Conflict of Interest

Policy

This policy sets out the obligations for all school staff, including principals, to address integrity risks created by conflicts of interest that may arise between a school staff member’s private interests and their public duties.

Summary

• All school staff must ensure that their personal interests do not influence the performance of their public duties.
• Where possible, school staff must take action to avoid conflicts of interest in the first instance. Where a conflict of interest is unavoidable, steps must be taken to effectively identify, declare and manage the conflict of interest in eduPay (staff login required).
• School staff can access detailed information on their conflict of interest obligations, including examples, in the Guidance tab. This includes information about how to identify, declare and manage conflicts of interest, and what best practice conflict of interest management looks like in common conflict of interest scenarios for school staff.
• Principals are required to complete an annual Declaration of private interests (DOPI) form, available via eduPay under the ‘My Declarations’ tile, to assess whether any private interests they hold would create an actual, potential or perceived conflict of interest with their duties.
• School staff acting in a principal role for more than 5 days, and school staff directed to do so by their principal, are also expected to complete a DOPI form.

Details

Conflicts of interest are a part of life and can arise at any time during the performance of public duties at the department, in Victorian government schools, and in early learning and childcare settings.

However, where an actual, potential or perceived conflict of interest exists, it creates an integrity risk which must be managed appropriately to ensure that:

• the public interest and trust in the department is maintained and protected
• school staff are transparent and accountable in managing the influences of personal interests on public sector duties
• public sector values of integrity and impartiality are upheld
• a strong integrity culture that demonstrates effective integrity risk management exists.

This policy sets out the obligations for school staff and their managers in addressing the integrity risks created by conflicts of interest. For school staff, a school principal is their manager. For principals, their manager is the area executive director and then the regional director.

This policy provides a clear process to support positive action to either avoid the conflict in the first instance or effectively declare and manage the conflict of interest to bring confidence to decision-making and actions undertaken in the course of carrying out public duties.

Policy obligations are informed by the following principles, consistent with the department’s Integrity Framework (staff login required):

• School staff have an individual responsibility for managing integrity risks in the course of their duties and demonstrating integrity and impartiality.
• Clarity of relevant policy obligations, guidance and system supports promotes capability, confidence and compliance.
• Principals who model good practice and accountability promote a positive integrity culture.

This policy applies to all school staff, meaning all:

• Victorian government school staff
• school council employees (also known as ‘school local payroll’ employees).

Key accountabilities

All school staff are required to perform their public duties in a manner that is consistent with the Public Administration Act 2004 (Vic) and the Code of Conduct for Victorian Public Sector Employees.

School staff are also required to perform their official duties in a manner consistent with the Education and Training Reform Act 2006 (Vic) and applicable ministerial orders.

School staff

School staff must ensure that their personal interests do not influence the performance of their public duties.

Where possible, school staff must take action to avoid conflicts of interest in the first instance.

Where a conflict of interest is unavoidable, school stuff must:

1. identify the conflict of interest and associated risks, in collaboration with their principal or manager
2. declare the conflict of interest in eduPay (staff login required)
3. develop a conflict of interest management plan in consultation with their principal or manager and act in accordance with the relevant strategies outlined in the plan
4. monitor the conflict of interest and ensure any changes in circumstances or risks are reflected in the declaration and management plan
5. seek advice from their manager or Conduct and Integrity Division when unsure. Conduct and Integrity Division can be reached at 03 7022 5400 or via email Integrity.enquiries@education.vic.gov.au

For detailed information about identifying, declaring, managing and monitoring conflicts of interest, refer to the Guidance tab.

Principals and managers

Principals and managers support school staff to adhere to their obligations by:

1. being aware of the conflict of interest risks inherent in the public duties of their staff
2. supporting school staff to identify conflicts of interest in their work and make declarations where necessary
3. collaborating with school staff to develop effective conflict of interest management plans that appropriately and proportionately address the risks identified
4. providing oversight of the conflict of interest management plans implemented by school staff and holding staff accountable to their plans
5. promoting awareness and capability in identifying and managing conflicts of interest.

Declaration of private interests

In addition to their obligations under this policy to identify, declare and manage conflicts of interest, certain school staff must also complete the Declaration of private interests (DOPI) form on eduPay (staff login required).

The following school staff must complete a DOPI:

• school principals
• school staff directed to do so by their manager in recognition of a high conflict of interest risk due to a private interest they hold, or a work duty they perform
• school staff acting in any of the above positions for longer than 5 days.

These designated school staff must complete a DOPI:

• upon appointment to their position (or upon commencing acting duties)
• annually, following their appointment
• if there is a change to their private interests, within 5 working days.

School staff completing DOPI are required to assess whether any declared private interests would create an actual, potential or perceived conflict with their public duties. Principals must review an employee’s DOPI to support them to identify any possible conflicts of interest. A principal’s DOPI may be reviewed by an area executive director.

