Shauna Woody-Coussens

The term “conflict of interest” is not easily defined.  In its simplest form, a conflict of interest involves money.  Typically, a decision maker stands to gain financially from the outcome of the decision.  However, a conflict can likewise arise when there is a beneficial nonmonetary outcome for the decision maker, such as prestige or career advancement.  A conflict of interest occurs when an individual or organization has an interest that might compromise objectivity and reliability and can exist even if no improper acts result from it.  Even the appearance of impropriety can undermine confidence in the conflicted individual or organization and result in a damaged reputation or financial loss.  Not all conflicts are inherently unacceptable, but they should be identified and proactively monitored and managed.

BKD, LLP management review services can assist colleges and universities through an independent, third-party review of the conflict of interest landscape within the institution and its affiliated or controlled entities.  Reviews can solidify the integrity of colleges and universities and their leaders and demonstrate to donors that their money is being used appropriately. 

The structure, culture and mission of colleges and universities vary widely.  Therefore, the scope of services is tailored to each individual entity’s needs.  Common services include a review of the flow of monies between the college or university and affiliated entities, which may be separate legal entities.  Duality of leadership between the college or university and its affiliated entities also is reviewed for potential conflicts of interest.  Ideally, relationships between a university and its affiliated entities are formalized and transparent to ensure that transactions between entities only occur for appropriate business purposes. Transaction testing of all nonpublic funds expended at the president’s discretion or that of his or her direct reports also may be performed to identify potential conflicts of interest.

One significant area of review, for example, is an institution’s affiliation with its business or research incubators.  Business and research incubators are an important link to industry.  However, an institution’s ability to both provide management talent to and take an equity position in a client need to be appropriately monitored and managed to prevent abuse. 

For more information on this issue or related matters, please contact Shauna Woody-Coussens at or your BKD advisor.