Introduction

Earlier this year the Office of the Auditor General (OAG) prepared guidance for public entities on managing conflicts of interest. The Ministry of Education has summarised the main points in this guidance for use by all state and state-integrated schools.
The information contained herein has been developed as guidance for all school employees, including principals. In addition, principals should note that, as members of the board of trustees, they also need to take into account the legislative requirements relating to conflicts of interest contained under s103A of the Education Act 1989. More information about conflicts of interest for school trustees can be found by reading Education Circular: 2006/07 Conflicts of Interest for School Trustees on www.minedu.govt.nz/goto/circulars

A copy of the OAG's guidance, which includes advice for developing policies and procedures, can be found at www.oag.govt.nz/2007/conflicts-public-entities

Summary

Most school employees, including principals, teachers and non-teaching staff, will have a number of professional and personal interests and roles. These could include their role as a parent, their membership of a club, or their ownership of a business. Schools must manage these situations to ensure that employees cannot use their influence within the school to make decisions that are not in the school's best interest.

Conflicts of interest sometimes cannot be avoided, and can arise without anyone being at fault. They need not cause problems when they are promptly disclosed and well managed.

There are several aspects to managing conflicts of interest effectively, all of which are covered in detail in the OAG's guidance:

• Schools need to understand what a "conflict of interest" is, and be aware of the different ways in which one can arise.
• Schools are encouraged to establish policies and procedures to help them and their employees to identify and deal with conflicts of interest.
• School employees should identify and disclose a conflict of interest as soon as it arises.
• In each case, the school (or, sometimes, the school board) needs to consider what action (if any) is necessary to best avoid or mitigate any effects of an identified conflict of interest.