If a conflict of interest is identified from a DOPI:

• the principal or manager must note this on the school staff member’s DOPI form in eduPay
• the school staff member must also complete a conflict of interest declaration in eduPay for their manager’s approval
• the conflict of interest must be managed in accordance with this policy.

For more information refer to Declaration of private interests in the Guidance tab of this policy.

Definitions

School staff
School staff means all:

• Victorian government school staff
• school council employees (also known as ‘school local payroll’ employees).

Manager
In this policy, ‘manager’ is used to refer to:

• principals – as the line manager of a school staff member
• area executive directors – as the first line manager of a principal.

Conflict of interest
A conflict of interest is where a school staff member has a private interest that could influence, or be reasonably perceived to influence, the performance of a public duty.

Conflicts of interest are categorised as either:

• actual – there is an intersection between a private interest you have and your public duties
• potential – you have a private interest that could foreseeably intersect with your public duties
• perceived – it is reasonable for another person to believe that your private interest intersects with your public duties, irrespective of whether it actually does.

Private interests
Private interests are any interests a school staff member has in their personal life. They can be:

• financial or non-financial
• direct (relating to the school staff member) or indirect (relating to the interests of another person or group that the school staff member is or was recently closely associated with, or has an enduring interest in)
• positive (could influence school staff to act in their favour) or negative (could influence school staff to act against their favour).

Everybody has private interests. A private interest only needs to be declared as a conflict of interest if it could influence, or reasonably be seen to influence, school staff’s public duties. More detailed examples of private interests are available in the Guidance tab.

Related policies

• Code of Conduct
• Fraud and Corruption Control
• Gifts, Benefits and Hospitality
• Grievances – Teaching Service
• Intellectual Property and Copyright
• Managing Conduct and Unsatisfactory Performance in the Teaching Service
• Other Employment
• Procurement – Schools
• Recruitment in Schools
• Values – Department and VPS Values for School Employees

Relevant legislation

• Public Administration Act 2004

Guidance

This guidance contains the following chapters:

• Identifying conflicts of interest
• Making a conflict of interest declaration
• Managing conflicts of interest
• Speaking up
• Breaches
• Monitoring and reporting
• Declaration of private interests

Identifying conflicts of interest

A conflict of interest occurs when a school staff member’s private interests intersect with their public duties. This is a very common occurrence, and most school staff will experience a conflict of interest at some point in their career.

All school staff are responsible for actively considering their private interests and how these could intersect with their public duties.

To identify whether a school staff member might have a conflict of interest in a certain situation, it is useful to consider the 2 elements of the conflict of interest definition:

• private interest – the private interest that a staff member has in their personal life, which can be:
  • financial or non-financial
  • direct (relating to the staff member) or indirect (relating to the interests of another person or group that the staff member is or was recently closely associated with, or has an enduring interest in)
  • positive (influence the staff member to act in their favour) or negative (influence the staff member to act against their favour)
• public duties – the individual tasks that form part of staff members’ role as a public sector employee, which can relate to the following (and many more):
  • children staff teach or provide support to
  • other employees that staff manage, including direct reports
  • initiatives, events or other physical work outcomes that staff contribute to delivering
  • recommendations, advice or options that staff provide for consideration
  • financial decisions, including allocation of funds, granting of contracts or payment of invoices
  • access to confidential, sensitive or personal information.

A conflict of interest will occur where an employee’s public duties could conceivably be performed in a way that would benefit their private interest. This is an objective assessment – the way that the staff member believes they perform those public duties is not relevant in identifying whether a conflict exists. The conflict is between the private interest the school staff member has and the public duties that form the basis of their position as a public sector employee.

School staff are encouraged to consult with their principal or manager for assistance in identifying whether a private interest could be an actual, potential or perceived conflict of interest.

School staff with higher risk factors for conflict of interest include those who have:

• responsibility, or involvement in, key decision-making processes – such as those that involve the allocation of public funds (procurement, grants, contract management, finance) or human resources management (recruitment, employee benefits, people management)
• unique operating environments – such as working in roles supporting international student enrolment, roles working with stakeholders in local industries to support student vocational pathways, or employee’s working in small or regional communities where likelihood for close personal relationships within the community is increased
• primary employment with another organisation who may benefit from access to the department’s systems, data and information
• personal relationships within the department or school – such as a consensual personal relationship with another employee or a family relationship with an employee or student at a Victorian government school or early childhood learning service.

Managers are recommended to consider the risk profile of the employee’s role and expected duties and assist them to identify situations which may give rise to conflicts with their private interests.

Categorising a conflict of interest

Conflicts of interest can be categorised as either actual, potential or perceived.

Actual

An actual conflict occurs where there is an intersection between a staff member’s private interest and their public duties. For example:

You are a principal and your family member is an employee at the school.

This is an actual conflict of interest because your public duties as a principal involve managing all employees employed at the school. As your family member works at the school, you could conceivably perform your role in a way that brings a benefit to your family member, such as with favourable performance assessments, professional development opportunities, or promotions.

