2024-05-15T16:43:59-05:00 2023-06-30 221478099 COHNREZNICK LLP 350 GRANITE STREET SUITE 1200 BRAINTREE MA 02184 990 2022-07-01 941392424 SPARTAN SHOPS INC SPAR 4089241901 ONE WASHINGTON SQUARE SAN JOSE CA 95192 CHARLIE FAAS PRESIDENT/INTERIM BOARD CHAIR 4089241901 2024-05-15 1 CHARLIE FAAS 999009999 0 JOLANTA TUCK CPA P01340068 7813803520 2024-04-28 0 AAL1 IAL1 2022 2023-04-26 12:10:37Z CHARLIE FAAS ONE WASHINGTON SQUARE SAN JOSE CA 95192 3328382 0 X SJSU.EDU/FABS/SERVICES/COMMERCIAL/SHOPS.PHP X 1956 CA TO PROVIDE AND MANAGE A CAMPUS BOOKSTORE, DINING SERVICES AND REAL ESTATE FOR SJSU . 7 3 0 3 0 0 10000 10000 2457096 3161121 42265 82268 0 17933 2509361 3271322 0 0 0 0 16346 0 0 0 0 3119490 6034812 3135836 6034812 -626475 -2763490 18602684 19500091 15990969 19595464 2611715 -95373 X THE ORGANIZATION'S MISSION IS TO PROVIDE AND MANAGE THE CAMPUS BOOKSTORE, DINING SERVICES AND CERTAIN REAL ESTATE PROPERTIES. SPARTAN SHOPS HAS AN AGREEMENT WITH BARNES & NOBLE COLLEGE BOOKSELLERS ("BARNES & NOBLE") FOR THE DAILY OPERATION OF THE SPARTAN BOOKSTORE AND WITH CHARTWELLS HIGHER EDUCATION ("CHARTWELLS") TO PROVIDE ALL DINING SERVICES TO THE SAN JOSE STATE UNIVERSITY ("SJSU") CAMPUS. SPARTAN SHOPS HOLDS AND ADMINISTERS ASSETS FOR THE ORGANIZATION'S OTHER POST-EMPLOYMENT BENEFITS ("OPEB") PLAN IN A FIDUCIARY FUND. 0 0 4538673 2144576 MANAGE SPARTAN DINING SERVICES FOR THE BENEFIT AND CONVENIENCE OF THE UNIVERSITY COMMUNITY. DINING SERVICES CONSISTS OF THE RESIDENTIAL MEAL PROGRAM INCORPORATED WITHIN THE COMMONS, RETAIL FOOD SERVICE OPERATIONS LOCATED ON SJSU MAIN CAMPUS, CONCESSION SERVICES AT THE EVENT CENTER, SJSU SOUTH CAMPUS AND HAMMER THEATER, AND CATERING SERVICES. 350154 384569 PROVIDE HOUSING SERVICES FOR THE BENEFIT AND CONVENIENCE OF THE UNIVERSITY COMMUNITY. WE PROVIDE 13 RENTAL HOUSING UNITS FOR FACULTY AND STAFF. 189740 639537 MANAGE SPARTAN BOOKSTORE. SPARTAN BOOKSTORE OFFERS COURSE MATERIALS AND RELATED ITEMS TO OUR STUDENTS AND CAMPUS COMMUNITY. 5078567 1 1 0 0 0 0 0 0 1 0 1 0 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 7 3 0 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 CA X X VIET ANH BUI 4089241901 ONE WASHINGTON SQUARE SAN JOSE CA 95192 CHARLIE FAAS PRESIDENT/INTERIM BOARD CHAIR 0.10 40.00 X X 0 291186 74331 PATRICK DAY DIRECTOR 0.10 40.00 X 0 263190 55520 TANVI KOTHARI DIRECTOR 0.10 40.00 X 0 140746 62583 BILL CAMPSEY SECRETARY AND TREASURER 0.10 40.00 X X 0 69672 198 NINA CHUANG DIRECTOR 0.10 X 0 0 0 JULIE STONE DIRECTOR 0.10 X 0 0 0 DHRUV VARSHNEY DIRECTOR 0.10 X 0 0 0 0 764794 192632 0 0 1 0 0 10000 10000 DINING SERVICES REVENU 722514 1600683 1600683 BOOKSTORE COMMISSIONS 459210 539537 539537 DINING