Appendix A - Conflict of Interest Policy Statement

Appendix A

Kenilworth Residents’ Association

CONFLICT OF INTEREST POLICY STATEMENT

Purpose

The purpose of this conflict-of-interest policy is to protect the Kenilworth Residents’ Association’s interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of one of its officers or directors, or might result in a possible excess benefit transaction.  This policy is intended to supplement, but not replace, any applicable state and federal laws governing conflicts of interest.

Definitions

Interested Person—An Interested Person is any director, principal officer, or member of a committee with governing board-delegated powers who has a direct or indirect Financial Interest, as defined below. 

Financial Interest—A person has a Financial Interest if the individual has, directly or indirectly, any actual or potential ownership, investment, or compensation arrangement with the KRA or with any entity that conducts transactions with KRA. 

A Financial Interest is not necessarily a conflict of interest in all cases.  Under Article III, Section 2 of IRS Form 1023, a person with a Financial Interest may have a conflict of interest only if the appropriate governing board or committee decides that a conflict of interest exists.

Procedures

                Duty to Disclose—In connection with any actual or possible conflict of interest, an Interested Person must disclose the existence of the Financial Interest and be given the opportunity to disclose all material facts to the Directors or Board designated Committee Members considering the proposed transaction or arrangement.  In an effort to aid such disclosure, each Director or Full Board Member (ie., Section Representative) shall complete a Board Member Conflict-of-Interests Disclosure Form as circumstances warrant, but no less frequently than annually. 

                Determining whether a conflict of interest exists—The Board shall review each Board Member Disclosure Form.  After disclosure of the Financial Interest, the Interested Person shall leave the board meeting while the remaining board members discuss and vote on whether a conflict of interest exists.

                Procedures for addressing the conflict of interest—After exercising due diligence, the Board (or designated committee) shall determine whether the KRA can obtain with reasonable effort a more advantageous transaction or arrangement from a person or entity that would not produce a conflict of interest.  The Interested Person shall not be present in the room during the determination.

                If an alternative transaction or arrangement is not possible, the Board (or committee) shall determine by a majority vote of the disinterested Directors whether the transaction or arrangement is in the best interest of the KRA, for its own benefit, and fair and reasonable.  Based on these determinations the Board (or committee) shall make its decision on whether to enter into the transaction or arrangement.

                Disciplinary Action—If the Board (or committee) has reason to believe an individual has failed to disclose actual or potential conflicts of interest, it will inform the member and allow him/her to explain the alleged failure to disclose.  If the committee still has reason to believe a conflict of interest exists after the alleged conflict is explained, it will take corrective action.  A clear record of the proceedings will be filed by the Treasurer. 

 

OBLIGATION STATEMENT FOR BOARD OF DIRECTORS

I have reviewed the Kenilworth Residents’  Association Conflict of Interest Policy Statement.   I understand that it is my obligation to disclose a conflict of interest, or appearance of a conflict, to the KRA Board President when a conflict, or appearance of a conflict arises.  In any matter which I have a conflict-- or appearance of a conflict of interest--, I will abstain from any vote on the matter.  I understand that the KRA  is charitable and in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. 

 

Name                                                                                                                                      Date

_____________________________________________            Appendix A

Kenilworth Residents’ Association

CONFLICT OF INTEREST POLICY STATEMENT

Purpose

The purpose of this conflict-of-interest policy is to protect the Kenilworth Residents’ Association’s interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of one of its officers or directors, or might result in a possible excess benefit transaction.  This policy is intended to supplement, but not replace, any applicable state and federal laws governing conflicts of interest.

 

Definitions

Interested Person—An Interested Person is any director, principal officer, or member of a committee with governing board-delegated powers who has a direct or indirect Financial Interest, as defined below. 

Financial Interest—A person has a Financial Interest if the individual has, directly or indirectly, any actual or potential ownership, investment, or compensation arrangement with the KRA or with any entity that conducts transactions with KRA. 

A Financial Interest is not necessarily a conflict of interest in all cases.  Under Article III, Section 2 of IRS Form 1023, a person with a Financial Interest may have a conflict of interest only if the appropriate governing board or committee decides that a conflict of interest exists.

Procedures

                Duty to Disclose—In connection with any actual or possible conflict of interest, an Interested Person must disclose the existence of the Financial Interest and be given the opportunity to disclose all material facts to the Directors or Board designated Committee Members considering the proposed transaction or arrangement.  In an effort to aid such disclosure, each Director or Full Board Member (ie., Section Representative) shall complete a Board Member Conflict-of-Interests Disclosure Form as circumstances warrant, but no less frequently than annually. 

                Determining whether a conflict of interest exists—The Board shall review each Board Member Disclosure Form.  After disclosure of the Financial Interest, the Interested Person shall leave the board meeting while the remaining board members discuss and vote on whether a conflict of interest exists.

