Reporting Foreign Gifts and Contracts Policy

Policy Category	Issuing Authority	Responsibility	Publication Date	Next Review Date
Financial	Vice President for Finance	Finance & Administration	06/03/2026	06/03/2029

Policy Statement & Background:

Stony Brook University (“University”) is committed to complying with applicable federal and state reporting requirements for foreign gifts, contracts, foreign ownership or control, and other covered foreign financial support. These requirements promote institutional transparency and support the University’s ability to identify, evaluate, document, and disclose foreign-source activity in accordance with applicable laws, regulations, regulatory guidance, and University guidance.

This policy establishes the framework for identifying, reviewing, documenting, and reporting information necessary to comply, as applicable, with (1) Section 117 of the Higher Education Act of 1965 (20 U.S.C. § 1011f), (2) the National Science Foundation’s Foreign Financial Disclosure Report (“NSF FFDR”) requirements under the CHIPS and Science Act of 2022 (42 U.S.C. § 19040), and (3) New York Education Law Section 207-a. This policy establishes responsibilities and high-level compliance expectations.

Scope

This policy applies University-wide and extends to all schools, colleges, departments, centers, institutes, and administrative units (“University Units”). This policy also applies to foundations, related entities, affiliates, subsidiaries, intermediaries, and other arrangements affiliated with or benefiting the University to the extent their activities must be considered under applicable foreign-source reporting requirements.

Policy:

It is the policy of Stony Brook University to identify, evaluate, document, and report covered foreign-source transactions, relationships, and disclosures in a complete, accurate, and timely manner, consistent with applicable laws, regulations, regulatory guidance, and other legal obligations. University Units and, as applicable, related entities and intermediaries must provide timely, complete, and accurate information to the Office of the Controller, or another office designated by the Vice President for Finance (“Responsible Office”), to support the University’s review, determination of reportability, and required disclosures under this policy.

Responsibilities

Centralized Institutional Reporting and Coordination:

The Responsible Office is responsible for coordinating institutional reporting under this policy on behalf of the University. This includes coordination and communication with University Units, related entities, intermediaries, and other University offices, including but not limited to the Office of Grants Management, Advancement, the Procurement Office, the Office of General Counsel, and other offices with responsibility for transactions or activities covered by this policy.

The Responsible Office will compile, review, and submit, or coordinate submission of, required reports and disclosures in accordance with applicable laws, regulations, and regulatory guidance.

Responsibilities of University Units, Related Entities, and Intermediaries:

All University Units and, as applicable, related entities and intermediaries are responsible for:

Identifying transactions, arrangements, and relationships that may fall within the scope of this policy;
Maintaining sufficient supporting records and documentation;
Providing timely, complete, and accurate information to the Responsible Office upon request or pursuant to applicable University procedures or guidance;
Coordinating with the Responsible Office on classification, follow-up, and other related efforts to support accurate and complete reporting and disclosure;
Exercising reasonable due diligence in determining whether a transaction involves a foreign source, including where an intermediary, agent, affiliate, subsidiary, or related entity may be involved; and
Maintaining appropriate internal controls to support compliance with this policy.

Applicable Federal and State Reporting Regimes

Higher Education Act Section 117

Section 117 requires the University to disclose biannually to the U.S. Department of Education when it is owned or controlled by a foreign source, or when it receives a gift from or enters into a contract with a foreign source valued at $250,000 or more, alone or in combination with all other gifts from or contracts with that same foreign source within a calendar year. Transactions must be evaluated under the governing statute and current U.S. Department of Education guidance, including rules relating to aggregation, attribution, intermediaries, valuation, and ownership or control.

CHIPS and Science Act - NSF FFDR

The CHIPS and Science Act of 2022 requires each institution of higher education that receives NSF funding to annually disclose current financial support, including gifts and contracts, received directly or indirectly from a foreign source associated with a Foreign Country of Concern, when the value is $50,000 or more from that source during the annual reporting period (July 1 through June 30), whether through a single transaction or in the aggregate. Transactions must be evaluated under NSF FFDR requirements, including those relating to foundations and related entities, intermediaries and agents, annual negative reporting, and record retention.

New York State Education Law Section 207-a

New York Education Law Section 207-a requires the University, as an institution of higher education authorized to award degrees in New York State, to report gifts received from foreign sources when the value exceeds $100,000, considered alone or in combination with all other gifts from that same source during the University’s fiscal year. The law broadly defines “gift” to include any endowment, gift, grant, contract, award, or property of any kind. Transactions must be evaluated and reported in accordance with the statute and applicable New York State Education Department guidance.

