Handbook of Business Procedures

2.8 FOREIGN GIFT AND CONTRACT REPORTING 

A. Introduction

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 any gifts received from and contracts with a foreign source that, alone or combined, are valued at $250,000 or more in a calendar year. The statute also requires institutions to report information when owned or controlled by a foreign source.

In addition to the HEA’s Section 117 requirement, The National Science Foundation (NSF) 2024 Proposal & Award Policies & Procedures Guide (PAPPG), Chapter VII.D.3 requires institutions to report Foreign Financial Support valued at $50,000 or more (cumulative) from a foreign source which is associated with a country of concern. Countries of concern are currently defined as the People's Republic of China, the Democratic People's Republic of Korea, the Russian Federation, the Islamic Republic of Iran, or any other country deemed a country of concern as determined by the Secretary of State. This requirement is being implemented in accordance with Section 10339B of the CHIPS and Science Act of 2022.

B. Due Dates

The HEA requires institutions to submit information via their reporting portal no later than January 31 and July 31 of each year. Accounting and Financial Management (AFM) will complete this task for The University of Texas at Austin. 

NSF requires information be submitted via their reporting interface by July 31 annually. 

AFM will request information from all offices — including, but not limited to, Business Contracts, Purchasing, Development, Discovery to Impact, International Student and Scholar Services, Office of Sponsored Projects, and 

Texas Global — that have recorded foreign gifts, contracts, and ownership interests approximately 60 days before due dates, June 1 and December 1.

Templates are expected to be completed and returned by the 5th business day of January and July.

Each office that has recorded foreign gifts or contracts must complete the provided template by the requested due date. If the deadline cannot be met, an exception should be requested prior to the due date by providing a reasonable explanation and expected completion date. 

C. Required Information

Any offices that have not previously recorded foreign gifts should contact AFM to report this activity and be added to the periodic data requests. 
Templates to obtain information matching the U.S. Department of Education’s (ED) portal requirements and NSF’s interface requirements will be provided to report gifts, contracts, and restricted or conditional gifts and contracts. 

Submission notes

• Expense Contracts or Purchase orders should not be included. The ED’s guidance states that institutions are generally not required to report "money-out” arms-length contracts involving purchases made by institutions from foreign sources.
• When submitting multiple rows from the same foreign source, please use a consistent name.
• The $250,000 and $50,000 thresholds for reporting are annual totals, and the entire year will be aggregated by AFM to determine reportability. Responses to AFM should include all known information regardless of threshold.
• Template preparers must include a description of the nature of conditions or restrictions, e.g., faculty employment, selection or admission of students.

D. References

To learn more about Section 117, refer to the Department of Education’s website: https://fsapartners.ed.gov/knowledge-center/topics/section-117-foreign-gift-and-contract-reporting  

Additional requirements detailed by the Department of Education: https://www2.ed.gov/policy/highered/leg/section117-webinar-202206.pdf   

To learn more about NSF foreign gift reporting requirements: https://new.nsf.gov/policies/pappg/24-1/ch-7-award-administration#ch7D3 

Part 2. Fund Accounting - Table of Contents