AACS World Wide Web PagesIntroduction
The purpose of the following Policy Statement is to enable Audubon Area Community Services, Inc. employees to understand and comply with Agency policies relating to employee conduct. It should provide a useful guide to employees in their day-to-day business activities.
Many of the legal requirements that the policies cover are complex, so this guide is not intended to make employees "expert" in each respective area, nor is it expected to provide all the answers one needs to determine what is proper and what is not in every instance. For the most part, this guide is designed primarily to alert employees to potential problems they may face and enable them to recognize when they should obtain guidance from management before taking action that may have an adverse legal impact upon them and the Agency.
Employees should always bear in mind that many potential difficulties usually can be avoided or minimized if management advice is sought at the outset of certain dealings, rather than after a matter of questionable ethical or legal judgment has occurred.
Audubon Area Community Services, Inc. was organized as a private, non-profit agency. Since its inception, it has functioned as a federal and state grantor agency, providing the sponsorship for a variety of federal and federal-state programs. Thus, the agency can rightly subscribe to the appropriate federal standards of ethics and employee conduct. The agency is also included in the Kentucky Revised Statutes as a "Special District" of the Commonwealth of Kentucky, and subject as a Kentucky corporation and by virtue if its Special District status to the laws and regulatory requirements of the Commonwealth of Kentucky. The Agency hereby subscribes to all pertinent statutes, ethical requirements and conflict of interest provisions of the Commonwealth.
On April 12, 1989, President Bush has issued an Executive Order entitled "Principles of Ethical Conduct for Government Officers and Employees." The order was published in the April 14, 1989, Federal Register. The Agency feels that President Bush's Executive Order provides an excellent summary of what is proper and what is not for all government employees and "funded" employees such as those employed by this Agency. Therefore, that Executive Order is the basic premise underlying the AACS Policy Statement on Ethics and Employee Conduct:
EXECUTIVE ORDER 12674
(Part I, Section 101, adapted for Audubon Area Community Services, Inc. usage)
Principles of Ethical Conduct. To ensure that every citizen can have complete confidence in the integrity of agencies funded by the Federal Government, each funded-agency employee shall respect and adhere to the fundamental principles of ethical service as promulgated under this order:
(a) Public service is a public trust, requiring employees to place loyalty to the Constitution, the laws, and ethical interest above private gain.
(b) Employees shall not hold financial interests that conflict with the conscientious performance of duty.
(c) Employees shall not engage in financial transactions using non public Agency or Government information or allow the improper use of such information to further any private interest.
(d) An employee shall not, except pursuant to such reasonable exceptions as are provided by this Policy Statement or the approval of the Agency's executive director, solicit or accept any gift or item of monetary value from any person or entity seeking official action from, doing business with, or conducting activities regulated by the employee's funded activity, or whose interests may be substantially affected by the performance or nonperformance of the employee's duties.
(e) Employees shall put forth honest effort in the performance of their duties.
(f) Employees shall make no unauthorized commitments or promises of any kind purporting to bind the Agency or its grantors.
(g) Employees shall not use their "public" office for private gain.
(h) Employees shall act impartially and not give preferential treatment to any private organization or individual.
(I) Employees shall protect and conserve Agency and grantor-held property and shall not use it for other than authorized activities.
(j) Employees shall not engage in outside employment or activities, including seeking or negotiating for employment, that conflict with their official Agency duties and responsibilities.
(k) Employees shall disclose waste, fraud, abuse and corruption to the Agency's executive director, who shall investigate and handle such acts as may be substantiated according to law and agency policy.
(l) Employees shall satisfy in good faith their obligation as citizens, including all just financial obligations, especially those--such as Federal, state, or local taxes -- that are imposed by law.
(m) Employees shall adhere to all laws and regulations that provide equal opportunity for all Americans regardless of race, color religion, sex, national origin, age or disability.
(n) Employees shall endeavor to avoid any actions creating the appearance that they are violating the law or the ethical standards promulgated pursuant to this Policy Statement.