CAPITAL INVESTM 722514 536332 536332 RENTAL REVENUE 531110 384569 384569 BOOKSTORE CAPITAL INVE 459210 100000 100000 3161121 66587 66587 72741 0 57060 72741 -57060 15681 15681 INTEREST INCOME FROM N 900099 10372 10372 7561 7561 17933 3271322 3168682 0 92640 1513623 1513623 443782 443782 195033 195033 700 700 19112 10806 8306 297908 297908 1764217 1764217 1145502 1135830 9672 97632 96632 1000 REPAIRS AND MAINTENANCE 522462 522462 SMALL EQUIPMENT 22798 22798 TAXES AND LICENSES 7520 6976 544 4523 4523 6034812 5078567 956245 0 1863234 2368514 1125487 1168971 972155 674452 200097 210210 20013732 10090467 11012307 9923265 2373408 4016183 1055996 1138496 18602684 19500091 655007 2077285 13288952 15393344 24131 25972 2022879 2098863 15990969 19595464 X -8400592 -10018638 11012307 9923265 2611715 -95373 18602684 19500091 X -2763490 1931 54471 X 0 1 X 1 0 X X X 1 SAN JOSE STATE UNIVERSITY 770414038 6 1 0 5078567 1 0 5078567 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 SCHEDULE A, PART I, LINE 12G, COLUMN (VI) SPARTAN SHOPS' PRIMARY EXEMPT MISSION IS TO PROVIDE AND MANAGE A CAMPUS BOOKSTORE, DINING SERVICES, AND REAL ESTATE FOR SAN JOSE STATE UNIVERSITY. ALL EXPENDITURES INCURRED IN PURSUIT OF ITS EXEMPT MISSION AND PROGRAMS ARE DEEMED "OTHER SUPPORT" FOR PURPOSES OF SCHEDULE A, PART I, LINE 12G, COLUMN (VI). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 2310000 2310000 1763726 1282101 481625 7402098 2441422 4960676 7837257 6246908 1590349 700651 120036 580615 9923265 OTHER POST-EMPLOYMENT BENEFITS ASSET 1083581 OPEB DEFERRED OUTFLOWS 54915 1138496 MEAL PLAN DEPOSITS 247217 DUE TO RELATED PARTY 1818789 OPEB DEFERRED INFLOWS 32857 2098863 X 3273253 1931 1931 3271322 0 3271322 5980341 0 5980341 54471 54471 6034812 PART IV, LINE 2B: THE ESCROW LIABILITY AMOUNTS ON FORM 990, PART X, LINE 21 CONSIST OF TENANT SECURITY DEPOSITS. THE DEPOSITS ARE REFUNDED TO THE TENANT UPON TERMINATION OF THE LEASE. PART X, LINE 2: SPARTAN SHOPS HAS EVALUATED ITS TAX POSITIONS AND THE CERTAINTY AS TO WHETHER THOSE TAX POSITIONS WILL BE SUSTAINED IN THE EVENT OF AN AUDIT BY TAXING AUTHORITIES AT THE FEDERAL AND STATE LEVELS. THE PRIMARY TAX POSITIONS EVALUATED ARE RELATED TO SPARTAN SHOPS' CONTINUED QUALIFICATION AS A TAX-EXEMPT ORGANIZATION AND WHETHER THERE ARE UNRELATED BUSINESS INCOME ACTIVITIES CONDUCTED THAT WOULD BE TAXABLE. MANAGEMENT HAS DETERMINED THAT ALL INCOME TAX POSITIONS WILL MORE LIKELY THAN NOT BE SUSTAINED UPON POTENTIAL AUDIT OR EXAMINATION; THEREFORE, NO DISCLOSURES OF UNCERTAIN INCOME TAX POSITIONS ARE REQUIRED. PART XII, LINE 4B - OTHER ADJUSTMENTS: OTHER POST-EMPLOYMENT BENEFITS EXPENSE 54,471. 