2019-08-15T16:44:01-05:00 2018-09-30 KPMG LLP 210 Park Ave Suite 2650 Oklahoma City OK 73102 990 2017-10-01 742094204 TEXAS GUARANTEED STUDENT LOAN CORP % NICOLE GILGER TEXA 5122195700 PO BOX 83100 ROUND ROCK TX 786833100 NICOLE GILGER VP/CONTROLLER 5122195700 2019-08-15 true LORI A MCLAUGHLIN P01231707 4052396411 2019-08-15 167.68.102.5 73017020192275000004 2019-08-15 P 5730E019CE73AD64C30081DBCB8D71502993F88D 0EAA22B2C3DA13DBE0E7C6D8610A4AA845F8EF4C 2017 2019-02-21 02:37:17Z TRELLIS COMPANY SCOTT GILES PO BOX 83100 ROUND ROCK TX 786833100 109410832 false X WWW.TRELLISCOMPANY.ORG X 1979 TX OUR VISION IS THAT PEOPLE RECEIVE TRUSTED GUIDANCE TO MAKE INFORMED DECISIONS AND IMPROVE THEIR LIVES. TRELLIS ADMINISTERS THE FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP). 8 8 497 0 2905886 0 95917302 88662411 7522153 7653401 17237894 10815665 316940 579820 120994289 107711297 117312848 3392733 0 0 41324700 36400799 0 0 0 13809585 12386895 172447133 52180427 -51452844 55530870 758732215 697614088 150000007 38400263 608732208 659213825 X SEE SCHEDULE O, GENERAL STATEMENT 1 false false 33529220 0 7653401 SEE SCHEDULE O, GENERAL STATEMENT 2 12063215 3392733 15506 SEE SCHEDULE O, GENERAL STATEMENT 3 45592435 true true false true false false false false true false true false false false true false false true false false false false false false false false false true false true false false false false false false false false false false false false true true true true false false true 69 0 497 true true true false false false false false false false false false X 8 8 true false false false false false false true true false false true true true true true true true true false X NICOLE GILGER 5122195700 301 SUNDANCE PARKWAY ROUND ROCK TX 786818004 X RENARD JOHNSON BOARD MEMBER/INTERIM CEO 44.0 0.5 X X 335780 0 1716 IVAN ANDARZA BOARD MEMBER 4.0 0.0 X 45169 0 0 YVONNE BATTS BOARD MEMBER 4.0 0.5 X 58096 0 0 RICHARD RHODES BOARD MEMBER 4.0 0.5 X 45169 0 0 DORA ANN VERDE BOARD MEMBER 4.0 0.5 X 45169 0 0 WELCOME WILSON JR BOARD MEMBER 4.0 0.5 X 38731 0 0 EDWARD ESCUDERO BOARD MEMBER 4.0 0.5 X 38731 0 0 DENNIS MORONEY BOARD MEMBER 4.0 0.5 X 38731 0 0 KARA J THOMPSON TO 1217 CHIEF STRATEGY & RISK OFF 44.0 0.0 X 556319 0 56886 MARIA RYAN VP/CONTROLLER 46.0 0.0 X 410767 0 57561 MARK J ZARSKY TO 0118 CFO 47.0 0.0 X 378566 0 50322 MARY O NEGRETE TO 0118 CHIEF HR OFFICER 46.0 0.0 X 332384 0 50707 GREGORY H DICKENSON INTERIM GENERAL COUNSEL 44.0 1.0 X 179451 0 53657 SCOTT GILES CEO/PRESIDENT 46.0 0.5 X 0 0 0 PHILLIP E CERVIN TO 0317 VP/COLLECTIONS 45.0 0.0 X 249852 0 11115 DONNA M FRITZ VP/MARKETING 42.0 0.0 X 284105 0 45808 JAMES E ZIMMERMAN VP/INFORMATION TECH 44.0 0.0 X 254607 0 52206 CAROLYN C FERGUSON TO 1217 INTERNAL AUDIT DIRECTOR 42.0 0.0 X 187564 0 45267 BRYAN M ASHTON VP/COMM INVEST & GOVT AFFAIRS 51.0 0.0 X 273697 0 40451 SUSAN G HIGH VP/OPERATIONS 48.0 0.0 X 203741 0 40815 AUDREY WEBB DIRECTOR/IT SHARED SERV 49.0 0.0 X 184569 0 43803 JAMES B BRADLEY TO 1217 MANAGER/CISO 40.0 0.0 X 155323 0 30035 JEFF J WEBSTER DIRECTOR/RESEARCH 45.0 0.0 X 175150 0 43560 BRIAN W GILBERT DIRECTOR/COMM & MRKTG 40.0 0.0 X 160904 0 45991 MATTHEW R STEINER DIRECTOR/CORP ANALYTICS 44.0 0.0 X 160176 0 43430 GEORGE C TORRES SR. ADVISOR TO PRES 40.0 0.0 X 159627 0 35078 SHEILA DUNLAP DIRECTOR/OPERATIONS 41.0 0.0 X 152260 0 27085 NANCI TUCKER TO 0417 FORMER OFFICER 45.0 0.0 X 442406 0 10069 PAUL M BEDELL TO 0417 FORMER OFFICER 40.0 0.0 X 664383 0 38120 JAMES PATTERSON TO 0417 FORMER OFFICER 51.0 0.0 X 417278 0 21523 