NEMO WORKFORCE DEVELOPMENT BOARDCONFLICT OF INTEREST POLICY
Article I: Purpose
Thisconflictofinterestpolicyis designedto foster publicconfidenceintheintegrityofNEMO Workforce Development Board (the“Organization”)andtoprotecttheOrganization’sinterestwhenitiscontemplatingenteringatransaction(definedbelow)thatmightbenefittheprivateinterestofadirector,acorporateofficer,thetopmanagementortopfinancialofficial,akeyemployee(definedbelow).
Article II: Definitions
policy:
The following are considered insiders for the purposes of this
Eachmemberof theBoardofDirectors orothergoverning body (CLEOs).
Thepresident,chiefexecutiveofficer,chiefoperatingofficer,treasurerandchieffinancialofficer,executivedirector,oranypersonwiththeresponsibilitiesofanyofthesepositions.
Anykeyemployee,meaninganemployeewhosetotalannualcompensation(includingbenefits)fromtheorganizationanditsaffiliatesismorethan$150,000andwho(a)hasresponsibilitiesorinfluenceovertheorganizationsimilartothatofofficers,directors,ortrustees;or(b)managesaprogramthatrepresents10%ormoreoftheactivities,assets,income,orexpensesoftheorganization;or(c)hasorsharesauthoritytocontrol10%ormoreoftheorganization’scapitalexpenditures,operatingbudget,orcompensation foremployees.
10NotethatthisConflictofInterestPolicydoesnotassumetheexistenceofaseparateCompensationPolicy.Compensationpaidtoinsiders,includingfortheirserviceasdirectors,officers,andkeyemployees,shouldbeevaluatedunderthisPolicyinitscurrentform.IfanorganizationhasaseparateCompensationPolicythataddressessuchcompensationdecisions,thispolicymaybemodifiedaccordingly.
Interestmeansanymaterialfinancialinterest,whetherthroughcommitment,investment,relationship,obligation,involvement or otherwise,directorindirect,thatmayinfluenceaperson’sjudgment,includingreceiptofcompensationfromtheOrganization,asale,loan,orexchangetransactionwiththe Organization.
Aconflictofinterestispresentwhen,inthejudgmentofthebody orindividualdeterminingwhetheraconflictexists,aninsiderorpersonrelatedtotheinsiderbyfamilyorbusinessrelationship(“interestedperson”)hasamaterialfinancialinterestinthetransactionsuchthatitreducesthelikelihoodthataninsider’sinfluencecanbeexercisedimpartiallyinthebestinterestsoftheOrganization.
Transactionmeansanytransaction,agreement,or arrangementbetweenaninterested personandtheOrganization,orbetweentheOrganizationandanythirdpartywhereaninterestedpersonhasa materialfinancialinterestinthetransactionoranypartytoit.[NotetoOrganization: IftheOrganizationhasaseparateCompensationPolicythataddressesthereceiptofcompensationbyaninsiderinhisorhercapacityasaninsider(e.g.,compensationpaidtothePresidentforherservicestotheOrganizationasitsPresident),pleaseincludethefollowingsentence:“TransactiondoesnotincludecompensationarrangementsbetweentheOrganizationandadirector,officer,orotherinsiderthatare whollyaddressedundertheOrganization’sCompensationPolicy.”]
Article III: Procedures
1.Duty to Disclose
EachinterestedpersonshalldisclosetotheBoardallmaterialfactsregardinghis,her,oritsinterest(includingrelevantaffiliations)inthetransaction.Theinterestedpersonshallmakethatdisclosurepromptlyuponlearningoftheproposedtransaction.
2.DeterminingWhethera Conflictof InterestExists
Withregardtoaninterestedperson,theBoardshalldetermineifaconflictofinterestexists.
3.Procedures forAddressingaConflictofInterest
TheBoardshallfollowtheproceduressetforthinArticleIVinordertodecidewhatmeasuresareneededtoprotecttheOrganization’sinterestsinlightofthenatureandseriousnessoftheconflict,todecidewhethertoenterintothetransactionand,ifso,toensurethatthetermsofthetransactionareappropriate. Inthecaseofaninsiderwhoisadirector,thedirectorshallnotvote
onanytransactioninwhichthedirectorhasaninterest,andtheremainingBoardmembers shall decide thematter.
Article IV:Reviewbythe Board
TheBoardmayaskquestionsofandreceivepresentation(s)fromtheinsider(s)and anyother interestedperson(s),and may deliberateandvoteonthetransactionintheirpresence.TheBoard shallascertainthatall material factsregardingthetransactionandtheinterestedperson’sconflictofinteresthavebeendisclosedtotheBoardandshallcompileappropriatedatatoascertainwhether theproposedtransaction is justandreasonabletotheOrganization.
