University of Maryland Policy on Consulting

Participation in Consulting can provide an important means for professional development and allows individuals to maintain currency and experience in aspects of their professional fields outside the University of Maryland (“the University”). These activities can also provide a mechanism for the transfer of knowledge from the University to the public arena and contribute to the overall public good. However, the nature of the Consulting process has the potential to create Conflicts of Commitment (COCs) by diverting an employee’s efforts from their primary activities and responsibilities to the University, and/or create Conflicts of Interest (COIs) related to those Institutional Responsibilities. As indicated in the University of Maryland Policy on Conflict of Interest and Conflict of Commitment (II-3.10[A]) (“the COI/COC Policy”), University Employees have a primary obligation to their Institutional Responsibilities. University Employees are also State of Maryland employees and as such are obligated to comply with Maryland Public Ethics Law¹, which limits the Outside Professional Activities they may engage in for personal benefit.

The University of Maryland Policy on Consulting (“this Policy”) seeks to establish a balance between Consulting activities and a University Employee’s Institutional Responsibilities, thereby safeguarding the interests of all parties. This Policy is designed to ensure compliance with federal and state laws and regulations and University System of Maryland (USM) and University policies and associated requirements, as well as to protect University Employees and the University from potential violations of the same.

Though comprehensive, this Policy cannot address every specific instance of Consulting. The University will implement this Policy with the understanding that Consulting must comply with internal and external requirements and all other applicable USM and University policies.