6628705 0 845205 86 true true false SEE SCHEDULE O GENERAL STATEMENT 6 1764226 14 88632200 30211 88662411 REPURCHASE INTEREST 522291 4603053 4603053 COLLECTION REVENUE 522291 2905886 2905886 ADJUSTMENT TO LOAN LOSS PROVISION 522291 144462 144462 7653401 10855644 10855644 0 0 915070 350756 564314 0 564314 564314 1308800 1348779 -39979 -39979 -39979 0 0 0 0 0 0 0 0 0 MISC. INCOME 900099 15506 15506 15506 107711297 4763021 2905886 11379979 3392733 3392733 0 0 0 3685438 3183238 502200 600000 518240 81760 25826175 22338071 3488104 1364917 1180469 184448 2778855 2402793 376062 2145414 1854610 290804 0 615419 531584 83835 261960 227149 34811 96752 83568 13184 0 0 3165163 2734484 430679 120618 109512 11106 1316910 1139576 177334 2783921 2407557 376364 0 653651 564580 89071 283404 244786 38618 0 255241 227144 28097 0 0 2343681 2024317 319364 346193 300109 46084 LEGAL SETTLEMENTS 8000 6910 1090 0 FEDERAL DEFAULT FEE 12275 12275 0 0 ALL OTHER EXPENSES 123707 108730 14977 0 52180427 45592435 6587992 0 0 0 35683265 44894198 39492298 23758022 5962652 5557035 0 0 0 0 0 0 0 0 1790295 1422436 77754502 50011278 29628696 27743224 633217389 577459082 12857084 16726760 0 0 0 0 100536 53331 758732215 697614088 149456540 38400263 0 0 72759 0 0 0 0 0 0 0 0 0 0 0 470708 0 150000007 38400263 X 0 0 29628695 27743224 579103513 631470601 608732208 659213825 758732215 697614088 55530870 -5049253 X false true X true true true X 138785035 137607922 110755986 95917302 88662411 571728656 0 0 138785035 137607922 110755986 95917302 88662411 571728656 0 571728656 9922982 10636967 10700023 11825257 11770714 54855943 36025 0 0 0 0 36025 677 161592 14205 116 15506 192096 626812720 33598661 0.91212 0.91000 X 83568 83568 45508867 45592435 1000000 250000 1000000 1000000 1000000 1000000 4000000 6000000 109567 90207 75539 83568 358881 250000 250000 250000 250000 1000000 1500000 false false 3315000 3315000 34508560 12346144 22162416 434091 199000 235091 14347507 13298630 1048877 25149344 24167504 981840 27743224 0 0 true COMMUNITIES FOUNDATION OF TEXAS INC 5500 CARUTH HAVEN LANE DALLAS TX 75225 750964565 501(C)(3) 50000 EMERGENCY GRANT BAKER RIPLEYS - HARVEY HELP PO BOX 271389 HOUSTON TX 77277 237062976 501(C)(3) 30000 EMERGENCY GRANT LEE COLLEGE PO BOX 818 BAYTOWN TX 77522 746025566 STATE OF TX 17700 SCHOLARSHIPS WORKFORCE SOLUTIONS CAPITAL AREA 6505 AIRPORT BLVD 101 E AUSTIN TX 78752 742327454 501(C)(3) 63933 COMMUNITY CAPACITY ALABAMA A&M UNIVERSITY PO BOX 271 MONTGOMERY AL 36104 636067745 501(C)(3) 35000 EMERGENCY GRANT ALABAMA STATE UNIVERSITY 915 SOUTH JACKSON ST MONTGOMERY AL 36104 636001101 501(C)(3) 15000 CAPACITY-BUILDING EMERGENCY GRANT ALBANY STATE UNIVERSITY 504 COLLEGE DR ATLANTA GA 31705 586001996 501(C)(3) 15000 EMERGENCY GRANT ATLANTA METROPOLITAN STATE COLLEGE 1630 METROPOLITAN PARKWAY ATLANTA GA 30310 581727943 501(C)(3) 37026 EMERGENCY GRANT AUSTIN COMMUNITY COLLEGE 5930 MIDDLE FISKVILLE RD AUSTIN TX 78752 742639966 501(C)(3) 70000 EMERGENCY GRANT FORT VALLEY STATE UNIVERSITY 1005 STATE UNIVERSITY DR FORT VALLEY GA 31030 237281905 501(C)(3) 25000 EMERGENCY GRANT GEORGIA STATE UNIVERSITY PO BOX 2668 ATLANTA GA 30303 586033185 501(C)(3) 63851 EMERGENCY GRANT HUSTON-TILLOSTON UNIVERSITY 900 CHICON ST AUSTIN TX 78702 741180151 501(C)(3) 17000 EMERGENCY & CAPACITY BLDG GRANT JF DRAKE STATE COMMUNITY & TECH COLLEGE 3421 MERIDIAN ST N HUNTSVILLE AL 35811 631002142 501(C)(3) 27000 EMERGENCY GRANT JARVIS CHRISITAN COLLEGE HWY 80 E 7631 PRIVATE RD HAWKINS TX 75765 750995027 501(C)(3) 20872 EMERGENCY GRANT LANGSTON