Congress enacted section 117 of the Higher Education Act, as amended, (Section 117) mandating financial transparency of institutions of higher education (institution) through required reporting of gifts from and contracts with a foreign source. Applicable institutions must file a disclosure report by one of the two annual reporting deadlines, January 31 or July 31, whichever is sooner, once the reporting obligation has been triggered. Section 117 helps to raise awareness of potential foreign influence on college campuses which could help stakeholders assess, detect, and respond to potential threats to U.S. academic and research pursuits, free speech on campuses, and national security. In 2019, the Office of the General Counsel assumed responsibilities from Federal Student Aid (FSA) for primary oversight of Section 117 reporting. In October 2023, primary oversight responsibilities were formally delegated back to FSA. The objective of this inspection was to evaluate FSA's oversight of institutions' reporting of foreign gifts and contracts under Section 117. To answer this objective, the authors reviewed FSA's oversight activities, along with FSA's monitoring plan, policies, and procedures related to its oversight of institutional reporting under Section 117. The authors also determined if FSA is accurately posting the data it receives from institutions. The Office of the General Counsel found that FSA's oversight of institutions' reporting of foreign gifts and contracts under Section 117 needs improvement. If FSA does not have effective controls in place to help ensure institutional compliance with Section 117, executive branch agencies, policymakers, and the public will not have complete and accurate information on foreign funding being provided to U.S. postsecondary institutions. This report provides six recommendations to improve FSA's oversight of institutions' reporting of foreign gifts and contracts under Section 117.