Ethics training reviews conflicts of interest, gifts and federal rules for Iredell-Statesville board

Dean Chatley delivered ethics training for the Iredell‑Statesville Schools Board of Education, reviewing state criminal statutes on public contracts, local board policy 2120 and federal grant rules under the Uniform Guidance (2 C.F.R. Part 200).

Chatley summarized several legal prohibitions: a board member may not derive a direct financial benefit from a contract the board makes or administers; covered officials may not solicit or accept gifts intended to influence contracting decisions; and certain criminal statutes can carry misdemeanor penalties. He stressed that some nonprofit relationships can be cured by disclosure and recusal, but other conflicts — such as personally benefiting from a public contract — are not curable by recusal.

“It's not illegal to offer [a gift], but it's illegal to give it,” Chatley said, describing vendor offers such as game tickets or meals when those vendors have current or prospective contracts with the district. He also noted that local Policy 2120 requires board members to earn continuing education credits and two hours of ethics instruction every two years.

Chatley reviewed federal rules that apply to grant‑funded purchases, saying the Uniform Guidance extends conflict rules to apparent conflicts and to a wider set of family relationships; those federal rules can be cured by disclosure and nonparticipation in decisions that use federal funds. He urged board members to ask district counsel or the superintendent’s office for guidance on specific situations rather than presume a practice is acceptable.

The training included Q&A and real‑world hypotheticals (for example, school purchases from locally owned businesses, volunteer work donated by board members’ companies, and donations underwriting conference events). Chatley recommended disclosure and recusal where appropriate and cautioned that violations can lead to criminal charges, contract voiding and audit findings.