1. “Banking” means accumulating multiple Consulting Days over time to use at once for a larger consecutive period of time.
2. “Conflict(s) of Commitment (COC)” means situations where a University Employee’s Outside Professional Activities, external Relationships, or Significant Financial Interests interfere or compete with the University’s educational, research, or service missions or impede the University Employee’s ability to perform or fulfill the full range of their Institutional Responsibilities, as stipulated under Maryland Public Ethics Law. This applies regardless of whether the activity holds value to the University or contributes to the employee's professional development.
3. “Conflict of Interest (COI)” means situations in which University Employees or their Family Member(s) are in a position to gain, or appear to gain, financial advantages or personal benefits stemming from their roles within the University. Such benefits can occur due to Outside Professional Activities, external Relationships, or Significant Financial Interests, or as a result of their research, administrative, or educational actions or decisions made while working at the University.
4. “COI Committee” means the advisory committee appointed by the President of the University in accordance with the University’s COI/COC Policy and the Disclosure and Conflict Management Guidelines and based on the authority granted by the Maryland State Ethics Commission (SEC) regarding conflicts associated with research or development.
5. “Consulting” means any additional activity beyond a University Employee’s Institutional Responsibilities that is professional in nature and based on their discipline or area of expertise. The activity may be paid or unpaid, and such activities primarily benefit the University Employee and not the University.
6. “Current and Pending (Other) Support” means information submitted to Funding Agencies in proposals for Sponsored Projects on all the resources made available or expected to be made available to an individual in support of their research and development efforts. This includes but is not limited to resources from both foreign and domestic sources; those given through an award and those given directly to the individual; monetary resources, in-kind resources, and support with no monetary value; and travel support.
7. “Day” means a regular “duty day” for University Employees, which is equivalent to a maximum of eight (8) hours on a given work day and is typically understood to be during regular business hours between 8:00 a.m. and 5:00 p.m. University Employees cannot interpret the definition of a Day to be any period longer than 8 hours, regardless of the number of hours it may actually take them to complete their Institutional Responsibilities on a given Day.
8. “Disclosure(s)” means information that is required to be provided on all Outside Professional Activities, external Relationships, and/or Significant Financial Interests.
9. “Disposition” means the final result of the review of a Disclosure. The review may result in a decision that no conflict exists, that the activity must be stopped due to an unmanageable conflict, or that a Management Plan is necessary to mitigate any possible COIs in accordance with Maryland Public Ethics Law and relevant USM and University policies.
10. “External Entity(ies)” means an entity that is external to the University with which University Employees may choose to engage. These may include but are not limited to entities such as domestic governments (U.S. federal, state, or local), foreign entities (governments, institutions, companies), domestic or international institutions or societies (academic, professional, commercial), philanthropic organizations, or companies (sole proprietorships, for-profit companies whether publicly traded or not, non-profits, startups, or any other corporate entity regardless of whether they are registered to do business).
11. “Family Member(s)” means a University Employee’s spouse or domestic partner, parent, child, sibling, or other close relative as defined in the USM Policy on Employment of Members of the Same Family (Nepotism) (VII-2.10).
12. “Fiduciary Role(s)” means a role that requires an individual to make financial decisions on behalf of another individual(s) and/or entity. Titles that include terms such as executive, officer, director, or manager and positions with titles such as CEO, Director, Scientific Officer, or Vice President are examples of designations that may indicate a role with fiduciary responsibilities.
13. “Funding Agency(ies)” means any domestic or foreign entity that provides monetary support for a Sponsored Project to a University Employee or to the University on behalf of a University Employee. Funding Agencies may include but are not limited to entities such as the U.S. government and its agencies; U.S. state and local entities; foreign entities including governments and institutions; non-profit organizations; associations; or companies.
14. “Gift” means any gratuity, favor, discount, entertainment, hospitality, loan, forbearance, software, license, special access, equipment, equipment time, samples, research data, or other item having monetary value. A Gift also includes services as well as gifts of training, transportation, local or foreign travel, lodging, meals, and research hours, whether provided in-kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has occurred. A Gift by definition is given without expectation of anything in return.
15. “Graduate Student” means a registered student who is enrolled in a graduate degree program at the University. For the purposes of this Policy, references to Graduate Students include Graduate Research Assistants (GRAs) and Graduate Fellows.
16. “Institutional Responsibilities” means a University Employee’s primary duties and responsibilities at the University, as defined in their contract, job duties, offer letter, or other comparable documentation.
17. “Management Plan” means a written plan provided by the University that describes how a conflict or potential conflict will be managed.
18. “Moonlighting” means activities for financial profit that occur outside of a University Employee’s Institutional Responsibilities and are not directly related to their discipline or area of expertise.
19. “Next-Level Administrator (NLA)” means the administrator in the role immediately above a Unit Head. The NLA is typically the Dean of a College or School, or the Vice President of a Division or their designee. For non-departmentalized Colleges, the NLA is the Senior Vice President and Provost or their designee.
20. “Outside Professional Activities” means any paid or unpaid activity with an External Entity that is beyond the scope of a University Employee's Institutional Responsibilities but is still related to their discipline, area of expertise, or the practice of their profession. Outside Professional Activities include both Professional Service and Consulting.
21. “Professional Service” means a form of Outside Professional Activities that provides a service to governmental agencies and other entities such as peer review panels and advisory bodies to other universities and professional organizations; academic or professional journals; presentations to either professional or public audiences in such forums as professional societies and organizations, libraries, and other universities; and peer review activities undertaken for either for-profit or nonprofit publishers, including grant reviews. Professional Service provides a benefit to the University, academia, the discipline, and/or the public interest, and may or may not be remunerated by a small honorarium.
22. “Relationship(s)” means any interest, activity, service, employment, Gift, or other benefit or association with an individual or entity not part of the State government that would be prohibited by Maryland Public Ethics Law if not reported on a Disclosure and approved according to this Policy, the COI/COC Policy, the Disclosure and Conflict Management Guidelines, and any other relevant USM and/or University policy.
23. “Significant Financial Interest” means anything of monetary value, including, but not limited to, salary or other payments for services (e.g., Consulting fees or honoraria); equity interest (e.g., stocks, stock options or other ownership interests); Intellectual Property rights (e.g., patents, copyrights, and royalties from such rights); and/or positions outside of the University that involve a Fiduciary Role for an External Entity, whether compensated or not.
24. “Sponsored Project(s)” means monetary or non-monetary support provided by a domestic or foreign entity to the University to support specific research, instruction, or other activities of University Employees.
25. “Supervisor(s)” means a University Employee with supervisory authority over other employees. This term is typically used for those with direct authority over one or more employees. The term can be used interchangeably with the term Unit Head throughout this Policy and the Disclosure and Conflict Management Guidelines.
26. “Unit” means a department, center, institute, division, or College or School.
27. “Unit Head” means the administrator(s) responsible for a Unit and the individual(s) to whom a University Employee reports. A Unit Head may be a Director, Department Chair, Dean, Vice President, or a similar University Official in a non-academic Unit and also includes Supervisors in all references in this Policy.
28. “University Employee(s)” means all faculty and staff employed by the University, regardless of title, FTE, full- or part-time status, and also includes University Officials.
29. “University Official(s)” means any individual(s) at the University who, because of their respective positions with the University, can affect or can reasonably appear to affect University processes for the design, conduct, reporting, review, or oversight of research and who have the authority to commit significant University resources. They include but are not limited to the President of the University, Assistant President, Vice Presidents, Associate and Assistant Vice Presidents, the Senior Vice President and Provost, Associate Provosts, Deans, Associate Deans, Department Chairs, Center and Institute Directors, and the Athletic Director, including those holding these positions in an interim capacity, as well as others who have discretionary authority to allocate resources related to the University enterprise as identified by any of the officials named previously. University Officials are also included in all references to University Employees.

