³Ô¹Ï´ó±¾Óª

• What is a Foreign Source?

  defines "Foreign Source" as:

  • 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.

  If a business is a foreign subsidiary of a U.S.-based corporation or a parent company, it may still be considered a Foreign Source as defined above.Ìý(Clarified in the .)Ìý

  Important Reminders:

  1. An address is not determinative. A company or individual may still be a Foreign Source as defined above even though they use a U.S. address.

  2. This analysis needs to be done based on the source themselves, and should not be based on the terms of the contract. The governing country or jurisdiction in the contract terms may be a clue as to where the source is created, based or affiliated with, but the analysis above needs to be done to determine if the source itself is a Foreign Source.Ìý

• What is a Gift from a Foreign Source?

  Any gift of money or property received from a foreign source.Ìý

  Gifts must be reported when they are actually received.Ìý

• What is a Contract with a Foreign Source?

  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.Ìý

  You do not need to report Contracts involving purchases by ³Ô¹Ï´ó±¾Óª from a Foreign Source so long as it is an arms-length, fair market value transaction. If the Contract is well below market value, then it must be internally reported to ERM. (Clarified in the Department of Education’s ;Ìý and .)Ìý

  To determine the fair market value, there is no specific valuation method required or recommended by the Dept of Ed. There can be other ways that a transaction is below fair market value, but one way to determine if the transaction is below fair market value is if the item being purchased is discounted.Ìý

  Contracts must be reported based on the date of execution (when the contract is finished and signed by all parties). Units must also report the date the funding was received from the Foreign Source.

• Where can I find additional information about Higher Education Act, Section 117?

  The contains additional information, guidance, and training related to the required foreign gift and contract reporting.

• How do I know if I have to report a Gift or Contract?

  Follow this flowchart. For a PDF version, click here.

  

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³Ô¹Ï´ó±¾Óª's Reporting Process

The procedure for reporting Gifts from, and Contracts with, a Foreign Source is detailed in ³Ô¹Ï´ó±¾Óª's Foreign Gifts and Contract Reporting Policy that can be accessed through ³Ô¹Ï´ó±¾Óª's Policy Library.Ìý

• Can I use an address to determine if they are a Foreign Source?

  No, you cannot solely rely on an address. Many Foreign Sources have a U.S. address for business conducted in the U.S., but they are a still a Foreign Source that requires reporting.Ìý

  You must use due diligence and ask the company or individual, or research the company or individual to determine if they are a Foreign Source.Ìý

• Tips for staying compliant with this reporting requirement?

  - Report Gifts from, or Foreign Contracts with, a Foreign source as they occur instead of waiting for the reporting deadlines. These can be reported at any time to the , but they must be reported before July 7 (covering the previous January 1 - June 30 period) and January 7 (covering the previous July 1 - December 31 period).

  - Set calendar reminders up in Outlook so that you never miss the due dates.Ìý

  - Each unit determines which position(s) within their unit are responsible for this reporting, and if one of the positions is ever vacant, this reporting should be immediately reassigned to another employee (even if only temporarily) so that everything gets reported on time. There's no flexibility on the reporting deadline.Ìý

  - When onboarding a new employee, if they will be working on any gifts or contracts, share who does the internal reporting for your unit and ³Ô¹Ï´ó±¾Óª's Foreign Gift and Contracts Reporting Policy with them.Ìý

• When are the due dates?

  Units must enter their reports no later than July 7 (covering the previous January 1 - June 30 period) and January 7 (covering the previous July 1 - December 31 period) to meet the deadline for each reporting cycle.Ìý

  Reports must be made prior to this deadline if a Gift was received from, or a Contract was executed with, a Foreign Source during that reporting cycle. For a Contract with a Foreign Source, units must also track the date funding was received from the Foreign Source. Ìý

• Who is responsible for reporting?

  Each University unit that receives a Gift from a Foreign Source, or enters into a Contract for property or services by a Foreign Source, that is valued at $5,000 or more is responsible for reporting that Gift or Contract to Enterprise Risk Management through through the . Each unit must determine which position(s) within their unit are responsible for tracking and reporting this information on or before each due date.Ìý

• Why is the internal reporting threshold set at $5,000?

  Each unit must report any Gifts from a Foreign Source, or any Contracts with a Foreign Source, that is valued at $5,000 or more to Enterprise Risk Management through the .

  ³Ô¹Ï´ó±¾Óª's process takes into account that separate ³Ô¹Ï´ó±¾Óª units could receive Gifts from, or have Contracts with, a Foreign Source that are individually less than $250,000, but when combined with other units’ Gifts from or Contracts with the same Foreign Source, could amount to $250,000 or more over the course of a calendar year.Ìý

  Additionally, as a condition of receiving funding from other third-party entities, ³Ô¹Ï´ó±¾Óª may be required to report on Gifts from or Contracts with a foreign source, as defined by the third-party entity. These additional reporting requirements may have a lower threshold than the Department of Education, and this allows us to assist with additional reporting requirements.Ìý

• What data must be reported?

  Units must use the to report their Foreign Gifts and Contracts. This survey prompts respondents to provide all of the required information. Required information includes, but is not limited to:Ìý

  • Gift/Contract amount
  • Foreign Source nameÌý
  • Foreign Source address
  • date Gift was received
  • date of execution (when the contract is finished and signed by all parties) of a ContractÌý
  • date funding was received for a Contract
• What do I do if I discover an error in something already reported?

  Email risk@du.edu to set up a phone call to discuss the issue. ERM will discuss with you what steps need to be taken to correct the error.Ìý

• What do I do if the value of the Contract changes?

  If a contract value changes, even after it has been reported, email risk@du.edu to set up a phone call to discuss the change of value. ERM will determine if any additional reporting needs to take place for that specific contract.Ìý