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Wright State University
Conflict of Interest Policy

(Approved WSU Board of Trustees, June 8, 1995)

A. Applicability

This policy applies to all faculty and staff members who apply for, receive, or who are currently working on a grant, contract, cooperative agreement, subgrant, subcontract, or sub-cooperative agreement which is funded in whole or in part by federal funds. Faculty and staff members who apply for, receive, or are currently working on projects which are funded from non-federal external sources are strongly encouraged to comply with this policy.

B. Purpose

The policy promotes objectivity in research and other sponsored activities by defining special standards of conduct appropriate for each faculty and staff member participating in a sponsored project. The intent is to ensure that the design, conduct, and reporting of the project are neither compromised nor appear to be compromised by any significant financial interest of the responsible faculty and staff members.

C. Background

The increasingly complex relationships among universities, government agencies, and industry call for increased attention to standards of conduct in federally funded and other externally sponsored activities. The clarification and application of such standards must be sensitive to the need to serve both project requirements and the public interest. Protection of the integrity of the cooperating institutions as agencies of higher education requires that both real and perceived conflicts of interest be avoided.

The transfer of technical knowledge and skill from the university to industry contributes to technological advance. Likewise, consulting relationships between university staff members and industry serve the interests of research and education in the university. Such relationships are desirable, but certain potential conflicts should be recognized.

When a faculty or staff member engages in a federally-sponsored project, the faculty or staff member's conduct is subject to the provisions of various federal statutes and regulations such as those listed in Sec. H and the requirements of this policy. When he or she consults for a business, non-profit agency, government agency, or other non-University contractor or prospective contractor, in the same technical field as the externally sponsored project, care must be taken to avoid biasing the design, conduct, or reporting of the sponsored project. If performing consulting services, the staff member should make full disclosure of such interests to the university and to the contractor insofar as they may appear to relate to the work at the University or for the contractor. Conflict of interest problems could arise, for example, in the participation of a staff member of the university in an evaluation for the Government agency or its contractor of some technical aspect of the work of another organization with which he or she has a consulting or employment relationship or significant financial interest, or in an evaluation of a competitor to such other organization.

D. Definitions

"Project"
means any externally funded scholarly activity such as basic, applied, or developmental research, instructional or curricular activities, student aid, career development, or other activity conducted by faculty or staff members on behalf of the university.
"Investigator"
means the principal investigator, co-investigators, and any other person (e.g., technicians, post-doctoral research associates, graduate students) at the university who is responsible, in whole or in part, for the design, conduct, or reporting of the project.
"Financial interest"
means anything of monetary value including, but not limited to, salary or other payments for service such as consulting fees or honoraria; equity interests such as stocks, stock options, or other ownership interests; and intellectual property rights such as patents, copyrights, and royalties from such rights.
"Significant financial interest "
means a financial interest which leads to or may appear to lead to a conflict of interest. However, a financial interest is not a significant financial interest if:
  1. salary, royalties, or other remuneration are from the University;
  2. income is from seminars, lectures, or teaching engagements sponsored by public or nonprofit entities;
  3. income is from service on advisory committees or review panels for public or nonprofit entities;
  4. the interest arises solely by reason of investment in a business by a mutual, pension, or other institutional investment fund over which the employee does not exercise control;
  5. the financial interest is in a business and the value of such financial interests when aggregated for the investigator, the investigator's spouse, and the investigator's children does not
    1. exceed $5,000* per annum of salary, fees, or other continuing payments, or;
    2. constitute an equity interest of $5,000* or more, or;
    3. represent more than five (5%) percent ownership interest for any one enterprise or entity;
  6. the financial interest is an ownership interest in a business which is the applicant organization under Phase I of a Small Business Innovative Research (SBIR) program or Phase I of a Small Business Technology Transfer (STTR) program and the university is a subcontractor under the business' application.
"Conflict of Interest"
means an action, omission, or situation which may or may appear to compromise the objectivity or integrity of an investigator's design, conduct, or reporting of a project.

* Subsequent to approval of this policy, the federal guidelines changed this limit from $5000 to $10,000. The new federal limit of $10,000 will be used in implementing this policy.