It is not relevant whether you would actually perform your role in this way – it is your public duties that are in direct conflict with your private interest. To address this conflict in accordance with the policy, you are required to submit a conflict of interest declaration and develop a management plan that demonstrates how the relevant risks will be mitigated.

Potential

A potential conflict of interest occurs where a private interest could foreseeably come into conflict with a staff member’s public duties. For example:

You are a business manager, and your partner operates a local business selling goods or services that your school may one day require.

This is a potential conflict of interest because your private interest (the business interests of your partner) could foreseeably become relevant if your school required the particular good or service your partner provides. As a business manager, you would have authority as part of your role to identify a suitable vendor.

The conflict of interest is not an actual conflict yet, because it is not known whether that good or service will be required. But as the opportunity may one day arise, it may be necessary for you to declare a potential conflict of interest and put in place a management plan to ensure you have a process to follow should the day come around that the relevant good or service is required by the school.

Perceived

A perceived conflict of interest occurs where it would be reasonable for another person to believe that an employee’s private interests could influence the performance of their public duties.

To be a perceived conflict of interest, rather than an actual or potential conflict, one of the following must be true:

• the staff member does not actually have to have a private interest in the matter, but a reasonable person may assume that they do
• the staff member does not have public duties that could be used to influence or benefit their private interest, but a reasonable person would assume that they do.

For example:

You are a principal chairing a recruitment panel, and you recognise that a candidate for the position is a former colleague from a previous school that you worked with 15 years ago.

This could be a perceived conflict of interest, as a reasonable person may believe that the pre-existing relationship you have with the candidate would prevent you from being impartial in the recruitment process, and lead to the former colleague being successful in getting the job.

Even though you may be confident that your relationship with your former colleague would not constitute a close personal relationship that would create a private interest, and you believe you can act impartially and without any bias, there still may be a perception that you will favour them and lead to doubt in the integrity of the recruitment process.

Accordingly, the perceived conflict needs to be declared and appropriately managed to help mitigate that perception risk and give confidence that merit-based principles are being applied in the recruitment process.

Avoiding conflicts of interest

If a conflict of interest is identified, the first step for school staff and their manager to consider is whether the conflict can be avoided.

Avoiding a conflict of interest, as opposed to managing a conflict of interest, means taking active steps to ensure that a private interest does not come into conflict with a public duty.

For example:

• a principal may exclude their family member’s local business from consideration as a supplier
• a business manager may suggest to their adult child that they consider applying for casual ES roles at other local schools
• a VCE teacher performing tutoring work in their specialised subject may elect to only offer their service to students from other Australian states or territories, delivering the service online and outside school hours,.

In many cases however, conflicts of interest are unavoidable and a natural part of working in a large education system that has many opportunities for contact with the private lives of employees. Where conflicts cannot be avoided, they must be declared and managed to ensure transparency and impartiality of decision-making is maintained and that the public interest is protected.

Making a conflict of interest declaration

Identified conflicts of interest must be formally declared in the department’s Conflict of Interest Declaration system in eduPay (staff login required). The conflict of interest declaration form is accessible under the My Declarations title on the Employee Self-Service menu.

School staff are recommended to have an initial conversation with their principal or manager before making a conflict of interest declaration in eduPay. The purpose of this discussion is to:

• determine whether a conflict of interest exists and the risks that the conflict of interest may create
• define the type of conflict of interest (actual, potential or perceived)
• clarify the details of the conflict of interest to be declared
• consider the possible management strategies that should be employed to mitigate the risks created by the conflict of interest (refer to Managing conflicts of interest for details).

Following the discussion, if a conflict of interest is identified, employees must complete the conflict of interest declaration form in eduPay for the consideration of their manager or principal. The declaration form sets out specific instructions for completing and submitting the conflict of interest declaration, including proposing a conflict of interest management plan to mitigate the identified conflict of interest risks.

Declarations of no conflict can also be entered in eduPay to ensure a formal record is maintained.

Declaring the details of a conflict of interest

When making a conflict of interest declaration in eduPay, employees must first identify the reason they are making a declaration, based on the nature of their private interest and the public duties they are performing.

The conflict of interest declaration system provides the following categories to which a conflict of interest may relate to:

• family relationship to a Victorian government school or Early Learning and Childcare Centre – this may include an employee’s children or other family members attending the school as students, or where a member of the staff member’s family is employed
• consensual personal relationship – this relates to intimate relationships with a colleague in the school an employee works in where either a hierarchical relationship exists or where interaction at work cannot be avoided
• other employment – this relates to employment in another company, trade or business undertaken or proposed to be taken outside of the department
• conflict of duty – this relates to other employment undertaken for the department whereby an employee has 2 primary public duties
• recruitment and selection – this relates to conflicts that arise in the context of performing recruitment processes, including casual recruitment or appointments
• employee management – this relates to directly managing an employee with whom an employee has a family relationship or other close personal relationship, such as a friendship outside of the workplace
• procurement and contract management – this relates to conflicts of interest that arise in the context of undertaking procurement activities or managing supplier relationships
• declarable association – this includes any relationship to an individual, group or organisation alleged to have been involved in serious unlawful activity
• loyalty or bias – this includes any personal association with another individual, group or organisation, or cultural, social, religious or political beliefs, that would lead to an employee’s inability to be impartial or objective in the performance of their public duties
• other – this relates to any reason for a conflict of interest that is not covered by the above categories.

