What you must do
A recipient or subrecipient must disclose in writing any potential conflict of interest to the Federal agency or pass-through entity, in accordance with the awarding agency's established conflict of interest policies (which agencies are required to establish).
When it applies
A potential conflict of interest exists in connection with the Federal award — e.g., related-party vendors or subrecipients, or financial interests of officers, employees, or board members in entities receiving award funds.