1. This Policy applies to exempt staff and faculty members with appointments of 50% full-time equivalent (FTE) or greater whose appointments are funded at least in part by the State of Maryland. These University Employees are eligible to engage in Consulting and their activities must align with this Policy.
   1. Full-time University Employees with 100% of their effort allocated to a federally-funded Sponsored Project(s) may only engage in Consulting if it is in accordance with the terms and conditions of their Sponsored Project(s) and any applicable University policies.
2. This Policy does not apply to the following:
   1. Graduate Students are not subject to this Policy, and they may engage in Consulting. However, Graduate Students who work on Sponsored Projects are subject to the COI/COC Policy and must submit a Disclosure on their Consulting activities in accordance with the provisions in the COI/COC Policy and/or Funding Agency requirements for Sponsored Projects.
   2. Non-exempt staff, regardless of FTE, and University Employees with FTEs of less than 50% are not subject to this Policy.
3. All University Employees, regardless of their FTE or eligibility to engage in Consulting, remain subject to the COI/COC Policy and the Disclosure and Conflict Management Guidelines, which apply to Outside Professional Activities occurring both during and outside regular University business hours, external Relationships, and all Significant Financial Interests.
4. This Policy, the COI/COC Policy, and the Disclosure and Conflict Management Guidelines are applied concurrently, and all University Employees must align their activities with both policies and the guidelines.
5. Applicability of this Policy is subject to change per state and federal laws and regulations, and Funding Agency guidance for Sponsored Projects.

1. Consulting allows University Employees to engage in activities outside of the University and beyond their Institutional Responsibilities to share their professional expertise with External Entities.
   1. Consulting activities are related to a University Employee’s discipline, profession, or area of expertise.
   2. Consulting activities may include both paid and unpaid activities.
   3. Consulting primarily benefits the individual, rather than the University, the discipline, the profession, or the public.
2. Consulting is permitted provided the University Employee has fulfilled their Institutional Responsibilities and has received prior approval through the Disclosure process to engage in the activity.
3. University Employees may engage in Consulting up to one (1) Day per calendar week across all Consulting agreements, subject to the limitations in Section V below.
4. Banking of Consulting Days is allowed for both full-time and part-time University Employees with prior approval of the University Employee’s Unit Head.
   1. The total number of Consulting Days that are available for Banking for a given fiscal year may not exceed the allowable number of Days based on the University Employee’s appointment, as indicated in Section V below.
   2. The use of Consulting Days cannot interfere with the University Employee’s Institutional Responsibilities and must not constitute a Conflict of Commitment.
   3. The NLA is responsible for ensuring the equitable application of Banking by Unit Heads.
5. The following activities are not considered Consulting, for the purposes of this Policy:
   1. Scholarly publications produced as a part of a University Employee’s Institutional Responsibilities are not considered to be Consulting.
      1. Publications include but are not limited to scholarly communications, books, films, television productions, artworks, or other published works or products.
      2. Publications may or may not result in compensation for a University Employee.
      3. If a University Employee is listed as an author on any publication resulting from the performance of Consulting activities, they may list their University affiliation but must include a broad statement in the acknowledgment section that the work performed by the University Employee on the publication was in their capacity as a consultant and was not a part of their Institutional Responsibilities with the University, nor is the publication endorsed by the University.
   2. Professional Service is distinct from Consulting, in that such service is provided for the benefit of the public, the academy, the discipline, or the profession. Professional Service is not undertaken for personal financial gain, though an honorarium or equivalent may be provided.
      1. While it is not considered Consulting, Professional Service must still be disclosed and must receive a Disposition through the University’s Disclosure process.
      2. Activities that qualify as Professional Service may vary by discipline, and include service provided to such entities as noted in Section II above. 
         Additional information on the types of services that qualify and how to distinguish between Professional Service and Consulting is detailed in the Disclosure and Conflict Management Guidelines.
      3. Federal regulations and award requirements related to federally-funded Sponsored Projects consider income provided for service to some non-governmental organizations, including foundations and professional societies, to be Consulting. Disclosure of these activities is required, as specified in federal regulations and Funding Agency guidance.
   3. Moonlighting by University Employees is not Consulting and is excluded from this Policy. However, Moonlighting activities performed for foreign entities, such as foreign universities, foreign governments, or foreign companies, must always be disclosed to the University for federal compliance purposes.

