National Science Foundation (NSF)

The Policy

This Conflict of Interest (COI) policy consists of a set of requirements to be followed by each investigator participating in research funded by the National Science Foundation (NSF). The policy applies to any institution (foreign or US domestic) that is applying or receives research funding from the NSF through a grant or cooperative agreement (either directly or via another institution as a sub-awardee) and therefore any investigator planning to or who is already participating in such research.

Key requirements

• NSF requires that the University maintain an appropriate written and enforced policy on Conflict of Interest.

• All investigators must disclose any COI to their Head of Department who will determine whether such interest constitutes Financial Conflict of Interest (FCOI).

• All recognised COI for each award need to be managed, reduced or eliminated prior to the expenditure of NSF award funds.

To whom does the NSF Conflict of Interest policy apply?

The NSF defines ‘investigator’ as the principal investigator (PI), co-PI/co-project directors, or any other person at the organization who is responsible for the design, conduct, or reporting of research or educational activities funded or proposed for funding by NSF.

If the University carries out agency-funded research through sub-awardees, contractors, or collaborators, the University must take reasonable steps to ensure that:

• the entity has its own policies in place that meet the requirements of the NSF policy; or
• investigators working for such entities follow the policies of the University.

What must be reported under the NSF policy?

Each investigator needs to disclose to their Head of Department all significant financial interests (including those of the investigator’s spouse and dependent children): (i) that would reasonably appear to be affected by the research or educational activities funded or proposed for funding by NSF; or (ii) in entities whose financial interests would reasonably appear to be affected by such activities.

A ’significant financial interest’ is defined by NSF as 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), but does not include:

1. salary, royalties or other remuneration from the applicant organisation;
2. any ownership interests in the organisation, if the organisation is an applicant under the Small Business Innovation Research Program or Small Business Technology Transfer Program;
3. income from seminars, lectures, or teaching engagements sponsored by public or non-profit entities;
4. income from service on advisory committees or review panels for public or nonprofit entities;
5. 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; or
6. 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 prior twelve-month period."

When are disclosures required?

NSF requires that a disclosure be made at the time of proposal and be updated annually, or whenever new reportable interests are obtained. Each disclosure must be reviewed before funds may be spent.

What happens when a potential COI is disclosed?

When a COI is identified the University will determine what conditions or restrictions, if any, should be imposed to manage, reduce or eliminate such COI.

Examples of conditions or restrictions that might be imposed to manage, reduce or eliminate conflicts of interest include, but are not limited to:

a. public disclosure of significant financial interests;

b. monitoring of research by independent reviewers;

c. modification of the research plan;

d. disqualification from participation in the portion of the NSF-funded research that would be affected by significant financial interests;

e. divestiture of significant financial interests; or

f. severance of relationships that create conflicts.

If the University determines that imposing conditions or restrictions would be either ineffective or inequitable, and that the potential negative impacts that may arise from a significant financial interest are outweighed by interests of scientific progress, technology transfer, or the public health and welfare, then the University may allow the research to go forward without imposing such conditions or restrictions.

The NSF requires the University to have in place enforcement mechanisms, and provide for sanctions where appropriate if the COI is not adequately managed.

Informing NSF

The University is required to keep NSF’s Office of the General Counsel (OCG) appropriately informed if the institution finds that it is unable to satisfactorily manage a conflict of interest.

When OGC is notified of an unmanageable conflict of interest by an awardee, OGC will conduct the following review:

1. Examine a copy of the University’s conflict of interest policy to ascertain if the policy includes procedures for addressing unmanageable conflicts.
2. Contact the University to determine what action plans have been taken with respect to the reported unmanageable conflict of interest.
3. Request confirmation from the awardee when proposed actions have been accomplished.

Finally, the University must maintain records of all financial disclosures and of all actions taken to resolve conflicts of interest for at least three years beyond the termination or completion of the grant to which they relate, or until the resolution of any NSF action involving those records, whichever is longer.