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EXHIBIT 2 <br />through any OMB -designated repositories of government -wide eligibility qualification or <br />financial integrity information, such as Federal Awardee Performance and Integrity Information <br />System (FAPIIS), and the "Do Not Pay" website. HUD may consider other public sources such as <br />newspapers, Inspector General or Government Accountability Office reports or findings, or other <br />complaints that have been proven to have merit. Applicants may review and comment on any <br />information in FAPIIS through SAM. HUD reserves the right to: <br />Deny funding, or with a renewal or continuing award, consider suspension or termination <br />of an award immediately for cause, <br />Require the removal of any key individual from association with management or <br />implementation of the award, and <br />Make provisions or revisions regarding the method of payment or financial reporting <br />requirements. <br />f. Mandatory Disclosure Requirement. Recipients or applicants must disclose in writing to the <br />awarding program office at HUD, all violations of Federal criminal law involving fraud, bribery, <br />or gratuity violations potentially affecting the Federal award within ten days after learning of the <br />violation. Recipients that have received a Federal award including the term and condition <br />outlined in Appendix XII to Part 200—Award Term and Condition for Recipient Integrity and <br />Performance Matters are required to report certain civil, criminal, or administrative proceedings <br />to SAM. Failure to make required disclosures can result in any of the remedies described in <br />§200.338 Remedies for noncompliance, including suspension or debarment. (See also 2 CFR part <br />180, 31 U.S.C. 3321, and 41 U.S.C. 2313.) <br />g. Conducting Business in Accordance with Ethical Standards/Code of Conduct – <br />Before entering into an agreement with HUD, applicants selected for award must ensure an up-to- <br />date copy of the organization's code of conduct, dated and signed by the Executive Director, <br />Chair, or equivalent official, of the governing body of the organization has been submitted to <br />HUD. <br />Codes of conduct must prohibit real and apparent conflicts of interest that may arise among <br />officers, employees, or agents; prohibit the solicitation and acceptance of gifts or gratuities over <br />minimal value by officers, employees, or agents for their personal benefit; and outline <br />administrative and disciplinary actions available to remedy violations of such standards. (See 2 <br />CFR 200.112 and 2 CFR 200.318.) <br />If the recipient has a parent, affiliate, or subsidiary organization, whether non-profit or for-profit, <br />the recipient must also maintain written standards of conduct covering organizational conflicts of <br />interest. "Organizational conflicts of interest" means that because of relationships with a parent, <br />affiliate, or subsidiary organization, the recipient is unable, or appears to be unable, to be <br />impartial in administering the award or serving as a pass -through -entity. <br />h. Conflict of Interest of Consultants or Technical Experts Assisting HUD – Consultants and <br />technical experts who assist HUD in rating and ranking applications for funding under published <br />18 of 45 <br />3-30 <br />