1. University Employees, as State Employees, must comply with Maryland Public Ethics Law and Maryland State Ethics Commission (SEC) guidance, and their Consulting activities must align with the relevant law and guidance as well as with the COI/COC Policy and the Disclosure and Conflict Management Guidelines.
2. Terms and conditions for participating in Consulting activities are outlined in the University’s Memorandum of Understanding for Consulting Activity with an External Entity (“Consulting MOU”).
   1. The Consulting MOU seeks to remind University Employees of their compliance obligations to the University, USM, and the Maryland SEC.
   2. All University Employees engaging in Consulting must sign the Consulting MOU, abide by its specifications, and share the Consulting MOU with the External Entity with which they are engaged.
3. University Employees must receive a COI Disposition prior to engaging in any Consulting activities, as required by Maryland Public State Ethics Law, federal law/regulations, Funding Agency requirements, and USM and University policies.
4. University Employees cannot perform activities or hold titles that include a Fiduciary Role(s) in an External Entity that licenses University-owned Intellectual Property or does business with the University unless otherwise approved under a Management Plan.
5. University Employees are prohibited from engaging their students in their Consulting activities, unless it is allowed by an approved Management Plan.
6. The State of Maryland considers all full-time University Employees who are paid entirely or in part with funding from the State to be fully committed to their assigned duties at the University at all times and on all days, including nights and weekends. University Employees must ensure that any Consulting activities are carried out in alignment with the provisions below in G and H of this Section to remain in alignment with Maryland Public Ethics Law and related guidance.
7. Time Commitment for Faculty
   1. Full-time faculty may undertake Consulting up to one (1) Day per calendar week, subject to the limitations defined below.
      1. Faculty members on 12-month appointments may engage in Consulting for a maximum of 52 Days during a given fiscal year.
      2. Faculty members on 9-month appointments may engage in Consulting a maximum of 39 Days each fiscal year during their term of employment with the University.
         1. During the other three (3) months of the year, if the faculty member is not receiving any compensation from the University, there will be no limitation placed on the number of Days in which the faculty member may engage in Consulting.
         2. If the faculty member receives any compensation through the University during any portion of the other three (3) months, their Consulting activities will be subject to the one (1) Day per calendar week limitation during the period in which the faculty member is receiving compensation. Such compensation may include but is not limited to summer salary from Sponsored Projects or compensation for teaching at the University during the summer.
      3. Consulting activities performed during the evenings, weekends, or holidays count towards the total number of Consulting Days.
   2. Faculty members whose appointments with the University are between 50% to 99% FTE may engage in Consulting for the number of Days proportional to the percentage of their appointment spread across the term of their employment with the University during a given fiscal year.
      1. The total number of Consulting Days may not exceed 52 days.
      2. There will be no limitation placed on the number of Days in which the faculty member may engage in Consulting during any period when the University does not compensate them.
   3. Faculty members who would like to engage in Consulting while on sabbatical or Leave Without Pay (LWOP) must comply with the University policies on sabbatical and LWOP.
8. Time Commitment for Exempt Staff
   1. Full-time exempt staff may undertake Consulting up to one (1) Day per calendar week, subject to the limitations defined below.
      1. Exempt staff must continue to meet all of their Institutional Responsibilities, as determined by their job descriptions and reviewed through the University’s Performance Review and Development (PRD) process.
      2. Exempt staff members on 12-month appointments may engage in Consulting for a maximum of 52 Days during a given fiscal year.
      3. Exempt staff may only engage in Consulting during periods outside their regular University work hours or during periods of approved applicable leave.
   2. Part-time exempt staff members may engage in Consulting for the number of Days proportional to the percentage of their appointment at the University spread across the term of their employment for a given fiscal year.
      1. The total number of Consulting Days may not exceed 52 days.
      2. There will be no limitation placed on the number of Days in which they may engage in Consulting activities during any period when the University does not compensate the exempt staff member.

