Responsible Executives: Executive Vice President and CFO; Vice President and General Counsel
Responsible Office: Division of Financial Services
Last Update: September 22, 2023
Cornell University is committed to complying with federal and state reporting requirements for foreign gifts and contracts, as required by Section 117 of the Higher Education Act of 1965 and Section 207-a of the New York State Education Law.
Under this policy, the Division of Financial Services or other office designated by the Executive Vice President and CFO compiles and submits the required reports consistent with applicable legal requirements on behalf of the University. All units and identified subsidiaries are required to identify and report to the Division of Financial Services (or its designee) upon request, all gifts and/or contracts with foreign sources or their agents.
Section 117 of the Higher Education Act of 1965, as amended (20 U.S.C. § 1011f) requires Cornell University to report certain gifts and contracts with “foreign sources” to the U.S. Department of Education (ED). The University has an obligation to report to ED certain information regarding gifts and contracts with “foreign sources.” The reports are due twice per year (on January 31, and July 31). All units and related entities – including corporate affiliates and identified subsidiaries – must comply with requests from the Division of Financial Services for information related to gifts and contracts.
Every institution in New York State authorized to award degrees, by either the Legislature or Board of Regents, is required by Section 207-a of the Education Law to file annually with the State Education Department a report of gifts valued at more than $100,000 that it has received from foreign governments, persons, or entities during the most recent fiscal year. Additionally, the CHIPS Act requires institutions to report annually financial support, including gifts and contracts, that exceed a $50,000 threshold received from countries of concern.
Policy Clarification and Interpretation:
These definitions apply to terms as they are used in this policy.
Central Reporting Offices: Designated administrative units of the university; specifically, for the purposes of this policy, Alumni Affairs and Development (Ithaca), Budget Office (Weill Cornell Medicine [WCM]), Center for Technology Licensing, External Relations (WCM), Global Operations (Ithaca), Joint Clinical Trials Office (WCM), Office of Sponsored Programs (Ithaca), and the Office of Sponsored Research Administration (WCM).
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 Entity: As defined by New York Education Law § 207-A, any legal entity created under the laws of a foreign government and any legal entity created under U.S. or state law if the majority of its stock is directly or indirectly owned legally or beneficially by one or more foreign governments, foreign persons, or foreign legal entities, or if a majority of the entity’s membership is composed of foreign persons or foreign legal entities, including agents of foreign legal entities.
Foreign Government: As defined by N.Y. Education Law § 207-A, any government other than the United States government or the government of a state or political subdivision thereof, including agents of foreign governments.
Foreign Person: As defined by New York Education Law § 207-A., any individual who is not a citizen or national of the United States or a trust territory or protectorate thereof, including agents of foreign persons.
Foreign Source (20 USC §1011f(h)(2)): Any one of (A) A foreign government, including an agency of a foreign government; (B) a legal entity, governmental or otherwise, created solely under the laws of a foreign state or states; (C) an individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; or (D) an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source.
Gift: Financial support provided to the university in a variety of forms, including, but not limited to, cash; marketable securities; and in-kind, such as tangible fixed assets and consumable commodities. A donor must enter into the transaction voluntarily and receive nothing (other than a token of appreciation) in exchange.
Subsidiary: Any entity that is owned or majority-controlled by Cornell University.
To comply with federal and state laws and reporting requirements, the university must collect and properly evaluate all gifts and contracts it receives from foreign sources to determine whether the federal or state reporting thresholds have been met. Accordingly, all members of the university community must submit semiannually to a designated university office (see below) accurate and timely reporting of gifts or contracts from any foreign source at the time the contract or gift is finalized (i.e., contract is fully executed, or gift is paid/received). Reports must include the value of each gift and/or contact. Gifts and contracts are valued differently. Gifts are valued and reported on the basis of the amount the University actually receives from the donor in the relevant reporting period. For example, a $2,000,000 pledge payable in $500,000 installments over four years would need to be reported $500,000 each year (assuming timely and complete payment of each installment), not as $2,000,000 in the year in which the donor made the pledge. By contrast, for contracts, the University must report the total value of the contract over its entire life in the year in which the University entered into the contract (e.g., a contract for $500,000 annually of goods and services over four years would be reported once in the year the contract was executed as $2,000,000). If the amount of a contract cannot be determined at the time of execution – for example, as a result of a volume-based contract – a good faith estimate of the contract value must be made using a reasonable valuation methodology based on available information. Guidance is available from DFS upon request. Estimates should err on the side of reporting (e.g., assume that all contingencies are fulfilled). When the anticipated contingent contract payments result in a materially greater amount than the original valuation it shall be reported in the ensuing cycle.