                Procedures for addressing the conflict of interest—After exercising due diligence, the Board (or designated committee) shall determine whether the KRA can obtain with reasonable effort a more advantageous transaction or arrangement from a person or entity that would not produce a conflict of interest.  The Interested Person shall not be present in the room during the determination.

                If an alternative transaction or arrangement is not possible, the Board (or committee) shall determine by a majority vote of the disinterested Directors whether the transaction or arrangement is in the best interest of the KRA, for its own benefit, and fair and reasonable.  Based on these determinations the Board (or committee) shall make its decision on whether to enter into the transaction or arrangement.

                Disciplinary Action—If the Board (or committee) has reason to believe an individual has failed to disclose actual or potential conflicts of interest, it will inform the member and allow him/her to explain the alleged failure to disclose.  If the committee still has reason to believe a conflict of interest exists after the alleged conflict is explained, it will take corrective action.  A clear record of the proceedings will be filed by the Treasurer. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OBLIGATION STATEMENT FOR BOARD OF DIRECTORS

I have reviewed the Kenilworth Residents’  Association Conflict of Interest Policy Statement.   I understand that it is my obligation to disclose a conflict of interest, or appearance of a conflict, to the KRA Board President when a conflict, or appearance of a conflict arises.  In any matter which I have a conflict-- or appearance of a conflict of interest--, I will abstain from any vote on the matter.  I understand that the KRA  is charitable and in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. 

 

Name                                                                                                                                      Date

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KENILWORTH RESIDENTS’  ASSOCIATION

Board Member Conflict of Interests Disclosure Form

(for use only if there’s possible concern relating to conflict of interest) 

 
 
Name______________________________________________________________                                        Date___________________

 
A conflict of interest, or an appearance of a conflict, can arise whenever a transaction, or an action, of Kenilworth Residents’ Association conflicts with the personal interests, financial or otherwise, of that of a Board Member, or an immediate family member of a Board Member, or that of the Board Member’s employer (collectively “your personal interests”).

 
Please describe below any relationships, transactions, or positions you hold (volunteer or otherwise), or circumstances that you believe could create a conflict of interest, now or in the future, between Kenilworth Residents’ Association and your personal interests—financial or otherwise: 

 
 
__________ I have no conflict of interests to report.

 
 
 
 
 
 
I have the following conflict of interests, or potential conflicts of interests, to report:

 
 
 
1.______________________________________________________________________________________________

 
______________________________________________________________________________________________

 
 
 
2.______________________________________________________________________________________________

 
_______________________________________________________________________________________________

 
 
 
3.._____________________________________________________________________________________________

 
_____________________________________________________________________________________________

 
 
 
 

I have reviewed the Kenilworth Residents’ Association Conflict of Interest Policy Statement.   I understand that it is my obligation to disclose a conflict of interest, or appearance of a conflict, to the KRA Board President when a conflict, or appearance of a conflict arises.  In any matter which I have a conflict-- or appearance of a conflict of interest--, I will abstain from any vote on the matter.  I understand that the KRA is charitable and in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. 

 

 

 

Signature____________________________________________________________________________    Date___________     

 

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KENILWORTH RESIDENTS’  ASSOCIATION

Board Member Conflict of Interests Disclosure Form

(for use only if there’s possible concern relating to conflict of interest) 

 
 
Name______________________________________________________________                                        Date___________________

 
A conflict of interest, or an appearance of a conflict, can arise whenever a transaction, or an action, of Kenilworth Residents’ Association conflicts with the personal interests, financial or otherwise, of that of a Board Member, or an immediate family member of a Board Member, or that of the Board Member’s employer (collectively “your personal interests”).

 
Please describe below any relationships, transactions, or positions you hold (volunteer or otherwise), or circumstances that you believe could create a conflict of interest, now or in the future, between Kenilworth Residents’ Association and your personal interests—financial or otherwise: 

 
 
__________ I have no conflict of interests to report.

 
 
 
 
 
 
I have the following conflict of interests, or potential conflicts of interests, to report:

 
 
 
1.______________________________________________________________________________________________

 
______________________________________________________________________________________________

 
 
 
2.______________________________________________________________________________________________

 
_______________________________________________________________________________________________

 
 
 
3.._____________________________________________________________________________________________

 
_____________________________________________________________________________________________

 
 
 
 

I have reviewed the Kenilworth Residents’ Association Conflict of Interest Policy Statement.   I understand that it is my obligation to disclose a conflict of interest, or appearance of a conflict, to the KRA Board President when a conflict, or appearance of a conflict arises.  In any matter which I have a conflict-- or appearance of a conflict of interest--, I will abstain from any vote on the matter.  I understand that the KRA is charitable and in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. 

 

 

 

Signature____________________________________________________________________________    Date___________