Fayetteville Policies and Procedures  310.2 

Foreign Gifts and Contract Reporting

1. PURPOSE AND SCOPE
   To comply with federal and state law mandatory disclosure requirements, all units and their departments, divisions, and offices must report all foreign gifts received from or contracts entered into with a foreign source. This Policy implements Section 117 of the Higher Education Act (the “HEA” or “Section 117”) and Ark. Code Ann. § 6-60-1204 by requiring such gifts and contracts to be reported, as required, to the U.S. Department of Education (“ED”) and the State of Arkansas - Division of Finance and Administration (“DF&A”).    
   
   
   1. Higher Education Act §117
      Under Section 117, the university is required to semi-annually disclose and make publicly available to ED any gifts and contracts with a combined total of $250,000 or more within the calendar year received from or entered into with a foreign source.  The required ED reports are due on January 31st and July 31st of each year.  
      
      Section 117 of the HEA is codified at 20 U.S.C. § 1011f.  Accordingly, this Policy adopts the statutory definitions of Section 117 as defined by 20 U.S.C. § 1011f. 
      
      Failure to comply with Section 117’s mandatory requirements may result in fines, criminal penalties, and/or termination of the university’s Title IV participation.   
      
      
   2. Ark. Code Ann. § 6-60-1204
      Ark. Code Ann. § 6-60-1204, Foreign gifts and contracts - Acceptance and disclosure, requires the university to annually disclose the same information, but on a fiscal year basis, to DF&A.  The required DF&A report is due on July 31st of each year.
      
      
2. POLICY REQUIREMENTS
   
   1. Definitions; Reporting Requirements 
      1. Foreign Source
         Under Section 117 , a foreign source means:
         1. A foreign government, including an agency of a foreign government; 
         2. A legal entity, governmental or otherwise, created solely under the laws of a foreign state or states; 
         3. An individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; and
         4. An agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source. 
            1. A multinational company or U.S. entity with a foreign parent company is a reportable foreign source if it is acting as an agent of a foreign source. 
      2. Contract
         Under Ark Code Ann. §6-60-1202(2) a contract means an agreement for the acquisition by purchase, lease, or barter of property or services between a foreign source and an institution for the direct benefit of or the use by either of the parties.
         
         
      3. Gift
         Under Ark Code Ann. §6-60-1202(4), a gift means a gift of money or property.
         
         All units and their departments, divisions, and offices of the University must report all foreign gifts received from or contracts entered into with a foreign source. The definition of a foreign source is contained Appendix A to this policy, Internal Reporting Procedures. 
         
         Each unit shall compile the foreign gifts or contracts of its departments, divisions, and offices twice per year to report to the Division of Finance.  Reports are required to be submitted to the Office of Financial Affairs  by July 10th for the period of January 1st through June 30th and January 10th for the period of July 1st through December 31st. 
         
         The Office of Financial Affairs will initiate the internal reporting process each year by sending a notice to each Vice Chancellor and Dean responsible for each unit.  The Office of Financial Affairs will compile and submit the required reports of all applicable foreign source gifts and contracts to ED and DF&A by the required deadlines.  
         
         Responsibility for the completeness and accuracy of the data submitted to the Office of Financial Affairs and used in reporting to ED and DF&A, resides with each unit and its departments, divisions, and offices submitting data and is not the responsibility of the Office of Financial Affairs.
         
         Additional details regarding the reporting process, including the content of internal reports, and specific requirements regarding restricted or conditional grants and contracts, are contained in Appendix A, Internal Reporting Procedures.
         
         
   2. Valuation and Aggregation
      Gifts or contracts valued at $250,000 or more in the aggregate within a calendar year are required to be reported to ED and DF&A.  The reporting threshold considers the value of gifts or contracts either alone or combined with other gifts or contracts to the University from the same foreign source within the calendar year.  
      
      The reported data from departments, divisions, and offices will be aggregated and measured against the reporting threshold by the Office of Financial Affairs.  Each unit and its departments, divisions, and offices must report all foreign gifts received from or contracts entered into with a foreign source regardless of dollar amount to ensure proper aggregation into university-wide totals.
      
      The value of a contract is determined at the time of execution. The value of a gift is determined upon receipt. The reportable amount of a gift is the amount actually received. 
      
      
   3. Duty of Due Diligence 
      Each unit and its department, division, or office is responsible for ensuring that the disclosure of foreign gifts and contracts to the Office of Financial Affairs is complete and accurate.  Accordingly, employees preparing reports are expected to use reasonable due diligence in preparing reports.  Reasonable due diligence requires a good faith effort in determining foreign source information is complete and accurate and is properly valuing a gift or contract. 
   4. Timing of Federal and State Report Submission
      The university must report to ED semi-annually each January and July based on a calendar year period.  If the reporting threshold for a particular foreign source is met for the reporting period and cumulatively for the calendar year, the Office of Financial Affairs will submit a report to ED by January 31st and July 31st of each year.  Similarly,  if the reporting threshold is met for the fiscal year, the Office of Financial Affairs will submit a report to DF&A by July 31st of each year.
      
      Failure to meet Federal and State reporting deadlines results in the university being non-compliant. 
      
      
3. COMPLIANCE AND DUTY TO DISCLOSE 
   Each unit must comply with deadlines to ensure timely reporting of a gift or contract subject to disclosure under federal and state law.  All foreign gifts and contracts must be disclosed and reported in each unit’s Foreign Gifts and Contracts Report.  
   
   In the event an additional foreign gift or contract required to be disclosed under this policy has not been previously reported and is subsequently discovered, the unit must immediately notify the Office of Financial Affairs and properly disclose the gift or contract.  The Office of Financial Affairs shall immediately disclose and submit the transaction that was not previously reported to the appropriate agencies. 
   
   
4. QUESTIONS REGARDING POLICY IMPLEMENTATION
   Questions regarding this policy should be directed to the Office of Financial Affairs, which shall consult with the University’s Office of Research Compliance and the Office of the General Counsel as necessary. 

July 24, 2023