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RELATED ARTICLE

Please turn to PAGE 37 to see what

Gary Barkman has to say about
conflicts of interest.

Steer Clear of Conflicts the director makes a purchase without an invoice, that’s an
Continued from page 29 illegal gratuity, Perry said.
A gift does not include something of nominal value, such as
official records of such public agency and shall refrain from a greeting card, T-shirt, mug or pen.
voting upon or otherwise participating in any manner as an But Perry emphasized the importance of full disclosure: “I
officer or employee in such contract, sale or purchase.” want everything on the table.”
For there to be a conflict of interest, the employee or The anti-gifting law holds vendors accountable buy making
employee’s relative must have a substantial financial interest. it illegal for “a person or vendor that has secured or taken steps
A relative is defined as spouse, child, child’s child, parent, to secure a contract that offers, confers, or agrees to confer any
grandparent, brother or sister of whole or half blood and their personal gift or benefit on a school district official/employee/
spouses and the parent, brother, sister or child of a spouse. purchasing co-op who supervises/participates in contracts,
In addition, it becomes a conflict if the employee fails to financial transactions, or procurement process.” If the gift is a
disclose a financial interest, and if the employee “participates valued at $300 or more, it’s a Class 6 felony, and less than $300
in any manner, including votes, approves, develops, introduces, is a Class 1 misdemeanor.
administers, gives advice, recommends, attends meetings, The mere accepting of such a gift is a violation, even if the
provides information, influences the decision, directs another school district employee didn’t do anything, Perry explained.
employee or officer to approve,” Perry said. Perry mentioned a situation involving a vendor who
If the employee intentionally and knowingly violates donates 2,000 T-shirts with the vendor’s name prominently
the statute, that becomes a Class 6 felony. If the employee displayed.
recklessly or negligently violates the statute, that’s a Class 1 That’s not illegal, Perry said, adding: “However, the district
misdemeanor, Perry said. should be mindful of the perceived appearance and ensure
Perry offered a scenario, such as whether a conflict can that it follows all gift and donation policies and procedures.”
involve a boyfriend or girlfriend or a close personal friend. If a vendor invites you to a charity event and pays for meals,
“No,” she said, “but it could violate school district policies. That hotel expenses and golf fees, that’s highly questionable, Perry
should be included in school policies. We want to show that we said. “If you’re the only board member invited, that’s very
are not in any vendor’s pocket.” questionable,” she said. “And if the vendor also pays for spouse,
Board members are held to the same conflict-of-interest that is high questionable.”
standards as employees, with the exception of a remote Birthday gifts can be OK, depending on your position. “If
interest. A board member should disclose a possible you sign off on vendor payments, I say no.”
conflict or decline to participate in the board’s action. “A An audit is not designed to find fraud, but at times it does.
board member needs to be mindful of nepotism,” Perry Perry recommended creating comprehensive conflict-of-
said. interest policies and an adequate form to disclose perceived
Another scenario: If an employee’s spouse works for vendor, and actual conflict of interest.
can the school district continue to use that vendor? “Yes,” Perry “Require every employee and governing board member
said, “but you have to ensure there is no appearance or actual to sign a conflict-of- interest form every year, and maintain
conflict. You all know a lot of people. However, not disclosing those forms in a special file that is available to the public,” she
that can be a problem. The requirement to disclose is on you advised.
as a public employee.” She also recommended conducting annual training
Regarding an illegal gratuity, the statute states: “A public sessions to ensure conflict-of-interest policies are
officer or employee shall not use or attempt to use their official communicated, acknowledge, received and understood.
position to secure any valuable thing or benefit that would “Educate your employees — let them know what is
not ordinarily accrue to that person in the performance of his expected,” Perry said. “Often times we’ll hear, ‘I didn’t know.’
official duties and is of such character to manifest a substantial It’s the responsibility of employees to know. When in doubt,
and improper influence on the officer or employee with respect disclose a possible conflict in official records.”
to the officer or employee’s duties.”
For example, if a facilities director is taken to lunch and Auditor General Lindsey Perry can be reached atlperry@
happy hours by vendor who pays for the food and drinks and azauditor.gov or (602) 553-0333.

30 THE EDGE | SPRING 2019