E. Conflict Situations

When an investigator engaging in externally sponsored work has a financial interest in a business or with a non-profit agency, it is important to avoid actual or apparent conflicts between obligations to the project sponsor, the University, and these outside interests. A conflict of interest occurs when an investigator compromises or appears to compromise the conduct of a project because of an outside relationship that directly or indirectly affects the financial interests of the investigator, the investigator's spouse or the investigator's children.

Situations in which conflicts of interest may arise or may be perceived to arise include:

  1. undertaking an externally funded project when the investigator has a significant financial interest which may or may be perceived to bias the design, conduct, or reporting of the project;
  2. purchase of any items or services using project funds from an organization in which the investigator has a significant financial interest;
  3. transmission to a business or non-profit agency or any other use for personal gain of externally sponsored work products or proprietary information that are not made generally available. This does not preclude appropriate licensing arrangements for inventions, or consulting in the area of an externally sponsored project where there is significant additional work by the staff member independent of the externally sponsored project;
  4. unauthorized use of privileged or confidential information acquired in connection with externally sponsored activities;
  5. influencing or attempting to influence the negotiation of grants or contracts between the university and private organizations in which the investigator has a significant financial interest;
  6. acceptance of gratuities or special favors from private firms with which the university does business in connection with an externally sponsored project or offering gratuities or special favors to representatives of external organizations;
  7. a consulting arrangement with any organization or individual having an economic interest in the results of an externally funded project;
  8. receiving an externally funded project from a sponsor for which the investigator serves on the sponsor's board of directors or as an officer with fiscal responsibility.

F. Disclosure of Significant Financial Interests

Disclosure of significant financial interests is intended to protect the integrity of the design, conduct, and reporting of project activities by effectively managing, reducing, or eliminating those significant financial interests which cause or appear to cause a conflict of interest on the part of an investigator. Successful implementation of this policy assumes a shared responsibility by all investigators and the administration of the University. Investigators are expected to comply with all the disclosure requirements described below. Once proposed activities have been administratively approved and a plan of action addressing potential conflicts has been determined, University officers have the responsibility to vigorously defend the activity as long as the investigator complies with the plan of action, the disclosure requirements, other University policies, and the law.

Any investigator applying for or conducting any project shall make prompt, written disclosure of any related financial interests to the Assistant Vice President for Research [AVP-Research]. The disclosed financial interests must include any that would, or to a reasonable observer familiar with the facts would seem to, be significant according to the definitions in Sec. D or would otherwise appear to bias the design, conduct, or reporting of the project. Investigators applying for or conducting non-federally funded projects are encouraged to disclose any significant financial interests.

Investigators applying for an externally funded project shall complete a Conflict of Interest Statement indicating that either no significant financial interest exists or that the investigator has filed a written disclosure with the AVP-Research. This form shall be included with the Authorization to Seek Off-Campus Funds form and be circulated as part of the approval process for all proposals.

The AVP-Research shall review the disclosure and make an initial determination whether or not a significant financial interest, and/or a potential conflict of interest, as defined above, exists. If the disclosed financial interest is determined not to be a significant financial interest, and no other evidence of a potential conflict of interest is disclosed, then the AVP-Research shall provide written documentation of this determination which shall be retained with the other project records and shall so advise the investigator, the chair, the dean, and the Chief Research Officer. If an investigator fails to complete this form, fails to return it, or fails to disclose a significant financial interest to the AVP-Research, the AVP-Research and the Chief Research Officer shall not submit the proposal, withdraw the proposal if already submitted, or decline an award if a disclosure is not made or if a conflict of interest is not resolved.

If the AVP-Research determines that a significant financial interest, or any other potential conflict of interest as defined above, may exist, the AVP-Research shall promptly notify the Chief Research Officer in writing. The Chief Research Officer shall consult with the dean of the college or school who together shall review the disclosure, consult with the investigators, and seek any additional information to determine whether a significant financial interest, and thereby a possible conflict of interest, exists. If they determine that a significant financial interest or any other potential conflict of interest exists, they shall determine a plan of action consisting of the conditions or restrictions which shall be required by the university to manage, reduce, or eliminate such actual or apparent conflict of interest. If they are unable agree on a mutually acceptable method for managing, reducing, or eliminating the significant financial interest, then the Chief Research Officer shall refer the disclosure to the Chief Academic Officer for a final determination.

