Accounts Payable - Procedure 90300

Procedure 90300: Sponsorship Approvals

Contacts and revision dates:

Overview 

Sponsorships are business transactions where a department gives financial consideration to an organization, in return for measurable benefits (e.g., event participation, signage) that clearly promote the department’s missions. Personal benefit (tickets, meals, compensation) should not be gained by an individual. Sponsorships are deemed unallowable, unless there is a clear benefit to the department’s mission. If a clear benefit is not established, sponsorships cannot be paid from university funds. Departments can use foundation funds for these types of payments.    

Procedures

1. Download the Sponsorship Approval Form found on the Controller’s Office website in the Forms section on the Accounts Payable tab.
2. Complete all sections of the form.
3. The department must include the amount of the sponsorship payment.
   1. Sponsorships up to $5,000 must have the Department Head’s signature.
   2. Sponsorships over $5,000 must have the Department Head's signature and Senior Management or the Dean’s signature.
4. The department must include the value of promotional tables, event registrations, and other consideration received in exchange for the sponsorship.
5. If the sponsorship amount is more than the value received, the department must describe how the event or conference will benefit the department's mission.
6. The certification statement certifies the department has no conflict of interest in the selection of this sponsorship, no individual will receive personal or financial benefit, and gifts of any kind from the organization to individuals have been declined.
7. Upon completion of the form, the department should enter a HokieMart Requisition, and attach the Sponsorship Approval Form and any other documentation or information available.
8. Accounts Payable will review the form before processing the sponsorship payment. Payment processing will be delayed if the form is not attached or there are questions regarding the benefits to the department’s mission.

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