REG 01.25.01 – Conflicts of Interest and Conflicts of Commitment
Authority: Chancellor
History: First Issued: April 16, 1993. Last Revised: August 20, 2024.
Related Policies:
UNC Policy Manual 300.2.2 – Conflicts of Interest and Commitment Affecting Faculty and Non-Faculty EHRA Employees
UNC Policy Manual 300.2.2.1[R] – External Professional Activities for Pay by Faculty and Non-Faculty EHRA Employees
UNC Policy Manual 300.2.2.2 – Regulations for Senior Academic and Administrative Officers on External Professional Activities for Pay and Honoraria
UNC Policy Manual 300.2.2.3 [R]- Regulation on Implementing the UNC Conflict of Interest and Commitment Policy
Public Health Service 42 CFR Part 50 Subpart F– Promoting Objectivity in Research
National Science Foundation (NSF) COI Policy- 2 CFR § 200 Chapter IX- Grantee Standards
Department of Energy Interim (DOE) COI policy- 2 CFR 200.112
Additional References:
UNC Policy Manual, 500.2 – Patent and Copyright Policies
NCSU POL10.00.01 – Patent and Tangible Research Policy
UNC Policy Manual 300.5.1 – Political Activities of Employees
Presidential Memorandum on United States Government Supported Research and Development National Security Policy- National Security Presidential Memorandum-33
National Aeronautics and Space Administration (NASA) Guidebook for Proposers – Responding to a NASA Research Announcement (NRA) or Cooperative Agreement Notice (CAN)
CHIPS Act of 2022 – Public Law No: 117-167
Contact Info: COI Director, 919-513-8141 (COI-Support@ncsu.edu)
1. PURPOSE AND SCOPE
1.1. In accordance with the UNC System Policy 300.2.2, all Covered Individuals (as defined in section 3.5) have a primary professional obligation to act in the best interests of North Carolina State University (hereinafter referred to as NC State). All members of the NC State community are expected to avoid Conflicts of Interest and Conflicts of Commitment that have the potential to directly and significantly affect NC State’s interests, compromise the Covered Individual’s objectivity in carrying out their University Employment Responsibilities, or otherwise compromise the performance of their University Employment Responsibilities, unless such conflicts are disclosed, reviewed, and appropriately managed in accordance with the provisions of this Regulation.
2. Roles and responsibilities
2.1 Vice Chancellor for Research and Innovation
- Oversee the implementation of this regulation.
- Determine corrective actions and sanctions.
- Hear appeals from Covered Individuals who disagree with a Dean’s decision regarding External Professional Activities or management of Conflicts of Interest or Conflicts of Commitment. Decisions by the Vice Chancellor will be final.
2.2 Deans or Deans’ designees
- Review and make timely determinations on requests for External Professional Activities elevated by the Unit Head in accordance with section 5.1.B.
- Hear appeals from Covered Individuals who disagree with a Unit Head’s decision regarding External Professional Activities or management of Financial Conflicts of Interest or Conflicts of Commitment. Decisions by a Dean are appealable to the Vice Chancellor for Research and Innovation.
- Administer corrective actions and sanctions within their colleges, including those determined by the Vice Chancellor for Research and Innovation.
2.3 Unit Heads or Unit Heads’ designees
- Review and make determinations in a timely manner on requests from Covered Individuals to engage in External Professional Activities.
- When the COI Office identifies a Financial Conflict of Interest, ensure that appropriate controls are implemented to eliminate or mitigate the Financial Conflict of Interest.
2.4 Covered Individuals
- Understand and abide by the standards set forth in this regulation, including required disclosures of Financial Interests and External Professional Activities and compliance with applicable COI Management Plans.
- Understand that the University’s personnel and resources must be used to promote the University’s mission and not for personal gain.
2.5 Conflict of Interest Office, Sponsored Programs and Regulatory Compliance Services (SPARCS) (“COI Office”) shall:
- Provide general guidance and interpretation of this regulation.
- Review disclosed Financial Interests and make determinations of whether those Financial Interests create a Financial Conflict of Interest for specific sponsored research projects.
- Manage the systems and procedures for the disclosure of External Professional Activities and Financial Interests.
- Oversee compliance with research sponsors’ requirements related to this regulation, including the establishment and monitoring of COI Management Plans, required reporting, and retrospective reviews as described in section 7.1.
2.6 Research Security Officer, as designated by the Vice Chancellor for Research and Innovation, shall review and make determinations in a timely manner on:
- Disclosures involving entities associated with Foreign Countries of Concern or Foreign Entities of Concern, and
- Disclosures involving participation in Foreign Talent Recruitment Programs to determine whether the program is a Malign Foreign Talent Recruitment Program.
