What constitutes a conflict of interest?

A comment on another blog made me aware that two important executives are on the advisory board of the University of Miami's Institute for Cuban-American Studies' Cuba Transition Project. The two Herald execs are:

Mr. Humberto Castelló
Executive Editor, el Nuevo Herald

Mr. Jesus Díaz
General Manager
Miami Herald Publishing Co.

According to the CTP web site "The project started in January 2002 and is funded by a grant from the U.S. Agency for International Development."

Of course, that does not mean these gentlemen are paid, but nonetheless there is a connection between the organization they advise and the federal government. Perhaps there is a conflict of interest perhaps not. But it's not a stretch to say that two of the most important men who determine what's news in Miami have ties to government that could influence their professional decisions.