SPECIAL ETHICS LAW MEMO #11

RE:  FACULTY DISCLOSURE CRITERIA

Faculty members are required to file financial disclosure if they meet either the compensation/duties criteria, (see Information Memorandum No. 9) and if they are involved in direct procurement or involved in influence on procurement as described below:

Direct Procurement Involvement

Financial disclosure is required when a faculty member's official responsibilities include the direct procurement of goods, services, real estate or other items, other than routine supplies and routine classroom or laboratory materials which are not reasonably expected to have an annual dollar volume in excess of $2,000.  Direct procurement includes, but is not limited to, placing an order with a vendor, approval of bills or invoices, signing of sales agreements, or selection of vendors.

Direct Influence on Procurement

Financial disclosure is required if a faculty member's position, due to its responsibilities, nature, expertise or placement in the institution, involves some continuing likelihood of directly influencing or otherwise directly affecting the formation or execution of one or more agency contracts, purchases or sales reasonably expected to have an annual dollar volume in excess of $10,000.   To make this determination, the Commission will review the faculty member’s position description and actual past activities in the position.

Directly influencing or otherwise directly affecting the formation or execution of a contract includes:

(a)    Recommending a vendor;

(b)   Providing the required signature, approval or other sign-off of a document relating to specifications, a purchase or a payment;

(c)    Being involved in communications or conferences with potential contractors in an attempt to arrange the terms of a purchase, lease or contract;

(d)   Preparing specifications, being a principal advisor regarding specifications, or approving specifications which form the basis for part or all of a contract;

(e)    Determining or being a principal advisor in determining terms acceptable to the State.

Directly influencing or otherwise directly affecting the formation or execution of a contract does not include the generic identification of the need for an item without any further activity to directly influence or otherwise directly affect the transaction.

If the person would not be required to file under the criteria in Information Memorandum Number 9, then the person is not required to file financial disclosure.  If the person would be required to file under the criteria of Information Memorandum Number 9, then proceed by applying the criteria is this memo (Information Memorandum Number 11).   

(11/1/05)