or providing goods and services under a sponsored project on which the applicant is participating in any capacity.
B. The grant applicant is the actual or beneficial owner of more than 5% of the voting stock or controlling interest of such organization or corporation.
C. The grant applicant has dealings with an organization or corporation from which he or she derives income of more than $10,000 per year, exclusive of dividends and interest.
D. The grant applicants’ or co-applicants' spouses or dependents (dependent children or other relatives living at the same address as the applicant or co-applicant) meet any of the criteria stated in A-C above.
University of Wisconsin-System - Outside Activities Reporting Guidelines
Each grant applicant and co-applicant participating in a sponsored project covered by this policy must disclose whether or not he or she has external affiliations that may constitute a conflict as described above. A Disclosure Form (UW-LA CROSSE DISCLOSURE STATEMENT REGARDING CONFLICTS OF FINANCIAL INTERESTS FORM) is to be completed and submitted to the appropriate Dean or Division Officer for review and signature. It should then be forwarded to the Office of Sponsored Research, Scholarly and Creative Activities at the same time a proposal is submitted for institutional approval. The form must be updated on an annual basis (on or about October 1) and whenever new financial interests are secured.
Negative Disclosures (i.e., no conflict of interest) will be filed in the Office of Sponsored Research, Scholarly and Creative Activities with no further review required.
Positive disclosures will be reviewed by an Ad Hoc Conflict of Financial Interest Committee, convened by the Provost/Vice Chancellor. The Ad Hoc Committee will consist of the Provost/Vice Chancellor or its designee, the cognizant department chair, the cognizant Dean and one faculty or academic staff member, depending on the status of the subject of the review.
The faculty or academic staff member of the Ad Hoc Committee should be appointed with the advice and consent of the appropriate governance group. The review must be completed prior to the University's acceptance of the sponsored project.
In reviewing positive disclosures, the Ad Hoc Committee will be guided by the following:
A. Assure adherence to relevant state law and University policies such as the Unclassified Staff Code of Ethics (Chapter UWS 8), including Outside Activities and Interests (UWS 8.025 and UWL 8.025, Standards of Conduct (UWS 8.023 and UWL 8.023) and Action to Avoid Possible Conflict (UWS 8.04 and UWL 8.04).
B. Consider the nature and extent of the financial interests in the relationship of the applicant, co-applicants and their spouses or dependents and the external organization.
C. Give special consideration to the terms and conditions of sponsored project agreements that may mitigate or complicate the given situation.
D. Consult with and obtain additional information from the applicant or co-applicant as either the Ad Hoc Conflict of Financial Interest Committee or the applicant or co-applicant feel may be helpful in resolving actual or potential conflicts.
E. Act in a timely manner so as not to delay unduly the conduct of a sponsored project.
F. Identify possible actions the University might take to ensure that the financial interest conflict will be appropriately managed, reduced or eliminated.
Based on the Ad Hoc Committee's recommendations, the University administration may take one of the following actions:
A. Accept the sponsored project award.
B. Not accept the sponsored project award.
C. Accept the sponsored project award subject to suitable modifications in the award document or in the applicant's, co-applicant’s, or their spouse’s or dependent’s affiliation with the external organization involved. Such modifications might include:
1. Making public disclosure of the financial interests.
2. Review of data and research results by in-house or external independent reviewers identified by the committee and the applicant(s).
3. Modification of the research plan.
4. Disqualification from participation in a portion of the research.
5. Divestiture of significant financial interests.
6. Severance of relationships that create actual or potential conflicts.
Appeals
If the grant applicant or co-applicant(s) are dissatisfied with the Ad Hoc Committee's findings, the applicant may appeal to the Chancellor, who will consult with the applicant and the Ad Hoc Committee as deemed necessary and appropriate to the particular circumstances. The decision of the Chancellor upon appeal shall be final.
Violations of this policy, such as willful concealment of financial interests or failure to comply with agreed-upon modifications to manage, reduce or eliminate financial interests may result in sanctions being imposed upon the violating individual in accordance with the appropriate UW-S and UW-L procedures.
The Office of Sponsored Research, Scholarly, and Creative Activities shall maintain records pertaining to each disclosure in accordance with the requirements of the Wisconsin Open Records Law, State Statutes 19.31 through 19.39.
Certain sponsors, particularly federal agencies, may have requirements that differ from this policy with regard to the timing and frequency of disclosures and other conflict considerations as well. In the case of such discrepancies, the sponsor's requirements will generally prevail.
Appendix
The following list of examples serves as a guide for identifying potential conflicts of interests. It is not intended to be a comprehensive list of all potential conflicts.
ACTIVITIES THAT ARE CLEARLY PERMISSIBLE
A. Outside employment, service on boards and committees of public or private organizations and service as a consultant to outside organizations, provided the income generated from any organization through such activities does not exceed the $10,000 threshold.
B. Acceptance of royalties for published works and patents, payment for the creation of computer software or artistic works or of honoraria for occasional speeches.
C. Acceptance of income from seminars, lectures or teaching engagements sponsored by public or nonprofit entities.
D. Service on boards and committees of public or private organizations and acceptance of income for service on advisory committees or review panels for public or nonprofit entities.
ACTIVITIES THAT PRESENT THE POTENTIAL FOR CONFLICTS
A. Relationships that might enable an applicant or co-applicant to influence the University's dealings with an outside organization in ways leading to personal gain or improper advantage for the applicant’s or co-applicant's spouses or dependents. (Note: Making full disclosure of such relationships and making appropriate arrangements to manage, reduce or eliminate potential conflicts would resolve such potential problems.)
ACTIVITIES THAT ARE VERY LIKELY TO BE UNACCEPTABLE
A. Use for personal profit of unpublished information emanating from sponsored agreements or confidential university sources, assisting an outside organization by giving it exclusive access to such information, or consulting with outside organizations that impose obligations upon the applicant or co-applicant that conflict with the University's patents and intellectual property policies or the University's obligations under sponsored projects agreements.
B. The applicant, co-applicant, their spouses or their dependents is an officer, director, partner, trustee, employee, advisory board member, or agent of a for-profit external organization or corporation either funding a sponsored project or providing goods or services under a sponsored project on which the applicant or co-applicant is participating in any capacity.
C. The applicant, co-applicant, their spouses or their dependents is the actual or beneficial owner of more than five percent (5%) of voting stock or controlling interest of such organization or corporation.
D. The applicant, co-applicant, their spouses or their dependents has dealings with such organization or corporation from which he or she derives income of more than $10,000 per year, exclusive of dividends and interest.
UWS 8.03 Standards of conduct.
All University employees who meet the federal definition of investigator must complete this Disclosure Form in order to comply with NSF and HHS requirements. An "investigator" means the principal investigator and any other person who is responsible for the design; conduct or reporting of federally funded research. Grant proposals cannot be submitted to federal agencies unless this form is completed, signed and returned to your Dean and then the Office of Sponsored Research, Scholarly, and Creative activities. To assure that no grant proposal will be delayed, this form should accompany your proposal and Grant Transmittal Form when you are seeking authorizing signatures. It should be updated throughout the year if circumstances change.
