2018-08-14T15:21:23-05:00 2017-09-30 KPMG LLP 210 Park Ave Suite 2650 Oklahoma City OK 73102 990 2016-10-01 742094204 TEXAS GUARANTEED STUDENT LOAN CORP % MARIA RYAN TEXA 5122195700 PO BOX 83100 ROUND ROCK TX 786833100 MARIA RYAN VP/CONTROLLER 5122195700 2018-08-14 true STEPHANIE L BAILEY P01646944 4052396411 2018-08-14 2016 2022-09-23 18:48:47Z TRELLIS COMPANY Scott Giles PO BOX 83100 ROUND ROCK TX 786833100 384208557 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). 7 7 574 0 1368257 0 110755986 95917302 131805368 7522153 10411959 17237894 206802 316940 253180115 120994289 1744054 117312848 0 0 44022672 41324700 0 0 0 15982459 13809585 61749185 172447133 191430930 -51452844 701487433 758732215 42114330 150000007 659373103 608732208 X SEE SCHEDULE O, GENERAL STATEMENT 1 false false 40355978 7354133 SEE SCHEDULE O, GENERAL STATEMENT 2 125469709 117312848 217433 SEE SCHEDULE O, GENERAL STATEMENT 3 165825687 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 58 0 574 true false false false false false false false false false false X 7 7 true false false false false false false true true true false true true true true true true true true false X MARIA RYAN 5122195700 301 SUNDANCE PARKWAY ROUND ROCK TX 786818004 X Renard Johnson Board Member/Interim CEO 4.0 0.5 X X 58096 0 0 Dennis Moroney Board Member 4.0 0.0 X 48413 0 0 Dora Ann Verde Board Member 4.0 0.0 X 56461 0 0 Edward Escudero Board Member 4.0 0.0 X 48413 0 0 Ivan Andarza Board Member 4.0 0.0 X 59693 0 0 Richard Rhodes Board Member 4.0 0.0 X 56461 0 0 Welcome Wilson Jr Board Member 4.0 0.0 X 48413 0 0 Yvonne Batts Board Member 4.0 0.5 X 70199 0 0 Gregory H Dickenson Secretary & Senior Counsel 46.0 0.5 X 206855 0 38875 James Patterson To 41817 President/CEO 50.0 0.5 X 781407 0 40607 Kara J Thompson Chief Strategy & Risk Off 49.0 0.5 X 349460 0 31625 Mark J Zarsky CFO 46.0 0.5 X 383128 0 29912 Mary O Negrete Chief HR Officer 45.0 0.5 X 342325 0 32183 Nanci N Tucker To 41817 Chief Legal&Comp Off 40.0 0.0 X 29103 0 0 Paul M Bedell To 41817 Chief Operating Officer 40.0 0.0 X 546909 0 49273 Audry Webb Director/IT Shared Serv 50.0 0.0 X 185882 0 25429 Calvin H Abbott VP/Portfolio Mgmt 40.0 0.0 X 224679 0 36994 Carolyn C Ferguson Internal Audit Director 44.0 0.0 X 176099 0 41172 Christopher ScottTo 111016 Program Director 40.0 0.0 X 176186 0 29653 Donna Fritz VP/Marketing 45.0 0.0 X 208640 0 31308 James B Bradley Manager/CISO 40.0 0.0 X 177598 0 35818 James E Zimmerman VP/Information Tech 41.0 0.0 X 234387 0 46387 Maria Ryan VP/Controller 47.0 0.0 X 254176 0 33653 Phillip E Cervin To 3617 VP/Collections 52.0 0.0 X 251452 0 47837 Susan G High Director/Collections 51.0 0.0 X 186876 0 35143 John M Sutton Manager/Corporate Svcs 40.0 0.0 X 146750 0 27934 Bryan W Gilbert Director/Comm & Mrktg 40.0 0.0 X 156400 0 29545 George C Torres Sr. Advisor to Pres - CLR 40.0 0.0 X 154520 0 34771 Jeff J Webster Director/Research 48.0 0.0 X 170127 0 25223 Shelia Dunlap Director/Guarantor Services 41.0 0.0 X 153085 0 24638 Connie Sitterly Former Board Member 0.0 0.0 X 29048 0 0 5971241 0 727980 87 true true false SEE SCHEDULE O GENERAL STATEMENT 7 908375 9 95917302 95917302 DEFAULT AVERSION SOLUTIONS 522291 168020 168020 REPURCHASE INTEREST 522291 5437208 5437208 ADJUSTMENT TO LOAN LOSS PROVISION 522291 548668 548668 COLLECTION REVENUE 522291 1368257 1368257 7522153 11343833 11343833 0 0 481424 164600 316824 0 316824 316824 268943729 263049668 5894061 5894061 5894061 0 0 0 0 0 0 0 0 0 MISC. INCOME 900099 116 116 116 120994289 6154012 1368257 17554718 117312848 117312848 0 0 0 7246550 5430326 1816224 62518 46849 15669 26155554 24210136 1945418 1539785 1405762 134023 3452509 3332467 120042 2867784 2512426 355358 0 408110 316946 91164 273236 204754 68482 100804 75539 25265 0 0 2285494 2066689 218805 52763 42206 10557 1204442 931228 273214 3771596 3301216 470380 0 1567357 1174587 392770 237476 217294 20182 0 196330 159482 36848 0 0 3225658 2713330 512328 404356 303011 101345 ALL OTHER EXPENSES 81963 68591 13372 172447133 165825687 6621446 0 0 0 24809511 35683265 38694085 39492298 9085545 5962652 0 0 0 0 0 0 0 0 1248411 1790295 78264091 48635395 32575781 29628696 586192962 633217389 8761028 12857084 0 0 15000 0 105110 100536 701487433 758732215 41775240 149456540 0 0 24808 72759 0 0 0 0 0 0 0 0 0 0 314282 470708 42114330 150000007 X 0 0 32575782 29628695 626797321 579103513 659373103 608732208 701487433 758732215 -51452844 811949 X false true X true true true X 143412819 138785035 137607922 110755986 95917302 626479064 0 0 143412819 138785035 