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FINANCE COMMISSION OF TEXAS AUDIT COMMITTEE MEETING
Friday April 17 2020 830 am
Via Webinar
Due to Governor Greg Abbottrsquos March 13 2020 proclamation of a state of disaster affecting all counties in Texas due to the Coronavirus (COVID-19) and the Governorrsquos March 16 2020 suspension of certain
provisions of the Texas Open Meetings Act the April 17 2020 meeting of the Finance Commission of Texas will be held by telephonic conference call as authorized under Texas Government Code section 551125
Members of the public who would like to participate in this meeting will need to register at
wwwfctexasgov An electronic copy of the agenda is now available at wwwfctexasgov and a copy of the meeting materials will be available on April 9 2020 at wwwfctexasgov To access the recording visit
wwwfctexasgov after April 17 2020
Public comment on any agenda item or issue under the jurisdiction of the Finance Commission agencies is allowed Finance Commission members who are not members of the Audit Committee may be present at this committee meeting creating a quorum of the Finance Commission A Review and Approval of the Minutes of the February 14 2020 Audit Committee Meeting
B Review of Agenciesrsquo Activities
1 Texas Department of Banking 2 Department of Savings and Mortgage Lending 3 Office of Consumer Credit Commissioner
C Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agenciesrsquo Fiscal Year 2020 Internal Auditorrsquos Risk Assessment and Audit Plan
1 Texas Department of Banking 2 Department of Savings and Mortgage Lending 3 Office of Consumer Credit Commissioner
D Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the
Agenciesrsquo February 29 2020 Investment Officer Reports
1 Texas Department of Banking 2 Department of Savings and Mortgage Lending 3 Office of Consumer Credit Commissioner
E Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the
Agenciesrsquo 2020 Second Quarter Financial Statements
1 Texas Department of Banking 2 Department of Savings and Mortgage Lending 3 Office of Consumer Credit Commissioner
F Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the
Reduction of Assessment Rates and the Reserve and Expenditure of Funds for Thrift Examination and Supervision for FY2020 as needed in Connection with the Charles Schwab Bank SSB and Charles Schwab Premier Bank SSB Conversions
G Report on Activities Relating to the Texas Financial Education Endowment Fund
NOTE The Audit Committee may go into executive session (close its meeting to the public) on any agenda item if appropriate and authorized by the Open Meetings Act Texas Government Code Chapter 551
Meeting Accessibility Under the Americans with Disabilities Act the Finance Commission will accommodate special needs Those requesting auxiliary aids or services should notify the Texas Department of Banking 2601 North Lamar Boulevard Austin Texas 78705 (512) 936-6222 as far in advance of the meeting as possible
1
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2
MINUTES OF THE AUDIT COMMITTEE MEETING
Friday February 14 2020
The Audit Committee of the Finance Commission of Texas convened at 830 am on February 14 2020 with the following members present Audit Committee Members in Attendance Molly Curl Chairman Hector Cerna Lori McCool Chairman Curl announced there was a quorum of the Audit Committee of the Finance Commission of Texas with three members present (06 on audio file)
AGENDA ITEM ACTION LOCATION ON AUDIO
FILE
A Review and Approval of the Minutes of the December 13 2019 Audit Committee Meeting
Lori McCool made a motion to Approve the Minutes of the December 13 2019 Audit Committee Meeting Hector Cerna seconded and the motion passed
21 start of
discussion
38 Vote
B Review of Agenciesrsquo Activities
1 Department of Savings and Mortgage Lending 2 Office of Consumer Credit Commissioner 3 Texas Department of Banking
No Action Required 56
start of discussion
C Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agenciesrsquo November 30 2019 Investment Officer Reports
1 Department of Savings and Mortgage Lending 2 Office of Consumer Credit Commissioner 3 Texas Department of Banking
Hector Cerna made a motion to recommend that the Finance Commission approve the Agenciesrsquo November 30 2019 Investment Officer Reports Lori McCool seconded and the motion passed
135 start of
discussion
703 Vote
D Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agenciesrsquo 2020 First Quarter Financial Statements
1 Department of Savings and Mortgage Lending 2 Office of Consumer Credit Commissioner 3 Texas Department of Banking
Lori McCool made a motion to recommend that the Finance Commission approve the Agenciesrsquo 2020 First Quarter Financial Statements Hector Cerna seconded and the motion passed
721 start of
discussion
1803 Vote
3
Minutes of the February 14 2020 Audit Committee Meeting Page 2 of 3
AGENDA ITEM ACTION LOCATION ON AUDIO
FILE
E Report on Activities Relating to the Texas Financial Education Endowment Fund No Action Required
