228.1 Policy
Maintenance of the public’s trust is critical to the mission and reputation of CEI. It is vital that employees and public servants of CEI demonstrate that they hold themselves to the highest ethical standards, including the disclosure of their participation in any activity that will result in their financial, professional, or personal benefit and may be construed as a conflict of interest. Conflicts of interest must be reported, evaluated and resolved to prevent improper actions.
228.2 Procedures
This policy is intended to operate in conjunction with, and shall be interpreted consistently with, applicable Idaho law governing conflicts of interest and ethics in public employment, including but not limited to Idaho Code §§ 59-701 through 59-703 (Ethics in Government Act) and any other applicable state or federal statutes. In the event of a conflict between this policy and applicable law, the applicable law controls. The College shall consult with legal counsel when any disclosed conflict implicates potential statutory violations.
A conflict of interest arises when an employee, or public servant, may benefit personally from dealings with an entity or person conducting business with the College, including indirect benefits such as to family members or businesses with which the person is closely associated. A conflict of interest also arises when an employee’s or public servant’s personal interests or relationships may compromise his/her professional judgment in the discharge of his/her duties and responsibilities. Examples include:
- Recommending or awarding a contract for services to a company in which the individual has a financial or personal interest.
- Providing impartial instruction to a relative or friend
- Providing impartial evaluation of a relative or friend for hiring or promotion.
Under this policy, family member includes any person with whom an employee has a familial or guardianship relationship, including but not limited to a parent, guardian, step-parent, child, step-child, son-in-law or daughter-in-law, sibling, step-sibling, spouse, aunt, uncle, niece, nephew, cousin, grandparent, grandchild, mother-in-law, father-in-law, brother-in-law, sister-in-law, or any persons living in the same household.
A public servant includes any person participating as an advisor or consultant to the College, including volunteers.
Conflicts of interest are common, however, CEI employees have an obligation to conduct college-related business transactions and other duties assigned to them without actual or potential conflicts of interest. In accordance with this policy, all employees and public servants must disclose any actual or potential conflicts that may exist. Neither employees nor public servants may review, approve, or make any decision relating to a college transaction that may financially benefit themselves or their family members.
An individual who recognizes an actual or potential conflict of interest must report the situation in writing to his or her immediate supervisor. Written disclosures may be made by email, memorandum, or completed disclosure form, and must be submitted within five (5) business days of the individual becoming aware of the conflict. The existence of a conflict of interest does not generally result in adverse action, but the failure to timely report a conflict of interest in writing compromises the College's integrity and may result in disciplinary action up to and including termination.
If the conflict of interest involves the individual's immediate supervisor, or if the individual has reason to believe the supervisor has a conflicting interest in the same matter, the individual shall report directly to the Human Resources Vice President or the College's legal counsel. Reports involving board members or the President shall be directed to legal counsel.
Upon receipt of a written disclosure, the supervisor shall evaluate the conflict and classify it according to the following risk tiers:
- Low Risk: The conflict is remote, indirect, or unlikely to affect College decision-making. The supervisor may resolve by counseling the individual to maintain objectivity and documenting the disclosure and resolution.
- Moderate Risk: The conflict creates a meaningful potential for impaired judgment or appearance of impropriety. The supervisor must require independent verification of any affected decisions and shall consult with the Human Resources Vice President before determining final resolution.
- High Risk: The conflict creates a direct financial interest, involves procurement or contracting, involves a subordinate-supervisor relationship, or presents federal compliance implications. The supervisor must immediately refer the matter to the Human Resources Vice President and legal counsel. The affected individual must be recused from all related decisions pending resolution.
Regardless of risk tier, the supervisor shall not unilaterally resolve any conflict in which the supervisor has a personal, financial, or professional interest. Such matters shall be escalated directly to the Human Resources Vice President.
Documentation of all disclosed conflicts of interest is mandatory. Within ten (10) business days of receiving a written disclosure, the supervisor shall prepare a memorandum documenting:
- The reported conflict of interest and date of disclosure;
- The identity of the individual affected;
- The risk tier classification and basis for that classification;
- The potential consequences of the conflict;
- Actions taken, if any, to mitigate risks associated with the conflict, including any recusal; and
- If recusal was required, the identity of the replacement decision-maker designated to act on the matter.
Both the supervisor and the disclosing individual shall sign the memorandum. The original shall be filed in the individual's personnel file with the Human Resources office. The supervisor shall retain a copy until the conflict is fully resolved and documented as such.
Supervisors determine whether their evaluation of the conflict of interest, and actions taken, need to be documented. If documentation is considered appropriate, the supervisor prepares a memo documenting:
- The reported conflict of interest
- The individual affected
- The potential consequences of the conflict of interest
- Actions taken, if any, to mitigate risks associated with the conflict of interest
Both the supervisor and the interested individual must sign this memo, which is filed in the individual’s personnel file in the human resources office. The supervisor should retain a copy of the memo until the conflict is resolved.
When recusal is required under this policy, the following procedures apply:
(a) The affected individual shall promptly notify his or her supervisor in writing that recusal is necessary and shall identify the specific matter or decision from which he or she is recusing.
(b) The supervisor, in consultation with the Human Resources Vice President, shall designate an alternative decision-maker who does not share the conflict.
(c) The recused individual shall not participate in, influence, or attempt to influence any deliberation, recommendation, or decision related to the matter, and shall not have access to related work product except as required for unrelated job duties.
(d) The recusal and designation of the alternative decision-maker shall be documented in the conflict-of-interest memorandum required under Section 228.2.
For conflicts of interest related to federally funded grants or subawards, employees and public servants must disclose the conflict in writing to their supervisor and the Grants Office, which will ensure appropriate reporting to the federal awarding agency or pass-through entity in accordance with 2 CFR §200.112.