Section 117 of the Higher Education Act requires higher education institutions to file a disclosure report with the U.S Department of Education whenever any institution receives a gift from or enters into a contract with a foreign source that, considered alone or in combination with all other gifts from and contracts with the same foreign source, have a value of $250,000 or more within a calendar year.
UW-Madison is required to report to the U.S. Department of Education (ED) each January and July regarding gifts received from foreign sources and contracts entered into with foreign sources. The reporting threshold is when gifts and contracts, alone or combined with other gifts and contracts from the same foreign source, have a value of $250,000 or more in a calendar year period. If the reporting threshold is met between January through June, the institution must report the information to ED in July. If the reporting threshold is met between January through December, the institution must report the information to ED in January of the following calendar year.
In 2020, ED explicitly stated that foreign source contracts include tuition for students paid by a foreign source, intellectual property license fees from a foreign licensee, and data or materials sold, leased, or bartered to a foreign source. ED also expressly stated that foreign source gifts or contracts received at an intermediary organization are required to be included in an institution’s disclosure report to ED. This means that when an organization other than UW-Madison receives a gift from or enters into a contract with a foreign source where the gift or contract is for the benefit of the institution, the gift or contract is to be considered when determining which UW-Madison receipts meet the reporting threshold.
It is expected that all campus departments and/or divisions that receive gifts from foreign sources, or enter into contracts with foreign sources, will report all amounts received at or obligated to UW-Madison that occur on funds other than 133, 144, and 233 to the Division of Business Services twice per calendar year. Please refer to the UWMSN Sec 117 Guiding Principles below for more details, reporting instructions, and frequently asked questions. Reports will be due to the Division of Business Services each July 20th and January 20th. For the purposes of Section 117 reporting,
- 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 of the parties;
- Foreign source means
- (A) a foreign government, including an agency of a foreign government;
- (B) a legal entity, governmental or otherwise, created solely under the laws of a foreign state or states;
- (C) an individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; and
- (D) an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source;
- Intermediary means an entity other than an institution that receives a gift originating from a foreign source or enters into a contract with a foreign source that is for the benefit of the institution.
Questions regarding this topic can be directed to firstname.lastname@example.org.
Roles and Responsibilities
|Research & Sponsored Programs (RSP)||Report contract obligations or payments received on funds 133 and 144 to DoBS.|
|Campus Departments||Report contract obligations or payments received on funds other than 133, 144, 233, and 161/162 to divisional representative.|
|Campus Divisions||Review and report contract obligations or payments received on funds other than 133, 144, 233, and 161/162 to DoBS.|
|Intermediary Organizations||Report gifts received and contract obligations or payments received that are for the benefit of UW-Madison to DoBS.|
|Division of Business Services (DoBS)||Compile gift receipts on funds 233, 134, 135, and 533. Collect gift receipt information from UW Foundation, UW System Trust Funds, and other intermediaries. Collect contract information from RSP, Bursar’s Office, departments (when applicable), divisions, and intermediaries. Compile reportable gift and contract information and provide to OSFA.|
|Office of Student Financial Aid (OSFA)||Submit reportable gift and contract information to U.S. Department of Education via the online portal.|
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