1822 start of
discussion
F Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Final Selection of Organizations to Receive Grant Funds in an Aggregate Amount Not to Exceed $300000 From the Texas Financial Education Endowment Fund
Lori McCool made a motion to recommend that the Finance Commission approve the Final Selection of Organizations to Receive Grant Funds in an Aggregate Amount of $300000 from the Texas Financial Education Endowment Fund
bull Girl Scouts of Northeast Texas ndash $35000
bull Building Financial Capacity Coalition ndash $27000
bull First Light Community Foundation ndash $13000
bull Womenrsquos Resource Center of Greater Houston ndash $35000
bull Family Services Association of San Antonio Inc ndash $30000
bull Foundation Communities ndash $30000
bull Family Eldercare ndash $30000 bull Easter Seals of Greater Houston ndash
$35000 bull Center for Transforming Lives ndash
$35000 bull Texas State Affordable Housing
Corp ndash $30000
Hector Cerna seconded and the motion passed
2017 start of
discussion
2847 Vote
4
Minutes of the February 14 2020 Audit Committee Meeting Page 3 of 3
There being no further business of the Audit Committee of the Finance Commission of Texas Chairman Curl adjourned the meeting at 900 am (2942 on the audio file)
Molly Curl Chairman Audit Committee Finance Commission of Texas
Charles G Cooper Executive Director Finance Commission of Texas
Brenda Medina Executive Assistant Finance Commission of Texas
5
This page left blank intentionally
6
Texas Department of Banking Outstanding Audit FindingsRecommendations Report
as of March 31 2020
No outstanding items
7
Department of Savings and Mortgage LendingAudit Activity Report as of March 31 2020
No outstanding items
8
Office of Consumer Credit Commissioner Status of Agency Activities and Outstanding Audit Findings and Recommendations as of March 31 2020
Future Items Entity Activity Status Date State Office of Risk Management Risk Management Program Review Pending June 8 2020
GarzaGonzalez amp Associates Internal Audit Pending TBD
9
This page left blank intentionally
10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
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2
MINUTES OF THE AUDIT COMMITTEE MEETING
Friday February 14 2020
The Audit Committee of the Finance Commission of Texas convened at 830 am on February 14 2020 with the following members present Audit Committee Members in Attendance Molly Curl Chairman Hector Cerna Lori McCool Chairman Curl announced there was a quorum of the Audit Committee of the Finance Commission of Texas with three members present (06 on audio file)
AGENDA ITEM ACTION LOCATION ON AUDIO
FILE
A Review and Approval of the Minutes of the December 13 2019 Audit Committee Meeting
Lori McCool made a motion to Approve the Minutes of the December 13 2019 Audit Committee Meeting Hector Cerna seconded and the motion passed
21 start of
discussion
38 Vote
B Review of Agenciesrsquo Activities
1 Department of Savings and Mortgage Lending 2 Office of Consumer Credit Commissioner 3 Texas Department of Banking
No Action Required 56
start of discussion
C Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agenciesrsquo November 30 2019 Investment Officer Reports
1 Department of Savings and Mortgage Lending 2 Office of Consumer Credit Commissioner 3 Texas Department of Banking
Hector Cerna made a motion to recommend that the Finance Commission approve the Agenciesrsquo November 30 2019 Investment Officer Reports Lori McCool seconded and the motion passed
135 start of
discussion
703 Vote
D Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agenciesrsquo 2020 First Quarter Financial Statements
1 Department of Savings and Mortgage Lending 2 Office of Consumer Credit Commissioner 3 Texas Department of Banking
Lori McCool made a motion to recommend that the Finance Commission approve the Agenciesrsquo 2020 First Quarter Financial Statements Hector Cerna seconded and the motion passed
721 start of
discussion
1803 Vote
3
Minutes of the February 14 2020 Audit Committee Meeting Page 2 of 3
AGENDA ITEM ACTION LOCATION ON AUDIO
FILE
E Report on Activities Relating to the Texas Financial Education Endowment Fund No Action Required
1822 start of
discussion
F Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Final Selection of Organizations to Receive Grant Funds in an Aggregate Amount Not to Exceed $300000 From the Texas Financial Education Endowment Fund
Lori McCool made a motion to recommend that the Finance Commission approve the Final Selection of Organizations to Receive Grant Funds in an Aggregate Amount of $300000 from the Texas Financial Education Endowment Fund
bull Girl Scouts of Northeast Texas ndash $35000
bull Building Financial Capacity Coalition ndash $27000
bull First Light Community Foundation ndash $13000
bull Womenrsquos Resource Center of Greater Houston ndash $35000
bull Family Services Association of San Antonio Inc ndash $30000
bull Foundation Communities ndash $30000
