3.2.3: The board has a policy addressing conflict of interest for its members.  Narrative:  The University of Texas (UT) System Rules and Regulations of the Board of Regents clearly addresses conflict of interest for its members. The UT System Rules and Regulations of the Board of Regents, Series 30104, clearly states that state officers/employees: (a) cannot have direct/indirect transactions, obligations or activities that conflict with their duties; (b) must furnish written disclosures when requested and (c) adhere to laws, rules and regulations regarding standards of conflict. [1] The UT System also has a publication entitled Ethics and The University of Texas System: A Brief Practical Guide which addresses the following ethical standards for UT employees: (a) conflicts of interest, (b) adherence to law, (c) gifts, (d) confidential information, (e) self-dealing, (f) personal investments, (g) outside employment and (h) sexual harassment and misconduct. [2] Furthermore, Texas Government Code, Section 572.051 [3] and the Texas Ethics Commission’s, A Guide to Ethics Laws for State Officers and Employees, [4] clearly note standards of conduct and conflicts of interest for state officers/employees. Section 572.051 clearly states that falsification of public financial statements may result in criminal penalties.