Section 117 of the Higher Education Act of 1965 (HEA) requires institutions of higher education that receive Federal financial assistance to disclose semiannually to the U.S. Department of Education (ED) any gifts from and contracts with a foreign source that, alone or combined, are valued at $250,000 or more in a calendar year.

The phrase “foreign source” is broadly defined by ED to include:

  • a foreign government, including an agency, subdivision, unit, or instrumentality of a foreign government;
  • a legal entity - whether governmental, non-profit, corporate, or other - created under the laws of a foreign state or states;
  • an individual who is not a citizen or a national of the U.S. or of a U.S. territory or protectorate; or
  • an agent, including intermediaries and any subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source 

Reports of qualifying gifts and contracts for the prior six-month reporting period must be made to ED no later than January 31 (for July 1 to December 31) or July 31 (for January 1 to June 30) of each year.

Divisions, unit, and departments should collect information for each contract, grant, and gift transaction involving a foreign source and valued at $1,000 or more within the reporting period and submit to the Office of Risk Management and Compliance using the Section 117 Reporting - Foreign Gifts and Contracts Template.

 

Example Scenarios Reportable?
Contract for housing and event space received from a foreign source Yes
Gift from a foreign source valued in the aggregate at less than $1,000 No
Multi-year contract or grant that exceeds $250,000 in total value Yes
Tuition payments received directly from private individuals who are foreign nationals that do not exceed $50,000 in any 6 month period (with no knowledge of additional receipt of other gift/contract funds from the same individual) No
Monies received from different subdivisions within a foreign government (e.g. health, education, and defense ministries) Yes
Gifts and contracts involving the UAH Foundation and any other affiliated foundations and entities Yes
In-kind exchanges as part of a gift or contract, such as textbooks or materials for a specific program Yes

The Office of Risk Management and Compliance will work with appropriate offices to determine whether a source is reportable.

Resources

Department of Education - Frequently Asked Questions