1107 Reporting Foreign Gifts and Contracts

Responsible Official: 
Vice President for Finance and Chief Financial Officer
Responsible Office: 
Controller's Office
Effective Date: 
October 27, 2020
Revision Date: 
October 27, 2020

Policy Sections

1107.1 Section 117 Compliance Committee

1107.2 Units Responsible for Producing Section 117-Reportable Data

1107.3 Semiannual Reporting

Scope

This policy covers Yale’s reporting obligations under Section 117 of the Higher Education Act (20 U.S.C. 1011f) (hereinafter, “Section 117”).  It applies to all Yale individuals and units involved in receiving Gifts and Contracts from Foreign Sources.

Policy Statement

Yale is committed to complying with the reporting requirements for certain financial transactions with Foreign Sources, pursuant to Section 117.  In support of this commitment, University units receiving Gifts from or entering into Contracts with Foreign Sources must report such Gifts and Contracts semiannually to the Section 117 Compliance Committee.

Reason for the Policy

Title IV of the Higher Education Act requires all institutions that process U.S. federal student aid to disclose semiannually to the U.S. Department of Education specific financial transactions with Foreign Sources, pursuant to Section 117.  The requirement states, in relevant part:

“Whenever any institution is owned or controlled by a foreign source or receives a gift from or enters into a contract with a foreign source, the value of which is $250,000 or more, considered alone or in combination with all other gifts from or contracts with that foreign source within a calendar year, the institution shall file a disclosure report with the Secretary on January 31 or July 31, whichever is sooner.”

This policy establishes the roles and responsibilities for the Yale individuals and units supporting the University’s semiannual reporting obligations.

Definitions

The definitions of “Contract,” “Foreign Source,” and “Gift” articulated in this policy apply only for the purposes of this policy and compliance with Section 117; they do not define how these terms are generally used or understood at Yale.

Contract

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.

Foreign Source

Any one of the following: 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.

Gift

The voluntary transfer of money or property by a Foreign Source made without consideration.

Policy Sections

1107.1 Section 117 Compliance Committee

The Section 117 Compliance Committee is a standing committee with delegated responsibility from the Controller’s Office for oversight of, and compliance with, this policy and associated processes.  It oversees the collection, review, and preparation of information relating to Foreign Source Gifts and Contracts that must be reported pursuant to Section 117, and it ensures the timely filing of the semiannual reports.  It is responsible for designing, monitoring, and improving (as needed) Yale’s processes for compliance with Section 117.

The Section 117 Compliance Committee includes representation from units with a significant role in Yale’s Section 117 compliance processes, including the following: Controller’s Office; Office of Development; Office of Sponsored Projects; Yale Center for Clinical Investigation; Yale School of Medicine Finance Office; and Office of General Counsel.  It is co-chaired by the Institutional Compliance Program Manager and an Associate Controller.  It convenes as needed, as determined by the co-chairs.

1107.2 Units Responsible for Producing Section 117-Reportable Data

To comply with Yale’s obligations under Section 117, it is imperative that the units involved with receiving Gifts or entering into Contracts properly record and track such Gifts and Contracts.  Gift amounts must be recorded for Section 117 reporting purposes at the time the Gift is received.  Contract values must be recorded at the time the Contract is executed or, if the Contract amount is not determinable at the time the Contract is executed, then amounts must be recorded at the time they are received.  In addition to dates of transactions, values, and amounts, units are responsible for collecting and recording the following minimum information for all Gifts and Contracts from Foreign Sources:

  • Source name and type;
  • Source address (including country);
  • Type of transaction (i.e., Gift or Contract);
  • Intermediaries (for Gifts) or domestic parties (for Contracts); and
  • Start and end date(s) (for Contracts only).

Units are also responsible for maintaining written contractual agreements, gift indentures, or other relevant documentation (to the extent that such documentation exists) in accordance with Policy 1105 Retention of University Financial Records and Yale’s Record Retention Schedule.  Such documentation should explain the purpose of, and any restrictions or conditions applicable to, Gifts and Contracts from Foreign Sources.  Unless otherwise specifically provided, documentation may be maintained in the form of digital copies.

