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• What is a Foreign Source?

  defines "Foreign Source" as:

  • a foreign government, including an agency of a foreign government;
  • a legal entity, governmental or otherwise, created solely under the laws of a foreign state or states;
  • an individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; and
  • an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source.

  If a business is a foreign subsidiary of a U.S.-based corporation or a parent company, it may still be considered a Foreign Source as defined above.Ìý(Clarified in the .)Ìý

  Important Reminders:

  1. An address is not determinative. A company or individual may still be a Foreign Source as defined above even though they use a U.S. address.

  2. This analysis needs to be done based on the source/vendor themselves, and should not be based on the terms of the contract. The governing country or jurisdiction in the contract terms may be a clue as to where the source is created, based or affiliated with, but the analysis above needs to be done to determine if the source itself is a Foreign Source.Ìý

• Vendor Verification Form

  The Vendor Verification Form is currently an optional tool to help collect this information directly from vendors and individuals who we are contracting with, but this form will be incorporated into DU's Crimson Commerce and will be required at a later date to be determined.Ìý

  If you know the information provided by the vendor/individual to be inaccurate or false, it is your responsibility to correct the information and/or obtain accurate information from the vendor.Ìý

  If you have requested to enter into a contract with a Foreign Source, you must follow the decision-tree below to determine if the contract needs to be internally reported via the .

• What is a Contract with a Foreign Source?

  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.Ìý

  Exemption: The Department of Education has created an exemption so that certain contracts do not need to be reported, which is detailed in the flowchart below.Ìý

  Contracts must be reported based on the date of execution (when the contract is finished and signed by all parties). Units must also report the date the funding was received from the Foreign Source.

  
• How do I know if I have to report a Contract?

  Follow this flowchart. For a PDF version, click here.

  

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• What is a Gift from a Foreign Source?

  Any gift of money or property received from a foreign source.Ìý

  Gifts must be reported when they are actually received.Ìý

  The Office of Advancement records all gifts received by the University from donors in accordance with University Policy ADV 10.10.010 – Gift Acceptance.

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• Where can I find additional information about Higher Education Act, Section 117?

  The contains additional information, guidance, and training related to the required foreign gift and contract reporting.

DU's Reporting Process

The procedure for reporting Gifts from, and Contracts with, a Foreign Source is detailed in DU's Foreign Gifts and Contract Reporting Policy that can be accessed through DU's Policy Library.Ìý

• Can I use an address to determine if they are a Foreign Source?

  No, you cannot solely rely on an address. Many Foreign Sources have a U.S. address for business conducted in the U.S., but they are a still a Foreign Source that requires reporting.Ìý

  We recommend that the vendor/individual you are contracting with completes Vendor Verification Form.

  If they do not complete the form, you must use due diligence and research the company or individual to determine if they are a Foreign Source as defined by the federal government. (Definitions are listed in the section above.)

• Tips for staying compliant with this reporting requirement?

  - Report Gifts from, or Foreign Contracts with, a Foreign source as they occur instead of waiting for the reporting deadlines. These can be reported at any time to the , but they must be reported before July 9 (covering the previous January 1 - June 30 period) and January 9 (covering the previous July 1 - December 31 period).

  - Set calendar reminders in Outlook so that you never miss the due dates.Ìý

  - Contract managers, as detailed in DU's Contract Management Policy, are responsible for this reporting. And if their positions is ever vacant while searching for their successor, this reporting should be immediately reassigned to another employee (even if only temporarily) so that everything gets reported on time. There's no flexibility on this federal reporting deadline.Ìý

  - When onboarding a new employee, if they will be working on any gifts or contracts, share this information and DU's Foreign Gift and Contracts Reporting Policy with them so that they can plan ahead for this reporting obligation.Ìý

• When are the due dates?

  Internal reports must be made no later than July 9 (covering the previous January 1 - June 30 period) and January 9 (covering the previous July 1 - December 31 period) to meet the deadline for each reporting cycle. There's no flexibility on this federal reporting deadline.Ìý

  Reports must be made prior to this deadline if a Gift was received from, or a Contract was executed with, a Foreign Source during that reporting cycle. For a Contract with a Foreign Source, the contract manager must also track the date funding was received from the Foreign Source. Ìý

• Who is responsible for reporting?

  Contracts with a Foreign Source that are required to be reported must be reported by the contract manager, as identified in DU's Contract Management Policy that can be accessed through DU's Policy Library.Ìý

  All Gifts from a Foreign Source are reported by Advancement.Ìý

• Why is the internal reporting threshold set at $5,000?

  Each contract manager must report any Contracts with a Foreign Source, that is valued at $5,000 or more to Compliance through the .

  DU's process takes into account that separate DU units could receive Gifts from, or have Contracts with, a Foreign Source that are individually less than $250,000, but when combined with other units’ Gifts from or Contracts with the same Foreign Source, could amount to $250,000 or more over the course of a calendar year.Ìý

  Additionally, as a condition of receiving funding from other third-party entities, DU may be required to report on Gifts from or Contracts with a foreign source, as defined by the third-party entity. These additional reporting requirements may have a lower threshold than the Department of Education, and this allows us to assist with additional reporting requirements. For example, the NSF reporting threshold that DU must comply with is $50,000.Ìý

• What data must be reported?

  Units must use the to report their Foreign Gifts and Contracts. This survey prompts respondents to provide all of the required information. Required information includes, but is not limited to:Ìý

  • Gift/Contract amount
  • Foreign Source nameÌý
  • Foreign Source address
  • date Gift was received
  • date of execution (when the contract is finished and signed by all parties) of a ContractÌý
  • date funding was received for a Contract
• What do I do if I discover an error in something already reported?

  Email compliance@du.edu to set up a meeting to discuss the issue. Compliance will discuss with you what steps need to be taken to correct the error.Ìý

• What do I do if the value of the Contract changes?

  If a contract value changes, even after it has been reported, email compliance@du.edu to set up a meeting to discuss the change of value. Compliance will determine if any additional reporting needs to take place for that specific contract.Ìý