Guidance

DAO conflict of interest policy

Updated 17 November 2022

Scope

The Defence Awarding Organisation (DAO) provides an accreditation service by which individuals can gain formal recognition of their achievements and gain a qualification. Through a rigorous quality assurance process, employers will have confidence that their employees have reached an agreed level of skills and knowledge.

As a regulated awarding organisation, the DAO is required by the General Conditions of Recognition, issued by the Office of Qualifications and Examinations Regulation (Ofqual), to have a Conflict-of-Interest policy in place. This allows the DAO to identify, manage and mitigate conflict of interest. All staff and other individuals have a duty to be aware of the potential for a conflict of interest. This includes during the development, delivery and awarding of qualifications, the setting of assessments and quality assuring the assessment process to ensure that assessments are fair, valid, and carried out in line with the defined processes.

It should be noted that the benefit derived by the DAO managers, staff and agents should not be different to that received by any other person. A conflict would arise where this is not or is not seen to be the case. This policy applies to DAO managers, staff and any person acting as an ‘agent’ on behalf of the DAO through a third-party arrangement under Conditions C1 or C2. This covers all managers, staff and key suppliers/contractors working with the DAO who have a legal obligation, under the General Conditions of Recognition, to act in the best interest of DAO, and in accordance with its governing documents, and to avoid situations where there may be a potential conflict of interest. This policy covers:

• how the DAO will identify and manage conflicts of interest, or potential conflicts of interest, within the awarding organisation function and between other organisations within Defence

• the identification of conflicts of interest, and potential conflicts of interest, in the delivery of qualifications and how these will be managed

Purpose

The purpose of this policy is to protect the DAO integrity as an organisation and the integrity of the DAO qualifications. It also recognises that conflicts of interest may occur and to set out guidance that must be followed to ensure that a conflict of interest, or potential conflict of interest, does not have an adverse effect on the development of the qualification, the learning provision, the assessment process, or the assessment outcomes.

A conflicts of interest policy is required by all Centre’s to ensure good governance. In the case of the DAO as an awarding organisation, it also needs to be able to demonstrate that it can specifically control the potential conflicts of interest identified, from time to time, by the various Regulatory Authorities. Managers, staff and ‘agents’ have a legal obligation to act in the best interests of the DAO and in accordance with the DAO’s governance documents, and to avoid situations where there may be a potential conflict of interest. These potential conflicts include both conflicts of interest which relate to the DAO and any scenario in which it is reasonably foreseeable that any such conflict of interest will arise in the future.

Conflicts of interests may arise where an individual’s commercial, personal, or family interests and/or loyalties conflict with those of the DAO and its learners. Such conflicts may create problems; they can for example:

• inhibit free discussion

• result in decisions or actions that are not in the interests of the DAO and its learners; and

• risk the impression that the DAO has acted improperly

Definition

A conflict of interest is a situation in which an individual, or organisation, has opposing interests or loyalties. In the case of an individual, the conflict of interest could compromise or appear to compromise their decisions if it is not properly managed. For the purposes of this policy, a conflict of interest exists where:

• the DAO’s interests in any activity undertaken by it, on the DAO’s behalf, or by a member of the Defence community, has the potential to lead it to act contrary to its’ interests in the development, delivery, and award of qualifications in accordance with Ofqual’s General Conditions of Recognition

• a person who is connected to the development, delivery or award of qualifications has interests in any other activity which has the potential to lead that person to act contrary to his or her interests in that development, delivery, or award in accordance with Ofqual’s General Conditions of Recognition

• an informed and reasonable observer would conclude that either of the above situations existed

• where someone works for or carries out work on the DAO’s behalf, who has friend(s) or relative(s) taking the DAO assessments or examinations

Identifying conflicts of interest

Conflicts of interest can and will be identified by the DAO on an ongoing basis by all staff. Conflicts of interest will be monitored and reviewed. the DAO processes will identify:

• all conflicts of interest which relate to its work as an awarding organisation, and

• any scenario in which it is reasonably foreseeable that any such conflict of interest will arise in the future

The DAO staff monitor and report any conflicts of interest. They monitor any conflicts of interest or potential conflicts of interest, recording them in the Conflicts of Interest Register. The records are to include the following: nature of the conflict, the potential adverse effect, the mitigating actions, and the associated timescales to establish the mitigation. This detail will be presented by the Responsible Officer and, if required, will be fed up the chain of command depending on the severity/nature of the conflict and potential.

It is a condition of the DAO Centre Approval that an approved Centre has their own ‘conflicts of interest’ policy. The Centre Handbook provides guidance on the separation of roles. Approved Centres have contractual obligations to identify and monitor:

• all conflicts of interest which relate to their work in delivering qualifications, and

• any scenario in which it is reasonably foreseeable that any such conflict of interest will arise in the future

Where there is any doubt advice and guidance can be given by the DAO at any time. Email the DAO, at DEFAC-DAO@mod.gov.uk.