Once a school staff member has selected their conflict of interest category, they will be asked to describe the details of their conflict.

A strong conflict of interest declaration describes, in as much detail as possible:

• the private interest, including any names, businesses, other duties and so on, and the history of the employee’s relationship or affiliation to that person, company, organisation or role
• the public duties an employee performs that could be influenced, or seen to be influenced, by their private interest as described.

It’s important for employees to include as much information as possible to define the conflict.

Making a strong and detailed conflict of interest declaration is important because it:

• allows managers to understand the private interest more deeply and determine whether the management plan mitigates the risks
• helps managers to identify the private interest and support staff in managing it on an ongoing basis
• protects staff more effectively, if a question or complaint were ever to be raised about the conflict of interest
• demonstrates that staff have thought about and understand the risks associated with their conflict of interest and can identify appropriate management strategies to mitigate those risks.

If the details of a conflict of interest change, either because the nature of the private interest changes or because the duties change, employees will need to close their existing conflict of interest declaration and make a new declaration that reflects the current circumstances.

Declaration examples

The following examples can help employees to determine what details are important to include in their conflict of interest declaration.
The examples should not be used directly as templates – the unique circumstances of a private interest and duties need to be considered in determining the conflict of interest risk factors that relate to a staff member’s circumstances. Please consider these in accordance with the other guidance provided.

Ongoing management of an employee

Inadequate conflict of interest declaration:

'I am a principal and my partner works in my school.'

Strong conflict of interest declaration:

'I am the principal at [school] and my partner, [name], is employed in a full-time ongoing position at our school as a [role].

As principal, all staff report directly to me, and accordingly, I am responsible for employment decisions relating to [partner name] regarding their performance, pay, leave, training, and general allocation of duties. I would also be responsible for managing any complaints about them made by other staff or parents/children within our school community.'

Procurement

Inadequate conflict of interest declaration:

'My son’s company is quoting for works to be completed within our school.'

Strong conflict of interest declaration:

'I am the business manager at [School] and my son’s company, [Name of company], a local [trade], is one possible option for the school to approach for a quote to complete works within our school to build/fix [scope of works].

As the business manager, I am responsible for setting out the scope of the works and approaching local businesses for a quote. Based on the quotes received and other information they provide about availability, I would be responsible for making a recommendation to the principal for approval of the preferred supplier.'

Other employment

Inadequate conflict of interest declaration:

'On my days off, I work for a NDIS provider that provides services to children with a disability, but this doesn’t impact my work at school.'

Strong conflict of interest declaration:

'I currently work as an Education Support at [School] as 0.4FTE. On my days off, I work as a [profession] for [company] providing NDIS services to children with [condition].

As part of my role, there is the potential for children that I support at [School] to engage with our company and for me to provide [service] to them.'

Family relationship in Victorian government school

Inadequate conflict of interest declaration:

'I am a teacher, and my children attend the school I work at, although I am not their classroom teacher.'

Strong conflict of interest declaration:

'I am a classroom teacher at [School] and my two children, [Names] are students and are in [Year/grade].

My duties at school involve [grade/subjects taught] as well as involvement in [other school programs involved in]. I do not teach my children directly, although [Name] is in the same year level and [Name] is involved in the school’s [extra-curricular program] that I am responsible for.

Part of my duties might include providing discipline or behavioural consequences to students while on yard duty. As leader of the [program], I am also responsible for conducting try-outs and determining which students will make the [program] team each year.'

Declaring a conflict of interest in other ways

In some situations, employees may also need to declare a conflict of interest in a different way as well as in eduPay. These situations include the following.

Group or committee meetings (internal)

If school staff member identifies a conflict of interest in a meeting context, it is important that they immediately notify the group of their conflict of interest and discuss what an appropriate management step should be in that context. Appropriate management steps may include:

• ongoing monitoring of the conflict of interest if the risk level increases (for example, if sensitive information relevant to the private interest is discussed, or if a decision needs to be made on a matter relating to the private interest)
• limiting the staff member’s involvement in the meeting (for example, preventing them from offering information or advice, or voting on a motion)
• stepping out of the meeting for the duration of the item that relates to the conflict of interest
• the group ensuring that modifications are made to meeting notes/minutes and actions to ensure that sensitive information relating to the conflict of interest is not disclosed to the staff member
• relinquishing the staff member’s position in the group if the conflict of interest is so substantial that trust in the decisions of the group could be jeopardised if the school staff member continued to be involved.

