E09 Income Generation - Sponsorship, Advertising, Trading, Partnership and Donations

1. Security protective marking

1.1. Not protectively marked.

2. Summary of changes

2.1.  The following changes have been made to this policy on 13 March 2012:

• References to the Director of Essex and Kent Support Services have been added;
• Terminology has been updated to reflect the structure of the new Kent Policing Model. 

2.2.  This policy is scheduled for review in July 2011.

3. Application

3.1. This policy applies to all Kent Police and police authority staff who are requesting sponsorship, partnerships or trading as defined in the policy.

4. Purpose

4.1. The purpose of this policy is:

• to ensure that the force has control of, and co-ordinates sponsorship and related opportunities and makes optimum use of opportunities in a manner that is transparent, legal and documented, and excludes organisations currently tendering to supply services to Kent Police and the Police Authority;
• to facilitate a reduction, by annual publications, in the Freedom of Information requests.

5. Introduction 

5.1.  Sponsorship has great potential to extend our service to the public. Not only can it be used to finance projects that we could not otherwise carry out, but there is the additional benefit of involving a wider sector of the public in the work of the force. However, the process is potentially complicated. Sponsorship should only be sought and accepted under clear and carefully defined conditions. Everyone involved must have a full understanding of what is being offered and what each party, to any agreement, will do.

5.2.  At no time do the words "partner" or "partnership" when reproduced in this policy or external funding contracts refer to a legal partnership. It is not intended to create legal relations between those referred to as "partners" hereafter and this point must be included in all contractual agreements concerning external funding, all of which must be in writing.

5.3.  Officers and support staff can deal with sponsorship on a localised basis, but it is important to keep sight of the needs of the force as a whole. Contractual matters must be referred to a Contracts Officer or the Legal Services Department, via the Partnership Development Officer. A major aim of this policy is to develop consistent, sustainable and professional partnerships.

5.4.  There is a separate policy on external funding available on the Intranet. Responsibility for external funding lies with the Force Bid Co-coordinator based in the Finance Department at Police Headquarters (HQ).

5.5.  Responsibility for co-ordinating sponsorship lies with the Partnership Development Officer based in the Finance Department at Police HQ, reporting to the Head of Finance.
 

6. The role of the Kent Police Authority 

6.1.  The Kent Police Authority is legally responsible for sponsorship, partnerships and donations.

6.2.  Proposals for individual sponsorship or partnership of more than £10,000 (in cash or kind) must be submitted to the Chief Executive of Kent Police Authority in writing for approval on behalf of the Authority. Proposals under this value must be approved by the Head of Finance.

6.3. All sponsorship and partnership proposals are reported to the Kent Police Authority on an annual basis, via the Audit and Governance meeting.

6.4. The Kent Police Authority need to be made aware of financial supporters in the local community.

7. Definitions - sponsorship, grant funding, partnership and donations 
 

7.1.  Sponsorship - a mutually beneficial arrangement where a private or public company is offered a means for promotion by the force in return for cash or in kind support of publications, events, equipment or other non-core function in accordance with this policy.

7.2.  Partnership funding - funding offered by the public sector, charitable or voluntary organisations: - for a mutually beneficial initiative where the Police are identified as the lead agency, e.g. £1,000 from Maidstone Borough Council to fund a crime reduction initiative. The partner may or may not be involved in implementing the project. Information detailing organisations involved in Partnership funding is given in Appendix A. Where the partners are handling the partnership funds they must take responsibility for VAT and other taxes and charges.

7.3.  Grant funding - where a funding body invites applications for moneys that are allocated against pre-planned objectives, e.g. SRB, Home Office or charity funds. The funding body is rarely involved in implementing the initiative but usually requires regular progress reports to audit projects.

7.4.  Donations - money, services or goods from companies, individuals or any other party for which no return is sought or given.
 

8. General principles 

8.1.  Reference should always be made to the Home Office Guidelines in matters concerning sponsorship, partnership and donations (See Appendix B).

8.2.  The operational and statutory functions of the force must not become dependent on sponsorship nor must its acceptance compromise the Chief Constable's authority to deploy resources in accordance with the force objectives and priorities.

