Section 117 Compliance Reporting

About Section 117 Compliance Reporting

Section 117 of the Higher Education Act of 1965 requires U.S. universities to report foreign gifts and contracts to the U.S. Department of Education (DOE) on a biannual basis. Reports are due to DOE every July 31 and January 31 for the preceding six months.

To meet the university’s compliance reporting obligations under the Section 117 federal statute, UNLV must collect data on all gifts from and contracts with foreign entities campus wide, regardless of the exchange of monies. The UNLV Business Affairs Quality Assurance and Financial Compliance department will conduct biannual surveys to identify, collect, aggregate, assess, and submit Section 117 qualifying data to the U.S. Department of Education.

Departments, units, and programs which have been identified as potential entry points for incoming gifts from and contracts with, including Memorandums of Understanding (MOUs), foreign entities will receive compliance surveys twice yearly. All recipients must respond, including for no activity, and report all activity for the covered reporting period by the stated deadline.

If a unit, college, etc. receives gifts and enters into contracts with foreign sources for programs administered by the Office of Sponsored Programs (OSP) or the UNLV Foundation, a response noting “Will be reported by OSP or UNLV Foundation” is sufficient. The UNLV Foundation and OSP will provide the required detail level information.

Reporting Process

The survey will be emailed directly to department, unit and program stakeholders who have been identified as the key contact responsible for completing the Section 117 survey and providing requested information twice a year.

Step 1

Complete all fields within the survey.

  • Those who respond "yes" to receiving foreign gifts or entering into a contract with a foreign entity within the reporting period must complete the Template B Excel file and upload the completed document(s) to Qualtrics.
    • Follow these file naming instructions when saving each completed Template B for both gifts and contracts.
      • Gifts: Unit name - FSGift - Date
      • Contracts: Unit name - FSContract - Date
    • Review the file name before uploading the document(s) in Qualtrics.
    • Review the “Instructions for Completing Template B” section below for guidance on completing Template B.
  • The following information provides guidance for completing Template B.

Instructions for Completing Template B

  • Column A – “Reporting Unit”
    • Include your unit’s name.
  • Column B – “Internal Tracking Number/Identifier”
    • Include, if applicable, any internal tracking numbers or identifiers for the transaction and / or the gift or contract. If there is no internal tracking number, enter “N/A”; do not leave the column blank.
  • Column C – “Gift/Contract”
    • Include whether the payment from a foreign source relates to a gift or a contract. A gift is defined as “any gift of money or property.” A contract is defined as “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.” Grants that fund research projects and tuition payments should be listed as contracts.
  • Column D – “Name of Giftor or Counterparty”
    • Provide the name of the donor or counterparty exactly as it appears in the system of record. If the gift or contract is with a party or agent acting on behalf of a foreign source, include the name of the foreign source in Column D and identify the party or agent in Column K – Notes. For anonymous gifts, if the university knows the name of the donor, include the donor’s real name in Column D and note that the donor has requested anonymity in Column K—Notes.
  • Column E – “Amount”
    • Include the amount in accordance with the following instructions:

a. Gifts: enter the amount actually received by UNLV, or, for an “in-kind” gift, enter “IN-KIND”.

b. Convert all amounts to USD based on the conversion rate for the day the gift was received or the contract was executed. You should use a historical conversion rate calculator (e.g. https://fxtop.com/en/historical-currency-converter.php.).

c. Contract:

i. In general, the amount is the total amount a counterparty is obligated to pay under a contract (accordingly, for a multi-year contract, the amount is the total amount UNLV is set to receive under the life of the agreement).

ii. If a contract is a contingent contract (e.g. a contract where the total dollar amount due to the UNLV is not stated in the contract, such as a volume-based contract), enter the estimated total amount UNLV will receive over the life of the contract. In addition, please state in the Notes that the contract is “Contingent,” and include a description of the payment terms.

iii. If a contract has pass-through costs, include any guaranteed payments in the aggregate amount (e.g. an executive education program where a foreign source will pay UNLV $500,000 to operate a program and will provide $70,000 to arrange for lodging and meals should be reported as a $570,000 contract).

iv. For in-kind contracts, insert “IN-KIND.”

v. For contracts with no monetary value (e.g., non-disclosure agreements, data sharing agreements, material transfer agreements), input $0.