3. definitions
3.1 Appointments
- “Academic Appointments” are appointments defined in an institutional policy and conveyed in a formal manner (e.g., via appointment letter, executed offer letter, or employment contract) by an entity other than NC State that relates to research, teaching, or associated scholarly activities.
- “Institutional Appointments” are appointments that include institutional administrative responsibilities (e.g., dean, department head, center director, chief executive officer, chief technical officer) and are conveyed in a formal manner (e.g., via appointment letter, executed offer letter, employment contract) by an entity other than NC State.
- “Professional Appointments” are appointments conveyed in a formal manner (e.g., via appointment letter, executed offer letter, or employment contract) by an entity other than NC State. They are undertaken owing to the Covered Individual’s professional expertise (e.g., as a consultant, physician, structural engineer, or mathematician).
3.2 “Conflicts of Commitment” are situations in which a Covered Individual engages in activities external to NC State or assumes commitments external to NC State that compromise, may appear to compromise, or have the potential to compromise their ability to fulfill their University Employment Responsibilities.
3.3 “Conflicts of Interest” or “COI” are situations in which a Covered Individual’s financial or other personal interests or relationships may compromise, may involve the potential for compromising, or may have the appearance of compromising a Covered Individual’s objectivity in fulfilling their University Employment Responsibilities. A Covered Individual may have a Conflict of Interest when the Covered Individual, or their Immediate Family Member, have a financial or personal interest in an activity that may affect decision-making with respect to the Covered Individual’s University Employment Responsibilities.
3.4 “COI Management Plan” is a plan established when a Covered Individual serving as a Senior/Key Person for a sponsored research project has a Financial Interest that could directly and significantly affect the design, conduct, reporting, or funding of that project.
3.5 “Covered Individual” is
- Any Faculty employee, Exempt Professional Staff (EPS), Senior Academic and Administrative Officer (SAAO), or any individual, regardless of employment type or status, supported by a sponsored research award, who is designated as Senior/Key Person for the project and is responsible for the design, conduct, reporting, or funding of such research.
- The definition of Covered Individuals may be expanded for a particular sponsored project when required by the federal award terms. Affected individuals will be notified of their inclusion and shall be considered Covered Individuals only for the period of time they participate in the applicable award.
3.6 “External Professional Activity” is defined as any paid or unpaid activity that:
- Is not included within the Covered Individual’s University Employment Responsibilities, except as identified in section 3.6.D. below, and;
- Is performed for any entity other than NC State; and;
- Is based upon the professional knowledge, experience, or abilities for which NC State employs the Covered Individual.
- External Professional Activities include activities that would otherwise be considered within the Covered Individual’s University Employment Responsibilities if:
- The Covered Individual has accepted a formal Academic Appointment, Professional Appointment, or Institutional Appointment, paid or unpaid, with an entity other than NC State, or
- The Covered Individual is participating in a Foreign Talent Recruitment Program, or
- The Covered Individual is receiving direct compensation for the activity from any entity other than NC State.
- The Covered Individual has travel sponsored or reimbursed by an entity other than NC State, unless the travel is reimbursed or sponsored by a U.S. federal, state, or local government agency, a U.S. institution of higher education, a U.S. academic teaching hospital, a U.S. medical center, or a research institute that is affiliated with a U.S. institution of higher education.
3.7 “Financial Interest” is defined as one or more of the following interests held by the Covered Individual and/or their Immediate Family Members that reasonably appear to be related to the Covered Individual’s University Employment Responsibilities:
- Any Income received from an entity other than NC State, such as salary or other payment for services (consulting fees or honoraria) and paid authorships, except as identified in Section 3.7.E.3 below;
- Any equity or other ownership interest in publicly or non-publicly traded entities (e.g., stock, stock options, dividends, warrants, vested shares, or other ownership interest);
- Intellectual property rights and interests upon receipt of income related to patents, copyrights, and royalties from such rights and interests. This includes intellectual property rights assigned to NC State and subject to a share in royalties related to such rights;
- Domestic or foreign travel related to the Covered Individual’s University Employment Responsibilities that is paid for, sponsored, reimbursed, or otherwise funded by an entity other than NC State, except as identified in section 3.7.E.4 below.
- Not included in the definition of Financial Interest:
- Salary received from NC State;
- Income from investment vehicles, such as mutual funds or retirement accounts, in which the Covered Individual or their Immediate Family Member does not directly control or advise the investment decisions;
- Income or reimbursement from seminars, lectures, teaching engagements, service on advisory committees or panels paid by U.S. federal/state/local government agencies or U.S. institutions of higher education;
- Travel reimbursed or sponsored by a federal, state, or local government agency, a U.S. institution of higher education, a U.S. academic teaching hospital, a U.S. medical center, or a research institute that is affiliated with a U.S. institution of higher education.