If the meeting is a formal meeting, details of the conflict of interest declaration and agreed management plan should be recorded in the minutes as appropriate.

Once the meeting has concluded, school staff must also make a conflict of interest declaration in eduPay for transparency and to ensure that any ongoing potential for that conflict of interest to emerge again in a future meeting has an agreed plan.

For specific guidance on managing conflict of interest in school council meetings, refer to: School Council – Conduct and Conflict of Interest.

Boards, committees or groups (external)

A conflict of interest may arise during discussion in an inter-agency, inter-departmental or other external group or committee meeting. This might include Student Support Group meetings attended by professionals from other departments, or Network meetings attended by colleagues in other schools.

Declaration and management of any conflicts of interest identified in these meeting types are recommended to be performed in accordance with the above guidance for internal groups or committees.

Given the chair of that meeting may not necessarily be a department employee, the staff member may wish to gain approval of a written conflict of interest declaration and management plan over email, and attach record of that email in eduPay when making the conflict of interest declaration to their line manager. The manager/principal can then approve the conflict of interest declaration with the knowledge that proper consideration has been given to the conflict, and that it has been declared and managed appropriately.

Other reasons to make a declaration

Other employment applications – no conflict to declare

School staff are also required to make a conflict of interest declaration in eduPay to confirm they have no conflict to declare when they are proposing to engage in other employment.

Future employment

Future employment opportunities can also give rise to a conflict of interest where the new employment conflicts with responsibilities, duties or interests of the school staff member’s current role at the school or department.

School staff must inform their principal or manager as soon as they are offered employment where a conflict of interest or duty could arise for the remainder of their tenure in their current role. In doing so, school staff must outline any relationship between the job offered and their current duties, describing any possible conflict the new position raises.

If a conflict of interest or duty is identified, it should be declared and managed in accordance with this policy.

Reviewing and approving a conflict of interest declaration

Upon completing the conflict of interest declaration in eduPay, the principal or manager will receive a notification of the staff member’s proposed declaration for consideration.
Upon reviewing a conflict of interest declaration, principals and managers may:

• approve the conflict of interest declaration and proposed management plan
• push back the conflict of interest declaration, requesting further details about the private interest or public duties giving rise to the conflict of interest or suggesting additional management strategies in the conflict of interest management plan that may be required to effectively manage the conflict of interest.

Principal conflict of interest declaration and management plans will first be reviewed by the area executive director in eduPay, before final approval is sought from the regional director.

Managing conflicts of interest

Where a conflict cannot be avoided, school staff must actively manage the conflict to protect the public interest from influence by a private interest.

Where the department, school or public might also benefit from circumstances that involve a conflict of interest (for example, discounts on goods or services), the conflict of interest must still be declared and steps taken to manage its impact. With any conflict of interest, there is the potential that the personal benefit involved can create perceptions of corruption.

School staff must develop a conflict of interest management plan as part of their conflict of interest declaration which is required to be approved by their manager/principal. The management plan is part of the conflict of interest declaration on eduPay.

Management plans are a risk mitigation strategy and should address:

• how public duties impacted by the conflict of interest will be performed
• the communication of the conflict of interest and relevant management strategies.

Management strategies

Staff members must develop a conflict of interest management plan as part of their eduPay conflict of interest declaration. This must be approved by the manager or principal.

The conflict of interest management plan is designed to detail what action will be taken to reduce the integrity risk associated with the conflict of interest. A conflict of interest management plan should seek to address:

• how the public duties that are impacted by the conflict will be modified to reduce or eliminate the risk factors identified
• how the staff member will communicate the conflict and relevant management strategies to the relevant people.

School staff must monitor and review their conflict of interest declaration and management plan periodically – at least every 12 months – and in response to any changes in circumstances or risks to ensure that the plan remains effective. Employees who have submitted a conflict of interest declaration will receive an eduPay reminder when a review is due.

Conflict of interest management plans often involve the implementation of one or more of the following risk mitigation strategies, depending on the circumstances of the conflict and the identified risks.

Record and monitor

The conflict of interest is officially declared and recorded.

Relevant principals, managers and school staff will only be advised of the conflict on a ‘need to know’ basis to support ongoing monitoring of the situation to ensure the conflict does not come into contact with or influence public duties.

The ‘record and monitor’ conflict of interest management strategy is most appropriate for certain potential or perceived conflicts only, where the possibility of a future conflict of interest may require constant monitoring for changes in circumstances that may lead to an actual conflict.

Where changing circumstances result in the level of risk increasing, additional strategies (such as restrict or remove) may be implemented to appropriately address the conflict.

For example:

Restrict

Some restrictions may be placed on the school staff’s duties where a private interest intersects with their public duties. For example:

• limiting involvement in discussions relating to the private interest to observation-only
• restricting sole decision-making responsibilities about matters relating to the private interest, or restricting the staff member from being present when key discussions are being had or decisions are being made
• restricting access to available information about matters that intersect with a private interest.

