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IUPUI

Conflict of Interest

Introduction
Definitions
State Law & University Rules Guidelines for Identifying COnflicts of Interest Implementation Procedures and Implementation in the Kelley School of Business

Introduction

The faculty and staff at IUPUI have a major responsibility to discover and transmit new knowledge through scholarly activities. Financial support for such activities comes both from public and private entities external to the University. Increasingly, alliances between faculty or staff and external entities have become a significant feature of academic research and educational activities. As these relationships become more common and complex possibilities for conflicts of interest increase.

The IUPUI Policy on Conflicts of Interest is designed: (1) to help identify conflicts of interest arising from relationships between faculty and staff and external entities; (2) to assist faculty and staff in avoiding conflicts of interest (3) to establish a system for disclosure and review of relationships with external entities; and (4) to avoid or resolve conflicts of interest.

Faculty and staff members are responsible for disclosing (1) their financial interests and those of their family members that would reasonably appear to be affected by the research or educational activities in which they are engaged, including those which are funded or proposed for funding by an external entity; or (2) their and family members' financial interests in external entities whose financial interests would reasonably appear to be affected by their research or educational activities. Disclosures are to be made in accordance with the procedures established under approved specific school policies. Implementation for the Kelley School of Business is included below.

A conflict of interest exists when the dean or person designated to review disclosures reasonably determines that a significant financial interest of an investigator or his or her family members could directly and significantly affect the design, conduct, or reporting of the research or educational activities funded, or proposed for funding by an external entity.

Definitions

An External Entity includes any person, trust, organization, enterprise, or other entity (including government agencies) that is not an entity under the control of or under common control with the University.

A Faculty or Staff Member is any person, including but not limited to anyone holding an academic or staff appointment at IUPUI who is engaged in the design, conduct or reporting of externally-supported Research or externally-supported Educational Activities.

A Family Member of an individual includes his or her spouse and other dependents as specified by Indiana State Statute.

A Financial Interest is anything of significant monetary value including but not limited to salary, commissions, consulting fees, honoraria, equity interests (e.g., stocks, stock options, or other ownership interests), allowance, forbearance, forgiveness of debt, interest in real or personal property, dividends, royalties derived from the licensing of technology (other than receipt of a royalty under Indiana University royalty-sharing policies), rent, capital gain, and intellectual property rights (e.g., patents, copyrights, and royalties from such rights). This term does not include salary, royalties, or other remuneration from Indiana University. Ordinarily the term would not include any interest arising solely by reason of investment in an External Entity by a mutual, pension or other institutional investment fund over which the Faculty or Staff Member does not exercise control.

Whether a Financial Interest is "significant" will depend upon the facts of the situation, but monetary value will definitely be considered significant if it is (1) an equity interest that exceeds $10,000 or represents more than a 5% ownership interest in any one enterprise or entity, when aggregated for the Faculty or Staff Member and his or her Family Members: or (2) salary, royalties, or other payments expected to exceed $10,000, when aggregated for the Faculty or Staff Members and his or her Family Members over the twelve months following the date of disclosure. It should be noted, however, that Indiana state law on conflict of interest establishes $250 as the threshold at which a Financial Interest is de minimus, or insignificant; accordingly, the facts of each situation must be considered carefully.

Research means a systematic investigation designed to develop or contribute to generalizable knowledge. The term encompasses basic and applied research and product development.

Sponsored Programs means Research and Educational Activities involving funds, materials, gifts, or other compensation from External Entities under agreements with the University.

University means Indiana University and the Indiana University Purdue University Indianapolis (IUPUI) campus specifically, including the Faculty and Staff of Purdue mission schools located at IUPUI.

Educational Activity may include the dissemination and application of knowledge through teaching, executive education, consulting, service, and publication (except those publications reserved to individuals through the Indiana University policies on copyright and intellectual property).

State Laws and University Rules

Indiana State Statute:
Indiana law generally declares it a crime for a public employee to knowingly or intentionally derive a pecuniary benefit from transactions of the public employer. The law provides certain defenses to a charge of conflict of interest, including disclosure of the conflict to and acceptance of the disclosure by the public employer. To avoid criminal penalties, therefore, University employees should disclose to the Board of Trustees of Indiana University any situations likely to result in a contract involving a purchase, sale, or services or other matter, between the University and the employee or employee's dependents. This law does not apply to the normal contract of employment. Advance approval of a transaction by the University's Trustees insulates the transaction from criminal prosecution. It is a defense in a prosecution under this law that the employee's interest in the transaction in any one year is less than $250. The law defines "dependents" as (1) the employee's spouse; (2) a child, stepchild, or adoptee of the employee who is unemancipated and less than 18 years of age; and (3) any individual more than one-half of whose support is provided during a year by the employee (from Indiana State Statute IC 35-44-1-3).