Examples of the conditions or restrictions that might be imposed include:

  1. public disclosure of the significant financial interest;
  2. monitoring of the project by independent reviewers;
  3. modification of the project plan;
  4. disqualification of the investigator from participation in all or a portion of the project;
  5. withdrawal of the proposal or declination of an award;
  6. divestiture of the significant financial interest;
  7. severance of the relationship(s) that create actual or potential conflicts, or;
  8. notify the sponsor that a significant financial interest exists.

The Chief Research Officer shall notify the investigator, the investigator's chair and dean, and the Chief Academic Officer of the final determination.

Investigators shall update the Conflict of Interest Statement at least annually. If an investigator acquires a new reportable significant financial interest, the investigator shall submit a revised or new Conflict of Interest Statement to the AVP-Research within five (5) working days after acquisition.

Prior to accepting an award, the AVP-Research shall ensure that any potential conflicts of interest have been satisfactorily managed, reduced, or eliminated in accordance with this policy. If it is determined that a conflict can not be satisfactorily managed, reduced, or eliminated, the Chief Research Officer shall disclose the existence of a conflict to the sponsoring agency before accepting the award.

If a sponsor requires disclosure of a significant financial interest or any potential or actual conflict of interest, the Chief Research Officer shall make such disclosures as required by the sponsor.

G. Reporting Requirements

The Chief Research Officer shall submit a written report to the Chief Academic Officer detailing the number, nature, and resolution of significant financial interest and/or conflict of interest disclosures annually within sixty (60) days after the close of each fiscal year.

H. Related Sections of the Ohio Revised Code and Federal Statutes and Regulations

Among others, federal regulations and statutes as well as the following sections of the Ohio Revised Code govern conduct related to a staff member's conduct in carrying out his or her assigned duties for the university:

  1. Conflict of Interest Statutes (18 U.S.C. sec. 201 et seq.)
  2. Executive Order No. 12674, April 12, 1989; "Principles of Ethical Conduct for Government Officials and Employees"
  3. Ohio Revised Code Section 102: Ethics
  4. Ohio Revised Code Section 2921: Offenses against Justice and Public Administration
  5. Public Health Service Grants Policy Statement
  6. National Science Foundation Grant Policy Manual
  7. 42 Code of Federal Regulations part 50 and 45 Code of Federal Regulations subtitle A part 94

I. Possible Disciplinary Actions for Violations of this Policy

The University expects investigators to comply fully and promptly with all the requirements of this policy. Examples of breaches of this policy include failure to file, intentionally filing an incomplete, erroneous, or misleading disclosure form, or failing to provide additional information as required by the AVP-Research or Chief Research Officer.

In addition to any potential legal penalty(ies), the university may take appropriate disciplinary action against individuals who violate this policy. This disciplinary action may include, but not be limited to, oral admonishment, written reprimand, reassignment, suspension, or termination of the individual's employment. Disciplinary action under this policy shall be consistent with and subject to applicable provisions of the university's human resources policies or applicable sections of the Faculty Handbook. If the sponsor requires disclosure of any disciplinary actions taken for violations of this policy, the Chief Research Officer shall make such disclosure in a timely manner.

J. Records Retention

The AVP-Research and the Chief Research Officer shall ensure that the required records, identifiable to each award, are retained for a period of not less than three (3) years after the termination of the award or until three (3) years after the resolution of any sponsor action involving these records, whichever is longer. Records for proposals which are not funded by sponsoring agencies will be retained for a period of one (1) year after the decision of the sponsoring agency.

Based in part upon:

  • On Preventing Conflicts of Interest in Government-Sponsored Research at Universities, A Joint Statement of The Council of the American Association of University Professors and The American Council on Education, 1785 Massachusetts Avenue, N.W., Washington, DC 20036, December, 1964.
  • Principles to Govern College and University Compensation Policies for Faculty Engaged in Sponsored Research, Association of American Universities, the American Council on Education, and the National Association of State Universities and Land-Grant Colleges, April, 1978.
  • Guidelines for Dealing with Faculty Conflicts of Commitment and Conflicts of Interest in Research; Association of American Medical Colleges, February, 1990.
  • Framework Document for the Managing of Financial Conflicts of Interest, Association of American Universities, 1993.


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