The use of the restriction strategy may still allow involvement in implementation of decisions made by others that relate to the conflicted duties.

The ‘restrict’ conflict of interest management strategy can be used in perceived and potential conflict of interests where appropriate, as well as in low-risk actual conflict of interests where an employee’s level of involvement is not likely to influence the decision or outcome or where the participation of the school staff member in certain duties that are related to the private interest is not likely to lead to perceptions of influence.

For example:

You are a business manager and you work in the same school as your daughter, who is one of the teachers on staff. You process the payroll of all staff, as well as other staff administration duties including assisting with leave requests.

Your conflict of interest management plan has been developed to allow processing of general payroll tasks for your daughter, but restricts the performance of some atypical payroll duties, including processing of reimbursements and checking medical certificates to cover absences.

Remove

A school staff member with a conflict of interest is completely removed from any involvement or performance of duties relating to the subject matter of the conflict. This may include removing:

• all decision-making responsibility relating to the matter
• any opportunity to influence decision-making or considerations of others relating to the matter
• ability to access information about the matter, including participation in discussions and access to documents.

The ‘remove’ conflict of interest management strategy should be used in high-risk perceived and potential conflicts where the impact of involvement could have a detrimental effect on perception of a process or decision made by the department or school. It should also be the starting point for consideration of all actual conflicts of interest.

For example:

Recruit

An impartial staff member is engaged to oversee partial or full responsibility for the duty giving rise to the conflict.

If a ‘recruit’ conflict of interest management strategy is used, it must be discussed with a principal or manager before implementing in order to identify a suitable individual to assume responsibility for the duty. While a staff member within the school or outside the school (from a neighbouring school or the region) may be selected, a subordinate of the conflicted school staff member would, in most cases, not be appropriate or effective in mitigating the risk of influence in favour of the private interest.

The recruit strategy is often combined with the restrict or remove strategies, and can involve the independent third party being engaged to:

• provide independent decision-making, assurance or probity advice
• perform an assistance and oversight role with the conflicted individual
• oversee an entire work duty which would normally belong to the conflicted individual.

For example:

Relinquish/resolve

Sometimes, a conflict of interest cannot be adequately managed to mitigate the risk to the public interest.

In these cases, it may be necessary for:

• school staff to relinquish their private interest (where it is possible to do so)
• the principal or manager to explore alternative resolutions to mitigate the risk posed by the conflict.

For example:

Proportionality to the risk level

Any conflict of interest management plan should be proportionate to the level of risk posed by the conflict. This helps to ensure that a staff member’s ability to perform their public duties is not unnecessarily inhibited.

The risk factors that may influence the way a conflict of interest needs to be managed include:

• authority and influence – the level of influence a staff member has in any activity or decision-making
• work responsibilities – the public duties or tasks that could be influenced or affected by the conflict
• nature of private interest – the benefit that could be received or achieved as a result of the conflict
• duration – the length of time that the conflict can be expected to be active for (that is, short-term, long-term or ongoing)
• consequences of conflict – the possible effects if the conflict were to not be managed appropriately
• public perception – the reasonable perception of a fair-minded colleague or member of the public of the situation, including the ability of a proposed conflict of interest management plan to mitigate the risks of influence posed by the conflict.

Alternative resolutions

Sometimes, there may be no management strategy that will effectively and proportionately mitigate the risks associated with the conflict of interest. In those cases, the relevant principal or manager may need to explore alternative resolutions for the conflict of interest.

Alternative resolutions may involve:

• the school staff member taking leave
• alteration of expected work duties (including transfer to another role).

Alternative resolutions should only be considered by principals or managers where operational or business needs are able to accommodate the proposed resolution, and where applicable legislative and contractual provisions allow.

In some cases, if school staff are unable or unwilling to relinquish a private interest that cannot be appropriately managed, termination of employment subject to a misconduct process may be necessary. The department will manage this consistent with public sector employment principles and standards, as well as any other applicable employment contracts, agreements or legislation.

For more information visit: Managing Conduct and Unsatisfactory Performance in the Teaching Service.

Disagreement over management strategies for a conflict of interest

If a staff member disagrees with the conflict of interest management strategies suggested by their principal or manager to effectively manage the conflict, the conflict of interest management plan cannot be approved.

Managers and principals can:

• discuss the details of their employee’s conflict of interest and proposed management plan with their manager to gain an additional perspective as to what is a reasonable and proportionate plan to manage the identified risks
• contact the Conduct and Integrity Division on 03 7022 5400 or at integrity.enquiries@education.vic.gov.au for specialist advice on the how the Conflict of interest policy intends to apply in the unique circumstances of the conflict. This may help to give ideas for additional management strategies that could be employed to resolve the conflict
• consider alternative resolutions for the conflict of interest as described in the policy, if no resolution can be found at this point This can include:
  • requiring the school staff member to take leave for the duration of the conflict (if it is possible or reasonable to do so)
  • changing the school staff member’s position description (including classification, if necessary) to remove duties that give rise to the conflict. Managers and principals should contact Schools HR on 1800 641 943 for further advice
  • transferring school staff to another role within the department to remove duties that give rise to the conflict. Managers and principals should contact Schools HR on 1800 641 943 for advice.

