Any institution-related foundation not controlled by the institution has a contractual or other formal agreement that (a) accurately describes the relationship between the institution and the foundation, and (b) describes any liability associated with that relationship.  In all cases, the institution ensures that the relationship is consistent with its mission.

_X_Compliance                      ___Partial Compliance                       ___Non-Compliance

Narrative

St. Petersburg College is in compliance with this comprehensive standard because it adheres to the requirements established by Florida Statute describing the relationship between institutions and any direct support units.

Contractual Agreements with the College

St. Petersburg College has three supporting foundations:  The St. Petersburg College Foundation, Inc., The St. Petersburg College Alumni Association, Inc., and The Leepa-Rattner Museum of Art, Inc.  These component units are certified as community college direct-support organizations and are to operate in a manner consistent with the goals of St. Petersburg College and in the best interest of the state.  Criteria for defining the reporting entity are identified and described in the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards, Section 2100 and 2600.  The College’s Direct Support Organizations, as defined in Florida Statutes Section 1004.70 Community College Direct Support Organizations, are legally separate from the College but the College is financially accountable for them and reports their financial activities to the State of Florida.  The organizations are authorized the use of College property, facilities, and personnel services in accordance with the Florida Statutes Section 1004.70.  These entities receive, hold, invest, and administer property and make expenditures to or for the benefit of the College but are managed independently, and their powers generally are vested in a governing board.

The College adheres to the following statutes, rules, and by-laws that address direct support organizations:

(1)   Florida Statutes: Section 1004.70, Community college direct-support organizations

(2)   State Board of Education Administrative Rules: 6A-14.075, Receipt and Deposit Fund.

(3)   Board of Trustees Rule 6Hx23-1.33 and Procedure P6Hx23-1.33, Direct Support Organizations

(4)   Board of Trustees Rule 6Hx23-5.0711 Transfer of College funds to Direct Support Organization

(5)   The Direct Support Organizations’ by-laws and articles of incorporation

The St. Petersburg College Foundation, Inc. is chartered under Florida Statute Section 1004.70, serving as a direct-support organization of St. Petersburg College.  The Statute requires that the Foundation, Inc. be a not-for-profit Florida Corporation, incorporated under the provisions of Chapter 617, and approved by the Florida Department of State.  The College’s foundation was incorporated in November of 1979 as an IRS-approved 501 (c)(3) tax-exempt organization.  The College’s foundation promotes the practice of philanthropy through partnerships with the community for the advocacy of higher education in general and specifically at SPC, for:

• The provision of student scholarships, awards, and grants.
• The advancement of teaching and instructional services.
• New and improved facilities.
• State-of-the-art technology.

The St. Petersburg College Alumni Association, Inc. is a 501(c) (3) not-for-profit organization, incorporated January 18, 1973, which is also chartered under Florida Statute Section 1004.70 as a direct-support organization of the College.  The St. Petersburg College Alumni Association, Inc. serves as a direct link between the College’s graduates and their alma mater.  The object and purpose of this organization is to:

• Perpetuate and enlarge those ties of friendship and affection which were born among its members during their college days on the campuses of St. Petersburg College.
• Constructively and actively perpetuate the advancement of St. Petersburg College as a community educational institution.
• Provide an organization through which its members may demonstrate their continued loyalty and devotion to their Alma Mater by working together for its advancement.

The Leepa-Rattner Museum of Art, Inc. is a not-for-profit Florida Corporation, incorporated in July 16, 2001 as an IRS 501(c)(3) tax-exempt organization.  The Leepa-Rattner Museum of Art, Inc. is chartered under Florida Statute Section 1004.70 as a direct-support organization of the College. The general purposes for which this corporation is organized are educational, cultural and charitable purposes including:

• Serving as the St Petersburg College’s Art Museum Direct Support Organization.
• Promoting cultural and educational excellence by collecting, preserving, and displaying works of art of artistic merit that reflect or support the aesthetic concerns of Abraham Rattner, Allen Leepa, and other artists.
• Providing a facility for teaching, exhibiting and promoting of all aspects of the art spectra for the benefit of St. Petersburg College and the general public.
• Other purposes as may be determined from time to time to be in the furtherance of the general purposes of the museum.