UNIVERSITY PO BOX 608 LANGSTON OK 73050 736017987 STATE OF OK 22102 EMERGENCY GRANT MILES COLLEGE 5500 MYRON MASSEY BLVD FAIRFIELD AL 35064 630400608 501(C)(3) 15000 EMERGENCY GRANT NORTHWEST VISTA COLLEGE 1819 NORTH MAIN AVENUE SAN ANTONIO TX 78212 742422589 501(C)(3) 30000 CAPACITY BLDG & EMERGENCY GRANT OAKWOOD UNIVERSITY 7000 ADVENTIST BLVD HUNTSVILLE AL 35896 630366652 501(C)(3) 22275 EMERGENCY GRANT OUR LADY OF THE LAKE UNIVERSITY 411 SW 24TH ST SAN ANTONIO TX 78207 741109631 501(C)(3) 17500 EMERGENCY & CAPACITY BLDG GRANT PALO ALTO COLLEGE 1819 NORTH MAIN AVE SAN ANTONIO TX 78212 742422589 501(C)(3) 57500 EMERGENCY GRANT PAUL QUINN COLLEGE 3837 SIMPSON STUART RD DALLAS TX 75241 741238438 501(C)(3) 19320 EMERGENCY GRANT SAN ANTONIO COLLEGE 1819 NORTH MAIN AVE SAN ANTONIO TX 78212 742422589 501(C)(3) 63051 EMERGENCY GRANT SPELMAN COLLEGE 350 SPELMAN LN ATLANTA GA 30314 580566243 501(C)(3) 25000 EMERGENCY GRANT ST MARY'S UNIVERSITY 1 CAMINO SANTA MARIA ST SAN ANTONIO TX 78228 741143128 501(C)(3) 22736 EMERGENCY GRANT STILLMAN COLLEGE 3600 STILLMAN BLVD TUSCALOOSA AL 35401 630315935 501(C)(3) 24000 EMERGENCY GRANT TALLADEGA COLLEGE 627 BATTLE ST W TALLADEGA AL 35160 630288870 501(C)(3) 17000 EMERGENCY GRANT TEXAS A&M INTERNATIONAL UNIVERSITY 5201 UNIVERSITY BLVD LAREDO TX 78041 741761398 501(C)(3) 32500 EMERGENCY GRANT TEXAS COLLEGE 2404 N GRAND AVE TYLER TX 75702 750917417 501(C)(3) 19000 EMERGENCY GRANT TEXAS SOUTHERN UNIVERSITY 3100 CLEBURNE ST HOUSTON TX 77004 741620415 501(C)(3) 80000 EMERGENCY GRANT XAVIER UNIVERSITY 1 DREXEL DR NEW ORLEANS LA 70125 720635884 501(C)(3) 15000 EMERGENCY GRANT TG FOUNDATION PO BOX 5393 ROUND ROCK TX 78683 814714749 501(C)(3) 2500000 GENERAL SUPPORT 31 0 PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS FORM 990, SCHEDULE I, PART I, LINE 2 Once approved for funding, each grantee must review and execute a grant agreement with Trellis. Expectations for the grantees and their respective projects and/or use of funds are outlined in the grant agreement. Reporting requirements are also outlined in the agreement. Grantees are instructed to provide progress report(s), which are reviewed by grant management staff to determine if the grant expenditures are in compliance with requirements and are achieving the stated goals of the program. If there are significant issues noted in the progress report, staff will follow up with the grantee by phone, e-mail or will schedule a site visit to address any concerns. If there are no significant issues noted, staff acknowledges receipt of the report and schedules the second disbursement of funding (if applicable). At the termination of the grant period, staff reviews the final report on each project and completes a close out report. If there are remaining funds in excess of $1,000.00 at the end of the grant period, grant management staff work with the grantee to ensure the return of these funds to Trellis. UNEXPENDED GRANT FUNDS FORM 990, SCHEDULE I, PART IV Grant Refunds - unexpended Grant funds awarded in previous years returned are reported as follows: TX ASSOCIATION OF COMMUNITY COLLEGES 14,824 ALAMO COLLEGE DISTRICT 19,275 AMARILLO COLLEGE 1,370 TEXAS COMMUNITY COLLEGE EDUCATION INITIATIVE 21,671 TG WOOTEN 625 HCC FOUNDATION 23,869 X X X X X true false false false false false false true false RENARD JOHNSON BOARD MEMBER/INTERIM CEO 335570 0 37 0 173 0 0 0 1716 0 337496 0 0 0 KARA J THOMPSON TO 1217 CHIEF STRATEGY & RISK OFF 179167 0 127864 0 249288 0 40090 0 16796 0 613205 0 0 0 MARIA RYAN VP/CONTROLLER 