Integrated CSU Administrative Manual

CSU POLICY

Section:  GENERAL

Section 1000 Policies

Policy Number:  1202.00

Policy Title: Athletics Trade Usage (Trade Out)

Policy Effective Date: July, 1, 2012

Last Revision Date: July, 1, 2012


(see revision history)

POLICY OBJECTIVE

Ensure athletic trade usage, or trade outs, are recognized as assets of the university and managed and safeguarded accordingly.

 

POLICY STATEMENT

Trade usage, or trade out, transactions represent an exchange of goods, materials, or services intended to reduce costs for the campus. Such transactions should adhere to all laws and policies, including adequate recordkeeping, for other campus contractual obligations.

It is a fairly common practice in athletic programs to trade game tickets, media time and advertising, and other services and intangible benefits for cars, golf, airline tickets, hotel rooms, restaurant meals and other tangible benefits. This type of bartering is considered “trade usage” (or “trade out”) and should be carefully monitored and recorded.

Government Code 13402 and 13403 require a system or systems of internal accounting and administrative controls so that reasonable assurances can be given that measures to safeguard assets, check the accuracy and reliability of accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies are being followed. The elements of a satisfactory system of internal accounting and administrative control include authorization and recordkeeping procedures adequate to provide effective control over assets.

The CSU is committed to following all applicable laws and regulations, including those laws and regulations that address bartering for the exchange of goods, services, or assets. Campuses may enter into barter agreements with another entity for:

  1. Assets/goods provided for services received;
  2. Assets/goods provided for assets/goods received;
  3. Services provided for assets/goods received;
  4. Services provided for services received;
  5. The use of fixed assets (property, plant, and equipment) for assets/goods or services received; or
  6. The use of fixed assets (property, plant and equipment) received in exchange for the use of fixed assets provided; however, the transfer of ownership of fixed assets under barter agreements is prohibited.

Benefits of the trade usage should not accrue to the personal benefit of any university faculty, staff or student due the potential of the trade usage becoming taxable income to the individual. A personal benefit on a university faculty, staff or student may be found where the value of the benefit received by the university exceeds the value of the benefit provided by the university. For this reason, all trade usage agreement must be reported to the campus designee for Gifts to Agency, for determination if the trade usage agreement constitutes a personal benefit to a faculty, staff or student. Trade usage agreements also may be reportable to university advancement offices depending on the individual policies of the campus. Trade usage agreements are potentially quid pro quo contributions when the value of the items traded exceed the value of benefit provided by the university.

Trade usage agreements must be accomplished in strict accordance with this and related existing university policies and procedures related to contracts (see section 1200). Athletic department heads shall be responsible for the full use, monitoring and reporting of trade usage activity originating in their respective areas. Trade usage agreements between the university and non-university entities are contractual obligations and can only be executed by university staff with specific delegation of authority for such agreements. The department or division eligible to use the traded item or service is responsible for the monitoring and implementing the usage of the product traded and maximizing utilization of the trade benefits to the university. These records must be maintained in accordance with the campus records retention/disposition schedule.

Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer

Approved:
March 22, 2012

 

Ephraim P. Smith
Executive Vice-Chancellor/Chief Academic Officer

Approved:
March 22, 2012

 

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

 

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

Example of Trade-Out Documentation: A hotel wishes to provide 100 rooms to be used in exchange for the display of a hotel corporate logo being displayed on the gymnasium wall. Prudent campus practice would be to determine the fair market value of the rooms and offer hotel benefits consistent with other sponsorships at that level. A trade usage agreement fully documenting the arrangement is consummated according to campus policies and delegations of authority. The department or division eligible to use the hotel rooms must monitor the trade and is responsible for implementing a mechanism for tracking, documenting and maximizing utilization of the trade benefits to the university.

Related Principles:

 

 

Sound Business Practices:

 

Laws, State Codes, Regulations and Mandates:

 

COGNIZANT OFFICE(S)

CO Manager:

Mr. Ray Murillo
Associate Director, Student Programs
CSU Office of the Chancellor
rmurillo@calstate.edu


Subject Expert:

Mr. George Ashkar
Assistant Vice Chancellor/Controller, Financial Services
CSU Office of the Chancellor
gashkar@calstate.edu

 

Affinity Group:

 

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