Relationship between the Foundations and the Institution

The College’s Board of Trustees certifies the mission of the College’s three Direct Support Organizations and accepts the audits of the Foundations in accordance with Florida Statutes Section 1004.70 and Board of Trustees Rule 6Hx23-1.33.

St. Petersburg College Foundation, Inc.:  The College’s foundation is organized and operated exclusively to receive, hold, invest, and administer property and to make expenditures to, or for the benefit of, St. Petersburg College.  In Board of Trustees Rule 6Hx23-1.33 the College’s Board of Trustees authorizes the transfer of contributions received by the College to its foundation.

St. Petersburg Alumni Association, Inc:  The St. Petersburg College Alumni Association, Inc assists the College in worthwhile endeavors that promote the College’s name and image.

Leepa-Rattner Museum of Art, Inc:  The Leepa-Rattner Museum of Art, Inc. is organized exclusively for educational purposes and shall operate in a manner consistent with the mission and goals of St. Petersburg College and in the best interest of the state.  The St. Petersburg College Foundation, Inc. owns the Leepa-Rattner and Canadian art collections and has permanently loaned the collections to the College.  The College has permanently loaned these collections to the Leepa-Rattner Museum of Art, Inc.  The collections are held for exhibition to the public and for educational purposes, not for financial gain.

As further stated in the Board of Trustees Procedure P6Hx23-1.33, each Direct Support Organization submits the Audited Financial Statement Report, a copy of the Federal Internal Revenue Service Return of Organization Exempt from Income Tax Form 990, a purpose statement memo to the Board of Trustees, and a certification letter to the President, that the direct-support organization is in full compliance with the Florida Statutes Section 1004.70 and Board of Trustees Rule 6Hx23-1.33.  The financial statements for March 31, 2006 and 2005 for The St. Petersburg College Foundation, Inc., St. Petersburg College Alumni Association, Inc., and The Leepa-Rattner Museum of Art, Inc. were audited by an independent CPA firm.  These audited financial statements presented fairly, in all material respects, the financial position of the business activities of the three entities.  These documents are submitted each year to the President’s office by September 30^th for presentation at the October Board meeting.

      Excerpt from SPC Board of Trustees minutes, 09-18-06, on certification of DSO missions

   Excerpt from SPC Board of Trustees minutes, 09-18-06, on DSO audits

Organizational relationships between the institution and its direct support organizations.  In accordance with Florida Statutes Section 1004.70(2), “The chair of the board of trustees shall appoint a representative to the board of directors and the executive committee of each direct-support organization…  The president of the community college for which the direct-support organization is established, or the president’s designee, shall also serve on the board of directors and the executive committee of the direct-support organization.”

St. Petersburg College Foundation, Inc.:  An appointed group composed of professional, business and civic leaders vitally interested in higher education serves as the St. Petersburg College Foundation, Inc. Board of Directors to implement its primary mission, to “prudently manage all gifts including cash, securities, property, bequests and trust of life-income arrangements.”  In addition, pursuant to the Florida Statute, the College’s President and a member of the College’s Board of Trustees also serve on the St. Petersburg College Foundation, Inc. Board of Directors.  The Board of Directors consists of not less than seven or more than thirty Directors.  One Director is the Chairman of the St. Petersburg College Board of Trustees or his/her designee from the membership of the Board of Trustees; one Director is the President of St. Petersburg College; one Director is the Associate Vice President (AVP) for Financial & Business Services of St. Petersburg College; and one director is the Executive Director for St. Petersburg College Foundation, Inc., who serves as Secretary of the Board.  The College President, AVP for Financial & Business Services and Executive Director are ex-officio nonvoting members.  All of the College’s foundation staff members are College employees assigned to the St. Petersburg College Foundation, Inc. office.  Each request for disbursement of every scholarship, award, grant, academic program advancement, new construction, upgrade or furnishings for College facilities and technological improvements for the College, as well as every development activity and initiative for the St. Petersburg College Foundation, Inc. are prepared by its Business Manager and then individually evaluated and approved/rejected by the Executive Director of the Foundation and the President of the College.