172070 0 224708 0 13989 0 40200 0 17361 0 468328 0 0 0 MARK J ZARSKY TO 0118 CFO 199200 0 156238 0 23128 0 40200 0 10122 0 428888 0 0 0 MARY O NEGRETE TO 0118 CHIEF HR OFFICER 173983 0 139539 0 18862 0 39693 0 11014 0 383091 0 0 0 GREGORY H DICKENSON INTERIM GENERAL COUNSEL 129963 0 42160 0 7328 0 28956 0 24701 0 233108 0 0 0 PHILLIP E CERVIN TO 0317 VP/COLLECTIONS 31942 0 149 0 217761 0 5855 0 5260 0 260967 0 0 0 DONNA M FRITZ VP/MARKETING 172671 0 106120 0 5314 0 27725 0 18083 0 329913 0 0 0 JAMES E ZIMMERMAN VP/INFORMATION TECH 166504 0 75037 0 13066 0 26130 0 26076 0 306813 0 0 0 CAROLYN C FERGUSON TO 1217 INTERNAL AUDIT DIRECTOR 127693 0 49927 0 9944 0 17597 0 27670 0 232831 0 0 0 BRYAN M ASHTON VP/COMM INVEST & GOVT AFFAIRS 135650 0 136440 0 1607 0 30744 0 9707 0 314148 0 0 0 SUSAN G HIGH VP/OPERATIONS 132002 0 57818 0 13921 0 20896 0 19919 0 244556 0 0 0 AUDREY WEBB DIRECTOR/IT SHARED SERV 138929 0 38847 0 6793 0 32497 0 11306 0 228372 0 0 0 JAMES B BRADLEY TO 1217 MANAGER/CISO 109558 0 29089 0 16676 0 14415 0 15620 0 185358 0 0 0 JEFF J WEBSTER DIRECTOR/RESEARCH 126984 0 37622 0 10544 0 32245 0 11315 0 218710 0 0 0 BRIAN W GILBERT DIRECTOR/COMM & MRKTG 112991 0 38597 0 9316 0 26921 0 19070 0 206895 0 0 0 MATTHEW R STEINER DIRECTOR/CORP ANALYTICS 108050 0 42605 0 9521 0 16755 0 26675 0 203606 0 0 0 GEORGE C TORRES SR. ADVISOR TO PRES 123879 0 30957 0 4791 0 16372 0 18706 0 194705 0 0 0 SHEILA DUNLAP DIRECTOR/OPERATIONS 116680 0 21656 0 13924 0 15508 0 11577 0 179345 0 0 0 NANCI TUCKER TO 0417 FORMER OFFICER 59047 0 15000 0 368359 0 7570 0 2499 0 452475 0 0 0 PAUL M BEDELL TO 0417 FORMER OFFICER 87423 0 234250 0 342710 0 29466 0 8554 0 702403 0 0 0 JAMES PATTERSON TO 0417 FORMER OFFICER 109680 0 0 0 307598 0 16977 0 4546 0 438801 0 0 0 SUPPLEMENTAL INFORMATION 1 FORM 990, SCHEDULE J, PART I: COMPENSATION INFORMATION LINE 4A: SEVERANCE James Patterson, President/CEO, left Trellis Company effective April 18, 2017. He received a $600,000 payment in accordance with the terms and conditions of his severance agreement. Of which $250,000 was paid in 2017 and the remaining paid in 2018. Phillip Cervin, VP/Collections left Trellis Company effective March 6, 2017, Nanci Tucker, Chief Legal Officer, and Paul Bedell, Chief Operating Officer left Trellis Company effective April 18, 2017, and Kara Thompson, Chief Strategy & Risk Officer, left Trellis Company effective December 31, 2017. They received payments of $192,630, $358,213, 332,674, and $232,640, respectively, in accordance with the terms and conditions of their severance agreements. SUPPLEMENTAL INFORMATION 2 FORM 990, SCHEDULE J, PART I: COMPENSATION INFORMATION LINE 7: NON-FIXED PAYMENTS Trellis Board of Directors approves the corporate performance award program which is designed to award a share of profits to employees, and compensates eligible employees based on corporate results, ensuring minimum profit levels are attained. Corporate goals are typically approved by the Board before the beginning of the fiscal year and are based on the organization achieving its goals. For FY18, approval of the corporate goals occurred in March 2018, after the new CEO, Scott Giles, was brought onboard. Eligible employees include all regular employees, employed at the end of the fiscal year, not participating in another departmental or individual incentive plan, and meeting minimum performance standards. Employee eligibility is based on specific position and awards are determined by respective management utilizing competitive market bonus