Rotary Club at Lake Atitlan

 

Addendum to Rotary International’s
CONFLICT OF INTEREST POLICY
As applied to the Rotary E-Club of Lake Atitlan (RECLA)

 

From The Rotary Foundation:

10.030. Conflict of Interest Policy for Program Participants 

To assure integrity in The Rotary Foundation grants program it is essential that all individuals involved in a program grant and/or award conduct their activities in a manner that avoids a conflict of interest. 

A conflict of interest occurs when an individual is in a position to make or influence a decision about a grant or award that benefits (i) that individual, (ii) an immediate family member, (iii) a business partner, or (iv) an entity in which the individual, an immediate family member, or a business partner has a significant financial interest or in which the individual, an immediate family member, or a business partner is a trustee, director or officer. 

Rotarians shall disclose to the general secretary all actual and potential conflicts of interest. If in doubt, any potential conflict should be disclosed. Rotarians shall not serve on the grant committee for any global grants on which they have a conflict of interest. Global grants may not be financed with contributions (Directed Gifts, CSR funds, etc.) where the donor has a conflict of interest in relation to the grant.

The Rotary E-Club of Lake Atitlan (RECLA) is committed to avoiding conflicts of interest, potential conflicts of interest, or the perception of conflicts of interest by its members. The purpose of this addendum is to attempt to clarify specific points of concern to our club.

Conflicts of interest are not inherently bad, nor does their existence necessarily reflect negatively on the organization.  It is the manner in which the individual members and the Board of Directors deal with conflicts that determines the propriety of a particular transaction.  The perception of a conflict of interest can be just as hurtful to the organization’s reputation as an actual conflict.

Disclosure of Conflict of Interest

It is the duty of each member to disclose a situation in which a conflict of interest arises (or the possible perception of a conflict of interest).  In such a situation, the member must recuse himself from participation to avoid a conflict of interest

Any declaration of a conflict of interest should be made a matter of public record and should be recorded in the published minutes.

Every member of RECLA must complete and sign the appropriate form annually and submit it to the President (paper or email) by January 31.

Shepherd

Each project should have member of RECLA to act as a Shepherd to guide the documentation of the grant. The Shepherd cannot in any way be affiliated with the NGO or related to the person carrying out the grant or receiving the money. We need to make sure that there is an impartial person looking over grant paperwork, certifying the completion of the project, writing the final report, and reviewing receipts.

Potential conflict of interest examples:

  1. Member A is the non-reimbursed founder of Group A. If RECLA chooses to work with Group A, Member A cannot serve as the shepherd.  Member A would have to recuse himself from voting on the grant request or administrative management of the purchase or end use of the grant.  Member A would be available for counsel, may function in some ancillary way in the project but would not be able to not make decisions on the purchase or end use.
  2. Member B is on the board of Association B. If RECLA received a grant to buy ten tubas for Association B, Member B would have to recuse himself from voting on the grant request or administrative management of the purchase or end use of said tubas.  Member B would be available for counsel, may function in some ancillary way in the project but could not make decisions on the purchase or end use.
  3. Member C works with municipalities to manage sewerage treatment plants.  Member C petitioned the Board of Directors to partially defray the costs of a sanitation course in Germany.  The skills Member C will obtain will help our club and it will improve Member C ’s employment opportunities.  Some may see a perception of a conflict.  Member C should recuse himself on the vote to determine his reimbursement.  While the potential for a conflict of interest exists, the benefit to the club outweighs any potential conflicts.  Indeed, part of RECLA’s goals is to improve the capabilities of its members, especially residents and citizens of Guatemala.