REPORTING FOREIGN OWNERSHIP, CONTROL, GIFTS AND CONTRACTS
As a condition of an institution’s Program Participation Agreement (PPA), colleges, universities and postsecondary schools are legally obligated comply with the statutory requirement to report on ownership/control by and gifts/contracts with foreign sources which is found in HEA Sec. 117 [20 U.S.C. 1011(f)]. Section 117 requires institutions to report ownership and control by foreign sources as well as gifts from, and contracts with, foreign sources that have a value totaling $250,000 in a calendar year. If an institution receives a gift or contract equal to or greater than that amount it must report it to the Department of Education by January 31 and July 31 each year. In a recent electronic announcement, the Department of Education reminded institutions that fail to comply might be referred to the Department of Justice for failing to meet their obligations. Institutions can submit their report by entering the information in Section K, Question 71 of their E-App, and submitting it through the usual process.
Presently the Office of Management and Budget is reviewing the regulatory burden for a new reporting system ED plans to roll out in time for the January 2020 reporting deadline. If it’s approved, schools will have an additional option for submitting the required reports. Should the OMB approve the new system, FSA will provide information in a future electronic announcement.
UPDATE: The OMB did not grant approval to ED for the emergency information collection of foreign gift reporting, thus the new portal is not available for this cycle. A notice was posted int he federal register informing stakeholders of a new information request which will allow the public 30 days to comment on the proposal.