  • Column F – “Date Received” (Gifts Only): 
    • For a gift, the date received is the date UNLV actually received the money or property. Use the format MM/DD/YYYY.
  • Column G – “Start Date” (Contracts Only)
    • For a contract, the start date is the first date of the period of performance, which may be recorded as the effective date. For tuition contracts, the start date is the start date of classes for the applicable semester. Please use the format MM/DD/YYYY.
  • Column H – “End Date” (Contracts Only): 
    • For a contract, the end date is the last date of the period of performance. For tuition contracts, the end date is the last date of classes for the applicable semester.
  • Column I – “Country”
    • “Country” refers to the country of the foreign source. If the foreign source is an entity, the country is the country of incorporation (if known) or the country of the entity’s principal place of business/address. If the foreign source is an individual, the country is the individual’s country of citizenship (if known) or the country of the individual’s principal residence/address. If the counterparty is a U.S. entity acting as an agent on behalf of a foreign source, please input the country of the foreign source.
  • Column J – “Address”
    • “Address” refers to the address of the principal residence or the principal place of business for the foreign source.
  • Column K – “Notes”
    • Include any notes that capture any additional information that might be important. Examples of useful notes include:
      • Note if a contract was subsequently amended and the terms of that amendment.
      • If the payment structure for the gift or contract has unique terms, please so indicate (e.g. royalties, per unit fees, pass through costs, etc.).
      • Note if a gift is from an anonymous donor.

Gifts

Any gift of money or property received by the university. Pledges and gift agreements are not considered gifts.

  • Gift type (unrestricted, restricted, or conditional)
    • Restricted or conditional gifts are those that include provisions such as:
      • the employment, assignment, or termination of faculty;
      • the establishment of departments, centers, research or lecture programs, or new faculty positions;
      • the selection or admission of students; or
      • the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion.
  • Name of giftor or counterparty
  • Amount of the gift
    • Identify the amount actually paid (i.e., pledges for future payments do not count) or the value of an in-kind piece of property or good.
    • We only count gift amounts that have been received. If a donor has made a five-year pledge of $1,000,000 total, the amount will only be reported for the amount received with the initial pledge, which would be $200,000.
    • For gifts of in-kind property, the fair market value of the property at the time of the gift should be used for the report.
  • Date received
  • Country of giftor or counterparty
    • For an entity, the country of origin is the country in which the principal place of business is located.
    • For an individual, the country of origin is the country of citizenship (if known), otherwise it is the country in which the individual’s principal residence is located.
  • Address of giftor or counterparty
    • For entities, the address is the address of the principal place of business.
    • For individuals, the address is the primary residential address if known, or the preferred address for the system of record.
    • Addresses may be found in the contract or gift agreement itself. If not, your unit may have to conduct an Internet search to determine the appropriate address.

Contracts

Payments to the university in exchange for goods and services (money-in contracts).

  • Contract type (unrestricted, restricted, or conditional)
    • Restricted or conditional contracts are those that include provisions such as:
      • the employment, assignment, or termination of faculty;
      • the establishment of departments, centers, research or lecture programs, or new faculty positions;
      • the selection or admission of students; or
      • the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion.
  • Start date
  • End date
  • Country of giftor or counterparty
    • For an entity, the country of origin is the country in which the principal place of business is located.
    • For an individual, the country of origin is the country of citizenship (if known), otherwise it is the country in which the individual’s principal residence is located.
  • Address of giftor or counterparty
    • For entities, the address is the address of the principal place of business.
    • For individuals, the address is the primary residential address if known, or the preferred address for the system of record.
    • Addresses may be found in the contract or gift agreement itself. If not, your unit may have to conduct an Internet search to determine the appropriate address.

Step 2

  • Upload the completed Template B file in Qualtrics.
  • UNLV Quality Assurance and Financial Compliance will reach out to you with any questions about your submitted items.

Foreign Sources

Foreign sources include foreign governments, entities, individuals, and agents of these sources.

Foreign Government

Governments or agencies of those governments. Examples could include the United Kingdom Ministry of Defense or the Saudi Arabian Cultural Mission.

Foreign Entity

All legal entities such as corporations or non-profit organizations that have a foreign place of incorporation or foreign principal place of business.

Foreign Individual

Individuals who are not citizens or legal permanent residents of the United States.

Agent of a Foreign Source

An individual or entity acting on behalf of a foreign source. Common arrangements include U.S. entities that are flow-through entities for foreign corporations (e.g. Aramco Services Company which is based in Texas but is the U.S. branch of Saudi Aramco).

Arrangements involving a prime and subprime relationship for a contract or research grant (e.g. foreign source is the U.K. Ministry of Development, domestic agent is an American university, and UNLV is the subprime recipient on behalf of the American university).

Assessing Foreign Sources

  • When assessing whether a gift or contract is with a foreign source, examine the donor who actually gave the gift or the individual or entity that is the counterparty of the contract with the university. If the university has reason to believe that a U.S. citizen or entity is acting as an agent for a foreign source, the gift or contract should be captured for Section 117 purposes (for example, a U.S. person acting as broker for a foreign person or a U.S. subsidiary acting on behalf of a foreign company).
  • If the unit identifies an agency relationship, it should make a note in the "Notes" column of the template spreadsheet that the entity listed is an agent, and should note the name and country of origin of the principal.

Contact

If you have questions contact Sheila Carrier at sheila.carrier@unlv.edu.