ranges. GENERAL STATEMENT 1 FORM 990, PART III, MISSION STATEMENT "Our vision is that people receive trusted guidance to make informed decisions and improve their lives." Trellis administers the Federal Family Education Loan Program (FFELP). GENERAL STATEMENT 2 FORM 990, PART III, LINE 4A - Guarantor Operations: Trellis guarantor operation encompasses the administration of the Federal Family Education Loan Program (FFELP) on behalf of the U.S. Department of Education. As of fiscal year end, Trellis outstanding loan portfolio balance totaled $7.9 billion and defaulted loans collection portfolio of $1.8 billion. Program Service Accomplishments: Promoting borrower success is a long-term endeavor, starting before a student borrower enrolls in college and lasting through repayment. Trellis has a set of specialized teams Customer Assistance, Default Prevention, Claims and Default Recovery that serve borrowers throughout the student loan lifecycle. These teams educate student borrowers about loans and their repayment options and help them return to repayment in the case of delinquency or default. Customer Assistance - With extensive knowledge of both federal and Texas-based financial aid, Trellis provides services to assist students and families at all stages of the higher education experience whether considering the higher education path, attending college, or managing loan repayment. To accomplish this, Trellis has partnered with state agencies to promote the value of higher education and to inform students and families of available financial aid options. Trellis is an active player in the higher education communitys efforts to close the gaps in student awareness, participation and success. Default Prevention - Trellis works with student loan borrowers, lenders and servicers to help prevent default on student loans. Counselors work with borrowers who have entered delinquency, educating them on student loan repayment options, deferments and forbearances in order for borrowers to successfully repay their federal student loans and avoid default. In FY18 the team received 122,070 Default Aversion Assistance Requests from lenders and successfully averted approximately $2.2 billion from default. As a result, more borrowers return to and make progress in repayment, which allows the borrowers to avoid the negative consequences of default, including damaged credit, the loss of eligibility for federal student aid and the high cost of collection fees. Claims - Trellis processes default claims submitted by lenders that have been unsuccessful in transitioning borrowers with delinquent loans back into repayment. When lenders make claims on Trellis-guaranteed loans, Trellis verifies the lenders compliance with FFEL program requirements, and, if valid, manages the purchase of the loan from the lender. It is at that time that the loan enters Trellis portfolio for collection. In FY18, Trellis processed claims totaling approximately $348 million. Collections - Upon default claim payment, Trellis is statutorily required to pursue collection efforts on behalf of the federal government on all Trellis-guaranteed student loans. While the teams core responsibility is to recover taxpayer assets, Trellis works with borrowers to find the best option for them in resolving their default. The goal is to help the borrower return to repayment in a way that repairs their credit. In FY18, Trellis Default Recovery set up new repayment plans for 16,241 borrowers. Of those new repayment plans, 74.53 percent started borrowers on