bull Family Eldercare ndash $30000 bull Easter Seals of Greater Houston ndash
$35000 bull Center for Transforming Lives ndash
$35000 bull Texas State Affordable Housing
Corp ndash $30000
Hector Cerna seconded and the motion passed
2017 start of
discussion
2847 Vote
4
Minutes of the February 14 2020 Audit Committee Meeting Page 3 of 3
There being no further business of the Audit Committee of the Finance Commission of Texas Chairman Curl adjourned the meeting at 900 am (2942 on the audio file)
Molly Curl Chairman Audit Committee Finance Commission of Texas
Charles G Cooper Executive Director Finance Commission of Texas
Brenda Medina Executive Assistant Finance Commission of Texas
5
This page left blank intentionally
6
Texas Department of Banking Outstanding Audit FindingsRecommendations Report
as of March 31 2020
No outstanding items
7
Department of Savings and Mortgage LendingAudit Activity Report as of March 31 2020
No outstanding items
8
Office of Consumer Credit Commissioner Status of Agency Activities and Outstanding Audit Findings and Recommendations as of March 31 2020
Future Items Entity Activity Status Date State Office of Risk Management Risk Management Program Review Pending June 8 2020
GarzaGonzalez amp Associates Internal Audit Pending TBD
9
This page left blank intentionally
10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
MINUTES OF THE AUDIT COMMITTEE MEETING
Friday February 14 2020
The Audit Committee of the Finance Commission of Texas convened at 830 am on February 14 2020 with the following members present Audit Committee Members in Attendance Molly Curl Chairman Hector Cerna Lori McCool Chairman Curl announced there was a quorum of the Audit Committee of the Finance Commission of Texas with three members present (06 on audio file)
AGENDA ITEM ACTION LOCATION ON AUDIO
FILE
A Review and Approval of the Minutes of the December 13 2019 Audit Committee Meeting
Lori McCool made a motion to Approve the Minutes of the December 13 2019 Audit Committee Meeting Hector Cerna seconded and the motion passed
21 start of
discussion
38 Vote
B Review of Agenciesrsquo Activities
1 Department of Savings and Mortgage Lending 2 Office of Consumer Credit Commissioner 3 Texas Department of Banking
No Action Required 56
start of discussion
C Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agenciesrsquo November 30 2019 Investment Officer Reports
1 Department of Savings and Mortgage Lending 2 Office of Consumer Credit Commissioner 3 Texas Department of Banking
Hector Cerna made a motion to recommend that the Finance Commission approve the Agenciesrsquo November 30 2019 Investment Officer Reports Lori McCool seconded and the motion passed
135 start of
discussion
703 Vote
D Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agenciesrsquo 2020 First Quarter Financial Statements
1 Department of Savings and Mortgage Lending 2 Office of Consumer Credit Commissioner 3 Texas Department of Banking
Lori McCool made a motion to recommend that the Finance Commission approve the Agenciesrsquo 2020 First Quarter Financial Statements Hector Cerna seconded and the motion passed
721 start of
discussion
1803 Vote
3
Minutes of the February 14 2020 Audit Committee Meeting Page 2 of 3
AGENDA ITEM ACTION LOCATION ON AUDIO
FILE
E Report on Activities Relating to the Texas Financial Education Endowment Fund No Action Required
1822 start of
discussion
F Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Final Selection of Organizations to Receive Grant Funds in an Aggregate Amount Not to Exceed $300000 From the Texas Financial Education Endowment Fund
Lori McCool made a motion to recommend that the Finance Commission approve the Final Selection of Organizations to Receive Grant Funds in an Aggregate Amount of $300000 from the Texas Financial Education Endowment Fund
bull Girl Scouts of Northeast Texas ndash $35000
bull Building Financial Capacity Coalition ndash $27000
bull First Light Community Foundation ndash $13000
bull Womenrsquos Resource Center of Greater Houston ndash $35000
bull Family Services Association of San Antonio Inc ndash $30000
bull Foundation Communities ndash $30000
bull Family Eldercare ndash $30000 bull Easter Seals of Greater Houston ndash
$35000 bull Center for Transforming Lives ndash
$35000 bull Texas State Affordable Housing
Corp ndash $30000
Hector Cerna seconded and the motion passed
2017 start of
discussion
2847 Vote
4
Minutes of the February 14 2020 Audit Committee Meeting Page 3 of 3
There being no further business of the Audit Committee of the Finance Commission of Texas Chairman Curl adjourned the meeting at 900 am (2942 on the audio file)
Molly Curl Chairman Audit Committee Finance Commission of Texas
Charles G Cooper Executive Director Finance Commission of Texas
Brenda Medina Executive Assistant Finance Commission of Texas
5
This page left blank intentionally
6
Texas Department of Banking Outstanding Audit FindingsRecommendations Report
as of March 31 2020
No outstanding items
7