St. Petersburg Alumni Association, Inc.:  The Association, Inc. is governed by a Board of Directors that meets five times annually.  The Board of Directors consists of not less than three members.  Board Members must be graduates of St. Petersburg College and one member of the Board is also a member of the SPC Board of Trustees.  The President of the College attends and participates in Board meetings and serves as an ex-officio member of the St. Petersburg College Alumni Association, Inc.  All recommendations for Board membership must be approved by the President.

Leepa-Rattner Museum of Art, Inc: The Board of Directors may have up to 30 directors and not fewer than 5.  Board directors receive no compensation but may be reimbursed for expenses associated with official duties.  Ex-officio, nonvoting Board members include the President of St. Petersburg College; the Executive Director of the St. Petersburg College Foundation; and the Provost of the Tarpon Springs Campus.

Institutional Liability Associated with the Foundations

St. Petersburg College Foundation, Inc. and the Leepa-Rattner Museum of Art Inc.  These two direct support organizations have separate liability insurance policies.  The Foundation, Inc. has general liability, commercial umbrella, automobile liability, and directors and officers liability insurance policies.  The Museum, Inc. has commercial general liability and commercial crime liability insurance policies.  Since the staffs of the direct support organizations are employees of St. Petersburg College, the SPC worker’s compensation coverage through the Florida Community College Risk Management Consortium (FCCRMC) is applicable.  Further institutional protection is garnered by the incorporated status of the direct support organizations.

St. Petersburg College also provides the resources necessary to cover the costs of the operation and administration of the St. Petersburg Foundation, Inc activities, including personnel (estimated value of $469,000 in 2006 and $296,000 in 2005), facilities (approximately $35,000 in 2006 and $20,000 in 2005) and administration (miscellaneous services and supplies estimated value of $10,000 in 2006 and $20,000 in 2005).  The College also provides salaries, a nominal operating budget and upkeep on The Leepa-Rattner Museum of Art, Inc.  An endowment maintained by the St. Petersburg College Foundation, Inc. is designed to provide the College the earned interest each year to assist in reimbursing these expenses.  Currently $2 million is in this account and a plan to increase the amount to $6 million by November 2006 is in force.  This will stabilize St. Petersburg College’s liability and provide the Museum assurance of continuance without operating funds from the College.

St. Petersburg College Alumni Association, Inc.  The Alumni Association, Inc. is a much smaller organization than the other direct support organizations.  As with the Foundation, Inc, and Museum, Inc, the employees supporting the Alumni Association, Inc are employees of St. Petersburg College and the SPC worker’s compensation coverage through the Florida Community College Risk Management Consortium (FCCRMC) is applicable.  Further institutional protection is garnered by the incorporated status of the Alumni Association, Inc.

As stated in the notes to the audited financial statements for the Alumni Association Inc., contributions in-kind from St. Petersburg College for donated personnel are estimated at $38,965 for 2006 and $32,655 for 2005.

Foundations’ Purpose Compared to the Institutional Mission

All of the direct-support organizations are committed to supporting the College in its mission “to provide accessible, learner-centered education for students pursuing selected baccalaureate degrees, associate degrees, technical certificates, applied technology diplomas and continuing education within our service area as well as in the State of Florida and other areas in programs in which the College has special expertise.  As a comprehensive, multi-campus postsecondary institution, St. Petersburg College seeks to be a creative leader and partner with students, communities, and other educational institutions to deliver enriched learning experiences and to promote economic and workforce development.”

St. Petersburg College Foundation, Inc. The St. Petersburg College Foundation, Inc believes in Changing the World – One Student at a Time.  To support the College mission of providing accessible education, the St. Petersburg College Foundation, Inc promotes the practice of philanthropy through partnerships with the community for the advocacy of higher education in general and specifically at SPC, for:

§         The provision of student scholarships, awards and grants.

§         The advancement of teaching and instructional services.

§         New and improved facilities.

§         State-of-the-art technology.

In support of the vision and mission of SPC the St. Petersburg College Foundation, Inc. accepts and prudently manages all gifts including cash, securities, property, bequests and trust or life-income arrangements.

