The document provides a comprehensive update on Section 117 reporting requirements as discussed in a June 12, 2020 session moderated by Robert Hardy of COGR, with panelists representing the Department of Education and the University of Pennsylvania. Section 117, enacted in 1986, mandates that higher education institutions report gifts and contracts from foreign sources that meet or exceed $250,000 in value, either individually or cumulatively within a calendar year. The reporting process has undergone significant review and revision, including public comment periods and changes to the scope and detail of information required, particularly regarding donor identification, institutional intermediaries, and foreign student tuition payments. Recent updates removed the requirement to upload 'true copies' of agreements and clarified the threshold and conditions under which tuition and other payments must be reported.
The summary of current disclosure obligations emphasizes comprehensive due diligence by institutions to identify foreign gifts and contracts, as well as indirect benefits through intermediaries such as associated foundations. Institutions are required to report detailed information regarding the foreign source, the nature and terms of gifts or contracts, and any restrictions or conditions, particularly those affecting academic programs, faculty, or student admissions. Notably, the document addresses concerns about privacy, valuation of in-kind exchanges, and the reporting complexities posed by multinational corporations and foreign entities with changing ownership structures. Penalties for willful misreporting are outlined, and the discussion includes unresolved questions—such as the sharing of agreement documents, audit processes, and definitions affecting reportable transactions. The session also highlights ongoing dialogue between higher education associations and the Department of Education to clarify, streamline, and ensure compliance with Section 117 reporting obligations.