1. University Employees
   1. University Employees are responsible for adhering to the principles set forth in this Policy, the COI/COC Policy, the Disclosure and Conflict Management Guidelines, Funding Agency guidance, and applicable state and federal laws.
   2. Questions and/or ambiguities on what constitutes Consulting and the requirements of this Policy should be resolved through collaboration with the University Employee’s Unit Head, NLA, and/or applicable university administrators.
   3. University Employees must:
      1. Submit a Disclosure to the University on all Outside Professional Activities, including Professional Service and Consulting, before engaging in the activity;
      2. Disclose all paid or unpaid Consulting activities as part of their Current and Pending (Other) Support documentation on all proposals for federal funding at the time of proposal;
      3. Clearly indicate when their work, including publications and presentations, is associated with their Consulting activities, and clarify that the work was not performed in their capacity as a University Employee and is not endorsed by the University; and
      4. Sign and abide by the University’s Consulting MOU and provide a copy of it to each External Entity with which they Consult.
2. Unit Heads Responsibilities
   1. Unit Heads serve as the Unit-level reviewer for all Disclosures of Outside Professional Activities, including Professional Service and Consulting, in order to assess whether a potential COI or COC exists.
   2. Unit Heads are responsible for monitoring the Consulting activities undertaken by University Employees within their Unit.
   3. Unit Heads must remain knowledgeable about the types of activities that may lead to real, potential, or apparent COIs and/or COCs, and advise Unit employees on how they may avoid and/or mitigate COIs, COCs, or similar situations that may adversely affect the University.
   4. Unit Heads must ensure University Employee compliance with this Policy, the COI/COC Policy, the Disclosure and Conflict Management Guidelines, and Maryland Public Ethics Law, as applicable, including:
      1. Ensuring that University Employees in their Unit do not exceed the total number of Consulting Days allowed by this Policy in a given fiscal year.
      2. Making determinations on whether specific activities are part of a University Employee’s Institutional Responsibilities or whether they constitute a COC.
      3. Making determinations on whether Outside Professional Activities should be considered Consulting or Professional Service for their discipline, based on established Unit principles and University guidance.
         1. If a Unit Head’s determination seems inconsistent with this Policy and University guidance, the Disclosure Office will advise the Unit Head on whether the Outside Professional Activities should be considered Consulting or Professional Service.
   5. Unit Heads should remind University Employees to provide a copy of the Consulting MOU to each External Entity with which they Consult.
   6. Unit Heads should work with relevant University offices to provide guidance on Consulting, COIs, and COCs to their Unit.
   7. Unit Heads should escalate any instances of non-compliance to the Next-Level Administrator and Disclosure Office for appropriate action based on the provisions of this Policy and applicable University policies and procedures.
   8. Unit Heads should cooperate with all applicable University entities, such as the COI Committee, to eliminate, reduce, and/or Manage any conflicts that may be identified through the review of Consulting activities.
3. Next Level Administrator (NLA)
   1. The NLA serves as the next-level reviewer for all Disclosures of Outside Professional Activities, including Professional Service and Consulting.
   2. The NLA is responsible for making an independent recommendation on whether a potential COI or COC exists.
   3. The NLA is responsible for broad oversight of Consulting within their Units, including of how Banking is being applied.
4. University Responsibilities
   1. The University has an obligation to oversee Consulting activities undertaken by University Employees and ensure compliance with applicable laws, regulations, and USM and/or University policies.
   2. The University will establish and maintain the Disclosure and Conflict Management Guidelines to provide information on the process of submitting and reviewing Disclosures.
   3. The University must work to identify and eliminate COCs by University Employees.
   4. The University is responsible for establishing COI Management Plans, and/or taking corrective actions to eliminate, reduce, or manage COIs when they are identified.