3.8 “Financial Conflict of Interest” means a situation in which a Covered Individual serving as a Senior/Key Person or their Immediate Family Member has a Financial Interest that could directly and significantly affect the design, conduct, reporting, or funding of a sponsored research project.
3.9 “Foreign Country of Concern” is any country identified by the U.S. Government in the CHIPS Act of 2022 (Public Law 117-167) and further identified by the U.S. Secretary of State as engaged in conduct that is detrimental to national security or foreign policy of the United States.
3.10 “Foreign Entity of Concern” is any entity that the US Government identifies in accordance with the CHIPS Act of 2022 (Public Law 117-167) as posing an unmanageable threat to the national security of the United States or of theft or loss of United States intellectual property.
3.11. “Foreign Talent Recruitment Program,” or “FTRP,” is an effort organized, managed, or funded by a foreign government, or a foreign government instrumentality or entity, to recruit science and technology professionals or students (regardless of full-/part-time status, citizenship, or national origin) or as may be defined by an applicable government or funding agency.
3.12 “Immediate Family Member” is a Covered Individual’s spouse or dependent child.
3.13 “Research Security” means the necessary safeguarding of the research enterprise against the misappropriation of research and development to the detriment of national or economic security, related to violations of research integrity, and foreign government interference.
3.14 “Senior/Key Person” is an individual who contributes in a substantive, meaningful way to the scientific development or execution of a research and development project. This includes project directors, principal investigators, and other Senior/Key Personnel seeking or receiving sponsored research and development funding.
3.15 “Malign Foreign Talent Recruitment Program” or “MFTRP” is defined as a Foreign Talent Recruitment Program that is 1) sponsored by, affiliated with, or based in a Foreign Country of Concern or sponsored by a Foreign Entity of Concern and 2) requires the Covered Individual to engage in activities that violate their obligations to NC State or to an applicable research sponsor, creating an unmanageable Conflict of Commitment.
3.16 “Unconflicted Employee” is an NC State employee who can provide independent monitoring of the research impacted by a Covered Individual’s Financial Conflict of Interest. This individual must be knowledgeable of the research and must themselves be free of any potential Financial Conflict of Interest related to the research.
3.17 “University Employment Responsibilities” means the responsibilities that the Covered Individual is hired to perform at NC State and the professional expertise necessary to perform those responsibilities. This may include but is not limited to teaching; conducting scholarly research (including research administration) and publication; providing professional services such as membership in and service to professional associations and learned societies; membership on professional review or advisory panels; presentation of lectures, papers, concerts, or exhibits; participation in seminars and conferences; reviewing or editing scholarly publications and books; service to accreditation bodies; and any other activities that rely significantly on the expertise for which the Covered Individual was hired. Some activities that would otherwise be considered University Employment Responsibilities but will also be considered External Professional Activities are described in section 3.6.D.
3.18 “Use of University Resources” means using any NC State services, labs, facilities, equipment, supplies, students, or personnel in a manner consistent with NC State Policies, Regulations, and Rules, including by not limited to REG 08.00.02 – Computer Use Regulation, and in a manner not available to the general public.
4.general requrements and prohibitions
4.1 Requirement. If NC State is required by law, regulation or other obligation to report additional information not identified in Sections 5 and 6 concerning a Financial Interest or External Professional Activity, the Covered Individual shall provide the required information upon request. Examples include, but are not limited to, disclosure requirements related to venture or other capital financing and the disclosure of foreign contracts. In the event a foreign contract is requested, an authenticated English version of the contract shall be provided.
4.2 Prohibitions. The following activities that have the potential for creating Conflicts of Interest are prohibited by North Carolina law (N.C.G.S. 14-234.1) and, therefore, may not be undertaken.
- North Carolina law prohibits any employee involved in making or administering contracts on behalf of a state agency from deriving a direct benefit from the contract. In addition, if the employee will derive a direct benefit from the contract but is not involved in making or administering contracts, he or she may not attempt to influence any other person who is involved in making or administering the contract.
- North Carolina law prohibits any employee from soliciting or receiving any gift, reward, or promise of reward in exchange for recommending, influencing, or attempting to influence the award of a contract by the state agency for which the employee works.
- Employees may not benefit financially or help someone else benefit from non-public information gained by the employee in his or her official capacity.
5. Conflicts of Commitment and external professional activities
5.1 Disclosure and Approval:
- Covered Individuals are required to obtain approval from their Unit Head prior to engaging in an External Professional Activity and annually thereafter.