While all Yale individuals and units involved in receiving Gifts or entering into Contracts share in this responsibility, certain units designated by the Section 117 Compliance Committee are specifically responsible for gathering and producing data to be used in the University’s semiannual reporting cycle.  Those units, as well as the data for which they are responsible, are detailed in the table below:  

Unit/Office

Responsible for…

Controller’s Office

  • External sales (including sales through the External Sales Approval Process (“ESAP”))
  • Facilities use agreements

Global Health Leadership Initiative

  • Executive education Contracts or fee-for service trainings

Office of Cooperative Research

  • Licensing-related agreements (e.g., material transfer agreements, options, patent licensing)

Office of Development

  • Gifts

Office of International Affairs

  • Executive education Contracts or fee-for service trainings

Office of Sponsored Projects

  • Grants and Contracts relating to sponsored research (excluding industry-sponsored clinical trials)

Trademark and Licensing

  • Trademark licensing agreements

University Properties

  • Commercial lease agreements

Yale Center for Clinical Investigation

  • Industry-sponsored clinical trials

Yale-NUS New Haven Office

  • Collaborations with Yale-NUS College

Yale School of Management Executive Education

  • Executive education Contracts or fee-for service trainings

Yale School of Medicine Finance Office

  • External sales (including sales through Yale School of Medicine University Service Providers)

All other schools, departments, or units

  • Executive education Contracts or fee-for-service trainings, or other Contracts which are not captured by the systems or processes of another office listed in this policy

The units identified above are responsible for semiannually producing data on Foreign Source Gifts and Contracts by the deadlines articulated in this policy and in the format requested by the Section 117 Compliance Committee.  The requested format is to use Form 1107 FR.01 Reporting Template for Foreign Gifts and Contracts and the deadlines are as follows:

  • July 15th (or the first business day thereafter, if that date falls on a weekend): this is the unit deadline for the University report due by July 31st each year, which covers the period between January 1st and June 30th of that year.
  • January 15th (or the first business day thereafter, if that date falls on a weekend): this is the unit deadline for the University report due by January 31st each year, which covers the period between July 1st and December 31st of that year.

The Section 117 Compliance Committee is responsible for communicating timely reminders to the units identified above regarding the data required to be produced under this policy.

The units identified above are responsible for creating, maintaining, and communicating standard procedures for collecting, recording, and producing the data for which they are responsible.  The Section 117 Compliance Committee advises on the appropriateness and efficacy of such standard procedures.

1107.3 Semiannual Reporting

Upon receipt of the semiannual Section 117-reportable data from the units identified in Section 1107.2, above, the Section 117 Compliance Committee is responsible for analyzing the data to determine whether the total amounts from a Foreign Source meet the reporting threshold ($250,000).  The Section 117 Compliance Committee is responsible for compiling the required reportable information for any Foreign Source that meets or exceeds the reporting threshold and submitting Yale’s semiannual report via the mechanism designated by the Department of Education.  

Special Situations and Exceptions

Exceptions to this policy require prior approval by the Section 117 Compliance Committee, in consultation with the Provost’s Office, General Counsel, or an Officer of the Corporation, as appropriate.

Roles & Responsibilities

Controller’s Office (designated Associate Controller or other designee)

  • Interprets policy.
  • Serves as co-chair of the Section 117 Compliance Committee.
  • Timely files the appropriate semiannual reports on behalf of Yale.

Institutional Compliance Program Manager

  • Advises on institutional and unit-level compliance requirements and responsibilities pursuant to Section 117.
  • Serves as co-chair of the Section 117 Compliance Committee.

Section 117 Compliance Committee

  • Oversees the collection, review, and preparation of information relating to Foreign Source Gifts and Contracts that must be filed pursuant to Section 117.
  • Designs, monitors, and improves (as needed) Yale’s processes for compliance with Section 117.
  • Designates Yale units responsible for gathering and producing data to be used in the University’s semiannual reporting cycle.
  • Analyzes Section 117-reportable data and ensures the timely filing of the appropriate semiannual reports on behalf of Yale.

Units Responsible for Producing Section 117-Reportable Data

  • Create, maintain, and communicate standard procedures for collecting, recording, and producing the data for which they are responsible.
  • Timely gather and produce data to be used in the University’s semiannual Section 117 reporting.

Yale Individuals and Units

  • Properly record and track all Gifts and Contracts from Foreign Sources.