Western Washington University

ETHICS IN WASHINGTON STATE ACADEMIA AND

WESTERN’S POLICIES AND FINANCES

New Faculty OrientationFall 2011

WWU Office of the Internal Auditor

Ethics In Public Service Act

• The Ethics In Public Service Act (Chapter 42.52 Revised Code of Washington) applies to all university employees, including student employees.

• The ethics law establishes minimum standards of conduct and provides guidance for ethical choices.

• State employees are obligated to conserve and protect state resources for the benefit of the public interest.

• State employees may not use state

resources for private gain.

Ethics Training

Additional, in depth training is available at - • Human Resources Training web site (

http://www.wwu.edu/hr/od/training/descriptions.shtml#ethics )

• Executive Ethics Board web site (http://www.ethics.wa.gov/TRAINING/Training.htm )

(Also, you can contact Internal Audit for more information if you have specific ethics-related questions.)

State Ethics Board

• Ethics Board receives complaints and performs investigations of alleged ethics violations

• Ethics Board web site at http://ethics.wa.gov/ contains:

– Contact information– Frequently Asked Questions– Links to RCW and WAC– Training information– “Enforcement” page (list of violations & penalties)– Official Advisory Opinions– Newsletters and Brochures

Ethics Law Covers

• Appropriate use of resources• Compensation for outside activities • Gifts – Including restrictions if you have purchasing decision authorities, compensation for reviewing textbooks and disposing of review textbooks

• Personal Financial Interests – Including authored textbook use in Western’s classes

• Receiving honoraria payments • Conflicts of Interest• Confidential Information …and more

Using University Resources

The part of the law that is most applicable to all state employees is using resources.

• The law defines how resources should and should not be used.

• You can always, of course, use university resources to perform university work.

What is a University Resource?

Resources include, but are not limited to: your state compensated time, university phones, fax machines, computers, printers, office space, e-mail system, internet access, and tools.

Personal Use – De Minimis Rules

• You are allowed to make personal use of resources as long as you follow the de minimis rules, and your use is not prohibited. (see subsequent slide)

• To be considered de minimis:– There must be little or no cost to the state,– The use is brief and occurs infrequently,– The use does not interfere with the performance of

any employee’s duties, and– The use does not compromise the security or

integrity of state property, information or software.

“Brief” and “Infrequent” Criteria

In a Frequently Asked Question published by the Executive Ethics Board, brief and infrequent means –

“…the use is no more than once a day and lasts a few minutes…”

More Restrictive State Rules for Motor Vehicle Use

The rules issued by the Office of Financial Management state that motor vehicles may only be used for “official state business…”, therefore no personal use is permitted.

Prohibited Uses of ResourcesAccording to the Ethics law, the following

uses are expressly prohibited:– For conducting an outside business, private

employment, or other activity conducted for private financial gain.

– Performing or facilitating illegal activities.– Campaigning for a candidate or opposing/promoting a

ballot issue.– Taking any university property for personal use (even

if there is no cost to the university).– Supporting/promoting/soliciting for an outside

organization or group (except as noted on the next slide).

Supporting, Promoting or Soliciting for an Outside Organization or Group

• The Ethics law prohibits using university resources for supporting, promoting the interests of, or soliciting for an outside organization or group.

• The Ethics law does allow the use of university resources for supporting, promoting the interests of, or soliciting for an outside nonprofit organization IF it is allowed for in law or is authorized by the President, Provost or a Vice President.

Examples of Using Technology Resources

• Personal use of email – Yes*• Use computer for outside work - No• Occasional and limited use of internet – Yes*• Send a Happy Birthday email wish – Yes*• Include WWU e-mail address on outside work or

activity documents – No• Forward email jokes to other employees – No• Download games and programs - No (* Follow de minimis rules)

Use of Resources for Political Purposes

Prohibited Activities:• Using work time to solicit signatures, raise funds,

or campaign for or against a candidate or ballot measure

• Using university facilities for political purposes, even after work hours

• Displaying political materials in or on university vehicles or facilities. EXCEPTION: The free speech issue of wearing campaign buttons or placing such materials in personal assigned spaces must be balanced with the obligation to not use visible public facilities to post such materials.

