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.
Reporting requirement
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 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 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 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.
Data collection
The Division of Business Services (DoBS) will utilize customer invoice details to review and compile gifts from foreign sources and contracts with foreign sources that occur on funds other than 133, 144, and 161/162 twice per calendar year. DoBS will also review cash sales to search for outlier receipts not recorded via customer invoice. Using customer invoices rather than cash sales is extremely crucial in properly identifying and compiling receipts from foreign sources.
DoBS will work directly with Research & Sponsored Programs (RSP) to collect fund 133 and 144 contracts with foreign sources, and directly with the Office of Trust Funds to collect trust funds gifts from foreign sources. DoBS may reach out to a school/college/division for more details regarding any foreign source receipt in question. DoBS will submit all reportable foreign source gifts and contracts each July and January to the U.S. Department of Education.
Refer to the UWMSN Sec 117 Guiding Principles for more details and frequently asked questions.
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 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;
- 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 foreignreceipts@bussvc.wisc.edu.
Roles and responsibilities
| Office/Division/Organization | Responsibilities |
|---|---|
| Research & Sponsored Programs (RSP) |
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| Campus Departments/Divisions |
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| Intermediary Organizations |
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| Division of Business Services (DoBS) |
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Principles and procedures
Contact
Accounting Services
21 N. Park Street
Madison, WI 53715
(608) 262-0726