Notes to SEFA
Title: 2-Relationship to Federal Financial Reports
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the schedule) summarizes the activity of all federal award programs of Texas Guaranteed Student Loan Corporation and subsidiaries d/b/a Trellis Company (Trellis). For purposes of the schedule, federal awards include all grants, contracts and similar agreements entered into directly between Trellis and agencies and departments of the federal government. The accompanying schedule is presented using the accrual basis of accounting, which is described in note 2 of the Trellis' financial statements.
De Minimis Rate Used: N
Rate Explanation: For the Year Ended September 30, 2024, Trellis did not incur any indirect costs.
Amounts reported in the accompanying schedule may not agree with the amounts reported in the related federal financial reports filed because of accruals.
Title: 3-Federal Student Loan Programs
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the schedule) summarizes the activity of all federal award programs of Texas Guaranteed Student Loan Corporation and subsidiaries d/b/a Trellis Company (Trellis). For purposes of the schedule, federal awards include all grants, contracts and similar agreements entered into directly between Trellis and agencies and departments of the federal government. The accompanying schedule is presented using the accrual basis of accounting, which is described in note 2 of the Trellis' financial statements.
De Minimis Rate Used: N
Rate Explanation: For the Year Ended September 30, 2024, Trellis did not incur any indirect costs.
The Federal Family Education Loan Program (FFELP) under which Trellis operates was established by Congress and is administered by the U.S. Department of Education (ED) as a means of making loans available to students attending colleges, universities and postsecondary educational and vocational schools. FFELP provides for Trellis to guarantee the repayment of principal and accrued interest to lenders for eligible student loans. Trellis was responsible for processing loans submitted for guarantee and issuing loan guarantees through the legislative discontinuation of FFELP loan originations in July 2010. For its residual loan portfolio, Trellis remains responsible for providing collection assistance to lenders for delinquent loans, paying lender claims for loans in default, and collecting loans on which default claims have been paid. Trellis also informs schools, students, lenders, secondary markets and servicers of FFELP requirements. At September 30, 2024, outstanding guaranteed student loans total approximately
$7 billion. In addition, outstanding defaulted loans at September 30, 2024 are approximately
$2 billion.
Title: 4-Indirect Cost Rate
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the schedule) summarizes the activity of all federal award programs of Texas Guaranteed Student Loan Corporation and subsidiaries d/b/a Trellis Company (Trellis). For purposes of the schedule, federal awards include all grants, contracts and similar agreements entered into directly between Trellis and agencies and departments of the federal government. The accompanying schedule is presented using the accrual basis of accounting, which is described in note 2 of the Trellis' financial statements.
De Minimis Rate Used: N
Rate Explanation: For the Year Ended September 30, 2024, Trellis did not incur any indirect costs.
For the year ended September 30, 2024, Trellis did not incur any indirect costs.