Using Resources For Outside Business or Work

• Outside Work: Is any activity performed by a state employee that is paid for by anyone other than Western Washington University, WWU Foundation or WWU Alumni

• Using any university resources to perform work for your outside business or private employment is prohibited

• Exception: Employees may follow the university’s Patent and Copyright policy

Receiving Honoraria Payments

• Occasionally, a university employee is offered an honorarium, which is any money or thing of value, for a speech, appearance, article or similar item in connection with their official role at Western.

• An honorarium can only be accepted if approved by the university and is not specifically prohibited by the Ethics law.

(http://apps.leg.wa.gov/RCW/default.aspx?cite=42.52.130)

Compensation for Outside Activities

Compensation may be accepted when:• There is a bona fide contract and work was performed• The performance or administration of the contract is not

within your Western duties• You would not be inappropriately assisting outside

persons or organizations• You are not working for someone that you cannot accept

a gift from• You did not create this outside work opportunity through

your capacity at Western• You would not be required to make a disclosure of

confidential information

Receiving Gifts

• Employees should not accept gifts or anything of value if it could be reasonably expected to influence your vote, judgment or action.

• Employees should generally not accept gifts in excess of $50 from a single source per year.

• If you can make purchasing decisions, the gifts that you can accept are limited to a specific list

(Contact Internal Audit for more information if you have specific gift questions.)

Conflicts of Interest• University employees may not have an

interest (financial or otherwise, direct or indirect) or engage in a business or transaction or professional activity or incur an obligation that is in conflict with the proper discharge of the employee’s official duties at Western

• Conflicts of interest may be remedied by disclosure or abstaining from participating in a decision or action.

Faculty Accepting Compensation to Review a Textbook

• Faculty must use caution to ensure that they are not accepting a gift or thing of value that may influence their decision.

• A faculty member’s decision may be considered to be influenced if:

- They are required to select the textbook

in order to receive the compensation, or

- The compensation is “substantial”.

Disposing of Evaluation Textbooks

• University employees may accept evaluation, review, courtesy or desk copies of textbooks as long as they are related to the recipient’s official duties at Western.

• These textbooks can be disposed of by giving them to the university, donating to a charity within 30 days, or by using the university’s surplus process.

• Faculty may not sell the textbooks and donate the proceeds to a charity.

Authored Faculty Using Their Textbook In Western’s Classes

• The Ethics Act states that employees may not make decisions in transactions that would beneficially interest the employee.

• Since Western wants its faculty to author textbooks and other academic documents, a chair or committee* can select/delegate the use of the textbook in the authored faculty member’s classes or in other faculty member’s classes.

*Must not include the authored faculty member

Confidential Information

• University employees may not disclose confidential information gained during official duties or otherwise use confidential information for personal gain or benefit

• University employees must not intentionally conceal a record

that they know should be released

under the Public Disclosure Act

Now, a few other important laws that you should be aware of….

Public Records Act

• Washington law allows open public access to all state public records, except for those that are exempt from disclosure.

• University records relating to the conduct of university business are public records.

• University’s Public Records Officer (x2728) must be immediately notified of public record requests received by departments. The law requires that the Public Records Officer respond to requests within 5 working days of receipt of the request.

State Whistleblower Act

• This law encourages state employeesto report improper governmental actions to SAO.

• The State Auditor’s Office investigates the allegations and maintains confidentiality of the complainant.

• This law protects the complainant and others that participate in a Whistleblower investigation against retaliation or reprisal.