The St. Petersburg College Foundation, Inc. has taken the challenge to raise awareness, dedication and funds to meet the needs of a growing number of people seeking to earn their educations at St. Petersburg College.  They are committed to student success through direct financial support for thousands of deserving and needy individuals, through enrichment for the College’s outstanding Faculty and the continued expansion of relevant programs.  In the Spring issue of SPC Today, the St. Petersburg College Foundation, Inc. stated that this 2005-2006 academic year, “donors have provided the link needed by hundreds of our students.  In fact, we are overjoyed to announce that more than $813,000 was given in scholarships and financial grants from the St. Petersburg College Foundation, Inc. to help students.  This amount is a 98 percent increase over what the College’s Foundation was able to provide 10 years ago.”

In the 2005-2006 fiscal years, the St. Petersburg College Foundation, Inc. received $2,271,575 in private donations for facilities projects at SPC, $250,887 for academic programs and $1,081,074 for our scholarship endowment fund.  Furthermore, through work of the St. Petersburg College Foundation, Inc, eligible donations may be increased significantly through one of the State of Florida matching fund programs.  The goal for 2006-2007 during the 75 Years and Growing Campaign is to provide $1 million in scholarships and financial grants to deserving SPC students.  The 75 Years and Growing Campaign Committee reported at the March 1, 2006 St. Petersburg College Foundation, Inc Board of Directors meeting, that with state matches, the contributions total over $16.5-million to date.  Additionally, at the St. Petersburg College Foundation, Inc. 2006 annual meeting, the Committee was informed that payroll deductions from College employees are up 245% since the start of the campaign.

In scholarships alone (disregarding financial grants), St. Petersburg College Foundation, Inc. awarded 1,078 scholarships in 2005-06, representing total dollars of $619,061.  Below is a graphic representation of scholarships awarded during the four previous fiscal years (Note: the fiscal year for the St. Petersburg College Foundation, Inc was changed in 2003-04, resulting in a shortened period).

Scholarships awarded by the St. Petersburg College Foundation, Inc

In addition, the Foundation, Inc. has raised money for the College’s Facilities Planning and Institutional Services Department.  These eligible donations have increased significantly through the State of Florida’s matching fund program, Facilities Enhancement Challenge Grant Program.  The table below depicts the amounts of private donations raised by the Foundation, and the amounts matched by the Enhancement Challenge Grant.

Facilities Enhancement Challenge Grant Program

The Foundation, Inc. has written and signed gift agreements with every donor which states how the donor would like his/her donations applied.

St. Petersburg College Alumni Association, Inc.  To support the College mission of providing accessible education, the St. Petersburg College Alumni Association, Inc. awards two scholarships -- The Charles Adams Scholarship and the Apollo Award.  In 1984 the St. Petersburg Junior College (SPJC) Alumni Association established the Charles Adams Scholarship in memory of 1977 SPJC graduate Charles Adams, who was a member of the alumni association's board of directors. He originally enrolled in SPJC in its founding year, 1927, but did not graduate. He returned to complete his degree 50 years later in 1977, the College's golden anniversary year.  The Charles Adams Scholarship is one award of $500 for each of two sessions.  The recipient must be enrolled full-time at SPC for each session that the scholarship is received.  The Association, Inc. annually selects the most outstanding graduating sophomore student for the Apollo Award.  Any degree-seeking student completing the requirements for graduation may apply to receive the Apollo Award at the spring ceremony. Students who graduated at any of the commencement ceremonies since the preceding spring ceremony also are eligible.  The winner of the highly prestigious Apollo Award receives an Apollo Plaque, a scholarship check for $1,000, a lifetime membership in the SPC Alumni Association, and a one-year honorary appointment to the SPC Alumni Association Board of Directors.  His/her name is inscribed on a permanent trophy at the College.

To support the St. Petersburg College mission of partnering with students and communities to deliver enriched learning experiences, the St. Petersburg College Alumni Association, Inc. hosts at least two events each year to which all paid members are invited.  The SPC Annual Alumni Luncheon has been in existence for many years and provides alumni an opportunity to hear the innovative advances at SPC from the President or a senior administrator as well as the opportunity to reconnect with old friends.  Last year’s event was at the EpiCenter, one of the College’s newest buildings, and included a tour of the new facility, with the advanced technology supporting the latest academic programs in computer networking and the innovative strategic planning center, the Collaborative Lab.  The other annual event is the Hall of Distinction dinner and celebration, held last year for the third time.  The purpose of the Hall of Distinction is to honor SPC graduates who have gone on to achieve notable accomplishments.  This evening event takes place at a local golf and tennis club and draws a different crowd than the luncheon.