8.3.  Sponsorship and partnership funding should bring added value to Divisions and Directorates. When seeking sponsorship, the suitability of the initiative to Kent Police’s objectives will be crucial and not the pursuit of funding for the sake of it. Priority should be given to the needs of the force, rather than those of the sponsor or partner.

8.4.  Kent Police cannot imply or give any endorsement to a partners/sponsors products and services.

8.5.  Agreements that could involve the force in additional costs, should be carefully assessed by proposers to ensure that the perceived benefits to the force are realisable and sustainable.

8.6.  All contractual arrangements must be adequate to protect the interests of the force. Example agreements are available from the Partnership Development Officer and all agreements should be forwarded to the Partnership Development Officer prior to signing.

9. Donations 

9.1.  A contribution made by the public/private sector for no specific purpose and for which no recognition is sought should be classified as a donation. In the unlikely event of no specific use being found for the donation it should be donated to the Kent People’s Trust given the permission of the donor.

9.2.  Should you find yourself in receipt of a donation, it is recommended that you contact the Partnership Development Officer, Finance Department, force HQ, for advice. It may be possible to provide recognition and advice on tax relief to the donor.
 

10. Sponsorship 

10.1.  Sponsorship must not be used to finance the force's core activities, i.e. statutory activities that the force would normally be expected to carry out and pay for. This core ruling does not apply to Partnership Funding.

 

10.2. Sponsorship agreements should not be entered into with companies and/or individuals that may bring the force into disrepute. The Partnership Development Officer should be notified of all potential sponsors. S/he will offer advice in the first instance. S/he will then notify Legal Services, Communications and the Head of Finance to ensure that there are no potential conflicts.

10.2.1.  Care must be taken when requesting or accepting sponsorship. If there is any risk that, as a result of sponsoring an event or activity, either the Kent Police Authority or Kent Police will be liable to pressure to make any other commercial decision with the sponsor, then sponsorship should be declined.
 
10.2.2. With this in mind, the income generation department is separated from Procurement Services. The Head of Procurement will advise whether an individual sponsorship will jeopardise any current or future procurement process.
 
10.2.3. Sponsorship will not be accepted from any existing supplier that has 12 months or less to run on their contract in order to ensure that it cannot influence future retendering.

10.2.4. Where a contract is due for renewal within the next twelve months, or where a contract is not held, but the Procurement Services can anticipate the potential for sponsors to become suppliers within twelve months of the sponsorship agreement, these should be avoided to prevent this being viewed as an influencing factor in the award of contracts.

10.2.5. All sponsorship meetings must be minuted and subsequent agreements must be documented in writing with a simple agreement by legal services.

10.3.  Sponsors or partners can display their organisation's name and logo on promotional material or equipment. However, if aligned with the force's name and logo, it must not be of a greater size and must adhere to the corporate image of Kent Police.

10.4.  Certain types of sponsorship wording may be classed as advertising and therefore a taxable supply incurring VAT for the force. It is therefore important to submit sponsorship proposals to the Partnership Development Officer via form 3261 to check that there are no VAT implications. Further guidance on this matter and sponsorship in general is available from the Partnership Development Officer, Finance Department, HQ.

10.5.  The sponsorship of community safety leaflets is an area of particular concern and all approaches by publishers to officers to provide free community safety literature, paid for by third party advertising, should be:

• Approved initially, in writing, by the Divisional Commander and Co-ordinator;
• Approved centrally by the Partnership Development Officer and the Corporate Communications department who will:

(i) Assess the force wide business case for the publication;
(ii) Approve the design and content of the publication;
(iii) Approve the list of organisations to be approached for sponsorship;
(iv) Record all such approaches made in Kent Police’s name;
(v) Approve the advertising rates set;
(vi) Enter into a sponsorship agreement with the publisher.

10.6. Guidance notes on the sponsorship of community safety publications via third party advertising are available from the Partnership Development Officer.

 

 

11. Advertising 

11.1.  External organisations can place advertisements in Relay and on the force intranet. Advertising rates are available from the Marketing team at force HQ.

11.2.  All potential advertisers must be vetted by the Communications team to ensure that there are no conflicts of interest.

11.3.  Funds raised from advertising will be used by the marketing and communications team.

12. Trading 

12.1.  The force trades through ‘www.policegiftshop.co.uk’ selling generic police branded merchandise and Kent Police merchandise.