Additional Prevailing Local Standards of Conduct. Various local governments have also seen fit to prescribe that their employees should also be aware of the moral responsibilities which must be accepted as employees and citizens of those jurisdictions. As citizens of those political jurisdictions, it would appear appropriate that the Audubon Area Community Services, Inc. and its employees adopt those codes of conduct as well. Therefore, each Agency employee should strive to:
(a) Demonstrate loyalty to the highest moral principles, and put loyalty to the Agency above loyalty to persons or Agency departments.
(b) Give to their performance their most earnest effort and thought; seek to find and use more efficient, effective and economical ways of getting tasks and services accomplished.
(c) Avoid hazardous or disorderly conduct during the performance of Agency duties, regardless whether it involves agency facilities and equipment.
(d) Avoid excessive absence and habitual tardiness.
(e) Refrain from failure to carry out assigned work satisfactorily or showing insubordination.
(f) And NEVER:
(1) Carry firearms on duty;
(2) Carry, use or dispense alcoholic beverages on Agency premises or Agency time -- or report to work under the influence of liquor or drugs;
(3) Gamble on Agency premises; and
(4) Destroy or misuse Agency/Government property; remove Agency material or equipment without permission; or steal or abuse another employee's property.
According to the prevailing local standards, violations of the above common sense standards for on-the-job behavior typically result in severe disciplinary action up to and including termination.
GENERAL POLICY STATEMENT
Agency Policy
The purpose of this general policy statement is to provide a broad ethical, framework for the conduct of all aspects of the activities of the Audubon Area Community Services, Inc. (hereafter called the "Agency") Good citizenship, respect for law and a respected name are valuable assets to the Agency and all its employees. A good reputation is good business. It helps to make our Agency a better place to work, attracts and retains loyal employees and enhances our position and performance in the local and human services community.
Because the Agency operates in a more complex and interrelated world than ever before, we must keep in mind the diverse expectations of our different constituencies -- AACS employees and Board members, our clientele, public officials -- including state and federal legislators, bankers, suppliers, other public interest groups and government agencies, and the community at large. Integrity in the conduct of all AACS business does and will benefit the Agency in every aspect of its relationships with these groups.
Therefore, it is the policy of the Agency that its employees shall be held to the highest ethical and moral standards and code of personal and professional conduct.
The AACS, Inc. ethics policy begins, but does not end, with strict observance of local, state and federal laws everywhere. The Agency is an entity created by law, but it also consists of all its employees. The Agency's reputation stems from each and every employee's conduct. Each AACS employee must adhere to and comply with the moral and ethical standards of our society in conducting Agency business. Individual corner-cutting to gain a possible temporary advantage does not ultimately serve our long-term Agency goals or expectations.
Set forth in this Statement of Policy are principles of business conduct to which each Agency employee is expected to adhere in order to assure that the Agency conducts itself in a manner consistent with its obligations to its Governing Board, its grantors designating government entities, and our local communities.
Loyalty to the Agency
The Agency expects all its employees to place the interests of the Agency ahead of their own personal financial interests. None of its employees should be subject, or even seem to be subject, to influences, interests or relationships which conflict with the best interests of the Agency. This means avoiding any activity which might compromise or have the appearance of compromising the Agency or any AACS, Inc. employee individually.
Compliance With Applicable Laws
The Agency expects employees to recognize their duty to our society above and beyond their obligation to the Agency and any personal financial interests. While we must strive vigorously to advance the cause and condition of the Agency and its clientele, we must at the same time do so in strict compliance with all laws and regulations applicable to out activities. No Agency employee should at any time take any action on behalf of the Agency which he/she knows, or should know, violates any applicable law or regulation. Agency employees should understand that the Agency's ethics and personal conduct policy is not limited to good faith compliance only with those laws and regulations which specifically relate to the Agency's respective funded programs, but extends to all applicable laws and regulations.
Observance of Moral and Ethical Standards of Society
The Agency expects its employees to forthrightly reveal the facts in any situation where their personal financial interests could conflict with those of the Agency.
