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Office of Recovery Programs Conflict of Interest for Federal Financial Assistance 

Frequently Asked Questions

This document is a resource and contains answers to frequently asked questions (FAQs) 

regarding conflict of interest (COI) for recipients, that may also serve as pass-through entities, 

and subrecipients of Federal financial assistance awards issued by the U.S. Department of 

Treasury, Office of Recovery Programs (ORP). 

These FAQs provide information consistent with the Uniform Administrative Requirements, Cost 

Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). It also provides 

examples of common types of real and potential COIs. Recipients are advised to consult the 

terms and conditions associated with their specific awards for the COI policy requirements, 

which must apply to each activity funded under their award(s). Recipients should direct 

questions and documentation regarding their awards to respective ORP programs, as applicable.

1. What is a conflict of interest? 

For ORP programs and awards, a conflict of interest (COI) may occur when an individual 

or non-Federal entity (NFE) is unable, or appears to be unable, to be impartial in 

conducting their responsibilities to ORP and the public in compliance with the 

requirements associated with an ORP financial assistance award. This also includes 

situations that create, or may create, a real or apparent conflict.

1.1 If I have a COI policy and it does not conform to this guidance, do I need to 

do anything differently?

 

Treasury encourages recipients and subrecipients to align their COI policies and 

procedures with this FAQ, but recipients are not required to make updates as long 

as their policy was previously in compliance with the COI requirements as set 

forth in their award terms and conditions. 

1.2 What is a real conflict of interest?

In the context of ORP programs and awards, a real COI, also referred to as an 

actual COI, may occur when an employee, officer, or agent of an NFE has a 

financial or other interest in, or a tangible personal benefit from carrying out 

certain actions when conducting their responsibilities associated with 

administering Federal financial assistance.

1.2.1 What are examples of real conflicts of interest?

Example 1 

The Executive Director of an NFE owns stock and is on the Board of 

Directors of a company that has been awarded a contract using the NFE’s 

grant funds and the Executive Director contributed to the decision to 

award the contract. 
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Example 2 

Organizations submitted grant proposals to an NFE. The NFE assembled a 

panel of employees to review proposals. A parent of one of the NFE 

panelists is a board member for one of the organizations that submitted a 

proposal. 

Example 3 

An individual has been asked to serve on the technical evaluation panel to 

review proposals for a new computer search system for an NFE. However, 

the individual and their spouse own a majority of the stock for a company 

that submitted a proposal for the computer search system. 

Example 4 

The NFE is a small organization and the wife of the NFE Executive 

Director is an accountant and has been contracted to provide accounting 

services for implementation of the grant. 

Example 5 

A Vice President of an NFE has a son who works for a company that 

provides specific computer programs. The Vice President calls his son to 

get the name of the computer program and adds the specific name to the 

request for proposals. 

1.3 What is a perceived conflict of interest? 

In the context of ORP programs and awards, a perceived COI is when a 

reasonable person with knowledge of the relevant facts questions an individuals’ 

impartiality in carrying out certain actions when conducting their responsibilities 

associated with administering Federal financial assistance. A perceived COI is a 

situation that appears to be a real COI at face value.

1.3.1 What are examples of perceived conflicts of interest?

The following examples are provided to illustrate circumstances that could 

be perceived as conflicts of interest, but, in fact, may not be. When a 

recipient, pass-through entity, or subrecipient identifies similar 

circumstances, it is recommended that they take proactive steps to 

document how a situation is not a real COI. Documentation may include 

written statements that are maintained with award documents in 

accordance with the record retention requirements for grant files. 

Example 1 

An NFE provides financial bonuses to employees whose salaries are paid 

from a grant because there are leftover grant funds; however, the NFE’s 

policies and procedures do not discuss this use of funds. 
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Example 2 

A spouse of an NFE employee serves without compensation on the board 

of directors for a nonprofit and the nonprofit submitted a proposal to the 

NFE. 

Example 3 

An NFE makes a subaward or a contract using grant funds to an 

organization that employs the spouse or another relative who lives in the 

same household as an employee, officer, or agent of the NFE.

Example 4 

An employee of an NFE who has responsibilities for testing new long 

distance radio equipment just learned that his sister-in-law has accepted 

employment as a process engineer with the contractor’s corporation and 

was awarded a grant from the NFE.

Example 5 

A company has affiliates all over the country. The parent company 

assembled regional panel review teams comprised of affiliates from across 

the county. The parent company evaluated all review panels against their

written standards for COIs. Several panel review teams noticed proposals 

from organizations where they work part-time. 

2. Under what types of circumstances would ORP Federal financial assistance 

recipients notify ORP of conflicts of interest?

NFEs must disclose in writing any perceived COIs to ORP or the pass-through entity 

consistent with the terms and conditions of their award(s). 

2.1 I am a direct recipient of a Federal financial assistance award administered 

by Treasury ORP. Should I notify ORP of conflicts of interest related to the 

award? 

Yes. Recipients of Federal financial assistance awards provided by ORP with any 

potential COIs must provide written COI disclosures directly to ORP. Recipients 

should contact their respective ORP programs with specific questions.

2.2 I am a pass-through entity. Should I notify ORP of potential conflicts of 

interest for my subrecipients that relate to the ORP award? 

Yes. Pass-through entities that receive potential COI disclosures from 

subrecipients related to their ORP award must provide the subrecipient’s written

disclosure of such COI to ORP. 
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2.3 I am a subrecipient, should I notify the ORP of potential conflicts of interest

related to the ORP award? 

Yes. Subrecipients that received ORP funds as a subaward from a recipient must 

provide written COI disclosures to the direct recipient. 