12.2.  No product should detract from the aims and objectives of Kent Police, nor should they undermine the reputation of the force. All items should be made of good quality materials from a reputable supplier. All new products will be submitted by the Partnership Development Officer to the Director of Essex and Kent Support Services and the Head of Communications for sign off to ensure that products meet these standards.

12.3.  Funds raised from selling merchandise will be used to support crime prevention initiatives.

12.4.  Products should not breach any copyrights with regards to the items or slogans used.

13. Responsibility for external funding
 

13.1.  Responsibility for seeking external grant funding for force wide initiatives lies with the Bid Co-ordinator based in the Finance Department, force HQ and is covered in policy E08 available on the intranet.

13.2.  Responsibility for seeking sponsorship for force wide initiatives lies with the Partnership Development Officer based in the Finance Department, force HQ.

13.3.  At Division and Directorate level, responsibility for monitoring and controlling of assets lies with the Business Co-ordinator. Business Co-ordinators are not required to seek funding.

13.4.  Responsibility for seeking funding or sponsorship on Division or within Directorates will vary according to the wishes of the Head of Directorate or Divisional Commander. The person chosen should work closely with the Bid Co-ordinator and Partnership Development Officer.

 

14. Consultation for sponsorship approaches
 

14.1.  Consultation before approaching your sponsor or partner.

14.1.1.  Before funding is sought or bids are put together you should: consult with your Business Co-ordinator and Divisional Commander/Head of Directorate - to check that the proposed initiative is consistent with the Division/ Directorate business plans; submit form 3261, to the Partnership Development Officer, who will give advice on whether:

• the proposed type of funding is suitable and consistent with force policy;
• there are VAT implications arising from proposed benefits to a sponsor;
• an approach is to be made centrally or locally; and 
• the proposed sponsor is a suitable partner for Kent Police.

14.1.2.  Sponsorship involving vehicles should also submit form 3262. Both forms are available in Microsoft Word. Guidance on how the process for vehicle sponsorship is available from the Partnership Development Officer.

14.1.3.  Guidance notes on the sponsorship of community safety publications via third party advertising are available from the Partnership Development Officer.

14.2.  Once you have a sponsorship proposal or a project for grant funding they should be vetted by your business manager and then forwarded to the Partnership Development Officer.

15. Recording external funding

15.1.  Divisions / Departments should maintain inventory sheets for items that have been acquired as a result of grant funding, sponsorship or partnership. These should include details of how the item is being used and who is using it. Records should also be kept about the use of moneys derived from cash sponsorship, partnership and grant funding.

15.2.  The Finance Department at Headquarters will keep records of all assets that have been acquired as a result of sponsorship or partnership, for submission to the Home Office and Kent Police Authority.

15.3.  For information on accounting procedures for Donations, Sponsorships and Partnerships see Appendix C.

15.4 The Partnership Development Officer will publish, every April, the details of all sponsorships for the preceding financial year. This will include sponsorships in funds and kind made to the Kent Police Authority and Kent Police. No sponsorship should be accepted if it the details could not be disclosed under the Freedom of Information Act.  

16. Sources of help and advice 

16.1. The Partnership Development Officer, Finance Department Force HQ should be the first port of call for advice on sponsorship issues.

16.2. The Bid Co-ordinator Finance Department, Force HQ will advise on European and UK grant funding issues.

16.3. The force Finance Manager, Force HQ will also offer advice on the financial side of a funding bid.

16.4. The force Solicitor, Force HQ will be consulted before any sponsorship arrangements or bids are finalised. Advice can be provided on contractual agreements between Kent Police and potential sponsors from the Partnership Development Officer.

17. Appendix A - guidance notes to accompany external funding policy
 

17.1.  This document sets out the policy of Kent Police in relation to donations, sponsorship, partnership and grant funding.

17.2.  Public/Private sector organisations

17.2.1. Contributions from the following organisations are classified as Partnership Funding:

Public sector organisations:

• Police Authorities;
• Local Authorities (i.e. County Councils, District Councils, Unitary Authorities, Metropolitan Councils, Borough Councils);
• Fire Authorities;
• National Health Trusts;
• National Health Authorities;
• Central Government Departments;
• European Commission;
• Public Corporations (such as Development Corporations, BBC, Audit Commission);
• Sole Traders and Partnerships;

Voluntary sector organisations:

• Charities;
• Trusts;
• Foundations;
• National Lottery Funding.

