Overview :
Overview Ima Bean-Counter is a professional accountant
She works for the Town of Pinecrest as a Financial Analyst in their Capital Projects Department.
In her spare time, Ima provides informal financial advice to family and friends.
Key Players :
Key Players
Current Situation :
Current Situation During lunch and after work, I provided financial advice to Denise
She was going through a divorce at the time
I reviewed Charlie’s personal tax returns with her.
No allegations of conflict of interest were made. I am providing financial advice to Angelina during lunch and after work hours
She is going through a separation from her common-law husband Brad.
Rumors of a verbal complaint have been made to my boss that there is a conflict of interest with the advice that I’m providing Angelina. In The Past Currently
Ethical Dilemma :
Ethical Dilemma Rumors of a conflict of interest concerning my off-hours financial advice have recently surfaced.
Rationale:
I am a public servant
My paycheck comes from the Town of Pinecrest
My employer does not have an internal conflict of interest policy for its staff
Ethical Issues :
Ethical Issues What is a Conflict of Interest?
It is any influence, interest, or relationship that could cause a professional accountant’s judgment to deviate from applying the profession’s standards to client matters.
What are some threats that could cause lack of judgment?
In this case a familiarity threat may exist.
Notes for the Professional Accountant
A professional accountant must protect his/her client but not if the public interest will suffer.
There are rules aimed at neutrality and protecting the public interest.
Advice For Ima :
Advice For Ima There are no hard and fast rules to resolving this type of conflict of interest
Here are the recommendations for this situation:
Criticize yourself and maintain a level of integrity, objectivity and professional judgment
Be vigilant about the interests that you serve and remember that the public interest comes first.
Ensure that the revenue from your personal clients (if any) does not influence your decision to service the public’s interest.
Advice for the town Manager :
Advice for the town Manager To help the Town of Pinecrest be prepared for conflicts of interest situations, I recommend developing the following:
Professional standards for municipal employees offering personal professional advice
A Conflict of Interest policy for the staff
A governance structure to oversee the firm’s services
An internal procedures to ensure objective choices are being made