Administrative Procedures

Core Values and Ethical Conduct

1. Purpose

This procedure describes KCTCS’ commitment to compliance with applicable federal, state, and local government laws and regulations and to high ethical standards and principles.

2. Scope

This procedure applies to KCTCS employees, students, vendors, affiliates, associates, and volunteers.

3. Procedure

1. Principles of Ethical Conduct
   1. KCTCS employees shall promptly disclose waste, fraud, abuse, and corruption.
      
      
   2. KCTCS employees must follow all applicable provisions set forth in the statutes of the Commonwealth of Kentucky, and applicable federal or local laws, rules and regulations.
      
      
   3. KCTCS employees shall not hold financial interests that are in conflict with the conscientious performance of their official duties and responsibilities.
      
      
   4. KCTCS employees shall not use their position for private gain.
      
      
   5. KCTCS employees shall put forth honest effort in the performance of their duties and give first consideration to the objectives and policies of KCTCS.
      
      
   6. KCTCS employees shall make no unauthorized commitments or promises of any kind purporting to bind KCTCS. KCTCS employees are prohibited from negotiating or entering into contracts or other agreements which claim, imply or appear to involve KCTCS, unless such actions are part of their official duties and within the scope of their employment with KCTCS. The KCTCS President will specifically designate in writing those employees with signatory authority to contractually commit KCTCS if not already established in policy and procedure.
      
      
   7. KCTCS employees shall act impartially and not give preferential treatment to any private or public organization or individual. All KCTCS expenditures shall be made without prejudice, seeking to obtain the best value for each dollar of expenditure.
      
      
   8. KCTCS employees shall protect and conserve public property and shall not use it for purposes other than authorized activities. No property belonging to or under contract to KCTCS may be used for unauthorized activities.
      
      
2. Auditing Services
   To effectively discharge their fiduciary and administrative responsibilities, KCTCS' administration and the Board of Regents are assisted by internal and external (independent) auditing services. These services provide independent, objective assurances and consulting services with respect to evaluating risk management, control, and governance processes. KCTCS considers it a violation of policy to knowingly mislead or give false information to or intentionally omit material facts from internal or external (independent) auditor(s).
   
   
3. Prohibited Financial Interests
   1. No officer or employee of KCTCS shall decide or have input into the decision to conduct any business with themself, or with any corporation, company association, or firm in which their spouse has any interest greater than five percent (5%) of the total value.
      
      
   2. No KCTCS officer or employee shall knowingly for themself or by their partners or through any corporation which the officer or employee controls or in which they own or controls more than ten percent (10%) of the stock, or by any other person for their use or benefit or on their account, undertake, execute, hold, or enjoy, in whole or in part, any contract, agreement, sale or purchase of the value of twenty-five dollars ($25) or more, made, entered into, awarded or granted, unless said contract, agreement, sale or purchase was made or let after public notice and competitive  bidding.
      
      
   3. No KCTCS officer or employee, including persons who serve without salary or other payment for their services, shall knowingly receive or agree to receive, directly or indirectly, compensation for any services rendered or to be rendered, either by themself or another, in any case, proceeding, application or other matter which is before KCTCS for a decision.
      
      
   4. No member of KCTCS’ Board of Regents shall have an interest in any contract with KCTCS unless such contract shall have been subjected to competitive bidding, unless such Regent shall have been the lowest bidder and unless such Regent shall have first notified in writing the remaining members of the board, and the newspaper having the largest circulation in the county in which KCTCS operates, of their intention to bid on such contract.
      
      
   5. No KCTCS employee shall have an interest in any contract or purchase for the building or repairing of any structure or furnishing of any supplies to KCTCS.
      
      
4. Conflict of Interest or Appearance of Conflict of Interest
   1. Members of the KCTCS community must exhibit personal integrity, honesty, and responsibility in all actions. Employees and officers shall not create a conflict of interest by using their position or influence to obtain financial gain or benefits for themselves or their family members or business associates. Any action that creates the appearance of conflict of interest should be avoided. Purchases and contracts shall not be made with an employee of KCTCS for any item of supply, equipment, or service, nor may an employee have any interest, directly or indirectly, in any purchase made by KCTCS (KRS 164.390). An indirect interest may be defined as a real or perceived use of a KCTCS position or office with respect to a purchase or contract, leading to financial or other benefits to the individual or a member of his or her family, including situations where a business owned or controlled by a family member does business with KCTCS.
      
      
   2. Key Personnel Annual Disclosure
      1. At the beginning of each fiscal year, the Office of General Counsel (OGC) will provide a conflict-of-interest form to the key personnel defined in Administrative Policy 5.5. The form may be communicated via KCTCS email, or by other electronic means.
         
         
      2. Completed forms must be returned to the OGC by the deadline named in the communication.
         
         
      3. Individuals hired into key personnel positions shall complete the conflict-of-interest form within 30 days of hire.
         
         
      4. The OGC shall work with Human Resources to add the forms to the electronic personnel records management system and maintain them in accordance with records retention rules.
         
         
5. Acceptance of Gifts or Benefits
   KCTCS employees may not accept any type of benefit, monetary or otherwise, if there is an explicit assumption that influence has been exchanged for the favor. When no favor is asked for or gained, gifts of nominal value or moderate acts of hospitality, such as meals, in relation to one's position with KCTCS may be accepted in accordance with the following limitations:
   
   1. Gifts or acts of hospitality valued up to $50 annually from any one source do not need to be reported.
      
      
   2. Employees shall report gifts or acts of hospitality valued between $50 and $200 to their supervisor and the supervisor should report those to the College President, or if at the System Office, to the Chief Financial Officer, prior to acceptance.
      
      
   3. Employees shall report acts of professionally related hospitality valued above $200 in advance, with sufficient justification, up through their chain of command prior to acceptance, with the final approver being the Chief Financial Officer.
      
      
   4. Individuals may not accept gifts above $200. These gifts or benefits may be acknowledged and accepted on behalf of KCTCS by the Chief Financial Officer in consultation with Advancement.

4. Reporting Violations

KCTCS employees, applicants for employment, students, vendors, contractors or the general public may make protected disclosure of suspected violations of KCTCS policies and procedures. The reporter is not considered an investigator or finder of fact nor are they to determine appropriate corrective or remedial action if it is warranted.

1. Protected Disclosure
   1. KCTCS encourages anyone with knowledge or good faith suspicion of violations of law or policy to report their allegations promptly so that immediate action can be taken to correct the issues and prevent recurrence.
      
      
   2. KCTCS prohibits retaliation against any individual reporting violations or participating in an investigation.
      
      
   3. KCTCS will not take any adverse employment action against an employee bringing issues forward that are reported under KRS Chapter 61.
      
      
2. Reporting a Violation
   1. When possible, employees are encouraged to report alleged violations to their supervisor or other administrator in their department or unit.
      
      
   2. Employees in supervisory roles shall appropriately report any allegations of suspected improper activities, whether received as a protected disclosure, reported by their subordinates in the ordinary course of performing their duties, or discovered while performing their own duties.
      
      
   3. Students may report allegations to any employee with authority.
      
      
   4. Vendors, visitors, and any external parties are encouraged to make reports to the college or System Office administration.
      
      
   5. Any party may report violations through a third-party ethics hotline, EthicsPoint. Reports can be filed via the EthicsPoint website, or by telephone at 1-866-594-3115. Reports can be filed using either method 24/7, 365 days per year.
      
      
3. Responding to Reports
   1. All reports to the ethics hotline are distributed to the Office of General Counsel for review and action.
      
      
   2. The Office of General Counsel should be consulted regarding any reports received by other methods.