17.3. Although these may be considered privately funded bodies any contributions from them are dealt with as partnership and not sponsorship. The above lists are not definitive.

17.3.1. Contributions from the following organisations are classified as sponsorship:

Private sector organisations

• Public Limited Companies;
• Private Limited Companies;
• Non-Government Organisations;
• Privatised Industries (e.g. British Telecom, British Gas, British Coal, Railtrack etc.).

The above list is not definitive.

17.4.  The integrity of funding providers

17.4.1.  Sponsorship/partnership agreements should not be entered into with disreputable companies, organisations and individuals since this could seriously impair the image of Kent Police and it is the responsibility of the individual negotiating the sponsorship to check these issues, although the Partnership Development Officer will assist if asked.

17.4.2.  The financial activities of companies who have not previously been involved in Police business can be checked through Companies House via the Fraud Squad. Items in the media can also provide an indication of malpractice or poor ethical standards within an organisation.

17.4.3.  When dealing with charities, it is wise to check the Charity Commission register for up to date information on the Charity. This is available on line at http://www.charity-commission.gov.uk.

17.5.  Acceptable sponsorship proposals within the non-core ruling

17.5.1.  Sponsorship is intended to help deliver something `extra', thereby releasing funds for core activities. This explains why sponsorship is only permitted for non-core policing activities.

17.5.2.  Example: It is acceptable for an outside body to sponsor mobile phones for Parish Constables but not to pay for their uniforms or the other expenses to which they are entitled under their normal terms of service.

17.5.3.  Example: We could accept a vehicle to improve the mobility of the parish constables but not vehicles for response work - this would clearly be part of the force's core vehicle fleet.

17.5.4.  The acceptability of receiving cash sponsorship or partnership depends upon the intended use of the moneys i.e. whether it is to be spent on an initiative that is core or non-core.

17.5.5.  Some proposals will be clearly acceptable or not acceptable to the Force. Advice on this point will always be available and, ultimately, the Assistant Chief Constable of the Local Policing and Partnerships Directorate will decide whether the item can be accepted.

17.5.6.  The table below provides further examples of acceptable and unacceptable practice:
 

17.6.  Grant funding opportunities

17.6.1.  Grant Funding opportunities should be co-ordinated centrally to derive maximum benefit for the Force.

17.6.2.  Where there are options for local bids, the Bid Co-ordinator or Partnership Development Officer will distribute information to Areas/Directorates about these opportunities.

17.6.3.  Maintaining a Proactive Approach To External Funding

This can be achieved by:

• Raising External Funding as a regular item on the Agenda of Business Co-ordinators' meetings and Crime Reduction Co-ordinators' meetings;
• Input into internal management courses;
• Encouraging Divisions and Directorates to set External Funding objectives;
• Ensuring that project managers are appointed to handle the initiative at an early stage.

17.7.  Other sources of funding

17.7.1.  The Kent People’s Trust: This is a Charitable Trust formed by the police with a number of public and private partners. The Trust offers a suitable funding mechanism where Police Officers are working in Partnership with the following:

• Community Organisations; 
• Voluntary bodies; and
• Charitable bodies.

17.7.2.  Further details are available from the Partnership Development Officer.

17.8.  Pump priming and partnership funds

17.8.1. The Chief Superintendent of Local Policing and Partnerships holds these two budgets internally. Pump Priming is available to fund Police overtime for initiatives that improve performance against Policing Plan objectives.

17.8.2.  Partnership Funds are available to promote partnership working and gain partnership funding for equipment. Other partners must contribute financially to the initiative and applications must have measurable outcomes and be linked to community safety plan objectives. Where the Police are handling the partnership funds they will handle all VAT receipts. Where the partners are handling partnership funds they must take responsibility for VAT and other taxes and charges.

17.8.3.  Application forms for both types of funding are available on Genesis and further details can be obtained by ringing the Business Co-ordinator of Local Policing and Partnerships at Force HQ.

17.8.4.  Completed applications should be sent to the Chief Superintendent of Local Policing and Partnerships at Force HQ.
 