137607922 110755986 95917302 626479064 0 626479064 18503472 9922982 10636967 10700023 11825257 61588701 18056 36025 54081 168100 677 161592 14205 116 344690 688466536 29170632 0.90996 0.91280 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 75539 75539 165750148 165825687 1000000 250000 1000000 1000000 1000000 1000000 4000000 6000000 97309 109567 90207 75539 372622 250000 250000 250000 250000 1000000 1500000 false false 3315000 3315000 34500117 11482066 23018051 434091 93637 340454 12973197 12229051 744146 27041686 24830641 2211045 29628696 0 BANK CLEARING LIABILITY 470708 470708 true The Scholarship Foundation of St Louis 8215 Clayton Rd St Louis MO 63117 436031234 501(c)(3) 50000 services to students Worksource Greater Austin Area Workforce Bd 6505 Airport Boulevard 101 E Austin TX 78752 742327454 501(c)(3) 120000 organiztnl. capacity Lee College District PO BOX 818 Baytown TX 77522 746025566 State of TX 22800 scholarships College Forward PO BOX 142308 Austin TX 78714 432003552 501(c)(3) 58959 NEED-BASED AID capacity-building National College Access Network Inc 1001 Connecticut Ave NW Washingtn DC 20036 311793562 501(c)(3) 10000 organiztnl. support Grantmakers For Education 851 SW 6th Avenue Ste 350 Portland OR 97204 330919329 501(c)(3) 10000 organiztnl. support COMMUNITIES FOUNDATION OF TEXAS INC 5500 CARUTH HAVEN LANE DALLAS TX 75225 750964565 501(c)(3) 70000 CAPACITY-BUILDING capacity-building TG Foundation PO Box 5393 Round Rock TX 78683 814714749 501(c)(3) 117253909 General Support 8 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, including reporting requirements for the progress report(s) and the final report are outlined in the grant agreement. Each project deliverable is also identified in the agreement. Grantees are instructed to provide at least one progress report on each of the items listed and to provide a report of expenditures to-date compared to the original budget submitted with the application. Grantees then provide a final account on the deliverables and budget at the conclusion of the grant period. Grant management staff reviews each progress report to determine if the grant project is progressing as anticipated. Specifically, staff looks for: A) Budget line items that seem to be falling short of anticipated costs B) Any changes in key personnel associated with the project C) Any obstacles identified by the grantee as impeding progress toward goal D) Any requests from the grantee to adjust the budget, deliverables or program activities. If there are significant issues noted in the progress report, staff will follow up with the grantee by phone or will schedule a site visit to determine the best course of action 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. This report summarizes the following: A) Project objectives and the degree to which they were achieved B) Observations about the projects success or lack thereof C) Financial status of the project The close out report also provides an opportunity for grant management staff to assign a letter grade to the project and indicate whether the grantee is a good candidate for future funding. 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: AMARILLO COLLEGE 38,344.62 AVID 1,242.00 ACC BENE 121,644.02 SOUTHERN EDUCATION FOUNDATION 20,903.00 TEXAS A&M UNIVERSITY 8,605.85 OPPORTUNITY AUSTIN 1,977.32 NACOGD ISD 20,916.00 TARRANT COUNTY COLLEGE DISTRICT 1,252.00 TEXAS STATE UNIVERSITY 21,000.00 SOUTH PLAINS COLLEGE 9,992.00 CANCELLED GRANT COMMITMENTS FORM 990, SCHEDULE I, PART IV TEXAS ASSOCIATION OF COMMUNITY COLLEGES 44,480.00 X X X X X false false false false false false false true false Connie Sitterly Former Board Member 29048 0 0 0 0 29048 0 Gregory H Dickenson Secretary & Senior Counsel 130543 75400 912 18257 0 20618 0 245730 0 James Patterson To 41817 President/CEO 383359 366432 31616 24281 0 16326 0 822014 0 Kara J Thompson Chief Strategy & Risk Off 187710 160976 774 16150 0 15475 0 381085 0 Mark J Zarsky CFO 209854 168802 4472 21001 0 8911 0 413040 0 Mary O Negrete Chief HR Officer 184606 152906 4813 20524 0 11659 0 374508 0 Paul M Bedell To 41817 Chief Operating Officer 290534 255601 774 22525 0 26748 0 596182 0 Audry Webb Director/IT Shared Serv 137077 45833 2972 14918 0 10511 0 211311 0 Calvin H Abbott VP/Portfolio Mgmt 160991 58210 5478 19520 0 17474 0 261673 0 Carolyn C Ferguson Internal Audit Director 132699 42626 774 15589 0 25583 0 217271 0 Christopher ScottTo 111016 Program Director 112575 23345 40266 9327 0 20326 0 205839 0 Donna Fritz VP/Marketing 164258 44037 