Managing conflicts of interest

The DAO, its contractors or approved Centres involved in the development, delivery, or award of a qualification, will take all reasonable steps to ensure that no conflict of interest which relates to it has an adverse effect. Where such a conflict of interest has had an adverse effect, the awarding organisation and/or the approved Centre must take all reasonable steps to mitigate the adverse effect as far as possible and correct it.

In most cases it is envisaged that simple measures will be enough to manage conflicts of interest. It may be that the activity can be managed differently so that conflicts of interest are avoided. In other cases, acknowledgement of the conflict of interest and a simple undertaking by an individual will be all that is required. Only in extreme circumstances, where the conflict of interest may be so fundamental and unmanageable, will an individual be prevented from undertaking specific activities.

Interests in assessment

The DAO Centres must take all reasonable steps to avoid any part of the assessment of a Learner being undertaken by any person who has a personal interest in the result of the assessment. Individuals should not be involved in the assessment or the quality assurance of assessment decisions at a Centre in which they have a personal interest, or, where this happens, the Centre must make arrangements for the relevant part of the assessment to be subject to scrutiny by another person. For example, if an individual has a conflict of interest relating to the assessment of a Learner (including by way of moderation) – specifically a personal interest in the result of the assessment – then they must not be involved in such assessment. Where this is not possible then the DAO, through the centre, will make arrangements for the relevant part of the assessment to be subject to scrutiny by another person.

Declaration of interests

Managers, staff, and agents/suppliers (for example, contracted External Quality Assurers (EQAs)) are to sign up to the conflicts of interest policy. This means we are asking people to:

• declare their relevant interests, as they know them at the time of signing the Conflicts of Interest register. The Conflict of Interests (CoI) Form is to be completed to achieve this. It lists the types of interest you should declare; and

• commit to report that a conflict of interest, actual or perceived, has arising whilst working with the DAO, or on its behalf, and that the DAO needs to be aware of the specific circumstances of this to effectively manage the conflict.

To be effective, the declaration of interests needs to be updated at least annually and when any major changes occur. If an individual is unsure what to declare, they should declare it first and then seek guidance.

Data protection

The information provided will be processed in accordance with data protection principles as set out in the Data Protection Act 2018. Data will be processed only to ensure that managers, staff, and agents act in the best interests of the DAO and its learners. The information provided will not be used for any other purpose.

What to do if you face a conflict of interest

If you are a manager, staff member or ‘agent’ of the DAO then the policy sets out clear actions you should take. If you are not a manager, staff member or ‘agent’ you should declare any conflict of interest at the earliest opportunity. You may do this by reporting this to your line-manager or your DAO key contact if you are a supplier or agent, who then reports the matter formally.

Dependent on the relevant circumstances you will need to withdraw from any subsequent activity, discussion or meeting that could be affected by the conflict of interest. You may participate in discussions from which you may indirectly benefit, for example where the benefits are universal to all users, or where your benefit is minimal, or where there is a ‘community of interests’ (for example, everyone benefits).

Decisions taken where a manager has an interest

In the event of the DAO having to decide upon a question in which a manager, including the DAO Responsible Officer (RO), has an interest, all decisions will be made by the Governance Body. As set out in the policy staff, agents may not have rights on matters affecting their own interests and should withdraw from the meeting for the agenda item that could be affected by the conflict of interest.

All decisions under which a conflict of interest has been declared will be recorded by DAO and reported in the minutes of the meeting. The meeting will record:

• the nature and extent of the conflict

• an outline of the discussion; and

• the actions taken to manage the conflict

Managing contracts

If you have a conflict of interest, you must not be involved in managing or monitoring a contract in which you have an interest. Monitoring arrangements for such contracts will include provisions for an independent challenge of bills and invoices, and termination of the contract if the relationship is unsatisfactory.

Agent/delivery partner

If you are an agent and/or a Delivery Partner undertaking the services or contract on behalf of the DAO you must ensure that you, your staff, your own agents, sub-contractors, and suppliers comply with the DAO’s conflict of interest policy and declare any conflicts of interest on the form.

Reporting conflicts of interest

All Declaration of interest forms and conflicts as they arise are to be reported to the DAO Compliance Lead/Development Manager:

• all new DAO members of staff will be required to complete the DoI form during their induction process

• external quality assurers will be issued with a DoI form on an annual basis when annual contracts are received. The completed forms should be returned to the DAO Compliance Manager

• staff, agents, contractors, and delivery partners are required to declare conflicts of interest on an annual basis. The DoI form must be completed and returned as quickly as possible to the DAO

• any forms received by the DAO will be forwarded to the DAO Compliance/ Development Manager for the assessment of risk. High risk conflicts will be further reviewed by the RO of the DAO as to the implications for organisational risk

• all conflicts are recorded.

Appeal process

Where a risk is considered so great that the decision is taken not to engage with the individual or organisation, an appeal may be made to the DAO RO.

Review of the policy

This policy will be reviewed annually and revised as necessary in response to customer feedback, changes in legislation and guidance from Ofqual.