The Agency expects all employees to live by the overriding moral and ethical standards of our society.
The long-term social and economic well-being of the Agency ultimately depends on respect and confidence in the manner in which all employees conduct the Agency's business. The Agency's success and integrity in the community are the best assurance that the Agency will receive the esteem vital to our continued growth, progress and service.
Conflict of Interest
Each employee is expected to avoid any activity, interest or association which interferes, might interfere or might have the appearance of interfering with the independent exercise of that employee's judgment in the Agency's best interests.
A conflict of interest exists when an employee's duty to give his/her undivided business loyalty to the Agency can be prejudiced by actual or potential personal benefit from another source. A conflict of interest is also present whenever an employee takes advantage of his/her position with the Agency for personal financial gain.
Disclosures of personal interests or other circumstances which might constitute a conflict of interest are to be reported promptly by employees to the executive director of the Agency who will hold the matter in confidence to the fullest extent possible under the circumstances, and in the event a conflict is found to be present, will arrange for resolution in a manner best suited to the interest of the Agency and the individual.
Common Sources of Conflicts
Some situations in which conflicts of interest may arise:
1. When an employee, a member of his household or immediate family has a commercial interest or other vested interest, and has a potential direct or indirect financial involvement with, or obligation to, any actual or potential supplier or client of the Agency, or a competing service provider which presents an imminent challenge to the Agency for the sponsorship of any existing or sought funded project.
2. When an employee conducts business on behalf of the Agency with a supplier or customer of which a relative by blood or marriage is a principal, officer or representative;
3. When an employee, a member of his household or any commercial interest in which he is involved, accepts gifts of more than token or nominal value from an actual or potential, supplier; or
4. When an employee misuses information obtained in the courseof his/her employment with the Agency for personal gain or in any manner contrary to the best interests of the Agency.
This is not an exclusive listing.
Definitions
For these purposes, suppliers, include those providing not only goods but also services -- such as consultants, service bureaus and companies, financial institutions, lessors and realtors. Clients include not only those who regularly receive Agency services, but also those who can exercise a major influence on Agency operations, such as members of affiliated community and advisory councils.
Specific Policy Applications
Without purporting to cover every conflict of interest that might occur, the following ground rules are specifically applicable to the particular circumstances described below:
1. An employee who owns, directly or beneficially, a significant financial interest in an actual or potential supplier of goods or services may not, without full disclosure and specific written clearance by the executive director of the Agency, be assigned to a position in which he can influence decisions with respect to business with such supplies or services.
Clearly included in this provision would be employees who conduct negotiations for suppliers' products or services; recommend, evaluate, test or approve such things; or participate in selection of, or arrangements with such suppliers.
2. Gifts shall never be accepted from clients. And accepting gifts of other than token or nominal value or unusual entertainment from an actual or potential competitors for the operation of Agency programs or suppliers is prohibited as well. Since most, if not all, presents or services would appear to be given to Agency employees because of their position, great care should be exercised in accepting them. The Agency expects its employees to refuse any gift if it would appear that he/she might be expected to reciprocate in turn with a favor or preferential treatment for the person offering the gift.
Items classified as advertising novelties which have wide circulation both within and without the Agency (calendars, paperweights, etc.) do not violate the policy against receiving gifts. Permitting a supplier's representative to pick up the check at a meal is not offensive so long as business was discussed at arm's length and there are absolutely no implications that there was any intention of subverting employee loyalty to the slightest degree.
3. No information obtained as a result of any employee's employment may be used for personal profit or as the basis for a "tip" to others unless such information has been made generally available to the public by the Agency. This is true whether or not direct injury to the Agency appears to be involved. The requirement embraces any situation in which undisclosed information may be used as the basis for inequitable bargaining with an outsider.
Use of Corporate Assets
The Agency reaffirms its longstanding policy of strict observance of all laws and of prohibiting actions which one knows or should know violate any applicable law or regulations. No employee will involve the Agency in illegal political contributions, slush funds, kick-backs or bribery. These principles are not subject to waivers or exceptions.