     Excerpt from SPC Alumni Association Web site on the Hall of Distinction dinner

The members of the St. Petersburg College Alumni Association, Inc. receive two magazines each year from the College. In the magazines, there are forms asking alumni for information about themselves and for suggestions as to what additional benefits they would like the association to provide.  In addition, the Alumni Association, Inc. receives many telephone calls and notes from alumni with thoughts and suggestions as to what they expect.  Alumni also receive a monthly electronic newsletter and frequently take that opportunity to correspond with the Association, Inc., with suggestions for the association.  The SPC Alumni Holidays further support the mission of partnering with the community to provide enriched learning experiences through a travel program that provides both social and cultural activities as well as opportunities for learning enrichment.  Some of the travel destinations for 2007 include Southern Africa, China, and the Crystal Symphony Mediterranean cruise.

To help alumni demonstrate their loyalty to the College in constructive, productive ways that will support the institution’s mission and goals, the association maintains a communications link between the College and its alumni through valuable information and links posted on the St. Petersburg College Web site.  The following table depicts the various communication links that actively promote the advancement of St. Petersburg College.

Alumni Association, Inc. Web page links

Leepa-Rattner Museum of Art, Inc.  The Leepa-Rattner Museum of Art, Inc. commits to excellence in visual arts education, fosters aesthetic, critical and ethical thinking as a bridge to the future and nurtures interest in 20^th century art history by collecting, preserving and exhibiting the art of Abraham Rattner, Esther Gentle, Allen Leepa and their contemporaries.  The museum supports the mission of partnering with the community to provide enriched learning experiences by offering numerous events such as family workshops, hands on gallery, summer camps, and arts and cultural programs.

The Leepa-Rattner Museum of Art, Inc. presented six major exhibitions, one student exhibition and one benefit exhibition under the theme Celebrate the Arts through Our Changing Exhibitions, during the 2005-2006 season.  Exhibits included:  Fragile Florida: Watercolor Paintings by Taylor Ikin; 34^th Annual Exhibition of the Florida Watercolor Society; Nikos Kypraios: Icons; The American Arts & Crafts Home, 1900-1915: Selections from the Two Red Roses Foundation; Richard Florsheim: An Art Legacy; Drawn from Life: Work on Paper from the Freundlich Trust; 9^th Congressional High School Student Art Show; and, the For the Love of Art Benefit Exhibition.  Four of the major exhibits were organized by the Museum and one was a traveling exhibition from the Polk Museum of Art.  The sixth exhibit was an annual show organized by the Florida Watercolor Society.  This exhibit coincided with a conference held at Innisbrook attended by more than 400 participants which generated a local economic impact of more than $500,000.  The Nikos Kypraios exhibit came from Greece and was a companion event to the 100^th anniversary of Epiphany in Tarpon Springs.  The Arts & Crafts exhibit premiered the largest private collection of arts & crafts in the United States and brought national recognition to the Museum.

Abraham Rattner: Fête Bretonne (Brittany Festival, France), No. 41, 1924

In addition to publishing four issues of L’Artiste newsletter, which recently won a silver award in an advertising competition, in 2005-2006 the museum also published a 48-page catalogue for the Arts & Crafts exhibition, three  gallery guides:  Nikos Kypraios (with essay by international art critic Robert Morgan, New York), Richard Florsheim (with essay by Dr. Gus Freundlich, President of the Florsheim Art Fund), and Drawn from Life (with essay by Todd Behrens, Curator of Art at the Polk Museum of Art).

In 2005-2006 the Leepa-Rattner Museum of Art, Inc. acquired more than $280,000 of artwork through private donations.  Included are four sculptures from The Patricia and Thomas Lehnen Family Art Collection (including a Paolo Soleri bell now installed in the building); 10 Rattner paintings from Bernard and Florence Zipkin of Ossining, New York; 34 contemporary screenprints from the Mitchell Family Collection; a retrospective collection of paintings and prints from the Florsheim Art Fund; and 16 miscellaneous drawings, paintings and prints from various other donors.

     Excerpt from museum Web site

References