Three Rivers foundation airs grievances against school officials

POPLAR BLUFF, Mo. -- What was expected to be a routine report Wednesday from Three Rivers College's oldest fundraising organization turned into an hourlong airing of grievances against the school's top officials, who recently requested and have been denied a detailed accounting of the organization's financial records.

It remains to be seen how the pair will move forward from the latest demonstration of a contentious relationship.

"For the past two years the (Three Rivers Community College) Foundation has absolutely been excluded from every college event and every meeting about fundraising," foundation executive director Judy Scott told the board of trustees during its monthly meeting at the Tinnin Fine Arts Center.

Scott said she was angry and frustrated by the administration's treatment and described letters from attorneys requesting the foundation's federal tax filings for the past 10 years as "hateful, petulant and childish."

Three Rivers President Dr. Devin Stephenson denied the accusations, saying later that administrators and trustees were "appalled" at the presentation.

During the meeting, trustee Darren Garrison responded by saying Scott chose the wrong way to address any possible problems.

"This was in no way ever meant to be a public spanking," Garrison told Scott of the foundation's invitation to speak at this month's meeting, following similar invitations to the booster club and Three Rivers Endowment Trust.

This meeting was an improper venue for the problems to be presented, he said, adding that he and trustee Phil Davis took "the same chewing for two hours," when they attended a foundation meeting.

"This whole situation can be described as petulant, childish and hateful on all sides," Garrison said.

Scott said the college insists on transparency and she refused to pretend.

She believes the college has received all documents to which it is legally entitled. During Wednesday's meeting, she read information from a college audit that stated the foundation is a "legally exempt component" and "independent of the college in all respects" with its assets not owned by the college.

The request of these IRS filings, past audits and other documents is routine, contends Stephenson. He provided a copy of a 2009 IRS filing that showed the foundation had land, buildings and equipment valued at about $3.2 million and unrestricted net assets of approximately $552,000.

"I think it's very clear they are not going to give us the documents," Stephenson said following Wednesday's meeting. "We're going to continue to pursue acquisition of those documents and cooperation with the foundation. ? At this point, the institution won't be asking them for the information anymore."

Part of the foundation's issue with the college stems from the way the information was requested, according to Scott. She has said the organization will provide the Daily American Republic with a copy of its latest audit.

Lawyer Paul Kidwell contacted the foundation's chairman in a letter dated June 21 to request copies of its IRS form 990 filings for the last 10 years. The letter, provided by Scott, states concerns have been raised as to the foundation's ability to continue serving as a supporting organization for the college because of its lack of scholarship and monetary contributions to the school.

If the foundation is failing to meet its obligations as a 501(c)(3), donors could lose their ability to receive tax deductions for donations, Kidwell said.

"It would also be unfortunate to seek assistance from the Attorney General and/or the IRS at this very preliminary point," he continued.

Foundation Chairman John Stanard responded in a letter June 28 to Stephenson, also provided by Scott, calling this a threat and blatant insult to the foundation's board of directors.

In a July 20 letter from Kidwell to Stanard, the lawyer writes no threat was intended and the statement was an attempt to show there are other avenues for the college to pursue its request if necessary.

"(Stephenson) has been here for two years and is challenging the integrity of those with a 22-year track record," Scott told trustees during the meeting. "You people are misinformed about your authority."

Stephenson provided the DAR with figures for foundation scholarships distributed in the past four fiscal years. The figures show totals of: $9,596 in FY08; $7,395 in FY09; $3,225 in FY10; and nothing for FY11.

The college stopped providing information about students that was needed to award scholarships for the fall of 2010 and spring of 2011, Scott told the board. She also accused the administration of withholding mail to her office, including test letters sent by associates, and blocking phone calls, adding she is not listed in the school's directory and neither is the foundation. A search of the college's website shows no applicable results for, "Judy Scott" or "Foundation." Three Rivers Endowment Trust, which has been in operation for two years, has a link from the president's office page.

The foundation has since decided to award scholarships directly to students, Scott said, later stating that about $3,500 was given out for FY11.

Stephenson provided email transcripts between college financial aid personnel and foundation employees showing that at least some dialogue has taken place in recent months. He said Wednesday's meeting was the first he had heard about issues with phone calls or mail, and denied the college is preventing the foundation from operating.

When asked following the meeting about the future relationship between the college and foundation, he said, "I think the board sees it as virtually impossible under the current dynamic to work positively with the foundation.

"They may have reconciled themselves to the fact it could very well be a waste of our time."

Scott said during the trustees' meeting the foundation and its members have been and will continue to be around for the long term. Other members of the foundation's board of directors are: Scott's husband, L. Joe Scott; Jay Githens; Martha Bidewell; Dr. Tom Lawson; Donald Bedell; former state representative Gayle Kingery; and state Rep. Steve Cookson.

In other statements, Scott said foundation donors have threatened to stop contributing money because of the administration's treatment of basketball coach Gene Bess, and she accused the administration of "emasculating" the Three Rivers Community College Booster Club.

"(The foundation) does not and will not bend to the whims of those passing through," Scott said, adding a hanging on the wall above her desk in the E.K. Porter Distance Learning Center reads, "Trustees and presidents come and go, but the Foundation is forever."

Pertinent address:

3080 Three Rivers Blvd., Poplar Bluff, MO