1. Failure to comply with this Policy and other Disclosure requirements associated with federal funding may be a violation of federal law.
2. The University has the right and obligation to protect itself from losses due to excess Consulting and to seek restitution for salary and benefits covering time spent on Consulting activities beyond the limits provided for by this Policy.
3. Individuals found to be in violation of this Policy, USM/University policies and procedures, and/or Funding Agency requirements based on any form of dishonesty or by acting in bad faith, may face disciplinary action, including but not limited to formal letters of reprimand, freezing federally-funded research accounts, suspension and/or termination of employment, or, in accordance with relevant USM and University policies, as applicable.

1. Several USM and University policies are closely related but are separate and distinct from this Policy. These policies can be found at https://policies.umd.edu/all.
2. This Policy is designed to ensure compliance with the following USM and University policies and associated requirements.
   1. The University of Maryland Policy on Conflict of Interest and Conflict of Commitment (“the COI/COC Policy”) (II-3.10[A]) and the Disclosure and Conflict Management Guidelines, which are required by Maryland Public Ethics Law and apply to all University Employees and Graduate Research Assistants (GRAs) working on Sponsored Projects.
   2. The University System of Maryland (USM) Policy on Professional Commitment of Faculty (II-3.10), which states that “[e]ach institution of the University System of Maryland shall develop and publish procedures to implement this policy” and that “[s]uch procedures shall include provisions for regular reporting by faculty members to the institution on all outside professional consulting or teaching and substantial external professional service, whether paid or unpaid.”
3. This Policy operates in concert with other USM and University policies related to Consulting, including the following.
   1. The USM Policy on Intellectual Property (IV-3.20), which prohibits individuals from entering into an agreement to pursue Consulting or Professional Service that conflicts with the policy without the advance written waiver or consent of the Chancellor or their designee.
   2. The University of Maryland Policy on Malign Foreign Talent Recruitment Program Policy (IV-7.00[A]), which requires University Employees and GRAs to submit a Disclosure if they are a party to any Foreign Talent Recruitment Programs and prohibits University Employees, GRAs, and/or covered individuals on a Sponsored Project from participating in Malign Foreign Talent Recruitment Programs.
   3. The USM Policy on Professional Commitment of Faculty (II-3.10), which, among other things, defines requirements for engaging in Consulting, overload teaching, or Professional Service within the institution and for teaching at other institutions within the USM.
4. This Policy is also designed to ensure compliance with federal and state laws and regulations, including the following.
   1. Federal requirements, including but not limited to National Security Presidential Memorandum-33² (NSPM-33), and the regulatory and contractual requirements of Funding Agencies, which require higher education institutions accepting federal funds to have a formal policy in place to address Consulting and other Outside Professional Activities to ensure that these activities are disclosed appropriately and do not negatively impact the interests of the federal government and/or the University.
   2. Federal laws and regulations and Funding Agency requirements that require all senior/key personnel on Sponsored Projects to report all sources of Current and Pending (Other) Support in proposal submissions, including all current awards, pending proposals, paid/unpaid Consulting activities, Gifts (monetary or in-kind), and any additional information required by the specific Funding Agency.
   3. Maryland Public Ethics Law, which imposes requirements related to COI and associated provisions on research and development, which apply to all University Employees.

¹The Maryland Public Ethics Law, Maryland Code Annotated, General Provisions Article, Title 5. To find this provision online, go to http://www.lexisnexis.com/hottopics/mdcode/.

²Guidance for Implementing National Security Presidential Memorandum 33 (NSPM-33) on National Security Strategy for United States Government-Supported Research and Development. To find this report online, go to: https://trumpwhitehouse.archives.gov/presidential-actions/presidential-memorandum-united-states-government-supported-research-development-national-security-policy/.