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Northern Arizona University
Purchasing Policy and Procedure

Conflict of Interest

POLICY:

All NAU employees will comply with the State of Arizona conflicts of interest laws. It is the responsibility of the NAU employee to learn the requirements of the laws and to comply with them. Substantial civil and criminal penalties may result to the NAU employee from failure to comply with the laws.

Any University employee who has, or whose relative has, a substantial interest in any contract sale, purchase or service to the University shall make known that interest to the University and shall refrain from participating in any manner in such contract, sale, purchase or service.

The procurement of supplies, equipment, or services from any employee or business owned by any employee of the University is not authorized unless it is made through public competitive bidding conducted by the NAU Purchasing Services department. Purchasing Services is not required to request competitive bids for procurement of small dollar value merely to allow University employees to bid.

All specifications, including those prepared by architects, engineers, consultants and others for university contracts, shall seek to promote overall economy for the purposes intended and encourage competition in satisfying the university's needs and shall not be unduly restrictive.

DEFINITIONS:

Relative:
The spouse, child, child's child, parent, grandparent, brother or sister of the whole or half blood and their spouses and the parent, brother, sister or child of a spouse.

Remote Interest:
(a) An NAU employee or a relative of an NAU employee who is a non-salaried officer of a nonprofit corporation.

(b) An NAU employee or a relative of an NAU employee who is a landlord or tenant of the contracting party.

(c) An NAU employee or a relative of an NAU employee who is an attorney of a contracting party.

(d) An NAU employee or a relative of an NAU employee who is a member of a nonprofit cooperative marketing association.

(e) An NAU employee or a relative of an NAU employee whose ownership is less than three per cent of the shares of a corporation for profit, provided the total annual income from dividends, including the value of stock dividends, from the corporation does not exceed five per cent of the total annual income of such officer or employee and any other payments made to him by the corporation do not exceed five per cent of his total annual income.

(f) An NAU employee or a relative of an NAU employee who is a public officer or employee in being reimbursed for his actual and necessary expenses incurred in the performance of official duty.

(g) An NAU employee or a relative of an NAU employee who is a recipient of public services generally provided by the incorporated city or town, political subdivision or state department, commission, agency, body or board of which he is a public officer or employee, on the same terms and conditions as if he were not an officer or employee.

(h) That of a public school board member when the relative involved is not a dependent, as defined in section 43-1001, or a spouse.

(i) That of a public officer or employee, or that of a relative of a public officer or employee, unless the contract or decision involved would confer a direct economic benefit or detriment upon the officer, employee or his relative, of any of the following:

(i) Another political subdivision.

(ii) A public agency of another political subdivision.

(iii) A public agency except if it is the same governmental entity.

(j) An NAU employee or a relative of an NAU employee who is a member of a trade, business, occupation, profession or class of persons consisting of at least ten members which is no greater than the interest of the other members of that trade, business, occupation, profession or class of persons.

Substantial Interest:
Any pecuniary or proprietary interest, either direct or indirect, other than a remote interest.

PROCEDURE:

Employees must make known any actual or potential conflicts of interest by completing the form entitled "Disclosure of Substantial Interest".  This is an on-going responsibility of all NAU employees. Disclosure forms shall be returned to Purchasing Services, Building 47A, PO Box 4124.

Each buyer in Purchasing Services shall have an updated summary of "Disclosure of Substantial Interest" information and shall refer to it, as part of normal purchasing procedures, in order to identify potential conflicts of interest. All related party transactions shall be recorded on a central log in Purchasing Services.

In the event that one or more bidders or offerors who are employed in any capacity by Northern Arizona University present a bid or proposal to provide goods or services to the University, the following requirements shall be enforced:

1) No employee of Northern Arizona University shall supply to Northern Arizona University any equipment, material, supplies or services unless pursuant to an award or contract let after public competitive bidding through the Purchasing Services department.

2) Any bid or proposal received from an employee who has not filed a Disclosure of Substantial interest form with the Director of Procurement disclosing the specific business, activity or other relationship that creates the potential conflict of interest in the award or contract at issue, will be rejected, or if awarded, shall be subject to cancellation.

Sources: Arizona Revised Statutes §38-501 to 38-510