Departmental Sponsorship Policy

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Last revision: June 2011
This document last modified: January 2013

Table of Contents

Context
1. Policy Objective
2. Policy Statement
3. Application
4. Policy Requirements
5. Compliance
6. References
7. Appendix A: Frequently Asked Questions

Context

The department occasionally receives requests for financial support to sponsor activities within the community.  These requests may take the form of donations, funding award programs, sponsoring contests or events, or purchasing token symbols or memorabilia.

It is important to understand that by declining these sponsorship requests, the department is not refusing to support the community.  The department supports communities through a wide variety of activities and programs as approved and allocated by Parliament and Treasury Board.  By maintaining this approach the department ensures control and accountability over public funds entrusted to it.

1. Policy Objective

To clarify the department’s position with respect to requests for financial support for sponsoring community activities, including donating funds, on a local or national basis.

For the purpose of this policy, sponsorship is defined as the payment of funds that do not otherwise qualify under the terms and conditions of a grants and contributions program, or for which there is no receipt of goods or services to the department for operational needs.

2. Policy Statement

The department does not support the payment of sponsorship costs as there is no supporting legislative framework that provides it with the necessary authority. Spending authority is provided only under the terms and conditions of grants and contributions programs, or under operating and maintenance funds.

Requests for financial support must conform to the mandate and objectives of the department’s programs and authorities, or otherwise be declined. In addition, payments under grants or contribution programs must comply with the Treasury Board approved terms and conditions for the applicable program.

3. Application

This policy will apply to Human Resources and Skills Development Canada (hereinafter referred to as HRSDC, the “Department” or “Departmental”).

4. Policy Requirements

4.1.1 Requests for financial support must be given consideration within existing budgetary mechanisms. Payments are justified if they meet the department’s mandate and conform to the objectives, policies, and terms and conditions of the particular program.

4.1.2 Expenditures considered under grants and contributions programs must be paid only in accordance with the Treasury Board Secretariat’s Policy on Transfer Payments and the terms and conditions approved by Treasury Board for the particular grant or contribution program involved. Further information may be obtained from the Departmental Terms and Conditions website.

4.1.3 Expenses under operations and maintenance are used to pay for general operation and administration of the responsibility centre for which the funds were allocated.

4.1.4 Expenditures for conferences, hospitality, membership fees and the pride and recognition program are paid from operating and maintenance funds under the requirements of the applicable policy.  Sponsorship activities, including donations, are not permissible under these policies.

4.1.5 Ex-gratia payments are NOT an option. Ex-Gratia payments are special discretionary payments, made in the public interest, as an act of benevolence for loss or expenditure incurred for which there is no legal liability on the part of the Crown.  Generally, an ex-gratia payment is made to compensate staff or other persons assisting the Crown for a loss occasioned by damage to personal effects, or to real or personal property. Sponsorship activities are NOT one of the allowable reasons for offering this vehicle.

5. Compliance

5.1.1 This policy must be applied in conjunction with the Treasury Board Policy on the Duty to Accommodate Persons with Disabilities in the Federal Public Service.

6. References

• Treasury Board Directive on Claims and Ex Gratia Payments.

7. Appendix A: Frequently Asked Questions

Q. My ADM will be attending a conference hosted by a non-governmental organization. The ADM has been asked to sponsor the attendance of two delegates that cannot otherwise afford to attend the conference themselves. Can my ADM provide the required money?

A. Payments of this nature are sponsorship in its simplest form. There is no authority for this type of payment unless there is a provision under the terms and conditions of a grant or contribution program. As the department receives no goods or services, operating and maintenance funds cannot be used. As such, your ADM cannot provide money for the purpose of sponsoring delegates to an outside conference.