The Division of Financial Services in collaboration with the Office of Alumni Affairs and Development, Global Operations, Office of Sponsored Programs, University Counsel, Weill Cornell Medicine (WCM), and campus units, will prepare data for the state and federal foreign gift and contract reporting. This data will be reviewed by Global Operations and submitted by the Division of Financial Services, or other office designated by the Executive Vice President and CFO.
The following tables show the offices responsible for HEA 117 reporting and provide examples of the types of gifts and contracts they generally report. For further information on signatory, consult University Policy 4.2, Transaction Authority and Payment Approval, which supersedes the signatory information below.
These classifications are for the purpose of foreign gift and contract reporting. For information on revenue classification for financial purposes, see the Revenue Classification page on the Accounting website.
| Type of Agreement | Typical Circumstances/Use Guidelines | System/Office of Record | Signatory | Responsible for HEA 117 Reporting to DFS |
|---|---|---|---|---|
| Sponsored program agreement | Activities sponsored by an external organization including:
|
Research Administration Support System (RASS) | Office of Sponsored Programs (OSP) | Office of Sponsored Programs (OSP) |
| Research-related field trial grants | See product testing agreement. | |||
| Clinical trial agreements | Agreements for the evaluation of a substance or device. | RASS | OSP | OSP |
| Licensing agreements | Agreements in which Cornell grants rights to external organizations to make products or offer services that utilize Cornell’s intellectual property (such as patents, copyright materials, and plant breeders’ rights) or the use other related rights. | Center for Technology Licensing (CLT) | CTL | CTL |
| Material transfer agreements | Contracts that govern terms and conditions for the transfer of Cornell’s materials to external parties with compensation. | CTL | CTL | CTL |
| Testing agreements using Routine Product Testing Agreement | For Cornell to perform testing for external parties on a proprietary product or device under a client-developed testing protocol. | Colleges | Approved Colleges | Colleges |
| Testing agreements not using routine product testing agreements | For Cornell to perform testing for external parties on a proprietary product or device under a client-developed testing protocol, where client will not accept Cornell’s standard agreement, or it exceeds the allowable dollar amount. | RASS | OSP | OSP |
| Gifts |
|
Peoplesoft | Alumni Affairs and Development (AA&D) | AA&D |
| Memorandum of agreement and project agreements |
|
Icertis | Vice provost or college dean | Global Operations |
| Non-sponsored related -- Master service agreements and statements of work |
|
Icertis | College dean | Global Operations |
| Scholarship/ student sponsorship agreement | When a private company, government, or other entity enters into an agreement with the university to sponsor tuition of any level of student, and the payment is made directly to Cornell. | College | College dean | College |
| Barter agreement | Exchanging goods or services not denominated in any currency. Goods or services received should be recognized at the fair market value. This excludes agreements for student exchange. | College | College | College |
| Corporate membership agreement, using Counsel-approved template | An agreement supporting an activity or center, for which only de minimis tangible benefits (such as listings, newsletters, etc.) are returned to the member (e.g., industrial partnership programs, corporate sponsor programs, etc.). | AA&D | Center or program | AA&D |
| Real Estate-related |
|
Real Estate Office | Real Estate Office | Real Estate Office |
These classifications are for the purpose of foreign gift and contract reporting. For information on revenue classification for financial purposes please contact WCM Finance.
| Type of Agreement | Typical Circumstances/Use Guidelines | System/Office of Record | Signatory | Responsible for HEA 117 Reporting to DFS |
|---|---|---|---|---|
| Sponsored project agreement | Activities sponsored by an external organization including:
|
Office of Sponsored Research Administration (OSRA) | OSRA | Finance |
| Qatar Foundation programs | Activities sponsored by the Qatar Foundation in support of WCMC-Qatar, including:
|
Qatar Finance | College | Finance |
| Gifts |
|
External Affairs | External Affairs | Finance |
| Clinical trial agreements | Agreements for the evaluation of a substance or device. | Joint Clinical Trials Office (JCTO) | JCTO | Finance |
| Memoranda of agreement and project agreements |
|
Budget Office | Vice Provost Finance & Administration | Finance |
| Scholarship/ student sponsorship agreements | When a private company, government, or other entity enters into an agreement with the university to sponsor tuition of any level of student, and the payment is made directly to Cornell. | Financial Aid and Student Employment/Student Accounting | Financial Aid and Student Employment/Student Accounting | Finance |
| Barter agreements | Exchanging goods or services not denominated in any currency. Goods or services received should be recognized at the fair market value. | College | College | College |
| Real Estate-related |
|
Real Estate | Real Estate | Finance |
Contact the Division of Financial Services (see Contacts) for any necessary procedural information.
