Procedure for Conflicts of Interest, Conflicts of Commitment, Nepotism and Outside Activities

Procedure for Conflict of Interest, Conflict of Commitment, Nepotism and Outside Activities

I. Purpose

Although it is not possible to specify every action that might create a conflict of interest/commitment or nepotism, the policy on Conflict of Interest, Conflict of Commitment, Nepotism and Outside Activities sets forth the ones which most frequently present problems. If an employee or Trustee has any question whether an action or proposed course of conduct would create a conflict or nepotism, he or she should immediately contact his or her immediate supervisor to discuss the situation. If an actual or possible conflict is identified, a Conflict-of-Interest Form should be completed, including any recommended actions to resolve the conflict, and forwarded to the Executive Director of Human Resources for review. If there is any uncertainty as to whether an actual, potential, or appearance of a conflict exists, the issue should be reported by submitting a Conflict-of-Interest Form. Questions regarding this procedure or the Conflicts of Interest Policy should be directed to the Executive Director of Human Resources and/or the Office of General Counsel.

II. What is a conflict of interest?

The College’s policy on Conflict of Interest, Conflict of Commitment, Nepotism and Outside Activities provides detailed information defining and describing potential conflicts. In summary, a conflict may arise anytime personal or financial interests, whether actual, apparent, or perceived, may:

1. Compromise or call into question a Trustee’s or employee’s independence, impartiality, or judgement in connection with any business dealings with the college,
2. Create, propose, or support an arrangement with the college that is not in the college’s best interest,
3. Result in personal or financial gain to that person, or that person’s family members,
4. Involve preferential treatment to the person’s family or business associates, or
5. Damage the college’s reputation or diminish the public’s confidence in the college.

III. Reporting a conflict of interest

1. An employee shall report a conflict of interest or potential conflict of interest by completing the Conflict-of-Interest Form and delivering it to the Executive Director of Human Resources.
2. A Trustee or the College President shall deliver written disclosure to the Chair of the Board, the Chair of the audit committee or designee.

IV. Employee Conflict of Interest Review

The Executive Director of Human Resources will convene, if necessary, a review panel to address conflict of interest concerns.
1. A Review Panel should be comprised of the Executive Director of Human Resources and representative(s) from Purchasing, Internal Audit, and/or others as appropriate for the matter(s) under review.
2. If a reported conflict involves a panel member, that member shall be recused from the review, and the VP of Human Resources will appoint a temporary replacement to the Review Panel.
3. Where a potential conflict appears to exist, the employee with the conflict should be afforded the opportunity to disclose all material facts, explain why it may not be a conflict, and/or why the potential conflict is of a compelling benefit to the college.
4. The Review Panel shall:
a. Determine whether a conflict or potential conflict exists, and
b. If so, determine actions to eliminate or acceptably manage the conflict, and
c. Record its determinations on the Conflict-of-Interest Form.
5. A copy of the completed Conflict-of-Interest Form shall be provided to the employee.

V. Trustee Conflict-of-Interest Review

The Chair of the Board of Trustees, at their discretion, may convene the Audit Subcommittee to provide a recommendation on the potential Conflict of Interest.
1. Those Trustees not subject to the conflict will review the conflict and the interests.
2. After applying the decision process, a majority vote of disinterested members should take place. Questions to consider are whether the conflict can be avoided in its entirety, or if it be effectively managed because of the benefit the proposal brings to the College.
3. The affected trustee/president must recuse themselves from any vote on the matter, now and in the future. And may not play any role in the arrangement.

VI. Decision Process for Conflict Review by both Trustees and Panel
1. Apply the principles and definitions in MCL 15.301 et. seq.
2. Apply the principles and definitions in the Conflict of Interest, Conflict of Commitment, Nepotism and Outside Activities Policy.
3. Apply common definitions to interpret the terms direct, indirect, apparent, actual, and possible conflicts of interest. Additional definitions:
a. Arrangements include purchase of any good or service, gifts and nepotism in any aspect of employment and teaching and advising of students.
b. Family includes those with whom there is a personal relationship by blood, marriage, domestic partnership, adoption, or other relationship such as parent, step or foster parent, child, step or foster child, sibling, step sibling, grandparent, grandchild, half-brother, half-sister, aunt, uncle, niece nephew, other dependents, their respective spouses, in-laws, children of significant others.
c. Gifts are anything of value, in any form, including money, gift cards, goods, services, entertainment, use of property/facilities, loans, price concessions, etc. Nominal advertising items, promotional materials of token value, and business meeting meals are not considered gifts.
d. Nepotism includes bestowal of patronage to family members through initial, participation, or influence of arrangements involving a family member.

VII. Textbook and other Educational Materials Selection

Procedure for Royalties Associated with Textbooks and other Educational Materials

The purpose of this procedure is to avoid any direct or apparent conflict of interest between the selection of course materials and potential financial gain to the College author of the selected works.

Faculty developed guidelines for the faculty committee selection of student required textbooks or other educational materials authored by faculty or other HFC personnel should ensure that:

1. HFC employee who authored the selected required textbook and/or educational materials for HFC courses recognize that any royalty or any other financial benefit they may otherwise receive from the authored material is reduced from the HFC student price of the book/materials so that HFC students can obtain the book at the lowest possible cost.
2. If it is not possible, employee should donate any financial royalty or profit they obtain through the sale of these HFC required books/materials to HFC students to the HFC Foundation for student scholarships.
3. If an employee or family member is an author of an educational material under consideration for selection, that relationship must be disclosed to the faculty Textbook/Education Materials Selection Committee (“Selection Committee”) to enable an evaluation of potential or actual conflict of interest.
4. If a faculty member, or family member, is engaged in publishing HFC required student selected educational materials, that relationship must also be disclosed to the Selection Committee for an evaluation of potential or actual conflict of interest.

Each College School should set up a process to ensure that this procedure is followed.

Definitions:

Family member: See Conflict of Interest definition of “relative”.
Textbooks and Educational Materials: These are educational resources selected by HFC faculty for HFC student instruction.

VIII. Corrective Actions
Corrective action for employees that fail to observe the Conflict of Interest, Conflict of Commitment, Nepotism, and Outside Activities Policy may include discipline up to and including termination of employment, and legal action to recover any financial loss suffered by the College as a result of the activity of the employee.
1. Supervisors must report all recommended discipline to the Executive Director of Human Resources to ensure consistent responses to violations.
2. Appeal of Discipline: Applicable Employee Collective Bargaining Agreements and Employee Handbook set forth specific grievance and/or appeal processes.
3. Board Response to a confirmed Trustee conflict of interest will be determined on a case-by-case basis after consultation with the Board Legal Counsel.

IX. Retention of Documents

Conflict of interest decisions will be documented to maintain the integrity of the process and demonstrate adherence to the process either by written minutes or memorandum for Trustees or by using the Conflict-of-Interest Form for employees, which shall include:
1. Description of the nature of the conflict,
2. Names of persons involved,
3. Description of due diligence conducted as needed,
4. Roll call vote of decision (for Trustees) or determination of the Panel (for employees).

X. Related Documents
Conflicts of Interest, Conflicts of Commitment, Nepotism and Outside Activities | HFC Policies (hfcc.edu)
Computer Systems Acceptable Use Policy | HFC Policies (hfcc.edu)
Employee Collective Bargaining Agreements
Employee Handbook
HFC Bylaws | HFC Policies (hfcc.edu)

XI. History
1. Current Procedure adopted: March 11, 2024

Review/Updates
July 15, 2025

*Adopted in part from Conflict of Interest – Oakland University

This procedure supersedes and replaces all procedures related to this subject