The Agency and its employees shall operate in compliance with all laws and regulations to which they are subject. Any questions as to the legality of any contemplated use of any Agency asset, including funds, property or equipment, shall be referred to the executive director of the Agency.
No payments or gifts to any political party or candidate, or their employees or representatives, shall be made or reimbursed from Agency assets. Neither shall any Agency property or equipment be made available to such political interests for the purpose of partisan political use. Any and all requests for the use of Agency facilities or equipment by political parties or candidates shall be referred to the executive director of the Agency.
No payment or gifts shall be made or offered by or on behalf of Agency employees or agents to any person employed by or acting on behalf of any political party or candidate for the purpose of influencing official action or inaction affecting business with the Agency or any other concern.
Independent Compliance and Financial Audit
All Agency assets (including all cash accounts) and liabilities and revenues and expenses shall be properly recorded in the books of the appropriate Agency unit and included in its regular financial statements. The records supporting them shall be made fully available for audit by the Agency's financial administrator and outside independent auditors.
All Agency transactions are to be properly reflected on the financial books and records in such a manner as to permit the preparation of financial statements in conformity with generally accepted accounting principles or other criteria applicable to such statement; the Agency's financial books and records are to reflect transactions in conformity with accepted methods of recording economic events; and misrepresentation, concealment, falsification, circumvention, and other deliberate acts resulting in inaccurate financial books and records will not be tolerated and shall subject the offender to disciplinary action. However, transaction of a confidential (but proper) nature may be described in a general way provided full details are known by the respective project director and made available to the Agency's executive director, financial administrator and outside independent auditor.
The above projects pertaining to both payments and record keeping generally reflect federal and/or state laws which are enforceable by criminal sanctions against both the Agency and the individual involved in the prohibited transaction.
All Agency project managers shall be responsible for the enforcement of and compliance with the policy including necessary distribution to ensure employees' knowledge and compliance.
Confidential Information and Creative Work as Assets
During the course of their employment, employees may have access to certain proprietary information belonging to the Agency. In consideration of their employment and in consideration of the compensation and other benefits that one receives as an employee, they are required to keep confidential and not disclose or use either during or subsequent to your employment any proprietary or confidential information of the Agency, except as required in your employment or as authorized in writing.
All creative work and ideas developed in the performance of ones duties, whether made by them alone or jointly with others, in the course of their employment relating to the business of the Agency or which results from tasks specifically assigned to you are to be assigned to the Agency either during or subsequent to your employment.
Equal Employment Opportunity
The Agency requires all employees to adhere carefully to its Equal Employment Policy. The Agency's policy and objective is to treat all applicants for employment and all employees in every aspect and condition of their employment without regard to race, color, religion, national origin, age, sex, certified disabled condition, which does not prohibit an employee from performing the functions of the employee's job.
This policy applies to, but is not limited to, recruitment, hiring, promotion, assignment and transfer, compensation, benefits, training and education, participation in Agency sponsored programs, social and recreation activities and use of Agency facilities, and all other employment and personnel actions in all job categories and on all levels. All employees are expected to actively support the Agency's policy and to assure that all actions and decisions taken by you and your subordinates are consistent with and in furtherance of this policy. Violation of this policy can result in legal action and other remedial processes against the Agency and in criticism and embarrassment to the Agency.
Political Activity
It is unlawful for this Agency to contribute money, goods or services to the campaign of any candidate for federal office and state or local offices.
Of course, the Agency recognizes the right of and encourages all its employees of all political persuasions to exercise their individual rights as citizens to vote and participate in national, state and local political processes. The Agency will not attempt to influence such individual activity. However, while individual participation in the political process and in campaign contributions is proper and is encouraged by the Agency, an employee's contribution must not be made, or even appear to be made, with the Agency's funds, or be reimbursed from the Agency's funds. In addition, an employee's selection of a candidate or of a party should not be, or seem to be, coerced by the Agency. Failure to abide by the Agency's policy regarding political activity will subject an offender to severe disciplinary actions.