- External Professional Activities that involve the Use of University Resources may require additional approval by the Dean, if the Unit Head determines college level review and approval is needed.
- Prior to approval, any External Professional Activity that directly involves a foreign entity shall be reviewed by the Research Security Officer or the Research Security Officer’s designee to ensure the activity does not directly involve a Foreign Entity of Concern, a Malign Foreign Talent Recruitment Program and that potential Research Security issues are addressed.
- Covered Individuals classified as SAAO are subject to UNC Policy 300.2.2.2 [R] Regulation for Senior Academic and Administrative Officers on External Professional Activities for Pay and Honoraria.
5.2 Requirements and Limitations:
- Covered Individuals shall only engage in External Professional Activities that are consistent with and do not interfere with their University Employment Responsibilities and that do not create unmanageable Conflicts of Commitment.
- Covered Individuals shall not engage in External Professional Activities that involve any of the following:
- Direct involvement with a Foreign Entity of Concern;
- Participation in a Malign Foreign Talent Recruitment Program;
- The use of the name or marks of NC State for any purpose other than for identification purposes;
- Claims, explicitly or implicitly, that NC State is responsible for the conduct or outcome of the External Professional Activity; and
- Receipt of remuneration from NC State (including university-reimbursed travel, worktime, or resources) and an external entity for the same activity.
6. Conflicts of Interest
6.1 Disclosure of Financial Interests:
- Covered Individuals are required to file a Financial Disclosure annually and within 30 days of discovering or acquiring a new Financial Interest.
- Covered Individuals must disclose all Financial Interests, including those of their Immediate Family Members, that appear to be related to the Covered Individual’s University Employment Responsibilities regardless of value.
- Covered Individuals must ensure that a valid and current Financial Disclosure is on file at the time of submitting a proposal for a sponsored research project.
6.2 Review, Identification and Management of Financial Conflicts of Interests
- Before being permitted to participate in a sponsored research project as a Senior/Key Person, the COI Office shall review a Covered Individual’s disclosed Financial Interests and the applicable project to identify Financial Conflicts of Interest.
- In the event that a Financial Conflict of Interest is identified, The COI Office will work with the affected Covered Individual and the Covered Individual’s Unit Head to develop a COI Management Plan. Such COI Management Plan must be approved by the Covered Individual’s Unit Head before effort on the project is permitted. Examples of conditions or restrictions that might be imposed in a COI Management plan include, but are not limited to:
- Public disclosure of Financial Conflicts of Interest (e.g. when presenting or publishing the research);
- For research projects involving human subjects research, disclosure of financial conflicts of interest directly to participants;
- Appointment of an Unconflicted Employee capable of taking measures to protect the design, conduct, and reporting of the research against bias resulting from the Financial Conflict of Interest;
- Modification of the research plan;
- Change of Senior/Key Personnel or personnel responsibilities, or disqualification of Senior/Key Personnel from participation in all or a portion of the research;
- Reduction or elimination of the financial interest (e.g., sale of an equity interest); or
- Severance of relationships that create the Financial Conflict of Interest.
6.3 Requirements and Limitations
- NC State will not accept or enter into sponsored research agreements or contracts that give rise to a Financial Conflict of Interest unless the potential or actual conflict is eliminated or mitigated by a COI Management Plan and, if required, reported to the funding agency prior to the expenditure of funds.
- Should any Financial Conflict of Interest or noncompliance require reporting to a particular funding agency, the COI Office will report in accordance with applicable agency regulations.
7. corrective actions and sanctions
7.1 In the event NC State identifies noncompliance and a federal or a state of North Carolina regulation requires it, the COI Office shall conduct a retrospective review of the Covered Individual’s activities and research projects to determine whether the design, conduct, and/or reporting of any funded research or portion thereof that was conducted during the time period of the noncompliance was biased.
7.2 Sanctions for violating this regulation may include administrative actions, including, but not limited to, retraining on this regulation and its disclosure obligations, removal from sponsored projects, revocation of certain rights and privileges of employment, such as the privilege to submit research proposals, or termination of employment, in accordance with NC State policies.
8. record retention
8.1 All records relating to the reporting of potential or actual conflicts of interest and commitment, external professional activities, and the actions taken with respect to those disclosures, reports, or plans shall be maintained for three years following the expiration of their relevance or for a period required by applicable federal or state requirements, whichever is greater.
9. public accessibility and confidentiality
9.1 NC State will comply with all federal and state laws and regulations requiring reporting of or public access to disclosed individual Financial Interests (including Financial Conflicts of Interest). NC State will maintain disclosed Financial Interests and Financial Conflicts of Interest as confidential information to the extent allowed by applicable laws and regulations.