0 0 0 0 0 0 0 0 0 CHARLIE FAAS PRESIDENT/INTERIM BOARD CHAIR 0 291186 0 0 0 0 0 44132 0 30199 0 365517 0 0 PATRICK DAY DIRECTOR 0 263190 0 0 0 0 0 44426 0 11094 0 318710 0 0 TANVI KOTHARI DIRECTOR 0 138284 0 1950 0 512 0 36932 0 25651 0 203329 0 0 PART I, LINE 3 THE ORGANIZATION'S PRESIDENT IS COMPENSATED BY SAN JOSE STATE UNIVERSITY (SJSU), A RELATED ORGANIZATION. SJSU ESTABLISHES THE COMPENSATION OF THE ORGANIZATION'S PRESIDENT BASED ON GUIDELINES OF THE UNIVERSITY AND THROUGH THE USE OF A COMPENSATION SURVEY OR STUDY. FORM 990, PART VI, SECTION A, LINE 3 SPARTAN SHOPS HAS CONTRACTED WITH BARNES & NOBLE COLLEGE BOOKSELLERS FOR THE MANAGEMENT OF THE DAILY OPERATIONS OF SPARTAN BOOKSTORE SINCE 2011. AS PART OF THE AGREEMENT, BARNES & NOBLE PAYS SPARTAN SHOPS A MINIMUM ANNUAL GUARANTEE OF THE APPLICABLE PERCENTAGE OF NET SALES, WHICHEVER IS GREATER, WITH BARNES & NOBLE RETAINING THE REMAINDER. SPARTAN SHOPS RECEIVED $539,537 IN COMMISSION FROM BARNES & NOBLE FOR THE FISCAL YEAR ENDED JUNE 30, 2023. SPARTAN SHOPS ENTERED INTO AN AGREEMENT WITH CHARTWELLS, A DIVISION OF COMPASS GROUP USA, TO PROVIDE AND MANAGE RESIDENTIAL MEAL PROGRAM AT THE COMMONS, RETAIL FOOD SERVICES OPERATION ON SJSU CAMPUS, CONCESSION SERVICES AT THE EVENT CENTER AND SJSU SOUTH CAMPUS, HAMMER THEATER AND CATERING SERVICES. THE AGREEMENT IS EFFECTIVE FROM JULY 05, 2018 THROUGH JUNE 30, 2037. FOR THE PERIOD FROM JULY 2018 THROUGH JUNE 30, 2022, SPARTAN SHOPS RETAINED ALL REVENUE FROM OPERATION AND REIMBURSED CHARTWELLS FOR THE COST OF BUSINESS (REFERRED TO AS A COST OF BUSINESS MODEL). COST OF BUSINESS INCLUDED ALL CHARTWELLS' LABOR, COST OF ALL PRODUCTS, MERCHANDISE, MATERIALS, SUPPLIES, AND THE COST OF ALL OTHER OPERATING EXPENSES INCLUDING DEPRECIATION FOR THE FIRST THREE YEARS AND EXCLUDING DEPRECIATION FOR THE CURRENT FISCAL YEAR. MANGEMENT FEE OF $400,000 WAS PAID ON YEAR 2 AND YEAR 2 ONLY. EFFECTIVE JULY 01, 2022, THE SERVICES TRANSITIONED FROM A COST OF BUSINESS MODEL TO A PROFIT LOSS BASIS. CHARTWELLS THEN BEGAN PAYING COMMISSIONS TO SPARTAN SHOPS BASED ON GROSS SALES IN ACCORDANCE WITH THE ESTBLISHED COMMISSION RATES. SPARTAN SHOPS RECEIVED $1,198,016 IN COMMISSION FROM CHARTWELLS FOR THE FISCAL YEAR ENDED JUNE 30, 2023. FORM 990, PART VI, SECTION A, LINE 7A THE SPARTAN SHOPS BOARD OF DIRECTORS RECOMMENDS A STAFF MEMBER AT SAN JOSE STATE UNIVERSITY ("SJSU") TO BE A VOTING MEMBER OF THE BOARD OF DIRECTORS. THE PRESIDENT OF SJSU WILL APPROVE THE STAFF MEMBER'S APPOINTMENT AS A MEMBER OF THE BOARD OF DIRECTORS. THE PRESIDENT OF SJSU ALSO APPOINTS ONE COMMUNITY MEMBER AND TWO FACULTY MEMBERS TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B IT IS THE RESPONSIBILITY OF THE PRESIDENT OF