CONFLICTS OF CONFLICTS OF INTERESTINTEREST

Revised August 4, 2008Revised August 4, 2008

Potential conflicts of interestPotential conflicts of interest

A personal financial interestA personal financial interest A business interestA business interest Any other obligation or relationshipAny other obligation or relationship Non-school employmentNon-school employment

Policy DBD (Local)Policy DBD (Local)

“ “An employee shall not accept any An employee shall not accept any gift, favor, service, or other benefit gift, favor, service, or other benefit that could reasonably be construed that could reasonably be construed to influence the employee’s to influence the employee’s discharge of assigned duties and discharge of assigned duties and responsibilities.”responsibilities.”

Examples…Examples…

Disclosure Disclosure Requirement:Requirement:

Must disclose potential Must disclose potential conflict of interest to conflict of interest to

immediate supervisor.immediate supervisor.

Prior to award of contract or Prior to award of contract or authorization of payment:authorization of payment:

File affidavit with File affidavit with Superintendent or Board Superintendent or Board

President, which discloses a President, which discloses a substantial interest in a business substantial interest in a business

entity or interest in real entity or interest in real property. property.

What is aWhat is aSUBSTANTIAL SUBSTANTIAL

INTEREST?INTEREST?

SUBSTANTIAL INTERESTSUBSTANTIAL INTERESTIn Business Entity:In Business Entity:

The person owns at least:The person owns at least:

a. 10% of voting stock in business; ora. 10% of voting stock in business; or

b. either 10% or $15,000 of the fair b. either 10% or $15,000 of the fair market value of the business market value of the business

oror Funds received by the person from the Funds received by the person from the

business exceed 10% of the person’s business exceed 10% of the person’s gross income for the previous year. gross income for the previous year.

SUBSTANTIAL INTERESTSUBSTANTIAL INTERESTIn Real Property:In Real Property:

Ownership with a fair market Ownership with a fair market value of $2,500 or more.value of $2,500 or more.

SUBSTANTIAL INTERESTSUBSTANTIAL INTERESTalso if related by:also if related by:

FIRST DEGREEFIRST DEGREE

by either affinity or consanguinityby either affinity or consanguinity

Relationship by Consanguinity Relationship by Consanguinity (blood) and Affinity (marriage) (blood) and Affinity (marriage)

First First

DegreeDegree::

ParentParent ChildChild

Second Second DegreeDegree

::

Grand-Grand-parentparent

Grand-Grand-childchild

SisterSister BrotheBrotherr

Policy CAA (Local)Policy CAA (Local)

Fraud and financial impropriety Fraud and financial impropriety includes:includes:

ForgeryForgery Misappropriation of District assetsMisappropriation of District assets ImproprietyImpropriety Profiteering from insider knowledgeProfiteering from insider knowledge Unauthorized disclosure of confidential Unauthorized disclosure of confidential

informationinformation Accepting benefits illegallyAccepting benefits illegally Dishonesty Dishonesty

Reporting FraudReporting Fraud

SuperintendentSuperintendent Board PresidentBoard President Internal AuditorInternal Auditor Director of SecurityDirector of Security SupervisorSupervisor

If If employeeemployee is found to have committed is found to have committed fraud or financial impropriety, fraud or financial impropriety, appropriate disciplinary action taken appropriate disciplinary action taken (may include termination). (may include termination).

If If vendorvendor is found to have committed is found to have committed fraud or financial impropriety, fraud or financial impropriety, appropriate disciplinary action (may appropriate disciplinary action (may include cancellation of District’s include cancellation of District’s relationship).relationship).

Texas Penal CodeTexas Penal Code

Texas Penal Code Section 36.02: It is a Texas Penal Code Section 36.02: It is a crime of bribery for a public employee to crime of bribery for a public employee to accept any “benefit as consideration in accept any “benefit as consideration in exchange.”exchange.”

Texas Penal Code Section 36.01(3): A Texas Penal Code Section 36.01(3): A prohibited “benefit” is defined as anything prohibited “benefit” is defined as anything reasonably regarded as pecuniary reasonably regarded as pecuniary (monetary) gain or pecuniary advantage, (monetary) gain or pecuniary advantage, including benefit to any other person in including benefit to any other person in whose welfare the beneficiary has a direct whose welfare the beneficiary has a direct and substantial interest. and substantial interest.

Texas Ethics CommissionTexas Ethics Commission

Opinion by Texas Ethics Opinion by Texas Ethics Commisssion: Plaque (unless quite Commisssion: Plaque (unless quite elaborate) is not considered a benefit elaborate) is not considered a benefit under the bribery law.under the bribery law.

Texas Penal Code Section 36.08Texas Penal Code Section 36.08

Whether or not benefit was accepted Whether or not benefit was accepted in consideration or in exchange for in consideration or in exchange for any official action, Penal Code any official action, Penal Code Section 36.08 prohibits gifts from Section 36.08 prohibits gifts from person subject to jurisdiction with person subject to jurisdiction with whom public official interacts in whom public official interacts in his/her official capacity (subject to his/her official capacity (subject to certain exceptions).certain exceptions).

ExceptionsExceptions Token GiftsToken Gifts: gifts having a value of less : gifts having a value of less

than $50 if not given in exchange for any than $50 if not given in exchange for any exercise of official discretionexercise of official discretion

Gifts from Family or Close FriendsGifts from Family or Close Friends: if there : if there is an independent relationship that is not is an independent relationship that is not related to the status or work of the public related to the status or work of the public officialofficial

Statutorily Provided Fee:Statutorily Provided Fee: fee provided by fee provided by law that an official is lawfully entitled to law that an official is lawfully entitled to receive for function other than as a public receive for function other than as a public servant (e.g. jury duty fee)servant (e.g. jury duty fee)

Political Contributions as defined by Title 15 Political Contributions as defined by Title 15 of the Texas Election Codeof the Texas Election Code

Gifts Over/Under $50 Gifts Over/Under $50

OVER $50OVER $50::

Expensive floral arrangementExpensive floral arrangement Tickets to an eventTickets to an event

UNDER $50:UNDER $50:

Coffee mugsCoffee mugs T shirtsT shirts

Donation of GiftDonation of Gift

Can public employee donate an Can public employee donate an unsolicited gift to avoid illegal gift unsolicited gift to avoid illegal gift problem?problem?

Permissible to donate gift to a Permissible to donate gift to a recognized tax-exempt charitable recognized tax-exempt charitable organization formed for educational, organization formed for educational, religious or scientific purposes. religious or scientific purposes.

Outside employment and Outside employment and tutoringtutoring

Employees required to disclose in Employees required to disclose in writing any outside employment that writing any outside employment that may create a conflict of interest.may create a conflict of interest.

Case by case determinationCase by case determination Not allowed during duty hoursNot allowed during duty hours No use of district resources at any No use of district resources at any

time.time.

RESOURCESRESOURCES

Board Policies—BBFA (legal)(exhibit), Board Policies—BBFA (legal)(exhibit), DBD (local), DBD (legal), CAA (local)DBD (local), DBD (legal), CAA (local)

Employee handbookEmployee handbook WFISD internal regulationsWFISD internal regulations Chapter 36 of the Texas Penal CodeChapter 36 of the Texas Penal Code