beneficial rehabilitation programs, the best solution for borrowers with defaulted loans. In FY18, Trellis collected approximately $624 million in defaulted student loans. GENERAL STATEMENT 3 FORM 990, PART III, Line 4b - Non-Guarantor Operations: Trellis non-guarantor operations include various endeavors related to promoting access to higher education, including Trellis philanthropic activities. Additionally, Trellis provides a variety of services targeted at enhancing the higher education community, including: Research and Public Policy Services: Trellis provides extensive research services that are targeted at understanding the consumer experience related to financing, participating and persisting in higher education. These services are utilized to better understand the challenges associated with post-secondary financing and participation and are used to inform campus administrators, student service providers and policy makers. Trellis administers a wide variety of qualitative and quantitative research throughout the year to support these goals. Institutional Support Services: Trellis provides support resources for colleges and universities to assist in developing capacity on campus. These services support the development of policies, procedures and programs that assist in helping more students obtain a postsecondary degree or credential. GENERAL STATEMENT 4 FORM 990, PART VI, SECTION A, LINE 2: THE FOLLOWING TRELLIS COMPANY EMPLOYEES, AS OFFICERS/DIRECTORS OF TRELLIS HOLDINGS, HAVE A BUSINESS RELATIONSHIP: YVONNE BATTS RENARD JOHNSON EDWARD ESCUDERO DENNIS MORONEY GREG DICKENSON THE FOLLOWING TRELLIS COMPANY EMPLOYEES, AS OFFICERS OF WAYPOINT RESOURCE GROUP, HAVE A BUSINESS RELATIONSHIP: SCOTT GILES GREG DICKENSON GENERAL STATEMENT 5 PROCESS OF REVIEWING THE 990 FORM 990, PART VI, Section B, Line 11b: Trellis Accounting Department works with its CPA firm to prepare the 990. Once a final draft is available, it is submitted to executive management for review. Once all questions have been resolved, the return, in its final form, is provided to the Trellis Board of Directors for their review. ENFORCEMENT OF CONFLICT OF INTEREST POLICY Form 990, PART VI, Section B, Line 12c: Trellis Code of Business Conduct is a policy which all employees, officers, and directors must agree to. Within the Code of Business Conduct, managers, key employees, officers and directors are required to disclose any business interests outside of Trellis. Trellis legal counsel proactively reviews and acts on potential conflicts. Actual conflicts, should they occur, may result in disciplinary action, up to and including termination and possible criminal prosecution. Trellis team members are required to complete periodic training as it relates to Trellis Code of Business Conduct. COMPENSATION DETERMINATION Form 990, Part VI, Section B, Line 15a and 15b: Trellis contracts with a third party consultant to provide benchmark data for Trellis employees and officers, including annual compensation studies which are presented to the Trellis Board of Directors for their review. In 2015, Trellis also engaged a third party consultant to perform a compensation analysis for the board positions and the board adopted the consultant's recommendations. The third party consultants use compensation data for similarly qualified persons in the comparable positions for both officers and key employees in similar organizations. Documentation to support benchmark decisions regarding compensation arrangements for all employees is