CONFLICTS OF INTEREST Revised August 4, 2008

Potential conflicts of interest A personal financial interest A personal financial interest A business interest A business interest Any other obligation or relationship Any other obligation or relationship Non-school employment Non-school employment

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

Disclosure Requirement: Must disclose potential conflict of interest to immediate supervisor.

Prior to award of contract or authorization of payment: File affidavit with Superintendent or Board President, which discloses a substantial interest in a business entity or interest in real property. File affidavit with Superintendent or Board President, which discloses a substantial interest in a business entity or interest in real property.

What is a SUBSTANTIAL INTEREST?

SUBSTANTIAL INTEREST In Business Entity: The person owns at least: The person owns at least: a. 10% of voting stock in business; or b. either 10% or $15,000 of the fair market value of the business b. either 10% or $15,000 of the fair market value of the business or or Funds received by the person from the business exceed 10% of the person’s gross income for the previous year. Funds received by the person from the business exceed 10% of the person’s gross income for the previous year.

SUBSTANTIAL INTEREST In Real Property: Ownership with a fair market value of $2,500 or more.

SUBSTANTIAL INTEREST also if related by: FIRST DEGREE by either affinity or consanguinity

Relationship by Consanguinity (blood) and Affinity (marriage) FirstDegree:ParentChild Second Degree: Grand- parent Grand- child SisterBrother

Policy CAA (Local) Fraud and financial impropriety includes: Forgery Forgery Misappropriation of District assets Misappropriation of District assets Impropriety Impropriety Profiteering from insider knowledge Profiteering from insider knowledge Unauthorized disclosure of confidential information Unauthorized disclosure of confidential information Accepting benefits illegally Accepting benefits illegally Dishonesty Dishonesty

Reporting Fraud Superintendent Superintendent Board President Board President Internal Auditor Internal Auditor Director of Security Director of Security Supervisor Supervisor

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

Texas Penal Code Texas Penal Code Section 36.02: It is a crime of bribery for a public employee to accept any “benefit as consideration in exchange.” Texas Penal Code Section 36.02: It is a crime of bribery for a public employee to accept any “benefit as consideration in exchange.” Texas Penal Code Section 36.01(3): A prohibited “benefit” is defined as anything reasonably regarded as pecuniary (monetary) gain or pecuniary advantage, including benefit to any other person in whose welfare the beneficiary has a direct and substantial interest. Texas Penal Code Section 36.01(3): A prohibited “benefit” is defined as anything reasonably regarded as pecuniary (monetary) gain or pecuniary advantage, including benefit to any other person in whose welfare the beneficiary has a direct and substantial interest.

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

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

Exceptions Token Gifts: gifts having a value of less than $50 if not given in exchange for any exercise of official discretion Token Gifts: gifts having a value of less than $50 if not given in exchange for any exercise of official discretion Gifts from Family or Close Friends: if there is an independent relationship that is not related to the status or work of the public official Gifts from Family or Close Friends: if there is an independent relationship that is not related to the status or work of the public official Statutorily Provided Fee: fee provided by law that an official is lawfully entitled to receive for function other than as a public servant (e.g. jury duty fee) Statutorily Provided Fee: fee provided by law that an official is lawfully entitled to receive for function other than as a public servant (e.g. jury duty fee) Political Contributions as defined by Title 15 of the Texas Election Code Political Contributions as defined by Title 15 of the Texas Election Code

Gifts Over/Under $50 OVER $50: OVER $50: Expensive floral arrangement Expensive floral arrangement Tickets to an event Tickets to an event UNDER $50: UNDER $50: Coffee mugs Coffee mugs T shirts T shirts

Donation of Gift Can public employee donate an unsolicited gift to avoid illegal gift problem? Can public employee donate an unsolicited gift to avoid illegal gift problem? Permissible to donate gift to a recognized tax-exempt charitable organization formed for educational, religious or scientific purposes. Permissible to donate gift to a recognized tax-exempt charitable organization formed for educational, religious or scientific purposes.

Outside employment and tutoring Employees required to disclose in writing any outside employment that may create a conflict of interest. Employees required to disclose in writing any outside employment that may create a conflict of interest. Case by case determination Case by case determination Not allowed during duty hours Not allowed during duty hours No use of district resources at any time. No use of district resources at any time.

RESOURCES Board Policies—BBFA (legal)(exhibit), DBD (local), DBD (legal), CAA (local) Board Policies—BBFA (legal)(exhibit), DBD (local), DBD (legal), CAA (local) Employee handbook Employee handbook WFISD internal regulations WFISD internal regulations Chapter 36 of the Texas Penal Code Chapter 36 of the Texas Penal Code