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Northern Arizona University
Purchasing Policy and Procedure

Remote Interest of Procurement Officer

Remote Interest of Procurement Officer

A remote interest is defined in Arizona Revised Statutes, for all State/University employees as:

1. That of a nonsalaried officer of a nonprofit corporation;



2. That of a landlord or tenant of the contracting party;



3. That of an attorney of a contracting party;



4. That of a member of a nonprofit cooperative marketing association;



5. The ownership of less than three percent 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 percent of the total annual income of such officer or employee and any other payments made to him by the corporation do not exceed five percent of his total annual income;



6. That of a public officer or employee in being reimbursed for his actual and necessary expenses incurred in the performance of official duty;



7. That of 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;



8. That of a public school board member when the relative involved is not a dependent, as defined in §43-1001 or a spouse;



9. 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:




1. Another political subdivision.



2. A public agency of another political subdivision.



3. A public agency except if it is the same governmental entity.




10. That of 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.

A substantial interest is defined as any pecuniary or proprietary interest, either direct or indirect, other than a remote interest.

In the event the procurement officer has a remote interest as defined in items (1), (4), (6), or (10) above, there is the possibility suppliers may perceive a conflict of interest. Therefore, it is required that the procurement officer disclose such remote interests and refrain from decisions regarding purchases from such organizations or decisions regarding the specifications or requirements or evaluation or awarding of bids where such organizations are likely to be bidders.

The responsibility for such procurement actions may be delegated to another individual within the University. The individual may be of higher, equal or lower rank than the procurement officer, but should be a person professionally knowledgeable and capable of rendering a decision consistent with applicable purchasing policies. The individual may be a subordinate of the procurement officer.

The procurement officer shall place a memorandum in the file for each such procurement.

In addition the procurement officer shall provide quarterly reports to the Vice President for Business Affairs which detail purchase transactions between the University and the organization for which the remote interest exists.