Record Collection, Retention, and Coordination

University Units and, as applicable, related entities and intermediaries must collect and maintain documentation sufficient to support compliance with this policy and applicable reporting requirements. Documentation must be provided upon request to the Responsible Office. Records must be maintained for the period required by applicable law, agency and sponsor requirements, record-retention rules, and applicable University and SUNY policies.

Procedures and Guidance

The Responsible Office may issue procedures, forms, guidance, training materials, calendars, and other administrative materials to support ongoing compliance with this policy. Such materials may address intake, review, thresholds, timelines, documentation standards, roles and responsibilities, recordkeeping, and submission processes.

Definitions:

These definitions apply as terms are used in this policy. Where a term has a specific meaning under applicable law, regulation, or agency guidance, the governing definition controls for purposes of the corresponding reporting requirement.

Contract:

Section 117: Under Section 117, a contract means 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 party.
NSF FFDR: Under NSF FFDR, a contract means a source of financial support that does not fall under the definition of a gift.

Foreign Country of Concern: Under current NSF FFDR guidance, a Foreign Country of Concern means the People’s Republic of China, the Democratic People’s Republic of Korea, the Russian Federation, the Islamic Republic of Iran, and any other country determined by the Secretary of State to be a Country of Concern.

Foreign Government: Under New York Education Law Section 207-a, a foreign government means any government other than the United States government or the government of a state or political subdivision thereof and shall include an agent of such government.

Foreign Legal Entity: Under New York Education Law Section 207-a, a foreign legal entity means (i) any legal entity created under the laws of a foreign government, or (ii) any legal entity created under the laws of the United States or of any state if a majority of the ownership 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 its membership is composed of foreign persons or foreign legal entities. The term also includes an agent of such legal entity.

Foreign Person: Under New York Education Law Section 207-a, a foreign person means any individual who is not a citizen or national of the United States or a trust territory or protectorate thereof, including an agent of such individual.

Foreign Source:

Section 117: Under Section 117, a foreign source means (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; and (D) an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source.
NSF FFDR: Under the CHIPS and Science Act of 2022, foreign source has the same meaning as under Section 117.

Gift:

Section 117: Under Section 117, a gift means any gift of money or property.
NSF FFDR: Under NSF FFDR, gift means any gratuity, favor, discount, entertainment, hospitality, loan, forbearance, license, special access, equipment time, samples, research data, or other item having monetary value. A gift also includes services as well as gifts of training, transportation, local travel, lodging, meals, research hours, whether provided in-kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has occurred. A gift by definition is given without expectation of anything in return.
New York State Education Law Section 207-a: Under New York State Education Law Section 207-a, a gift means any endowment, gift, grant, contract, award or property of any kind.

Intermediary:

Section 117: Under Section 117 guidance, an intermediary may be a legal entity other than an institution that receives a gift originating from or enters into a contract with a foreign source, and then passes to an institution part or all of the benefit of the gift or contract. Such entities may operate under the auspices of, or on behalf of, an institution.
NSF FFDR: Under NSF FFDR guidance, an intermediary includes:
- An individual or entity other than an Institution of Higher Education that receives a gift from or enters into a contract with a foreign source and then passes part or all of the support from the gift or contract to the Institution of Higher Education; or
- An individual or entity other than a foreign source that sends support from a gift or contract to an Institution of Higher Education on behalf of a foreign source.

Ownership or Control: Under Section 117 guidance, ownership and control are evaluated consistent with the U.S. Department of Education’s Title IV eligibility definitions. Control means the direct or indirect power to direct or cause the direction of the management and policies of a person, whether through voting securities, contract, or otherwise. Ownership or ownership interest means a direct or indirect legal or beneficial interest in an institution or legal entity, which may include a voting interest or a right to share in profits.

Related Entity: Under NSF FFDR, related entities include entities such as any educational, cultural, or language entity.

Responsible Office: For purposes of this policy, the Responsible Office is the Office of the Controller, or another office designated by the Vice President for Finance, responsible for coordinating administration of this policy and related institutional reporting.

University Unit: For purposes of this policy, a University Unit is any school, college, department, center, institute, administrative unit, or other operational component of the University.

Contact:

Additional information about this policy is available here:

Office of Administration & Finance

221 Administration Building

Stony Brook, NY 11794

(631) 632-6100