SJSU TO REVIEW AND APPROVE SPARTAN SHOPS' PROGRAMS AND BUDGETS AND ENSURE IT CONFORMS TO THE POLICY OF THE BOARD OF TRUSTEES OF THE SAN JOSE STATE UNIVERSITY. THE BYLAWS MAY BE AMENDED BY THE BOARD OF DIRECTORS THROUGH A MAJORITY VOTE BUT THE FINAL DECISION IS SUBJECT TO THE WRITTEN APPROVAL OF THE PRESIDENT OF SJSU. FORM 990, PART VI, SECTION B, LINE 11B COHNREZNICK, A PROFESSIONAL PUBLIC ACCOUNTING FIRM, AND SPARTAN SHOPS' FINANCE STAFF WORK TOGETHER TO GATHER THE REQUIRED TAX INFORMATION NECESSARY TO COMPLETE THE TAX RETURNS. THE INITIAL DRAFT RETURN IS REVIEWED BY COHNREZNICK. THE BOARD HAS DELEGATED THE REVIEW OF THE TAX RETURN TO SPARTAN SHOPS' FINANCE STAFF AFTER THE COMPLETION AND INITIAL REVIEW BY COHNREZNICK. SPARTAN SHOPS INTERIM BOARD CHAIR COMPLETES THE FINAL REVIEW OF THE FORM 990 BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS ESTABLISHED A POLICY THAT DEFINES CONFLICT OF INTEREST FOR BOTH BOARD MEMBERS AND EMPLOYEES AND STATES COMPANY BUYING ETHICS AND A GENERAL CODE OF ETHICS. AT THE BEGINNING OF EACH SEMESTER, QUESTIONNAIRES ARE GIVEN TO ALL BOARD MEMBERS TO DETERMINE IF A CONFLICT OF INTEREST STATUS HAS CHANGED. THE QUESTIONNAIRES ARE REVIEWED BY THE INTERIM BOARD CHAIR AND THE BOARD STAFF REPRESENTATIVE FOR ACCURACY AND COMPLETENESS. ANY CONFLICTS OR ISSUES WOULD BE REVIEWED AND DISCUSSED WITH THE APPROPRIATE BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION'S PRESIDENT IS COMPENSATED BY SAN JOSE STATE UNIVERSITY (SJSU), A RELATED ORGANIZATION. SJSU ESTABLISHES THE COMPENSATION OF THE ORGANIZATION'S PRESIDENT BASED ON GUIDELINES OF THE UNIVERSITY AND THROUGH THE USE OF A COMPENSATION SURVEY OR STUDY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST, AND POSTS ITS FINANCIAL STATEMENTS ON ITS WEBSITE. FORM 990, PART XI, LINE 9: OTHER POST-EMPLOYMENT BENEFITS EXPENSE 54,471. SAN JOSE STATE UNIVERSITY RESEARCH FOUNDATION ONE WASHINGTON SQUARE SAN JOSE CA 95172 946017638 FINANCIAL ASSISTANCE CA 501(C)(3) LINE 7 SAN JOSE STATE UNIVERSITY 0 THE TOWER FOUNDATION OF SAN JOSE STATE UNIVERSITY ONE WASHINGTON SQUARE SAN JOSE CA 95192 830403915 FINANCIAL ASSISTANCE CA 501(C)(3) LINE 7 SAN JOSE STATE UNIVERSITY 0 SAN JOSE STATE UNIVERSITY ONE WASHINGTON SQUARE SAN JOSE CA 95192 770414038 EDUCATION INSTITUTE CA 115 N/A 0 STUDENT UNION OF SAN JOSE STATE UNIVERSITY ONE WASHINGTON SQUARE SAN JOSE CA 95192 942830732 AUXILIARY SERVICES CA 501(C)(3) LINE 12C, III-FI SAN JOSE STATE UNIVERSITY 0 ASSOCIATED STUDENTS OF SAN JOSE STATE UNIVERSITY ONE WASHINGTON SQUARE SAN JOSE CA 95192 941156305 AUXILIARY SERVICES CA 501(C)(3) LINE 5 SAN JOSE STATE UNIVERSITY 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 0 1 0 0