18. Appendix B - Home Office code of practice on financial management 

18.1.  Gifts, loans of property and sponsorship must comply with conditions laid down by the Police Authority. The following points need to be given weight in the locally agreed conditions.

18.2.  Gifts, loans and sponsorship can be defined, for the purpose of this guidance, as the voluntary provision to the police service of non-public funds, services, equipment or other resources. They should not be accepted where there is a risk of offending the integrity of the police. For example:

• By accepting offers from sources which come under the direct scrutiny of the police; or
• Where the provider seeks endorsement of a product or service in order to gain preferential treatment in supplying or contracting goods and services to the police force; or
• To influence the direction of a particular policy or operation.

18.3.  It is unwise to use such arrangements to support police activities, which cannot readily be discontinued, since they can be withdrawn at any time on the initiative of the donor.

18.4.  Where offers of gifts, loans or sponsorship are made from more than one company in a competing market, care should be taken to demonstrate an even handed approach in accepting and/or rejecting any offer.

18.5.  Police authorities and forces should ensure that priority is given to meeting the needs of the Force rather than those of the sponsor, and should be careful to avoid the following:

• Potentially sensitive associations with inappropriate sponsors;
• Potentially sensitive associations with companies already in a contractual arrangement to provide goods or services to the force, which could be construed by competitors as preferential treatment;
• Projects which could distract effort from tackling agreed priorities;
• Projects of dubious or limited benefit in policing terms;
• Offers of gifts, loans or sponsorship with conditions attached;
• Offers of gifts, loans or sponsorship which could involve the Force in additional costs;
• Offers of equipment which is incompatible; 
• Inadequate contractual arrangements; and
• The risk of becoming unduly dependent on a facility liable to be withdrawn.

18.6.  Where publicity is sought, a commercial agreement is likely to be necessary.

18.7.  Police authorities will devise their own policy and procedural guidelines locally. The total value of gifts, loans and sponsorship accepted should not exceed a maximum equivalent value of 1% of Force budget annually. As long as it remains below that figure, the authority can assume that the value of gifts, loans and sponsorship will be ignored for the purposes of calculating Government grants to the Police Authority.

 

18.8.  The Police authority will maintain a record of the market value of all gifts, loans and sponsorship received. It will be for the Police Authority to demonstrate to the satisfaction of the external auditor, that its record provides a suitable account of the extent to which such additional resources have been received

18.9.  The Police Authority will ensure that all gifts, loans and sponsorship above an agreed sum are referred to the Authority for approval before they are accepted.

 
19. Appendix C - accounting for donations - practice note

19.1.  General procedures - A contribution made by the public/private sector for no specific purpose and for which no recognition is sought should initially be classified as a donation. It is strongly recommended that you contact the Partnership Development Officer, Finance Dept, FHQ for advice, as it may be possible to provide recognition and information on tax relief to your donor.

19.2.  Accounting for sponsorship - practice note - general procedures

All sponsorship, whether in the form of cash, goods or services should be referred to the Partnership Development Officer, Finance Department before acceptance, as there is a responsibility to hold a "sponsorship register" on behalf of the Force.

19.3.  Notification of sponsorship should be made using the relevant Sponsorship/Partnership Application Forms 3261/3262. These forms ensure that relevant staff consider the sponsorship application and can identify any problems at an early stage.

19.4.  Proposals for sponsorship above £10,000 (in cash or kind) must be submitted for approval to the Kent Police Authority. This will be done on your behalf by the Finance Department, upon receipt of the Sponsorship/Partnership Application Form 3261.

19.5.  If the sponsorship has been approved, a copy of the application form will be returned with any appropriate comments included.

19.6.  Accounting procedures for area business manager/support manager use:
 

1) Once approval has been received, a monitoring sheet for each project must be set up and maintained. This can either be kept manually or using a spreadsheet. 

2) This monitoring sheet should be kept for situations where sponsorship only moneys are received for a particular project, or where both sponsorship and partnership moneys are received for a particular project.

a) Where sponsorship only moneys are received - In this case, the monitoring sheet details the total moneys received from the sponsor(s) and identifies moneys spent to date, providing an indication of what moneys are left.

b) Where both sponsorship and partnership moneys are received - In this case, the monitoring sheet details the split between the sponsorship and the partnership elements. Any expenditure incurred should be split in the same proportion as the sponsorship and partnership elements. For example, if 60% of total funding for a project comes from the private sector (sponsorship) and 40% of total funding for the project comes from the public sector (partnership), then each item of expenditure should be split coded and recorded using this 60:40 split.

