CAMP IPPS August 21, 2018

Transcription

1 CAMP IPPS 2018 August 21, 2018

2 CONFLICT OF INTEREST COMPLIANCE: NAVIGATING EMPLOYEE-VENDOR RELATIONSHIPS Katherine Castagnola, Alma Mendoza, and Mateo Quiroga Room number and time slot [Leave blank]

3 WELCOME CAMPERS A few things to remember West Ballroom Stop by the ballroom to ask us questions after the class! Meet Connexxus travel vendors in honor of the Connexxus 10 th anniversary Raffle prize options are located throughout the ballroom. Place your raffle ticket in the box next to the prize that catches your eye!

4 EMPLOYEE-VENDOR RELATIONSHIPS (EVR) Overview Conflict of interest situations may arise in regarding employee-vendor relationships when: An active employee proposes to rent, sell, or provide goods and/or service to the University; A former employee proposes to rent, sell or provide goods and/or services to the University and influenced, participated, or engaged in any of the negotiations, transactions, planning, or any part of the decision making process or held a policy-making position; or A near relative proposes to rent, sell, or provide goods and/or service to the University. There are several exemptions in employee-vendor relationships; such as: A student employee proposes to rent, sell, or provide goods and/or service to the University; or A retiree proposes to provide services to the University.

5 GOVERNING POLICY ON CONFLICT OF INTEREST California Political Reform Act An effort to ensure that public officials act in a fair and unbiased manner in the governmental decisionmaking process. California Public Contract Code An effort to eliminate favoritism, fraud, and corruption in the awarding of public contracts as means of protecting the public from misuse of public funds. UC Materiel Management BUS-43 An effort of the University to maintain high standards of performance based upon fair, ethical, and professional practices.

6 POSSIBLE PENALTIES FOR COI VIOLATION Possible penalties for violating conflict of interest codes in regards to purchase contracts include, but are not limited to: Criminal Sanctions by the Attorney General and the District Attorney Civil Sanctions by the Attorney General and any California citizen Administrative Fines by the Fair Political Practices Commission Employment Consequences by the University Any contract made in violation of public conflict of interest laws and regulations is void and unenforceable. [Conflicts of Interest Guidance by the California Attorney General s Office 2010]

7 LIGHT & POWER COMPANY - CITY OF VERNON Conflict of Interest Case Study Briefing: Various administrators for the City of Vernon violated conflict of interest codes by repeatedly issuing funded contracts to various family members resulting in direct economic interest. Most notably, former Vernon City Administrator Donal O'Callaghan pleaded guilty to charges of felony conflict of interest for hiring his wife as a clerical contractor for the Light & Power Company. Outcome: Donal O'Callaghan was sentenced to (200) hours of community service and one year of probation. California State Auditors, among other consultants and agencies, issued investigation findings, conclusions, and recommendations. Senate bill AB 46 stemmed from the various scandals surrounding Vernon calling to disincorporate the small city. [Although Reform Is Ongoing, Past Poor Decision Making Threatens Its Financial Stability , June 2012]

8 STATE WATER RESOURCES CONTROL BOARD ( STATE WATER BOARD ) Conflict of Interest Case Study Briefing: A district engineer for the State Water Resources Control Board (State Water Board) violated state conflict-of-interest law by repeatedly recommending that the State s drinking water program enter into funding agreements that involved an engineering firm that employed the district engineer's spouse and then approved claims that resulted in this same engineering firm receiving $3.9 million. Recommendations by the California State Auditors: Corrective action against the district engineer and the supervisors for their participation and negligence in addressing the conflict of interest; Enforce conflict of interest compliance training to deter and ensure others do not participate in decisions involving their own economic interests; Provide training to those responsible for reviewing statements of economic interests; and Refer case to the Fair Political Practices Commission. [Investigations of Improper Activities by State Agencies and Employees I2016-2, August 2016]

9 UNIVERSITY OF CALIFORNIA, DAVIS Conflict of Interest Case Study Briefing: While serving as Chancellor of the UC school, Linda P.B Katehi served on the Board of Directors of John Wiley and Sons, a textbook company resulting in stock gains of approximately $200, While it is unclear whether the chancellor influenced or participated in any decision resulting in economic gain, her proximity to the board of a company engaging in business with the University of California presents the appearance of a conflict of interest [Ed Howard, senior counsel for the Center for Public Interest Law]. Outcome: Following the public scrutiny, Linda P.B. Katehi pledged to dedicate the gains to a scholarship for UC Davis students; later to rescind such commitment and withhold the scholarship. Following the investigative report, the chancellor stepped down due to concerns of conflict of time for her proximity to various board of directors and violation of University policy in filing travel expenses. [Independent Review of Allegations Related to Chancellor Linda Katehi by Orrick, August 2016]

10 UNIVERSITY OF CALIFORNIA, SAN DIEGO Conflict of Interest Case Study Briefing: Department authority attempts to influence a purchase decision by directing funds to acquire a product they developed and commercialized while working for the University. Outcome: Purchase transaction was denied by enforcing the Employee-Vendor Relationship Disclosure Compliance Process; Deferred to the Office of Innovation and Commercialization to determine if the product developed while working for the University belongs to the University; and Department authorities were notified of the law and regulations surrounding such activities in efforts to protect the University and the grants supporting the department. [UC San Diego Integrated Procure-to-Pay Solutions Procurement and Contracts, June 2018]

11 CONFLICT OF INTEREST REVIEW PROCESS EVR Detected or Disclosed Forms Requested Secondary Case Review* Initial Case Review Determination Requisition/Vendor Approval* * If Applicable COI Process

12 EVRD FORMS To expedite requests in which the vendor has been associated with an EVRD, departments should submit the following in their ASK case or Marketplace requisition: Employee-Vendor Relationship Disclosure (EVRD) Form Signed by the UC employee and department authority Independent Contractor Pre-Hire Form Signed by the department authority Statement of Work/Proposal for the goods and/or services requested.

13 EVRD FORMS For more information Visit UC San Diego Blink Employee Vendor Relationships Refer to BUS-43 Materiel Management Submit an ASK case [Primary Category: Buying Goods and Services Sub-Category: Emp-Vend Relationship/Conflict of Interest]