retained. The officer and employee positions for which the benchmarking process is used to establish compensation occurs annually. The Board of Directors specifically reviews executive management compensation benchmarks and approves annual adjustments and/or merit increases as recommended by the President/CEO. Annually, the Board makes specific decisions of the President/CEOs salary. Decisions regarding compensation are documented in the board meeting minutes. DISCLOSURE OF DOCUMENTS Form 990, Part VI, Section C, Line 19: Trellis Code of Business Conduct is available to all employees and the general public via Trellis website: www.trelliscompany.org. Trellis audited financial statements are available upon request. GENERAL STATEMENT 6 FORM 990, PART VII, SECTION B: INDEPENDENT CONTRACTORS Name & Address Description of Service Compensation ------------------------------------------------------------------------ LOAN SCIENCE, LLC Loan Management 563,101 2201 Donley Drive, Suite 110 Services Austin, TX 78758 ACCOUNT CONTROL TECHNOLOGY, INC. Collection Service 430,673 6918 Owensmouth Ave. Canoga Park, CA 91309-8102 SIGNAL VINE, LLC Text Messanging 275,000 811 N. Royal Street Platform Service Alexandria, VA 22314 KPMG Audit/Tax 272,094 3 Chestnut Ridge Road Montvale, NJ 07645 IGRAD Inc. Web/Cloud Based 223,358 2163 Newcastle Ave #100 Service Cardiff by the Sea, CA 92007 ---------- TOTAL COMPENSATION 1,764,226 ---------- GENERAL STATEMENT 7 Section 1.263(a)-3(n) Election - Book Conformity Election TEXAS GUARANTEED STUDENT LOAN CORPORATION D/B/A TRELLIS COMPANY is making the election under Treas. Reg. 1.263(a)-3(n) to capitalize those repair and maintenance costs that it treats as capital expenditures on its books and records for the tax year ended SEPTEMBER 30, 2018. Taxpayer Name: TEXAS GUARANTEED STUDENT LOAN CORPORATION D/B/A TRELLIS COMPANY Address: P.O. BOX 83100 ROUND ROCK, TX 78683 Taxpayer Identification Number: 74-2094204 Section 1.263(a)-1(f) De Minimis Safe Harbor Election TEXAS GUARANTEED STUDENT LOAN CORPORATION D/B/A TRELLIS COMPANY hereby makes the de minimis safe harbor election under Section 1.263(a)-1(f) of the Treasury Regulations, effective for the tax year ending SEPTEMBER 30, 2018. Taxpayer has an Applicable Financial Statement for the year of the election. This election permits the taxpayer to deduct for tax purposes any item deducted under its book policy that does not exceed $5,000 per invoice (or per item, as substantiated by the invoice) or items having an economic useful life of twelve months or less as described in Section 1.263(a)-1(f)(1)(i). Taxpayer Name: TEXAS GUARANTEED STUDENT LOAN CORPORATION D/B/A TRELLIS COMPANY Address: P.O. BOX 83100 ROUND ROCK, TX 78683 Taxpayer Identification Number: 74-2094204 TG FOUNDATION PO BOX 5393 ROUND ROCK TX 786835393 814714749 GRANT FDN TX 501(C)(3) LINE 7 TRELLIS CO true TRELLIS HOLDINGS INC PO BOX 6714 ROUND ROCK TX 78683 742748786 COLLECTION AG TX TRELLIS CO C Corp 2893608 1528762 1.00000 true false true false false false false false false false false false false false true true false false false false TG FOUNDATION b 2500000 FMV TRELLIS HOLDINGS INC b 1205000 FMV TRELLIS HOLDINGS INC o 2149069 FMV TRELLIS HOLDINGS INC n 515607 FMV TG FOUNDATION b 428914 FMV GENERAL STATEMENT 1 SCHEDULE R, PART V, LINE 1B: DURING FY2018, TRELLIS COMPANY MADE CASH DONATIONS TOTALING $2,500,000 TO TRELLIS FOUNDATION, A RELATED ORGANIZATION. IN ADDITION, TRELLIS COMPANY DONATED SERVICES AND FACILITIES TO TRELLIS FOUNDATION TOTALING $428,914.