Original Issuance Date: November 8, 2023
Last Revision Date: November 8, 2023
1. Policy Purpose
The purpose of this policy is to establish general parameters for completing reports regarding foreign transactions required by law throughout the University of Wisconsin System (UW System). This policy does not supersede any stricter standards set by the institution and state or federal law.
2. Responsible UW System Officer
UW System Chief Compliance Officer
UW System Vice President of Office of Finance & Administration
3. Scope and Institutional Responsibilities
The policy applies to all University of Wisconsin Institutions. Institutions shall develop their own procedures to operationalize the UW System Administrative policy. Institutions may also elect to develop guidance to support compliance with this policy and any institutional procedures.
Federal law requires institutions to report to any Oversight Agency any gifts received from; contracts with; and any ownership interests in the institution by a foreign source. Institutions must report any gifts from or contracts with a single foreign source that have a value as set by the Oversight Agency (alone or when combined) within a single calendar year. Institutions must also report any ownership interests in or control over the institution by a foreign source.
Oversight Agency: Any federal, state, or accrediting body with legal oversight over the UW System or any UW institution that requires a report of foreign source income or activity.
Otherwise, all terms in this policy defined by federal law shall have the meaning given therein.
6. Policy Statement
Each institution shall adopt their own policy and/or procedures to operationalize the reporting requirements of federal or state law that at a minimum includes all the components outlined below.
A. Institutional Oversight
I. Each institution must designate a department(s) with the responsibility and authority to oversee and ensure that a report is submitted in the manner required by law for any gifts or grants received from; contracts with; and any ownership interests in the institution by a foreign source.
1. A report shall be provided to the Department of Education pursuant to Section 117 of the Higher Education Act of 1965, codified at 20 U.S.C. §1011f, by January 31 and July 31 of each year, which requires institutions to report when any single foreign source provides $250,000 or more of income in a single calendar year.
2. A report shall be provided annually to the National Science Foundation pursuant to Section 10339f of the CHIPS and Science Act of 2022, codified at 42 U.S.C. §19040, which requires institutions to report when any single foreign source from country of concern, i.e., China, Russia, North Korea, Iran, etc., provides $50,000 or more of income in a single calendar year.
II. UW System Administration shall provide semiannual reminders of reporting requirements to each institution.
B. Due Diligence
I. While negotiating any gifts, grants, or contracts with any party, if the correspondence with that party or any officer, employee, or agent thereof, indicates a foreign address, the institution will take reasonable steps to investigate to determine whether the source of the funds is a foreign source subject to the reporting requirements in this policy.
I. Each institution shall establish processes to complete required reporting established by the Department of Education and the National Science Foundation.
II. Each institution’s designated department(s) that holds the responsibility and authority to ensure required reports are submitted shall communicate the reporting requirements to any institutional departments likely to handle transactions at least annually.
III. Each institution shall provide annual confirmation to UW System Administration that the required reports have been submitted to all applicable Oversight Agencies.
7. Related Documents
8. Policy History
First approved: November 8, 2023
9. Scheduled Review