Commencing misconduct proceedings with the potential outcome of termination of employment will only occur if:

a school staff member cannot or will not relinquish the private interest giving rise to the conflict

a suitable conflict of interest management plan cannot be agreed upon

the employee refuses other alternative resolutions proposed.

Further specialist support can be sought from the Conduct and Integrity Division if required: call 03 7022 5400 or email integrity.enquiries@education.vic.gov.au

School staff can:

• contact Conduct and Integrity Division on 03 7022 5400 or at integrity.enquiries@education.vic.gov.au for specialist advice on how the Conflict of interest policy intends to apply in the unique circumstances of their conflict of interest. This may help to give ideas for additional management strategies that could be employed to resolve the conflict
• submit a management action grievance with the Merit Protection Boards to request a review of the management decision to not approve the proposed conflict of interest management plan. This can also be done if the school staff member does not believe that their private interest constitutes a conflict of interest in the first instance. For more information refer to: Merit Protection Boards.

Drafting a conflict of interest management plan

When entering a proposed conflict of interest management plan into the conflict of interest declaration in eduPay, staff will be asked to describe the management strategies that they will put in place to manage the associated risks.

A strong conflict of interest management plan is descriptive and addresses each of the risks that the staff member identifies based on the details of their private interest and the duties likely to be impacted.

Staff can use their earlier conflict of interest declaration as a way to itemise the management strategies they need to employ for each public duty affected.

The details of a conflict of interest management plan may need to be updated over time, due to the:

• nature of the private interest changing
• role duties changing
• management strategies no longer being suitable to manage the risk associated with the conflict.

If this is the case, the staff member must close their existing conflict of interest declaration and management plan and make a new declaration that reflects the current details of the conflict and the management strategies proposed.

Speaking up

Building a culture of integrity throughout the education system requires that school staff speak up when they believe a conflict of interest may have influenced or may be influencing the performance of another school staff member’s public duties.

There may be cases where a school staff member believe:

• a conflict of interest held by another staff member has not been declared
• a conflict of interest is not being appropriately managed.

School staff can speak up through the following avenues:

• in the first instance, school staff can raise a concern directly to their principal or manager. If a concern relates to that principal or manager, the report can be made to their manager’s manager or to the appropriate divisional or regional office
• report to the department’s Fraud and Corruption Control unit at fraud.control@education.vic.gov.au or phone: 03 7022 0121
• make a confidential report through the department’s independent Speak Up Service (staff login required) on their website, via email: educationspeakup@pkf.com.au, or phone: 1800 633 642
• report to the Victorian Ombudsman
• report to the Independent Broad-based Anti-corruption Commission (IBAC).

The department is committed to actively protecting and supporting school staff and other employees who speak up. Decisive action, including possible disciplinary action, will be taken against individuals who discriminate against or victimise those who speak up in good faith.

Breaches

The department takes allegations of breaches of this policy seriously. Allegations of breaches will be investigated and managed appropriately according to the circumstances.

Depending on the circumstances of the matter, an identified breach of this policy may result in:

• informal resolutions, including close monitoring, additional education and counselling
• performance management
• commencement of a misconduct process.

Any finding of misconduct that amounts to a breach of the Public Administration Act 2004 (Vic), the Education and Training Reform Act 2006 (Vic) or the Code of Conduct for Victorian Public Sector Employees can result in termination of employment.

For serious breaches amounting to allegations of corruption, the matter may be referred to Independent Broad-based Anti-corruption Commission (IBAC) for investigation.

If a criminal offence is suspected, the matter can also be referred to Victoria Police for investigation and prosecution.

Monitoring and reporting

The department will conduct routine monitoring of compliance with these policy obligations, including declarations of private interests and the quality of details recorded in conflict of interest declarations and the effectiveness of management plans submitted in eduPay.

Where conflict of interest monitoring activity identifies otherwise undeclared and unmanaged conflicts of interest, or inadequate conflict of interest management plans, further action may be taken in accordance with this policy.

The department will also ensure periodic reporting to the department’s Audit and Risk Committee on the department’s conflict of interest processes and results of compliance monitoring.

Declaration of private interests

A declaration of private interests (DOPI) is designed to allow nominated staff to identify any private interests they hold which may result in a conflict of interest.

It involves school staff disclosing the range of personal interests they hold, including:

• other sources of income
• holding of other public or private offices
• shareholdings, investments or other business interests
• trusts
• real estate holdings
• other agreements
• family interests.