Afterexercisingduediligence,whichmayincludeinvestigatingalternativesthatpresentnoconflict,theBoardshalldeterminewhetherthetransactionisintheOrganization’sbestinterest,foritsownbenefit,andwhetheritisjustandreasonabletotheOrganization;thetransactioncanbeapprovedbytheBoardbymajorityvoteofthosepresentatameetingforwhichquorumrequirementshavebeenmet,withoutcountingthevoteofanyinteresteddirectors.Interestedorcommondirectorsmaybecountedindeterminingthepresenceof a quorum at suchmeeting.
ArticleV: Records ofProceedings
TheminutesofanymeetingoftheBoardpursuanttothispolicyshallcontainthe nameofeachinterestedpersonwho disclosedor wasotherwisedeterminedtohaveaninterestinatransaction;thenatureoftheinterestandwhetheritwasdeterminedtoconstituteaconflictofinterest;anyalternativetransactionsconsidered;themembersoftheBoardwhowerepresentduringthedebateonthetransaction,thosewhovotedonit,andtowhatextentinterestedpersonswereexcludedfromthedeliberations;anycomparabilitydataorotherinformationobtainedandrelieduponbytheBoardandhowtheinformationwasobtained;andtheresultofthevote,including,ifapplicable,thetermsofthetransactionthatwasapprovedandthedate itwasapproved.
Article VI: AnnualDisclosure and Compliance Statements
Eachdirector,eachcorporateofficer,thetopmanagementofficial,thetopfinancialofficial,andeachkeyemployeeoftheOrganization,shallannuallysign astatementon theformattached,that:
- affirmsthatthepersonhasreceivedacopyofthisconflictofinterestpolicy,hasreadandunderstoodthepolicy,andhasagreedtocomplywiththepolicy; and
- disclosestheperson’sfinancialinterestsandfamilyrelationships thatcould give rise toconflictsofinterest.
Article VII: Violations
IftheBoardhasreasonablecausetobelievethataninsideroftheOrganizationhasfailedtodiscloseactualorpossibleconflictsofinterest,includingthosearisingfromatransactionwitharelatedinterestedperson,itshallinformsuchinsiderofthebasisforthisbeliefandaffordtheinsideranopportunity toexplaintheallegedfailuretodisclose.If,afterhearingtheinsider’sresponseandmakingfurtherinvestigationaswarrantedbythecircumstances,theBoarddeterminesthattheinsiderhasfailedtodiscloseanactualorpossibleconflictofinterest,theBoardshalltakeappropriatedisciplinaryandcorrectiveaction.
ArticleVIII: Annual Reviews
ToensurethattheOrganizationoperatesinamannerconsistentwith its status as an organizationexemptfrom federal incometax, the Boardshallauthorizeandoverseeanannualreviewoftheadministrationofthisconflictofinterestpolicy.Thereviewmaybewrittenororal.Thereviewshallconsiderthelevelofcompliancewiththepolicy,thecontinuingsuitabilityofthepolicy,andwhether thepolicyshouldbemodifiedandimproved.
NEMO Workforce Development Board
CONFLICT OF INTEREST POLICY:ACKNOWLEDGMENTAND FINANCIAL INTEREST DISCLOSURE
STATEMENT
Ourorganizationfollowsaconflictofinterestpolicydesignedtofosterpublicconfidenceinourintegrityandtoprotectourinterestwhenwearecontemplatingenteringatransactionorarrangementthatmightbenefittheprivateinterestofadirector,acorporateofficer,ourtopmanagementofficialandtopfinancialofficial,anyofour keyemployees, or otherinterestedpersons.
Part I.AcknowledgmentofReceipt
Part II.Disclosure of FinancialInterests
WearerequiredannuallytofileForm990withtheInternalRevenueService,andtheformwefileisavailabletothepublic.TocompleteForm990fullyandaccurately,weneedeachofficer,directorandkeyemployeetodisclosetheinformationrequestedin thisPart II.
A“conflictofinterest,”forpurposesofForm990,ariseswhenapersoninapositionofauthority overanorganization,suchasanofficer,director,orkeyemployee,maybenefitfinanciallyfromadecisionheorshecouldmakeinsuchcapacity,includingindirectbenefitssuchastofamilymembersorbusinesseswithwhich thepersonis closelyassociated.
FamilyRelationships / Names ofthosepresentinga potentialconflictof interestIncludespouse/domesticpartner,livingancestors,brothers andsisters(whetherwhole orhalfblood),children(whethernaturalor adopted),grandchildren,greatgrand-children,andspouses/domesticpartnersofbrothers,sisters,children,grandchildren,and greatgrandchildren
Type of interest / Descriptionof interestthatcouldlead toa conflict ofinterest
Transactionsorarrangementswith the Organization
Transactionsoraffiliationswithother nonprofitorganizations
Substantialbusinessorinvestmentholdings
Transactionsoraffiliationswithbusinessesnotlistedabove