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For any questions please send e-mail to: NDSU.Policy.Manual@ndsu.edu

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SECTION 823: FINANCIAL DISCLOSURE - SPONSORED PROJECTS

SOURCE: NDSU President

1. INTENT

   1.1.

   Rationale: Federal rules require institutions having more than 50 employees and applying for federal funding to assume responsibility for ensuring that the financial interests of employee investigators of the institution do not compromise the objectivity with which such sponsored project activities are designed, conducted, or reported. NDSU has determined that any externally funded project (i.e., funded from sources external to NDSU), not only federally funded projects, should be managed in the same manner.

   1.2.

   Process: When applying for external funding, Investigators are required to disclose to NDSU administration any Significant Financial Interests which may be pertinent to the proposed project. If the proposed project is funded, these disclosures are then reviewed by an administrative process established by NDSU. From the review, a determination is made concerning the acceptability of the reported Significant Financial Interests and appropriate action is taken to protect the proposed sponsored project activities from any bias that might be reasonably expected to arise from those interests.

2. DEFINITIONS

   2.1.

   Award: the receipt of funding from external sources including grants, contracts, and cooperative agreements.

   2.2.

   Initial Review Authority (IRA): the department chair or the appropriate administrative head of the unit in which the Investigator is employed, or such other person as NDSU policy requires.

   2.3.

   Investigator: the Principal Investigator, Co-Principal Investigator, and any other employee of NDSU who is responsible for the design, conduct, or reporting of sponsored project activities funded or proposed for funding. For purposes of this policy, Investigator includes the Investigator's spouse and dependent children.

   2.4.

   Significant Financial Interests (SFI): anything of monetary value which may be related to the sponsored project activities proposed, including, but not limited to, salary or other payments for services (e.g., consulting fees or honoraria); equity interests (e.g., stocks, stock options, or other ownership interests) if the value of such interests is equal to or greater than $10,000 or represents 5% or more ownership; and intellectual property rights (e.g., patents, copyrights, and royalties from such rights).

   Exemptions from Significant Financial Interests include the following:

   A.

   salary, royalties, or other remuneration from NDSU or the NDSU Research Foundation if such payments have not originated with the sponsoring agency;

   B.

   income from seminars, lectures, or teaching engagements sponsored by public or nonprofit entities;

   C.

   income from service on advisory committees or review panels for public or nonprofit entities;

   D.

   financial interests in business enterprises or entities if the value of such interests (industry equity interests, salary, fees, or other continuing payments) is less than $10,000 or represents less than 5% ownership interest for any one enterprise or entity when aggregated for the Investigator, the Investigator's spouse, and dependent children.

   2.5.

   SFI Review Committee: a committee consisting of three persons: the college dean or administrative head; the Dean of Graduate Studies and Research; and a member of the Research and Consulting Committee; that is charged with reviewing sponsored projects wherein Significant Financial Interests are reported.

   2.6.

   Sponsored Project: a project which includes research, educational, or service activities which receives funds from sources external to NDSU.

3. DISCLOSURE

   3.1.

   The disclosure of Significant Financial Interests (SFI) that are related to sponsored projects shall be made as part of the normal proposal transmittal process for external funding requests. At the time a proposal is submitted to the Office of Sponsored Programs Administration, an Investigator is required and expected to report any SFI by means of the PROPOSAL TRANSMITTAL FORM.

   3.2.

   At the time an award is made, if SFI exist, the Investigator must complete the SPONSORED PROJECT FINANCIAL DISCLOSURE FORM and submit it to the Initial Review Authority (IRA). All SFI issues must be resolved by the institution before any awarded funds can be used. NOTE: The SPONSORED PROJECT FINANCIAL DISCLOSURE FORM is necessary only if an award is made and SFI exist.

4. REVIEW AND RESOLUTION (post award only)

   4.1.

   Both the Initial Review Authority (IRA) and the SFI Review Committee have the duty and responsibility to evaluate with care all Significant Financial Interests reported or known to them.

   4.2.

   Following notification that an award has been made, the IRA, in consultation with the Investigator, must reasonably determine if the SFI could affect the design, conduct, or reporting of the activities to be funded by the sponsoring agency.

