Spartan Shops Inc

“In march 2011, spartan shops entered into an agreement with barnes & noble for the management of the daily operations of the spartan bookstore for a period of 10 years. Spartan shops extended their agreement with barnes & noble from july 1, 2021, to june 30, 2026, in july 2015. Under the extended agreement and subsequent amendment executed in december of 2018, the commission payment is 12% of all gross sales, up to $10 million and 13% of all gross sales over $10 million per year and 7% of all gross sales of first day and etextbooks. The minimum annual guarantee will be an amount equal to 90% of the calculated commissions for the prior contract year. Spartan shops received $512,033 in commissions from barnes & noble for fiscal year ended june 30, 2024. Spartan shops entered into an agreement with chartwells, a division of compass group usa, to provide the entirety of the food service programming on the sjsu campus. This includes catering, food vending, residential dining, concessions and/or all food preparation, serving dining and storage on the main and south campus, as well as catering services to our offsite hammer theatre. The agreement is effective from july 5, 2018 through june 30, 2038. 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 year four. Management fee of $400,000 was paid on year two and year three only. Effective july 1, 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 established commission rates. Spartan shops received $869,466 in commission from chartwells for the fiscal year ended june 30, 2024. Chartwells is committed to fund an investment in spartan shops' dining program through june 30, 2042.”

“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.”

“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.”

“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.”

“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.”

“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.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available upon request, and posts its financial statements on its website.”

“Other post-employment benefits expense -281,257.”