Indiana University Policy on Remunerated Outside Activities:
The Indiana University Board of Trustees' policy regarding outside activities states: "Any outside activity of more than a casual nature undertaken for remuneration by any full-time staff member should be reported to the chairperson of the department and reported by him or her to the dean of the appropriate division of the University. In no case shall such activities be undertaken if they interfere in any way with the full performance of the duties and service for which the staff member has been regularly appointed to the University staff." (Academic Handbook). The IUPUI Policy on Conflicts of Interest is consistent with the Trustee policy and provides further guidance on relations between Faculty or Staff Members and External Entities.

Guidelines for Identifying Conflicts of Interests

The Academic Handbook of Indiana University references state statutes and federal guidelines regarding conflicts of interest, and the Code of Academic Ethics addresses ethical conduct generally. The IUPUI Policy on Conflicts of Interest specifically addresses conflicts of interest arising from relationships between Faculty or Staff and External Entities. The policy calls for disclosure and review of relationships with External Entities and avoidance or resolution of conflicts of interest.

Relationships with External Entities arise from a variety of academic and external activities. The broad categories for which disclosures are required are stated in the Introduction. A representative list of activities subject to this Policy on Conflicts of Interest is set forth below. These activities are divided into two categories. If in doubt about whether an activity falls in Category I or Category II, a Faculty or Staff Member should confer with the dean or other person designated in the school (see procedures below).

Category I Activities - These activities must be disclosed and reviewed before faculty and staff may engage in such activities. These activities may be permitted after disclosure and review and, if necessary, more extensive disclosure and more frequent review.

  • A Faculty or Staff Member participating in either applied or basic University Research on any invention or development owned by, or contractually obligated to, an External Entity in which the Faculty or Staff or Family Member holds a Financial Interest, other than receipt of a royalty under Indiana University royalty-sharing policies.
  • A Faculty or Staff Member participating in, publishing, or presenting University Research which creates the likelihood of imminent financial gain by the Faculty or Staff or Family Member that could lead to real or perceived bias in Research results.
  • A Faculty or Staff Member assigning or permitting the participation of technicians, students, post-doctoral fellows or other trainees in projects sponsored by an External Entity in which the Faculty or Staff Member or Family Member has a Financial Interest.
  • A full-time Faculty or Staff Member or Family Member assuming an executive position in an External Entity engaged in activities related to the Faculty or Staff Member's University Research.
  • A Faculty or Staff Member or Family Member serving on the board of directors of an External Entity from which that person receives University-supervised sponsored research support.
  • A Faculty or Staff Member or Family Member providing to an External Entity services in return for which a significant Financial Interest is provided that compete directly with existing services provided by that Faculty or Staff Member for the University.
  • A Faculty or Staff Member taking administrative action within the University that is beneficial to an External Entity in which the Faculty or Staff Member or Family Member has a Financial Interest.

Category II Activities - These activities shall be disclosed by the Faculty or Staff and be reviewed within the school; these activities are ordinarily permissible because they are traditionally acceptable or generally involve minimal Financial Interest.

  • A Faculty or Staff Member receiving royalties, consulting fees, honoraria or other compensation for activities related to his or her University Research or to other educational activity.

Implentation

The Chancellor of IUPUI shall be responsible for implementation of this policy and shall appoint an IUPUI Standing Committee of Conflicts of Interest. The Chancellor may delegate responsibility for administering this policy to the Dean of the Faculties or another campus administrative officer.

Schools

The Faculty of each school (and Staff of appropriate campus administrative units) in cooperation with the dean (or administrative unit head) shall establish procedures approved by the Chancellor for implementing this policy within the school or unit. The dean (or equivalent administrative officer) is to ensure that the school or unit's responsibilities are met in accord with approved procedures. Specifically, the dean (or equivalent administrative officer) or designee shall:

  1. Assist in establishing school procedures and in revising established procedures as required;
  2. Assist Faculty or Staff in interpreting the campus policy and school procedures;
  3. Implement school procedures for disclosure and review of Categories I and II activities;
  4. In consultation with individual Faculty and Staff, seek avoidance or resolution of conflicts of interest; and
  5. Promptly transmit recommendations concerning unresolved conflicts to the IUPUI Standing Committee on Conflicts of Interest.
IUPUI Standing Committee on Conflicts of Interest

The IUPUI Standing Committee on Conflicts of Interest shall:

  1. Assist schools and other units in interpreting and implementing the campus policy;
  2. Review school (or other unit) procedures and make recommendations to the Chancellor or designee;
  3. Review school recommendations concerning unresolved conflicts;
  4. Review appeals from Faculty and Staff regarding school (or unit) decisions; and
  5. Promptly transmit its recommendations to the Chancellor or designee.
General Provisions

Faculty and Staff shall be entitled to respond to recommendations at every stage of the review process.

