Research Integrity and Assurance

Financial Conflicts of Interest

Financial conflicts of interest

Arizona state procurement regulations

An Arizona State University (ASU) employee who has, or whose relative has a substantial interest in any contract with, sale to, purchase from, service for or decision by ASU must also disclose the substantial interest to ASU. The employee must also refrain from participating in any manner in the contract, sale, purchase or decision. The term “substantial interest” is a legal term and not a relative term. Substantial as a relative term refers to quantity.  Substantial interest in legal terms is any pecuniary or proprietary interest, direct or indirect, other than a remote interest. The threshold for reporting substantial interests under Arizona State procurement regulations is $0.

Employees doing business with ASU to supply equipment, material, supplies or services to ASU on a sponsored project may only do so after public competitive bidding. Contact the ASU Business and Finance’s Procurement Department for a description of the competitive bidding requirements.

The regulations define ‘relative’ as a spouse, child, child’s child, parent, grandparent, brother or sister of the whole or half blood and their spouses, and the parent, brother, sister or child of a spouse.

Financial conflicts of interest regulations and policies

Federal and State regulations, as well as university policies require investigators to disclose their significant financial (RSP 206) or business interests (ACD 204‐08) which, due to their relationship to research or other scholarly activities, could give rise to a real or perceived conflict of interest. The term investigator applies to anyone responsible for the design, conduct or reporting of research at the time of application or during the project period.

The university has developed mechanisms to ensure that conflicts of interest will be satisfactorily managed, reduced, or eliminated prior to the expenditure of any funds on an award. The disclosure should be submitted through the Enterprise Research Administration system (ERAat the time of proposal submission and updated annually, or whenever there is a change in the information disclosed. See Disclosure Process.

Significant financial interests are anything of monetary value, including, but not limited to, salary or other payments for services (e.g., consulting fees or honoraria), equity interest (e.g., stocks, stock options or other ownership interests), and intellectual property rights (e.g., patents, copyrights and royalties from such rights).

The term does not include:

  • salary, royalties or other remuneration from the applicant institution
  • any ownership interests in the institution, if the institution is an applicant under the Small Business Innovation Research Program or Small Business Technology Transfer Program
  • income from seminars, lectures or teaching engagements sponsored by public or non-profit entities
  • income from service on advisory committees or review panels for public or nonprofit entities
  • an equity interest that, when aggregated for the investigator and the investigator’s spouse and dependent children, meets both of the following tests: does not exceed $10,000 in value as determined through reference to public prices or other reasonable measures of fair market value, and does not represent more than a 5% ownership interest in any single entity
  • salary, royalties or other payments that, when aggregated for the investigator and the investigator’s spouse and dependent children, are not expected to exceed $10,000 during the twelve-month period

Public Health Service (PHS) conflicts of interest regulations

PHS regulations governing financial conflict of interest were last revised in 2012.  The PHS regulations are more stringent than the general conflicts of interest rules and require:

  • Reporting interests related to all institutional responsibilities
    Non-PHS conflict of interest requirements focus primarily on conflicts that would affect the design, conduct or reporting of research. PHS regulations enlarge the definition to report interests that relate to the research AND all institutional responsibilities.
  • Reporting of financial interests greater than $5,000
    While PHS requires reporting of interests greater than $5000, Arizona State Procurement has a $0 threshold.
  • Training prior to engaging in research related to any PHS-funded grant and at least every four years, and immediately under circumstances of non-compliance
    While everyone is encouraged to take training, and become familiar with conflict of interest rules, it is only required for PHS-sponsored investigators.
  • Reporting travel related to institutional responsibilities but not paid by ASU or sponsored funds.
    This does not apply to travel that is reimbursed or sponsored by a federal, state or local government agency, an institution of higher education, academic teaching hospital, medical center, or research institute that is affiliated with an institution of higher education. 
  • Public access to financial conflict of interest (FCOI) information
    ASU is required to provide information on identified significant financial conflicts of interest within five business days of a public request for information. 

Public Health Services (PHS) agencies

Some non-PHS sponsors have adopted the PHS conflict of interest rules and require adherence to the regulations in their grants and contracts.  Below is a list of those sponsors that we are aware of.  There may be others.  Read the sponsor's funding opportunity announcement and guidelines carefully.

•    Administration for Children and Families
•    Alliance for Lupus Research (ALR)
•    ALPHA-1 Foundation
•    American Asthma Foundation
•    American Cancer Society (ACS)
•    American Heart Association (AHA)
•    American Lung Association
•    Arthritis Foundation (AF)
•    California Breast Cancer Research Program (CBCRP)
•    California HIV/AIDS Research Program (CHRP)
•    CurePSP
•    Juvenile Diabetes Research Foundation (JDRF)
•    Lupus Foundation of America (LFA)
•    Patient-Centered Outcomes Research Institute (PCORI)
•    Susan G. Komen for the Cure 

Disclosing and managing financial interests

For information on how to disclose or manage financial interests, see Disclosure Process.

 

 

 

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