Completed DOPIs will be made available to immediate line managers to promote transparency and to ensure that any of private interests that may constitute a conflict of interest can be identified.

Employees required to complete a declaration of private interests

The following nominated employees must complete a DOPI:

• executive officers
• school principals
• public entity board members
• employees directed to do so by their manager in recognition of a high conflict of interest risk due to a private interest they hold or a work duty they perform.

These nominated employees must complete a DOPI on all of the following occasions:

• upon appointment to their position
• annually, each financial year
• if there is a change to their private interests as previously declared.

In schools, usually only the principal (or any school staff who act in a principal role during that financial year period) is required to complete an annual DOPI. Other staff may also be instructed to complete a DOPI on rare occasions.

How to complete a declaration of private interests

Staff can access the DOPI form in eduPay (staff login required) through the My Declarations tile from the Employee Self-Service menu.

When completing a DOPI, staff must provide adequate detail for each private interest to help with clear identification of conflicts of interest. This may include details such as:

• the ABN of any listed company or organisation
• the number of shares or equity held of specific companies
• family trust details including beneficiaries
• related employment of any family member
• details of any other employment or directorship at another company, business or trade.

Staff can complete and submit the form, or partially complete the form and save for later completion if necessary. Declarations must be completed by the relevant deadline below:

• for DOPIs to be completed upon appointment to a position – within 5 business days of appointment to the position
• for DOPIs to be completed annually – before the deadline noted in the annual notification sent in May of each year
• for DOPIs to be completed due to a change to the private interests of the school staff – within 5 days of the change in private interests occurring.

Access to the personal information provided in a declaration of private interests

The manager or principal will view a DOPI and help staff determine whether any of their declared private interests might represent a conflict of interest. No approval is required as part of this process. The point of review for principals is their area executive director.

The DOPI may also be viewed by staff in Conduct and Integrity Division during policy compliance monitoring duties, or as part of employee conduct investigations. Further disclosure of the information provided in the DOPI may occur where required in information requests made by external agencies, which include but are not limited to:

• Australian Securities and Investment Commission (ASIC)
• Australian Taxation Office (ATO)
• Victorian Ombudsman
• Independent Broad-based Anti-corruption Commission.

All personal information provided is managed by the department in accordance with its obligations under the Data Protection Act 2014 (Vic) and the Public Records Act 1973 (Vic).

Identifying a conflict of interest

When completing a DOPI, the staff member or their manager might identify that a particular private interest conflicts with one of the staff member’s public duties.

If a conflict of interest is identified in completing the DOPI, school staff members must complete a separate conflict of interest declaration and management plan. Staff can access the conflict of interest declaration form through eduPay (staff login required) in the My Declarations tile in the Employee Self-Service menu.

Manager role in reviewing a declaration of private interests

All DOPIs are made available to line managers to ensure an objective assessment of declared private interests and to help staff to determine whether any conflict of interest might exist or be perceived to exist.

A principal’s DOPI will be reviewed by their area executive director. All other school staff who have been asked to complete a DOPI will have it reviewed by their principal.

Managers must review each section of the DOPI and assess whether, in the staff member’s expected duties, they have the potential to be influenced by their declared private interests.

If the manager identifies a private interest that may conflict with a public duty, they will discuss with the staff member further. This may result in the staff member being required to submit a conflict of interest declaration and management plan in eduPay.

Resources

Tailored, real world guidance is best

The COI Toolkit (refer below) contains resources which can assist employees in applying the above process to real world situations.

Given the variety of circumstances in which Conflict of Interest (COI) may arise, the department also recognises that high level principles or generic examples may be inadequate guidance for resolving COI risks in specific circumstances. For this reason, business units throughout the department and schools are advised to identify clear expectations for employees about how the COI Policy should apply to discrete situations. The resources in the COI Toolkit can be adapted for this purpose.

COI resources

There are a range of resources to assist employees in understanding and applying the COI Policy to the different circumstances where conflicts of interest arise:

• Conflict of Interest Toolkit (DOCX) – includes links to a variety of practical resources – last updated 12/7/2017
• Conflict of Interest Toolkit (PDF) – includes links to a variety of practical resources – last updated 12/7/2017
• General Information (DOCX)
• General Information (PDF)
• Managing COI in Recruitment (DOCX)
• Managing COI in Recruitment (PDF)
• Managing COI in Other Employment (DOCX)
• Managing COI in Other Employment (PDF)
• Managing COI When Procuring Goods and Services (DOCX)
• Managing COI When Procuring Goods and Services (PDF)

Training

For an introduction to conflicts of interest, refer to the Conflict of Interest animated video. This tool helps staff to understand the department’s conflict of interest obligations and engage colleagues in discussions at team meetings, inductions and in Performance and Development Plan conversations.

To learn more about how to identify, declare, avoid and manage conflicts of interest, complete the Conflict of Interest eLearn module (staff login required) which can be found on LearnED in eduPay.