   4.2.1.

   If the IRA determines that SFI do not exist, he/she will so indicate with an explanation on the SPONSORED PROJECT FINANCIAL DISCLOSURE FORM and submit the form to the Office of Sponsored Programs Administration to be filed with the award file.

   4.2.2.

   If the IRA determines that SFI do exist, he/she will so indicate on the SPONSORED PROJECT FINANCIAL DISCLOSURE FORM and submit the form to the SFI Review Committee for further review and resolution.

   4.3.

   The SFI Review Committee consists of the dean of the Investigator's college or other administrative head, the Dean of Graduate Studies and Research, and a member of the Research and Consulting Committee. The Committee will review the SPONSORED PROJECT FINANCIAL DISCLOSURE FORM and, if necessary, attempt to resolve any actual or potential conflict of interest related to the indicated SFI in consultation with the Investigator.

   4.3.1.

   In resolving an actual or potential conflict of interest, the SFI Review Committee may choose to prohibit the Investigator's involvement in the proposed sponsored project or attach conditions or restrictions which will provide for the management of the potential conflict of interest or oversight of the project.

   Examples of conditions or restrictions that might be imposed to manage, reduce, or eliminate actual or potential conflict of interest include the following:

   A.

   Public disclosure of SFI;

   B.

   Monitoring of sponsored project by independent reviewers;

   C.

   Modification of the sponsored project plan;

   D.

   Disqualification from participation in the portion of the sponsored project that would be affected by the SFI;

   E.

   Divestiture of SFI; or

   F.

   Severance of relationships that create actual or potential conflict of interest.

   4.3.2.

   If the SFI Review Committee determines that imposing conditions or restrictions would be either ineffective or inequitable, and that the potential negative impacts that may arise from the SFI are outweighed by interests of scientific progress, technology transfer, or the public health and welfare, then the proposed sponsored project may be allowed to go forward without imposing such conditions or restrictions.

   4.3.3.

   All SFI issues must be resolved by the institution before any awarded funds can be used; therefore, no resolution means no award. If the SFI present a conflict of interest which cannot be resolved, the award will be refused by NDSU.

   4.4.

   The SFI Review Committee will prepare and each member shall sign the FINANCIAL DISCLOSURE ADMINISTRATIVE REVIEW FORM which will indicate the outcome of the review and, if necessary, will serve as a memorandum of understanding that is executed between the Investigator and the University. The original document should then be submitted to the Office of Sponsored Programs Administration to be filed, and a copy is to be given to the Investigator and each Committee member.

   4.5.

   If restrictions or conditions are imposed on a sponsored project or if there is an inability to satisfactorily resolve an actual or potential conflict of interest, the Dean of Graduate Studies and Research shall so inform the funding agency within one month of the determination.

5. SANCTIONS

   5.1.

   Violations of this policy shall be considered a violation of NDSU policy and regulations and shall be subject to disciplinary procedures, including sanctions up to and including suspension and dismissal, provided for in other NDSU policies and procedures.

   5.2.

   Compliance with this policy may be enforced by exercise of administrative oversight of sponsored project activities and management of University facilities and other University property.

6. CLARIFICATIONS

   6.1.

   If an actual or potential conflict of interest exists with a particular funding agency, it is incumbent on the Investigator to disclose such and to have a resolution, with any attached conditions, prior to the use of any awarded funds.

   6.2.

   It is the responsibility of the Investigator to update the financial disclosure of SFI whenever the Investigator's financial situation changes throughout the duration of the sponsored project.

   6.3.

   Records of all financial disclosures of SFI and of all actions taken to resolve related issues will be maintained until at least three (3) years after the later of the termination or completion of the award to which they relate, or the resolution of any governmental action involving those records.

   6.4.

   This policy covers all employees of NDSU who submit proposals for external funds.

   6.5.

   The disclosure and supporting documents filed in compliance with this policy will be maintained as confidential to the extent possible under applicable state and federal requirements and the North Dakota Open Records Act.

HISTORY: June 1995, Amended October 1997, August 2007.