3) All sponsorship income and expenditure (as recorded on the monitoring sheet) must be coded to the relevant Sponsorship cost centre - these are prefixed by a "V" - and must not be credited or charged to the Department or Division cost centre you usually use. The Sponsorship cost centres have been specifically set up to identify sponsorship transactions to satisfy the accounting requirements of the Force. The usual subjective codes can be used as appropriate.

Budget managers should note that by using these procedures any unspent balances are automatically carried forward from one financial year to the next.

4) Should more detail be required on the sponsorship cost centre transactions, then project codes can be set up for each project (or specified projects) as necessary for your use on request to the Finance Department. 

5) Reconciliation of the account records to the Financial Management Information System (FMIS) report you receive for the appropriate Sponsorship cost centre must be carried out on a regular basis. 

6) Finance will request a copy of the monitoring sheet at the end of each financial year to ensure carry forward of funds into the next financial year is actioned correctly.

19.7.  Accounting for partnership - practice note - general procedures.

1) Requests for Partnership funding should be made using the relevant Sponsorship/Partnership Application Form 3261/3262. The form/s should be completed in accordance with the External Funding Policy guidelines and should be sent to the Partnership Development Officer, Strategic Crime Reduction Department, FHQ, for approval.

2) Once approval has been given, a copy of the form appropriately endorsed, will be sent to the Area for notification. Areas will similarly be notified of rejected applications for funding. A copy of the Application Forms will also be sent to the Finance Manager for information and allocation of funds.

19.8.  Accounting procedures for area business managers/support managers’ use.

1) On receipt of an approved Application Form, Finance Department will

a) contact the Divisional Business Co-ordinator and make arrangements for a project code to be issued for the scheme and

b) increase the Division's cash limit accordingly.

Note: A project code will be issued for each individual Partnership initiative and should be used for all expenditure and income relating to the scheme.

2) The Divisional business co-ordinator should set up a monitoring sheet (see attached) for each scheme to analyse expenditure and income and provide details of the Partners involved and the contributions being made. This analysis can be kept manually or by using a spreadsheet. 

3) Partnership initiatives funded by public sector organisations - expenditure and income in respect of schemes funded exclusively by the public sector should be coded to the Division cost centre followed by the appropriate subjective and project codes. Details should be shown under the Partnership heading on the monitoring sheet.

4) Partnership Initiatives funded jointly by private and public sector organisations.

i) Funding received from the private sector (excluding voluntary bodies), is classified as Sponsorship and should therefore be coded to the area sponsorship cost centre. In this respect, expenditure and income should be shown under the Sponsorship heading on the monitoring sheet.

ii) Funding received from the public sector and voluntary organisations should be coded to the Division cost centre and shown under the Partnership heading on the monitoring sheet.

iii) Expenditure incurred in respect of jointly funded initiatives should be coded and recorded in the same proportion as the income received from the various partners. For example, if 60% of total funding for a project comes from the private sector (Sponsorship) and 40% of total funding for the project comes from the public sector, then each item of expenditure should be coded and recorded using this 60:40 split.

5) The area business manager should ensure the account details shown on the monitoring sheet are reconciled with the area FMIS report on a regular basis.

6) Finance Department will request a copy of the monitoring sheet at the end of each financial year to support requests to roll-forward public sector funds and to ensure unspent private sector funds (i.e. sponsorship) are automatically carried forward.

NB. The introduction of Best Value accounting on 1st April 2001 means that Divisional Business Co-ordinators / Support Managers must use the best value codes when controlling sponsorship and partnership. If you experience any difficulty with this, you should refer to the Finance department.

20. Retention and disposal

20.1. Documents mentioned in the above policy will be retained for the period specified in the disposal schedule.

21. Equality impact assessment

21.1.  This policy has been assessed with regards to its race and diversity equality. As a result of this assessment, the policy has been graded as having a low potential impact.

21.2.  Attached is the latest equality impact assessment that forms part of the policy review process.