• Web site - https://www.sao.wa.gov/investigations/Pages/Whistleblower.aspx

State Whistleblower Act – Report Designees

Effective June 12, 2008, Western employees maymake Whistleblower reports to the followingUniversity report designees:

• Eileen Coughlin, Senior VP for Enrollment and Student Services

• Matt Babick, Internal Audit Director• Brent Carbajal, Provost and Vice President for Academic

Affairs • Rich Van Den Hul, Vice President For Business and Financial

Affairs• Chyerl Wolfe-Lee, Human Resources Director

Reporting Loss of Funds & Other Illegal Activities

• The university is required by law to report known or suspected loss of public funds or assets or

other illegal activities to the State Auditor’s Office.• Departments must retain documents and may not

enter into repayment agreements with employees.• Known or suspected violations of the Ethics In

Public Service Act must be reported to SAO.

Many of the laws covered in the previous slides are covered in university policies….

University Policies

• The university has many policies which define employee responsibilities as well as educate and guide employees in understanding rules and expectations of state employment.

• New faculty members are encouraged to review the web site to become familiar with the university’s policies. The university’s policies are located at http://www.wwu.edu/depts/policies/

University Policy Highlights

• Using University Resources (Covers general use rules)

• Policy on Consulting and Other Compensated Professional Activities (In Faculty Handbook)

• Responsibilities of Financial Managers• Reporting Loss of University Funds• Safeguarding Non-Public Financial Information • There are many other policies in cash handling,

purchasing, accounting, contracts, human resources, billing and health and safety

Finally, a few slides to provide you with a

basic understanding of a few financial

and accounting terms used at Western…

Financial Responsibilities At Western

“Financial Managers” are those employees at Western that are responsible for financial transactions and fund balances. They are responsible for projecting revenues and expenditures, ensuring that all transactions are appropriate for the fund, the ending year fund

balance is positive, and that there are

sufficient internal controls. While Financial

Managers may delegate some responsibilities to another

employee (referred to as a “Budget Authority”), the Financial Manager remains ultimately responsible for their funds.

Use of State/University Funds

• The university’s monies may only be used for university business purposes.

• These monies are accounted for in the university’s financial system in “Chart 1” funds.

• We all play a role in being good stewards of the public’s money.

When Determining Appropriate Use of University Funds

• Does expenditure serve a public purpose?

• Is there a fair exchange of goods

or services?

• Does expenditure appear to

provide a personal benefit?

• Does expenditure comply with laws and university policies?

WWU Foundation Funds

• WWU Foundation is a separate legal entity that solicits donations for the university’s benefit. These monies are recorded into “Chart 2” funds in the financial system.

• Monies are donated for “restricted”

or “unrestricted” purposes and can only be spent in accordance with the donor’s intentions.

WWU Foundation Funds

• WWU Foundation is a separate legal entity that solicits donations for the university’s benefit. These funds are referred to as “Chart 2” funds.

• They can be donated for specific (restricted) purposes or for more general university or college use purposes, often referred to as “unrestricted”.

Use of ANY Foundation Funds

• Can only be spent in accordance with the donor’s intentions.

• In general, if it is a personal expense, it is disallowed. If it is a work-related expense, it is allowable (subject to donor’s intent).

• WWU Foundation has published guidelines that assist the campus in understanding the rules for spending Foundation funds.

Use of “Unrestricted” Foundation Funds

Examples of allowed and disallowed uses of “unrestricted” Foundation funds.– Allowable: Scholarships, Fellowships,

Academic Program Support, specific departmental events (search committees) and misc. expenses (hiring and moving new hires)

– Disallowed: Parking permits or tickets, travel to non-work events, personal gifts and department social events for birthdays or personal recognitions.

A long habit of not thinking a thing wrong gives it the superficial

appearance of being right.

Thomas Paine

Welcome to Western Washington University

Please don’t hesitate to call the Office of the Internal Auditor with your questions or

comments. We are here to help you during your transition and throughout your career

at Western.

Matt Babick, Director 650-3435Paul Schronen, Senior Internal Auditor 650-4033

Suzanne Baker, Assistant to Internal Audit and Assistant Attorney General 650-3117