UCSC Procedure : Vendor Payment Guideline : Conflict of Interest

Definition:
A conflict of interest may arise when goods or services are purchased from a university employee or from a business where the employee has a 10% or greater interest. A conflict may also arise when a university employee has any responsibility for the decision to purchase goods or services from a near-relative.

An Employee-Vendor Relationship and Conflict of Interest Evaluation Form must be completed whenever a department proposes to purchase, rent, or lease goods or services from any one of the following:

a university employee
the near-relative of a university employee
a business where a university employee owns a 10% or greater interest
a business where the near-relative of a university employee owns a 10% or greater interest.

References:
Web:		FIS Manual: Direct Pay Invoice (FYAINVE) BIZFAQ: key word - conflict

Forms:		Employee-Vendor Conflict of Interest Evaluation Form

Q.		What happens if a payment is unknowingly made to an employee, or a near relative of an employee, and it’s later discovered that a conflict of interest existed?
A.		The purchase or rental of goods or services from a university employee without the prior approval of the Director of Materiel Management is a violation of UC and campus policy and is subject to disciplinary action. It is possible that the employee will be denied payment for the goods and services provided.

Q.		Where do I find an Employee-Vendor Conflict of Interest Evaluation Form?
A.		Contact the Purchasing Office or access online.



				Conflict of Interest Identifying Payments with a Possible Conflict of Interest

	Issued 00-Feb-98 Revised 28-Mar-01			Procedure: Direct Payment & PO Payment