Management of Conflicts of Interests Policy

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1 Management of Conflicts of Interests Policy Effective from 1 January 2016 Version Number: 1.0 Author: Head of Information Governance Governance Services Unit

2 Document Control Information Status and reason for development New, consolidating and augmenting existing guidance in the Financial Regulations, the Code of Conduct for Members of Council and Senior Officers Revision History Date Author Summary of changes Version Authorised 10 Dec 2015 MS New version v1.0 Director of LPG, 10 Dec 2015 Policy Management and Responsibilities Owner This Policy is issued by the Director of Legal, Planning and Governance who has the authority to issue and communicate policy on such matters and has delegated day to day management and communication of the policy to the Head of Information Governance who therefore is responsible for compliance with this policy, maintaining the register of interests and issuing an annual call to all Members of Council, Committees of Council, Senate, Committees of Senate, the Vice Chancellor s Executive Team and the University Management Team and for providing communications for all managers reporting to members of the University Management Team and the University Professoriate to update their entry in the register. University Management Team Line Managers Individual members of staff Ensuring their staff are aware of, and comply with, this policy. Awareness of, and to action in accordance with, this policy where a potential conflict of interest arises. Ensuring they declare any potential conflict of interest in accordance with the terms of this policy. Assessment Cross relevant assessments Cross if not applicable Equality Analysis Legal Information Governance Academic Governance Consultation Staff Trades Unions via HR Students via USSU Any relevant external bodies Cross relevant consultations KW advised written consultation with TUs Authorised by: Andrew Hartley, Director of LPG Date authorised: 10 December 2015 Effective from: 1 January 2016 Review due: 1 January 2019 Document location: University Policy & Procedure Pages Document dissemination and communications plan: US Online, University wide , cascade from Executive & Management Team, communication with all committee secretaries. Page 2 of 7

3 1.0 Purpose 1.1 Central to the proper conduct of public business is the need for members of the University to follow the seven principles of public life as set out by the Committee on Standards of Public Life (the Nolan Committee) 1 : selflessness, integrity, objectivity, accountability, openness, honesty and leadership 1.2 Failure to do so may provide a risk to the reputation of the University, or leave members of the University open to suspicion of impropriety in their conduct of business. 1.3 All members of the University should ensure that they act impartially in accordance with the principles of public life. 1.4 It is important that all members of the University to whom this Policy applies (hereafter referred to as members), directly or through a partner, spouse or close relative, take proper account of any conflict of interest which may arise from their position within the University on the one hand, and membership of or connection with other bodies outside the University on the other. 1.5 The following is a set of simple steps which members are asked to follow. In establishing this policy, the University aims to achieve the effective management of conflicts of interest without overprescriptive regulation. 1.6 The purpose of this policy is: to set out the principles for minimising and managing potential conflicts of interest to provide protection to the University and its staff. to ensure best practice by: - ensuring those individuals covered by the policy make decisions free from bias; - guarding against conflicts of interest that may arise as a result of the positions held by individuals; and - protecting the University, and those individuals covered by the policy, against impropriety, or the appearance of impropriety, including reputational risk. 2.0 Scope 2.1 This policy applies to all Members of Council and committees of Council and to all members of University staff. 2.2 Whereas all senior members of staff must complete a Declaration of Interests Form upon joining the university and annually thereafter whether they have any interests or not, any member of staff who believes that they have or may have a role or a conflict of interest arise as described in this policy should in the first instance discuss the matter with their line manager and, if deemed necessary, complete a Declaration of Interests Form 1 See Appendix 1 Page 3 of 7

4 3.0 Policy Statements Declaring Interests 3.1 On appointment to the University, either as a member of staff or as an independent member of Council or a committee of Council, individuals will be asked, during the induction, to read and comply with this policy. 3.2 Formal declarations, requiring the completion of a Declaration of Interests Form are required in respect of those listed below. Members of Council Members of Committees of Council Members of Senate Members of Committees of Senate Members of the Vice Chancellor s Executive Team Members of the University Management Team All managers reporting to members of the University Management Team The University Professoriate 3.3 Any changes to the circumstances of members, including new interests, should be declared and updated at the earliest opportunity. 3.4 Other members of staff, who, in their normal role, are required to purchase goods or services on behalf of the University, or are involved in associated decision making processes, and who believe they have or may have, a conflict of interest should complete a Declaration of Interests Form 3.5 Guidance contained in the remainder of this document should be followed in relation to all instances where, and when, a declaration is required to be made. 3.6 In addition, matters which might be seen by reasonable members of the public to influence or bias judgement, when discussing or reaching decisions, should also be declared. What is a relevant interest? 3.7 It is impossible to describe a comprehensive set of rules on interests. Individuals are best placed to know their responsibilities within the University and other organisations and where these have the potential to conflict. 3.8 Conflicts of interest may arise from: paid employment or self-employment; significant consultancies; directorships of commercial companies; significant shareholdings; elected officerships or positions in other organisations; remunerated or honorary positions and related connections with other educational institution; trusteeships or participation in the management of charities and other voluntary bodies; and public appointments (whether paid or unpaid) 3.9 In these respects it is advisable for members of Council and senior officers to consider including relevant known interests of spouses, partners or close family members (e.g. parents, siblings, children). Page 4 of 7