345 17590 0 13718 0 239948 0 James B Bradley Manager/CISO 138949 36251 2398 15233 0 20585 0 213416 0 James E Zimmerman VP/Information Tech 168183 64481 1723 20564 0 25823 0 280774 0 John M Sutton Manager/Corporate Svcs 111480 31217 4053 10676 0 17258 0 174684 0 Maria Ryan VP/Controller 157580 96172 424 17615 0 16038 0 287829 0 Phillip E Cervin To 3617 VP/Collections 177680 69436 4336 22014 0 25823 0 299289 0 Susan G High Director/Collections 136480 46888 3508 16366 0 18777 0 222019 0 Bryan W Gilbert Director/Comm & Mrktg 118747 35234 2419 13540 0 16005 0 185945 0 George C Torres Sr. Advisor to Pres - CLR 118472 31330 4718 13813 0 20958 0 189291 0 Jeff J Webster Director/Research 127660 39515 2952 14078 0 11145 0 195350 0 Shelia Dunlap Director/Guarantor Services 125018 27293 774 13343 0 11295 0 177723 0 SUPPLEMENTAL INFORMATION 1 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. The Board approves the corporate goals before the beginning of the fiscal year and the award is based on the organization achieving its goals. The payout results from achieving at least 80% of each goal and may increase or decrease depending on the extent to which the goal is met or exceeded; however, the increase is capped when 120% of the goal is reached. 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 exceeds $9 billion and defaulted loans collection portfolio of $1.6 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 FY17 the team received 145,186 Default Aversion Assistance Requests from lenders and successfully averted approximately $2.3 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 FY17, Trellis processed claims totaling approximately $461 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 FY17, Trellis Default Recovery team helped 28,654 borrowers return to repayment. Of those, 41.84 percent returned through beneficial rehabilitation programs, the best solution for borrowers with defaulted loans. In FY17, 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 higher education. These services are utilized to better understand the challenges associated with post-secondary financing 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. Student Support Services: Trellis provides a variety of support services targeted at assisting students in navigating the college access and completion journey. These services include - Financial coaching services (which provides in depth one on one consultations regarding student finances), - Support services for filling out the Free Application for Federal Student Aid (FAFSA), - Student financial literacy resources, - A free, public-access website Adventures in Education (aie.org) to provide resources about how and why to pay for college, - Tools to help students understand their potential career earnings from obtaining a college degree, including two tools: Major Choices and Career Choices. 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 GREG DICKENSON THE FOLLOWING TRELLIS COMPANY EMPLOYEES, AS OFFICERS OF WAYPOINT RESOURCE GROUP, HAVE A BUSINESS RELATIONSHIP: MARK ZARSKY KARA THOMPSON MARY NEGRETE GENERAL STATEMENT 5 FORM 990, PART VI, SECTION A, LINE 9 DIRECTORS WHO CANNOT BE REACHED AT TRELLIS' MAILING ADDRESS NAME ADDRESS ---------------------------------------------------------------------- Connie Sitterly 6816 Brants Ln., Fort Worth, TX 76116 GENERAL STATEMENT 6 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 7 FORM 990, PART VII, SECTION B: INDEPENDENT CONTRACTORS Name & Address Description of Service Compensation ------------------------------------------------------------------------ KPMG Audit/Tax 277,885 3 Chestnut Ridge Road Montvale, NJ 07645 ACCOUNT CONTROL TECHNOLOGY, INC. Collection Service 227,012 6918 Owensmouth Ave. Canoga Park, CA 91309-8102 TERRAPIN LAW GROUP Legal Service 144,237 8049 French St. Garrettsville, OH 44231 SUNGARD AVAILABILITY Consulting-Software 131,371 680 E. Swedesford Rd. Wayne, PA 19087 DELL MARKETING LP Consulting-Software 127,870 One Dell Way Round Rock, TX 78682 -------------- TOTAL COMPENSATION 908,375 -------------- GENERAL STATEMENT 8 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, 2017. 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, 2017. 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 201911 281538 1.00000 true false true false false false false false false false false false false false true true false false false false Trellis Holdings Inc b 1600000 FMV TG Foundation b 117253909 FMV Trellis Holdings Inc n 314038 FMV Trellis Holdings Inc o 2182022 FMV