Conflict of Interest Policy

Title:   Conflict of Interest Policy
Effective Date:  January 4, 2023
Review Date:

The Hamlin Community Library (hereinafter “Library”) is committed to ensure the Board members and employees avoid potential and actual conflicts of interest, as well as the perception of a conflict of interest.

Conflict or Conflict of interest shall mean use of authority of office or employment by a Board member or employee, or use of any confidential information received through their holding public office or employment, to obtain:

1. The private pecuniary benefit of them, a member of their immediate family; or

2. Business with which they or a member of their immediate family is associated.

The term does not include an action having a de minimis economic impact.  This can also affect to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation, or other group which includes the Board member, employee, a member of their immediate family, or a business with which they or a member of their immediate family is associated.

De minimis economic impact shall mean an economic consequence which has an insignificant effect. 

Immediate family shall mean: a parent, parent-in-law, spouse, child, spouse of a child, brother, brother-in-law, sister, sister-in-law, or the domestic partner of a parent, child, brother, or sister.

No employee or Board member may participate in the selection, award, or administration of a contract supported by a federal award if they have a real or apparent conflict of interest as defined above. Further, any other circumstance in which the employee, Board member, any member of their immediate family, their business partner, or an organization which employs or is about to employ any of them, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. 

Financial interest shall mean any financial interest in a legal entity engaged in business for profit which comprises more than five percent (5%) of the equity of the business, or more than five percent (5%) of the assets of the economic interest in indebtedness.

Business partner shall mean a person who, along with another person, plays a significant role in owning, managing, or creating a company in which both individuals have a financial interest in the company. 

The Library shall not enter into any contract valued at $500 or more with a Board member or employee, or their spouse or child, or any business in which the person, or their spouse or child is associated, nor in which the person or spouse, or child, or business with which associated is a subcontractor, unless the Board has determined it is in the best interests of the Library to do so. The contract has been awarded according to the Library’s Bid and Procurement Procedures. In such a case, the Board member or employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. 

Board members and employees may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts, unless the gift is an unsolicited item of nominal value. Gifts of a nominal value may be accepted when the gifts do not influence any present or future procurement contracts regardless of purchase price or rate. 

Improper Influence

No person shall offer or give to a Board member, employee, or nominee or candidate for the Board, or a member of their immediate family or a business with which they are associated, anything of monetary value, including: a gift, loan, political contribution, reward, or promise of future employment-based, on the offeror’s or donor’s understanding that the vote, official action, or judgment of the Board member, employee, or nominee or candidate for the Board would be influenced thereby.

No Board member, employee, or nominee or candidate for the Board shall: solicit or accept anything of monetary value, including a gift, loan, political contribution, reward or promise of future employment, based on any understanding of that Board member, employee, or nominee or candidate that the vote, official action, or judgment of the Board member, employee, or nominee or candidate for the Board would be influenced thereby.

Organizational Conflicts

Organizational conflicts of interest may exist when the Library may be unable or appear to be unable to be impartial in conducting a procurement action involving a related organization. An organizational conflict could be due to the Library’s relationship with a subsidiary, affiliated, or parent organization that is a candidate for award of a contract in connection with federally funded activities. In the event of a potential organizational conflict, the potential conflict shall be reviewed by the Board or designee to determine whether it is likely that the Library would be unable or appear to be unable to be impartial in making the award. If such a likelihood exists, this shall not disqualify the related organization; however, the following measures shall be applied:

1. The organizational relationship shall be disclosed as part of any notices to potential contractors;

2. Any employees or officials directly involved in the activities of the related organization are excluded from the selection and award process;

3. A competitive bid, quote, or other basis of valuation is considered; and

4. The Board has determined that contracting with the related organization is in the best interests of the program involved.

Reporting

Any perceived conflict of interest that is detected, or suspected by any employee or third party shall be reported to the Library Director.  If the Library Director is the subject of the perceived conflict of interest, the employee or third party shall report the incident to the Board President. 

Any perceived conflict of interest of a Board member that is detected or suspected by any employee or third party shall be reported to the Board President. If the Board President is the subject of the perceived conflict of interest, the employee or third party shall report the incident to the Library Director.

No reprisals or retaliation shall occur as a result of good faith reports of conflicts of interest. 

Investigation 

Investigations based on reports of perceived violations of this policy shall comply with state and federal laws and regulations. No person sharing in the potential conflict of interest being investigated shall be involved in conducting the investigation or reviewing its results. In the event an investigation determines that a violation of this policy has occurred, the violation shall be reported to the federal awarding agency in accordance with that agency’s policies. 

If an investigation results in a finding that the complaint is factual and constitutes a violation of this policy, the Library shall take prompt, corrective action to ensure that such conduct ceases and will not recur. The Library staff shall document the corrective action taken and, when not prohibited by law, inform the complainant. 

Violations of this policy may result in disciplinary action up to and including discharge, fines, and possible imprisonment.   Disciplinary actions shall be consistent with Board policies, procedures, and applicable state and federal laws.