Administrative actions taken to address conflicts of interest shall follow the same procedures outlined in the Academic Handbook for enforcement of the Code of Academic Ethics, except that Faculty or Staff may appeal to the IUPUI Standing Committee on Conflicts of Interest. Faculty may appeal administrative actions taken by the Chancellor or designee through the procedure for Faculty Boards of Review.

Confidentiality must be assured; disclosures should be available only to those charged with responsibility for review, subject to any restrictions on confidentiality imposed by Indiana State Law on Access to Public Records (IC 5-14-3).

In the case of Faculty or Staff who hold administrative position (e.g., Chancellor, Vice Chancellor, Dean, Department Chair, Director), disclosure of activities reportable under this Policy will be made to the academic unit in which the officer has his or her appointment and will be reviewed according to the procedures applicable to that unit. Faculty with appointments in two or more units shall follow the procedures of the school in which the primary or tenure-related appointment is held. Disclosure and review of reportable activities by Faculty and Staff who do not also hold an academic appointment shall be addressed through approved procedures for their administrative unit or, when none exists, through ad hoc procedures approved by the Chancellor and reported to the IUPUI standing Committee on Conflict of Interest.

Timing of Disclosure:

Financial Interest and other activities reportable under this policy must be disclosed at least annually, and at other times when circumstances change giving rise to a disclosable Financial Interest or eliminating a conflict previously identified. All disclosures of Financial Interests must be made prior to submission of proposals for funding from External Entities.

Retention of Records:

Records relating to conflicts of interest are to be retained by the University for at least three years after the later of:

  1. The termination or completion of the contract or award to which they relate; or
  2. The resolution of any action involving those records.
Non-Compliance:

Non-compliance with this policy, including failure to file or knowingly filing incomplete, erroneous, or misleading disclosures, or failure to comply with prescribed review procedures, shall be evaluated in accordance with applicable policies of Indiana University and IUPUI.

If a conflict of interest involves government-sponsored Research, the University may be obligated under federal, state, or local law to report any corrective action taken.

Prodedures and Implementation in The Kelley School of Business

The Kelley School of Business subscribes to and will follow all the procedures outlined above. These policies will be implemented as follows:

  • There shall be a Committee on Conflicts of Interest appointed by the Dean and consisting of the Associate Dean for Research and two faculty members from the School. The faculty members shall be appointed for two years and shall come from different departments. The Dean shall rotate the departments from which faculty members are chosen. The Associate Dean for Research shall be the Dean's designee to administer these policies and call together the Committee.
  • Faculty and Staff will use the IUPUI Kelley School of Business Disclosure Form to make financial disclosures as required in the policies defined above. Click here to download the IUPUI Kelley School of Business Conflicts of Interest Form. You may open this form as a Acrobat PDF that can be filled out on the computer and then printed.
  • When submitting contract or grant proposals, or when there exists an intention to engage in activities with any External Entity, if there is a financial disclosure, this must be made 30 days in advance of engaging in the activity or of proposal submission for review by the School Committee on Conflicts of Interest. If there is no financial disclosure to be made, the Disclosure Form may be submitted at the time of proposal submission but at least annually, and at other times when circumstances change giving rise to a disclosable Financial Interest or eliminating a conflict previously identified. Financial Disclosure Forms must be filed before or upon submission of any National Science Foundation (NSF) or Public Health Service (PHS) proposal whether or not a financial interest exists. PHS and NSF research proposals require that all individuals responsible for the design, conduct or reporting associated with the project have made the necessary disclosures under this policy.
  • Upon receipt of a Disclosure Form which declares a financial interest in an External Entity the School Committee on Conflicts of Interest must and will meet to identify whether a conflict of interest may exist, to assist faculty and staff in avoiding conflicts of interest, and to assist faculty and staff in avoiding or resolving conflicts of interest relating to the financial disclosure. The School Committee will file a report with the Dean of the School of Science and with the IUPUI Committee regarding its determinations.
  • The Financial Disclosure Forms will be kept on file in the office of the Associate Dean for Research.
  • All paperwork, deliberations, and determinations with respect to Financial Disclosures of faculty and staff will be confidential within the School Committee on Conflicts of Interest except as reporting by the University is required if a conflict of interest involves government-sponsored Research, and subject to any restrictions on confidentiality imposed by Indiana State Law on Access to Public Records (IC 5-14-3).
  • If faculty and staff dispute decisions of the School Committee on Conflicts of Interest they may appeal to the IUPUI Standing Committee on Conflicts of Interest. Faculty may appeal administrative actions taken by the Chancellor or designee through the procedure for Faculty Boards of Review.