General Inquiry
Any employee who has any questions regarding this policy, including the definition of any of its terms, should discuss the matter with his/her project director or, if appropriate, with the executive director of this Agency.
The Agency stands ready at all times to consult with you concerning questions you may have about the foregoing information or requests for interpretation of the ethics and business conduct policy. Please do not hesitate to contact the executive director or your project director for advice or counsel.
AACS BOARD OF DIRECTORS
August, 1989
AUDUBON AREA COMMUNITY SERVICES, INC.
PRINCIPLES OF ETHICAL CONDUCT
Executive Order 12674 entitled, "Principles of Ethical Conduct for Government Officers and Employees," was issued April 12, 1989. That Executive Order, is the basic premise underlying the AACS policy on ethics and employee conduct:
EXECUTIVE ORDER 12674
(Part I, Section 101, adapted for Audubon Area Community Services, Inc. usage)
Principles of Ethical Conduct. To insure that every citizen can have complete confidence in the integrity of agencies funded by the Federal Government, each funded-agency employee shall respect and adhere to the fundamental principles of ethical service as promulgated under this order.
(a) Public service is a public trust, requiring employees to place loyalty to the Constitution, the laws, and ethical interest above private gain.
(b) Employees shall not hold financial interest that conflict with the conscientious performance of duty.
c) Employees shall not engage in financial transactions using nonpublic Agency or Government information or allow the improper use of such information to further any private interest.
(d) An employee shall not, except pursuant to such reasonable exceptions as are provided by this Policy Statement or the approval of the Agency's executive director, solicit or accept any gift or item of monetary value from any person or entity seeking official action from, doing business with, or conduction activities regulated by the employee's funded activity, or whose interests may be substantially affected by the performance or nonperformance of the employee's duties.
(e) Employees shall put forth honest effort in the performance of their duties.
(f) Employees shall make no unauthorized commitments or promises of any kind purporting to bind the Agency or its grantors.
(g) Employees shall not use their "public" office for private gain.
(h) Employees shall act impartially and not give preferential treatment to any private organization or individual.
(I) Employees shall protect and conserve Agency and grantor-held property and shall not use it for other than authorized activities.
(j) Employees shall not engage in outside employment or activities, including seeking or negotiating employment, that conflict with their official Agency duties and responsibilities.
(k) Employees shall disclose waste, fraud, abuse, and corruption to the Agency's executive director, who shall investigate and handle such acts as may be substantiated according to law and Agency policy.
(l) Employees shall satisfy in good faith their obligations as citizens, including all just financial obligations, especially those - such as Federal, state, or local taxes - that are imposed by law.
(m) Employees shall adhere to all laws and regulations that provide equal opportunity for all Americans regardless of race, color, religion, sex, national origin, age, or disability.
(n) Employees shall endeavor to avoid any actions creating the appearance that they are violating the law or the ethical standards promulgated pursuant to this Policy Statement.
Additional Prevailing Local Standards of Conduct. Each Agency employee should strive to:
(a) Demonstrate loyalty to the highest moral principles, and put loyalty to the Agency above loyalty to persons or Agency departments.
(b) Give to their performance their most earnest effort and thought; seek to find and use more efficient, effective and economical ways of getting tasks and services accomplished.
c) Avoid hazardous or disorderly conduct during the performance of Agency duties, regardless whether it involves agency facilities and equipment.
(d) Avoid excessive absence or habitual tardiness.
(e) Refrain from failure to carry out assigned work satisfactorily or showing insubordination.
(f) And NEVER:
(1) Carry firearms on duty;
(2) Carry, use or dispense alcoholic beverages or drugs on Agency premises or Agency time - or report to work under the influence of liquor or drugs;
(3) Gamble on Agency premises; and
(4) Destroy or misuse Agency/Government property; remove Agency material or equipment without permission; or steal or abuse another employee's property.
Signature: ________________________________________ Date: ____________________
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