SP 3-70c – Conflicts of Interest – Financial Transactions

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SP 3-70c

APPROVED: December 13, 2023
EFFECTIVE: December 13, 2023

APPENDIX REVISED: December 13, 2023

REFERENCE(S): Board Policy (BP) 3-70, Ethics

APPROVED:
/ Joseph Garcia /
Joseph A. Garcia, Chancellor

APPLICATION

This procedure applies to all employees in the Colorado Community College System, including its Colleges (CCCS or System). Board members have also committed to following this procedure as outlined in Board Policy 3-70.

BASIS

It is Board policy that Board members and employees shall not engage in any decision, activity, or transaction that places them in a conflict of interest between their official duties and any other financial interest or obligation. All activities of the Board and CCCS are to be conducted in a manner that is free of real or perceived conflict of interest. This procedure outlines the disclosure and approval processes related to financial conflicts of interest.

DEFINITIONS

“De Minimis Financial Benefit”: A financial benefit that has an aggregate value of $75.00[1] or less in a calendar year.

“Immediate Family”: A Board member’s or employee’s spouse including, but not limited to, domestic and civil union partners; children, step‑children, and their spouses; siblings and siblings-in-law; parents and parents-in-law; grandparents and grandparents-in-law; grandchildren and their spouses; aunts and uncles; nieces and nephews.

“Related Party”: Immediate family; an estate or trust in which a Board member or employee, or their immediate family, has a beneficial interest; or an entity in which a Board member or employee, or their immediate family, is a director, officer, or has a financial interest.

[1] Pursuant to Article XXIX, Section 3(6), the limit shall be adjusted every four years by an amount based upon the percentage change over a four-year period in the United States bureau of labor statistics consumer price index for Denver-Boulder-Greeley, all items, all consumers, or its successor index, rounded to the nearest lowest dollar.

PROCEDURE

The Board is committed to financial practices that avoid conflicts of interest or the appearance of favoritism.

Transactions Requiring Board Approval:

Any Board member or employee who believes that a transaction with CCCS may create the appearance of a conflict of interest or favoritism should request Board approval before such a transaction is undertaken.

CCCS financial transactions require prior Board approval if the transaction:

A financial benefit does not include holding a minority interest in a corporation.

The proposed transaction must first be presented to the Board Chair (Board members), Chancellor (System Office employees), or College President (College employees) for approval on the form included in the Appendix. The Board Chair, Chancellor, or President will approve a transaction only if they determine that it provides a benefit to CCCS that cannot be readily obtained elsewhere and that the benefit to the Board member or employee is incidental when compared with the benefit to CCCS.

The Board Chair, Chancellor, or President will forward approved requests to Legal Affairs for review, with a draft agenda item for presentation to the Board. Any required legal edits must be completed prior to submission to the Board. A request for Board approval will be brought forward by the Board Chair, Chancellor, or President only if it includes sufficient information for the Board to determine that the benefit to the Board member or employee is incidental when compared with the benefit to CCCS.

If the Board approves the transaction, the Board member or employee must disclose the transaction to the Secretary of State 72 hours prior to completion of the transaction. Disclosure to the Secretary of State should not be undertaken unless and until Board approval occurs.

If a Board member or employee discovers, after the conclusion of a transaction, that they have received a financial benefit from a transaction with CCCS, or a related party has received a financial benefit from a transaction with CCCS, and the receipt of such financial benefit was not a result of willful disregard of the requirements of this procedure, Board ratification may be requested using the form included in the Appendix. If the Board does not ratify the receipt of such financial benefit, the Board member, employee, or related party must divest themself of the financial benefit.

REVISING THIS PROCEDURE

CCCS reserves the right to change any provision or requirement of this procedure at any time and the change shall become effective immediately.

APPENDIX A

Interest In Financial Transaction
Requesting Board Approval

Transactions with CCCS that may create the appearance of a conflict of interest or favoritism require Board approval before such a transaction is undertaken.

Section 1
Completed by Requester; then forward to procurement.

Type of transaction:
__Instructional goods purchase (textbook, video, CD, software)
__Non-instructional goods/service purchase
__Facilities or equipment rental or lease
__Other

Description of the transaction:
(Include whether the transaction provides goods or services to one College, multiple Colleges, the System, or a combination. Attach additional pages or documents if necessary.)

Requester’s relationship to the transaction:
__I am the sole proprietor of the entity providing goods, services, or benefit
__I am a director, president, general manager, or similar executive officer of the entity providing goods, services, or benefit
__I own or control a substantial interest in the entity providing goods, services, or benefit
__Other (describe):

Related Party’s relationship to the transaction:
(Complete if a party related to the requestor will benefit from the transaction.)
__A related party is the sole proprietor of the entity providing goods, services, or benefit
__A related party is an executive officer of the entity providing goods, services, or benefit
__A related party owns or controls a substantial interest in the entity providing goods, services, or benefit

Duration of the business relationship:

Anticipated financial benefit to Requester or related party:

Anticipated Benefit to CCCS:

I have fully disclosed my interest in the transaction.

Name:

Position:

Board/CCCS Site:

Signature:

Date:

__I am requesting prior approval of the transaction.

__I am requesting ratification of a completed transaction. I certify that the financial benefit received was not a result of willful disregard of the requirements of this procedure.
Explain why prior approval was not requested:

Section 2
Completed by Procurement; then forward to the Board Chair, Chancellor, or President.

Description of System/College process for selecting requester for the transaction:
(e.g., documented quote, competitive bid, RFP, etc. For instructional materials, describe or attach the College’s independent selection process for determining that the instructional materials are appropriate in terms or price and content for required or supplemental course work.)

Other party(ies), if any, offering the same or similar goods, service, or benefits:

Name of Procurement staff completing Section 2:

Section 3  
Completed by Board Chair, Chancellor, or President; if approved, forward to Legal Affairs for review. (Return to Requester if not approved.)

__Approved

__Not Approved (do not sign)

Name of Board Chair, Chancellor, or President:

Signature:

Date:

Verified by General Counsel or Associate General Counsel (signature):

Date:

Section 4
Submitted by Board Chair, Chancellor, or President for Board approval.
If approved, return to Requester for completion of Section 5. (Notify Requester if not approved.)

Board approval date (N/A if not approved):

Section 5
Completed by Requestor; forward to Legal Affairs after disclosure to the Secretary of State.

Requester must submit disclosure to the Secretary of State 72 hours prior to completion of the transaction. (To be completed only after Board approval.)

I have disclosed my interest in this transaction to the Secretary of State. 
http://www.sos.state.co.us/Conflict/conflictEntry.do

Requestor signature:

Date disclosed to the Secretary of State:

Date Legal Affairs reported to Human Resources and Procurement:

Record Retention Requirements

For Board members, this form is maintained in the member’s BP 3-70 Ethics file with Legal Affairs. For employees, a copy is maintained in the employee’s personnel file. A copy shall also be kept with the business records of the transaction.

For Board members and employees who are required to complete the annual Conflicts Disclosure Statement pursuant to SP 3-70a, the financial transaction must be referenced each year until the financial transaction has completed.