5 3.10 If an individual is uncertain whether a conflict of interest arises, they should discuss the matter with their line manager for clarification or with the Chair of the Committee If there is any doubt, a Declaration of Interests Form should be completed Section 5 of the University Charter permits members to receive remuneration and/or other financial benefit from the University provided that this is approved in accordance with the relevant University Ordinance. Such remuneration/financial benefit should be declared as an interest. The Register of Interests 3.13 A Register of all interests declared will be maintained by the University Secretary The Register will be shared on a biannual basis with: Chair of Council Chair of Governance and Nominations Committee Vice Chancellor Director of Finance 3.15 Line managers will also be provided with an extract of the Register for the staff that they manage The Register will be published on the University website on an annual basis; any reference to third parties (e.g. family members) will be anonymised. Management of Conflicts of Interests 3.17 The University has a responsibility to ensure that the external interests of its members are not in conflict with its own and therefore appropriate due diligence should take place to ensure that this does not occur For independent members of Council and its committees, the Chair of Council, upon advice from the University Secretary, shall determine where a material conflict of interest exists and how this should be managed/resolved For employees, the Vice Chancellor, upon advice from the University Secretary and, where appropriate, the relevant Head of School or Director of Professional Service, shall determine where a material conflict of interest exists and how this should be managed/resolved In resolving such a conflict of interest, the Chair of Council or Vice Chancellor may require the individual concerned to relinquish the position/shareholding from which the conflict arises Where an independent member of Council is unwilling to relinquish their external interests they may prefer to resign from Council Where a member of staff is unwilling to relinquish their external interests, the matter will be referred to the Director of Human Resources All actions relating to the management of conflicts of interests will be documented in the Register of Interests. Declaration of Interests at Meetings 3.24 If a member has any clear and substantial interest, in any matter under consideration at a University meeting, the member should, at the earliest possible opportunity in the course of the meeting, disclose the fact, whether or not that interest is included in the Register of Interests. Page 5 of 7

6 3.25 Any declaration of interest will be recorded in the minutes of the meeting The Chair will advise on the action required to resolve any conflict of interest which becomes apparent at a meeting. Depending on the nature of the interest, the Chair will decide whether the individual should leave the room for a particular item or remain, but take no part in the discussion. Financial Management 3.27 A particular duty of care falls on those who carry significant financial responsibilities in their own areas. If such an officer is about to place an order for goods or services or to enter into any other financial commitment with an individual, company or organisation in which s/he or a close relative has an interest, this matter must be referred to the Director of Finance for approval before such a commitment is entered whether or not the particular interest is included in the Register of Interests In all circumstances members should ask themselves whether members of the public, knowing the facts of the situation, could reasonably conclude that the interest involved might influence the choice of supplier, price of purchase or any other material aspect of the financial arrangement. If so, the interest is sufficient for the matter to be referred to the Director of Finance Any individual, with such a declared interest, should be excluded from such decisions and advised accordingly Upon receipt of a request for goods or services, where the value is 5,000 or more, from an organisation to which any member of Council is connected, the University Secretary shall notify the Chair of Council and two other independent members of Council (other than the member for whom there is a conflict of interest). These members will review the request and consider whether it should be approved. In reaching its decision, members shall consider, inter alia, the potential to obtain relevant goods or services from other organisations, thus avoiding a conflict of interest. Decisions to approve such requests may be influenced by the lack of availability of particular advice, goods or services from other sources. All requests whatever the value shall be notified to the Chair of Council for information Gifts 3.31 Members should also bear in mind the need for them to act with care in relation to hospitality or gifts which could be perceived as inducements by persons or bodies seeking to supply goods or services to the University. Similarly members of Council and senior officers should take care not to solicit or recommend any person for employment by the University or admission to it, other than through the proper channels. Detailed rules concerning gifts and hospitality are set out in the Financial Regulations. 4.0 Related Documentation Code of Conduct for Members of Council and Senior Officers University of Salford Financial Regulations Declaration of Interests Form 5.0 Appendices Appendix 1: The Seven Principles of Public Life from the Report of the Committee for Standards in Public Life (The Nolan Report) Page 6 of 7

7 Appendix 1 The Seven Principles of Public Life from the Report of the Committee for Standards in Public Life (The Nolan Report) Selflessness Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their families or their friends. The Seven Principles of Public Life from the Report of the Committee for Standards In Public Life (The Nolan Report) Integrity Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that may influence them in the performance of their official duties. Objectivity In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, holders of public office should make choices on merit. Accountability Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office. Openness Holders of public office should be as open as possible about all their decisions and the actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands. Honesty Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest. Leadership Holders of public office should promote and support these principles by leadership and example. Page 7 of 7