GBEA-R LRSD Board Policy

Published by jackbgarvey on Mon, 10/07/2013 - 11:20

LITTLE ROCK SCHOOL DISTRICT

NEPN CODE:  GBEA-R

 

CONFLICT OF INTEREST – EMPLOYEES SELLING TO THE DISTRICT

The LRSD contracts for goods and services in conformance with statutory ethics laws and, in addition, in a manner that will avoid any conflict of interest or the appearance thereof.  Accordingly, the Board will approve employees as District vendors under the statutory exception provisions only when it is clearly in the best interest of the District.

General Prohibitions and Guidelines for Statutory Exceptions:

In general, except as provided below, it is a breach of statutory ethical standards or an employee to contract with the District if the employee has knowledge that he or she is directly interested in the contract. The Board by exception may under unusual and limited circumstances approve an employee’s business as a district vendor if the Board determines that the potential vendor relationship is in the best interest of the District. In such cases, the Board will document the approval by written resolution after fully disclosing the reasons justifying the potential vendor relationship in an open meeting in conformance with Arkansas law.

Following are the guidelines for these exceptions:

1.    No exceptions will be allowed for district administrators (defined as director- level and above) who are directly or indirectly interested in a contract since these individuals are in district-wide decision-making positions. In addition, any employee on a district administrative salary schedule is prohibited from conducting business with family members.

2.    District administrator’s family members who have a financial interest in a business as defined by Arkansas law contract with the District only after appearing before the Board of Education explaining why their particular vendor circumstance should be considered unusual and limited. In the event the Board by resolution approves the business as a district vendor, the District may contract with the family member’s company for transactions of any amount for a fiscal year provided the services/commodities are procured on a competitive basis and where the family member company’s offer is the lowest received. However, the Arkansas Department of Education (ADE) must first have approved the district resolution before any contract will be valid or enforceable.

3.    Under no circumstances will it be authorized for the District to do business with an employee when the employee regardless of their salary schedule placement or position has the ability to set the specifications for purchase and choose and/or recommend the vendor.

4.    Non-administrative employees (defined as any employee below director- level) who are directly interested in a contract may conduct business with the District only after appearing before the Board of Education explaining why Their particular vendor circumstance should be considered unusual and limited.  In the event the Board by resolution approves the employee as a district vendor, the District may contract with the employee’s company:

a.    for transactions totaling up to $5,000 for a fiscal year provided the services/commodities are procured on a competitive basis and where the  employee company’s offer is the lowest received or;

b.     for transactions expected to exceed $5,000 for a fiscal year provided the services/commodities are procured on a competitive basis and where the employee company’s offer is the lowest received.  However, the ADE must first have approved the direct resolution before any contract will be valid or enforceable or;

c.    where competitive quoting/bidding is not practical regardless of dollar amount due to the nature of the service or commodity (sole source) provided the ADE has first approved the district resolution in those cases expected to exceed $5,000.

 

1599 adm-disclosure statement

1599 employee letter-Board

1599 nonadm-disclosure statement

1599 employee letter-nonadmin

1599 employee letter-admin

1599 Board-disclosure statement

 

Date:  April 22, 2004

Legal Reference:  A.C.A. 6-24-101 through 119