Administrative Policies and Procedures Manual - 2190: Foreign Gifts and Contracts

Date Originally Issued: 06-02-2025

Authorized by RPM 3.1 ("Responsibilities of the President")

Process Owner: University Controller

1. General

1.1. Purpose

Section 117 of the Higher Education Act of 1965 requires higher education institutions that receive federal financial assistance to disclose to the United States Government certain gifts received from, or contracts entered into with, a foreign source. As a recipient of federal financial assistance, the University of New Mexico is required to comply with Section 117.

The intended purpose of these disclosure requirements is to make the role of foreign funding in higher education transparent to the public. Many providers of public and private grant funding require higher education institutions to certify that 1) they have a policy regarding foreign gift and contract reporting, and 2) they are compliant with Section 117.

1.2. Compliance Requirement

UNM is required to disclose, on a semi-annual basis, all gifts from and contracts with a Foreign Source that, alone or combined, are valued based on criteria established in federal regulations

UNM is also required to disclose annually to the NSF, all gifts from and contracts with a country-of-concern, as determined by applicable law. This reporting criteria is established by the NSF.

UNM requires the cooperation of all UNM employees, reporting departments identified in Section 5., and UNM Affiliated Entities, in order to satisfy and maintain compliance with its required foreign reporting obligations.

Additional reporting of foreign gifts and contracts may be required by granting institutions.

2. Applicability

This policy applies to all UNM employees (full-time, part-time, and temporary) and UNM Affiliated Entities that 1) are beneficiaries or recipients of gifts from a Foreign Source made to or for the benefit of UNM, its employees, or its students; or 2) enter into contracts with a Foreign Source.

3. Definitions

For the purposes of this policy, the following definitions apply:

Foreign Source – includes individuals with a country of citizenship other than the United States, legal entities formed, or whose principal place of business is, in a country other than the United States, including agents acting on behalf of a foreign source, or foreign governments.

Gift – any donation from a Foreign Source made to or for the benefit of UNM, its employees, or its enrolled students. Gifts include those of de minimis value such as food, and holiday gifts.

Contract – any agreement between UNM and a Foreign Source, including but not limited to grants, sponsored research agreements, clinical trial contracts, cooperative agreements, or tuition-related agreements, that involve the transfer of funds from a Foreign Source to UNM, its employees or Affiliated Entities. All contracts entered into with a Foreign Source shall be reviewed by the recipient department prior to execution, and when necessary, in consultation with the Office of University Counsel to ensure UNM’s compliance with the country’s labor and employment laws, and consideration of other matters such as tax, intellectual property or data privacy concerns.

Responsible Reporter – the UNM department designated to collect, compile, evaluate, and report foreign gifts and contracts to the federal government, as required under Section 117 and the NSF. The UNM Contract and Grant Accounting Department is the Responsible Reporter for UNM.

UNM Affiliated Entity – nonprofit organizations affiliated with UNM that exist solely for the benefit and support of UNM as identified in RPM 7.17, University-Affiliated 501(c) Organizations.

4. Scope of Reporting

In order to capture all gifts and contracts that are reportable under federal laws and regulations, all UNM employees, reporting departments identified in Section 5, and Affiliated Entities are responsible for identifying 1) the source of any gift received by or for the benefit of UNM; and 2) the source of any funds agreed to be provided to UNM as a result of an executed contract.

For purposes of this policy, the source is determined as follows:

If the source of the gift, or party to a contract is an individual, the country to which the gift or contract is attributable is the country of citizenship of the individual if known, or their principal residence.
If the source of a gift, or a party to a contract is a legal entity, the country attributable to the gift or contract is the country of incorporation if known, or the principal place of business.

4.1. Internal Reporting Requirement

To comply with foreign entity reporting obligations, UNM must collect and properly evaluate information concerning certain gifts received from, or contracts entered into with, any Foreign Source.

While all UNM departments should establish and maintain a process for gathering and reporting information regarding foreign gifts and contracts, all UNM employees, reporting departments, and Affiliated Entities are ultimately responsible for reporting gifts and contracts, whether or not their department or organization has an internal process. The reporting obligation for contracts entered into with a Foreign Source lies with the UNM employee that was responsible for negotiating the contract or is ultimately responsible for carrying out the terms of the contract, regardless of who signed the contract.

For assistance in evaluating whether a gift received by, or contract entered into is reportable under this policy, contact the Responsible Reporter.

Because of the required federal reporting timelines, the date a contract was entered into, and the date a gift was received, is considered critical information.

4.1.1. Contracts

The contract execution date is used for reporting purposes. If the dollar amount of the contract is not known at the time of execution, a reasonable estimation of the value that will be received must be reported.

For NSF reporting only, the contract execution date is used for reporting purposes and the awarded or obligated amount must be reported, to include any modification that increases or decreases the awarded amount.

Contracts executed between January 1^st and June 30^th must be reported to the Responsible Reporter no later than July 7^th of the same calendar year. Contracts executed between July 1^st and December 30^th must be reported to the Responsible Reporter no later than January 10^th of the following year.

4.1.2. Gifts

All gifts received from a Foreign Source must be reported, regardless of value. It is the responsibility of the department to determine the appropriate value of the gift received, and report that value to the Responsible Reporter prior to established deadlines.

The date the gift was received by UNM is used for reporting purposes. Gifts received between January 1 and June 30^th must be reported to the Responsible Reporter no later than July 7^th of the same calendar year. Gifts received between July 1^st and December 30^th must be reported to the Responsible Reporter no later than January 10^th of the following year.

4.1.3. Foreign Travel and Expenses

Foreign travel and expenses that were sponsored by a Foreign Source must be reported to the Responsible Reporter. Reimbursements for expenses or per diem incurred and related to foreign travel provided by a Foreign Source must also be reported to the Responsible Reporter. Gifts or contracts related to foreign travel must be disclosed according to the deadlines set forth in sections 4.1.1. Contracts, or 4.1.2. Gifts.

If January 10^th or July 7^th falls on a holiday or weekend, the deadline for reporting is the following business day.

5. How to Report

The following departments and Affiliated Entities are required to report information regarding gifts and contracts involving a Foreign Source to the Responsible Reporter within the semiannual timeframes specified above. Additional departments may be identified to participate in required internal reporting, as deemed appropriate.

Bursar
Enrollment Management
Financial Aid Office
Contract & Grant Accounting – Main
Sponsored Projects Office – HSC
Conflict of Interest Committee for Research – Main
Office of Research - HSC
Global Education Office
Office of the Controller
UNM Foundation
Office of the Chancellor for each branch campus

Individuals and other departments who have gifts and contracts that are not associated with the departments mentioned above must report items to the Responsible Reporter. Please see Foreign Financial Support Reporting for instructions on proper reporting of gifts and contracts and information needed for reporting.

The Responsible Reporter will provide instructions to the departments and Affiliated Entities identified above regarding the proper reporting of gifts and contracts and the information needed for reporting.