3. What information should be included in a conflict of interest policy? 

NFEs should review the terms and conditions of their awards relative to COI policies as 

well as other authoritative guidance. COI policies should address how NFEs manage 

COIs in their administration of Federal awards and local funds.

4. What information is recommended to be included in conflict of interest written 

standards of conduct?

The written standards should also address organizational COIs. COI standards of conduct 

should specify that employees, officers, or agents of the NFE may not participate in the 

selection, award, or administration of a contract supported by a Federal award if they 

have a real or perceived COI. COI standards of conduct are also recommended to

describe disciplinary actions to be applied for violations of such standards by officers, 

employees, or agents of the NFE. 

5. What information should be included in a conflict of interest disclosure?

It is recommended that COI disclosures pertaining to awards under ORP financial 

assistance programs include the following content:

a) A description of the COI. 

b) Contact information for all parties and organizations involved in the COI, 

including names. 

 

c) A description of the plan and/or actions taken to eliminate, mitigate, or otherwise 

resolve the COI. 

d) Signature from the Authorized Organization Representative (AOR) of the NFE, or 

equivalent. 

e) The completed COI disclosure should be sent through email to the normal point 

of contact for the impacted program. The contact e-mail addresses for ORP 

federal financial assistance programs are listed below: 

• Capital Funds Project: CapitalProjectsFund@treasury.gov 

• Coronavirus Relief Fund: CARES@oig.treas.gov 

• Emergency Rental Assistance: EmergencyRentalAssistance@treasury.gov 

• Homeowner Assistance Fund: HAF@treasury.gov
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• Resources and Ecosystems Sustainability, Tourists Opportunities, and 

Recovered Economies: Restoreact@treasury.gov 

• Local and Assistance Tribal Consistency Fund: LATCF@treasury.gov 

• State and Local Fiscal Recovery Funds: SLFRF@treasury.gov 

• State Small Business Credit Initiative Technical Assistance Program: 

SSBCI_Information@treasury.gov 

6. How much time does a non-Federal entity have between when they identify a 

conflict of interest and when they notify ORP or Treasury OIG? 

Recipients of ORP Federal financial assistance are advised to provide ORP written 

disclosure of the COI within a reasonable amount of time of discovery of the COI, and in 

accordance with the terms and conditions of their award agreement. Written disclosure 

should generally be provided no later than 15 days after discovery. It is recommended 

that the recipient not proceed with the particular area where there is a real or perceived 

conflict until ORP or OIG provides a response to the recipient in reference to the COI. 

7. Under what circumstances should recipients of ORP Federal financial assistance 

notify the Treasury Office of Inspector General (OIG) of conflicts of interest?

If an NFE has a question regarding whether a finding results in fraud, waste, or abuse 

they are advised to review the following OIG website: https://oig.treasury.gov/reportfraud-waste-and-abuse

7.1 What is fraud?

Per 2 CFR Part 200.435, fraud includes:

• Acts of fraud or corruption or attempts to defraud the Federal Government or 

to corrupt its agents, 

• Acts that constitute a cause for debarment or suspension (as specified in 

agency regulations), and 

• Acts which violate the False Claims Act (31 U.S.C. 3729-3732) or the Antikickback Act (41 U.S.C. 1320a-7b(b)). 

7.2 What is waste? 

Waste is the misuse, mismanagement, or abuse of resources to the detriment (or 

potential detriment) of the U.S. government. Waste also includes incurring 

unnecessary costs resulting from inefficient or ineffective practices, systems, or 

controls.

7.3 What is abuse? 

Abuse is excessive or improper use of Federal financial assistance in a manner 

contrary to the requirements in statutes, regulations, policies, and the terms and 

conditions of awards. Abuse can be financial or non-financial in nature. 
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8. What do I do if I am not sure whether a conflict of interest involves fraud, waste, or 

abuse?

If an NFE has a question regarding whether a finding results in fraud, waste, or abuse 

they are advised to review the following OIG website: https://oig.treasury.gov/reportfraud-waste-and-abuse

9. Do I need to keep documentation on conflicts of interest?

Yes. Recipients, subrecipients, and pass-through entities should maintain the written COI

disclosure documentation with their award documents in accordance with the record 

retention and access requirements in 2 CFR Part 200.334 through 200.338 and the terms 

and conditions in their award agreement.

9.1 Where do I maintain documentation related to conflicts of interest?

Disclosures must be maintained in accordance with the record retention and 

access requirements in 2 CFR Part 200.336 and the terms and conditions of an 

NFE’s award agreement.

9.2 How long do I need to maintain documentation for conflicts of interest?

Documentation for COIs must be maintained in accordance with the record 

retention and access requirements in 2 CFR 200.334 and the terms and conditions 

in an NFE’s award agreement.

9.3 Who may access conflict of interest documentation?

Per 2 CFR Part 200.337(a), the Federal awarding agency, Inspectors General, the 

Comptroller General of the United States, and the pass-through entity, or any of 

their authorized representatives, must have the right of access to any documents, 

papers, or other records of the NFE which are pertinent to the Federal award, in 

order to make audits, examinations, excerpts, and transcripts. The right also 

includes timely and reasonable access to the NFE's personnel for the purpose of 

interview and discussion related to such documents. 

10. What could happen if I do not disclose conflicts of interest to ORP?

ORP may impose any of the remedies available to federal awarding agencies described 

in 2 CFR Part 200.339 or the NFE’s award agreement, as applicable, which may include 

suspension or debarment per 2 CFR Part 180 and Treasury’s implementing regulations at 

31 CFR Part 19.