Section 117 Foreign Gift and Contract Reporting

UW-Madison

Section 117 Foreign Gift and Contract Reporting

Presented By

April Cook, Business Services

Jennifer Rodis, Research & Sponsored Programs

2SECTION 117 FOREIGN GIFT AND CONTRACT REPORTING

Background

What is Section 117 Reporting?

U.S. Department of Education (ED) requires reporting on foreign source gifts and contracts under Section 117 of the Higher Education Act

Concerns from Congress about the financial relationship between U.S. higher education institutions and foreign sources


Reporting Requirements

What is required to be reported to ED?

Alone or combined valued at $250,000 or more

Gifts from Foreign Sources

Contracts with Foreign

Sources



What is required to be reported to ED? (Cont)

Foreign source means a foreign government, including an agency of a foreign

government; a legal entity, governmental or otherwise, created solely

under the laws of a foreign state or states; an individual who is not a citizen or a national of the United

States or a trust territory or protectorate thereof; and an agent, including a subsidiary or affiliate of a foreign legal

entity, acting on behalf of a foreign source




Gift means any gift of money or property

Contract means any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either party

Research contracts and grants Fee-for-service agreements Clinical trials Leases Barters

Intellectual property license fees

Data or materials sold Services sold Tuition for students




An entity other than UW-Madison that receives a gift from or enters into a contract with a foreign source that is for the benefit of UW-Madison

Intermediary Organization

Foreign Entity UW Foundation UW-Madison



Required “Reasonable Due Diligence”

How to determine whether an individual or entity meets the definition of foreign source

Review language in agreementsReview contact information provided in agreements,

in correspondence, on websites, etcUtilize questionnaires

https://businessservices.wisc.edu/accepting-payments/foreign-gift-and-contract-reporting/




Contracts: Obligations to UW-Madison vs Amounts Paid to UW-Madison

Contractually obligated amounts to UW-Madison for sponsored programs reported when obligated

All other contract types reported when amounts are received from the foreign source

See Later Examples



When is information due to ED?

UW-Madison must report to U.S. Department of Education in July and January each year

If reporting threshold is met between January thru June, UWMSN must report to ED by July 31

If reporting threshold is met between January thru December, UWMSN must report to ED by January 31 of the following calendar year


Campus Responsibilities

Report amounts received from foreign sources to the Division of Business Services (DoBS)

WHAT:Report amounts received from foreign sources recorded on funds other than 133, 144, 233, and 161/162 DoBS is collecting receipts on 133 & 144 from RSP; 233; 161/162 from

Office of Trust Funds; tuition from Bursar’s Office; gifts from UWF; amounts received at other intermediary organizations

Report multiple receipts from the same foreign source separately

Report gifts in kind received from foreign sources not previously submitted to DoBS



Report amounts received from foreign sources to DoBS (Cont)

WHO:Best practice - Departments report foreign receipt information to a representative in their Dean, Director, or Divisional Business Office who will review and report the information to DoBS




HOW:Excel templates for gifts and for contracts (non-gifts)


Submit via email to [email protected]


mailto:[email protected]




WHEN:Report to DoBS twice per calendar year. Information will be solicited by DoBS via email. January – June information due July 20 July – December information due Jan 20

Any transactions from January – June not previously reported are to be included in the July – December report




EXAMPLE 1

UW-Madison signs a research agreement with Asian Company B in September 2021. The agreement begins on October 1, 2021 and ends September 30, 2025. The amount obligated for the first budget period is $50,000, and the maximum grant amount over four years will be $200,000.

For the period July - December 2021, RSP reports $50,000 from Company B to DoBS, with a start date of 10/1/2021 and an end date of 9/30/2025.




EXAMPLE 2

A. UW-Madison department A provides imaging services to Company X, which is headquartered in Canada. The department performs the work over the course of the spring semester, summer, and early fall. After the department completes the work, they invoice Company X. They receive a payment of $50,000 on November 17, 2021. For the period July - December 2021, the department (through their division) reports $50,000 from Company X to DoBS. The date received is 11/17/2021.

B. UW-Madison department B also provides services to Company X. Department B invoices Company X and receives a payment of $25,000 on December 13, 2021. For the period July - December 2021, the department (through their division) reports $25,000 from Company X to DoBS. The date received is 12/13/2021.




EXAMPLE 3

UW-Madison is engaged to provide services to For-Profit Company Z in February 2021 through an agreement that runs March 1, 2021 through February 28, 2022. Company Z is located in Taiwan. The department processes specimens from Company Z between June - September 2021. It invoices Company Z for work performed and receives a payment of $18,500 on October 20, 2021.

For the period July – December 2021, the division reports $18,500 from For-Profit Company Z to DoBS. The date received is 10/20/2021.




EXAMPLE 4

UW-Madison agrees to sell materials to For-Profit Company O. Company O is incorporated in Denmark. The engaged department ships materials to Company O between January - April 2021. It invoices Company O for the materials and receives a payment of $150,000 on May 29, 2021.

For the period January - June 2021, the division reports $150,000 from For-Profit Company O to DoBS. The date received is 5/29/2021.


Resources

Foreign Gift and Contract Reporting webpage:https://businessservices.wisc.edu/accepting-payments/foreign-gift-and-

contract-reporting/



Resources


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Excel Template Examples for Contract Amounts


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Resources

Foreign Gift and Contract Reporting webpage:https://businessservices.wisc.edu/accepting-payments/foreign-gift-and-

contract-reporting/

Email:[email protected]

Contacts:April Cook Jennifer Rodis

Division of Business Services Research & Sponsored Programs

[email protected] [email protected]





Thank you for your participation

Section 117 Foreign Gift and Contract Reporting

Documents

Transcript of Section 117 Foreign Gift and Contract Reporting