Department of Savings and Mortgage LendingAudit Activity Report as of March 31 2020
No outstanding items
8
Office of Consumer Credit Commissioner Status of Agency Activities and Outstanding Audit Findings and Recommendations as of March 31 2020
Future Items Entity Activity Status Date State Office of Risk Management Risk Management Program Review Pending June 8 2020
GarzaGonzalez amp Associates Internal Audit Pending TBD
9
This page left blank intentionally
10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Minutes of the February 14 2020 Audit Committee Meeting Page 2 of 3
AGENDA ITEM ACTION LOCATION ON AUDIO
FILE
E Report on Activities Relating to the Texas Financial Education Endowment Fund No Action Required
1822 start of
discussion
F Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Final Selection of Organizations to Receive Grant Funds in an Aggregate Amount Not to Exceed $300000 From the Texas Financial Education Endowment Fund
Lori McCool made a motion to recommend that the Finance Commission approve the Final Selection of Organizations to Receive Grant Funds in an Aggregate Amount of $300000 from the Texas Financial Education Endowment Fund
bull Girl Scouts of Northeast Texas ndash $35000
bull Building Financial Capacity Coalition ndash $27000
bull First Light Community Foundation ndash $13000
bull Womenrsquos Resource Center of Greater Houston ndash $35000
bull Family Services Association of San Antonio Inc ndash $30000
bull Foundation Communities ndash $30000
bull Family Eldercare ndash $30000 bull Easter Seals of Greater Houston ndash
$35000 bull Center for Transforming Lives ndash
$35000 bull Texas State Affordable Housing
Corp ndash $30000
Hector Cerna seconded and the motion passed
2017 start of
discussion
2847 Vote
4
Minutes of the February 14 2020 Audit Committee Meeting Page 3 of 3
There being no further business of the Audit Committee of the Finance Commission of Texas Chairman Curl adjourned the meeting at 900 am (2942 on the audio file)
Molly Curl Chairman Audit Committee Finance Commission of Texas
Charles G Cooper Executive Director Finance Commission of Texas
Brenda Medina Executive Assistant Finance Commission of Texas
5
This page left blank intentionally
6
Texas Department of Banking Outstanding Audit FindingsRecommendations Report
as of March 31 2020
No outstanding items
7
Department of Savings and Mortgage LendingAudit Activity Report as of March 31 2020
No outstanding items
8
Office of Consumer Credit Commissioner Status of Agency Activities and Outstanding Audit Findings and Recommendations as of March 31 2020
Future Items Entity Activity Status Date State Office of Risk Management Risk Management Program Review Pending June 8 2020
GarzaGonzalez amp Associates Internal Audit Pending TBD
9
This page left blank intentionally
10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Minutes of the February 14 2020 Audit Committee Meeting Page 3 of 3
There being no further business of the Audit Committee of the Finance Commission of Texas Chairman Curl adjourned the meeting at 900 am (2942 on the audio file)
Molly Curl Chairman Audit Committee Finance Commission of Texas
Charles G Cooper Executive Director Finance Commission of Texas
Brenda Medina Executive Assistant Finance Commission of Texas
5
This page left blank intentionally
6
Texas Department of Banking Outstanding Audit FindingsRecommendations Report
as of March 31 2020
No outstanding items
7
Department of Savings and Mortgage LendingAudit Activity Report as of March 31 2020
No outstanding items
8
Office of Consumer Credit Commissioner Status of Agency Activities and Outstanding Audit Findings and Recommendations as of March 31 2020
Future Items Entity Activity Status Date State Office of Risk Management Risk Management Program Review Pending June 8 2020
GarzaGonzalez amp Associates Internal Audit Pending TBD
9
This page left blank intentionally
10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
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6
Texas Department of Banking Outstanding Audit FindingsRecommendations Report
as of March 31 2020
No outstanding items
7
Department of Savings and Mortgage LendingAudit Activity Report as of March 31 2020
No outstanding items
8
Office of Consumer Credit Commissioner Status of Agency Activities and Outstanding Audit Findings and Recommendations as of March 31 2020
Future Items Entity Activity Status Date State Office of Risk Management Risk Management Program Review Pending June 8 2020
GarzaGonzalez amp Associates Internal Audit Pending TBD
9
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10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
Texas Department of Banking Outstanding Audit FindingsRecommendations Report
as of March 31 2020
No outstanding items
7
Department of Savings and Mortgage LendingAudit Activity Report as of March 31 2020
No outstanding items
8
Office of Consumer Credit Commissioner Status of Agency Activities and Outstanding Audit Findings and Recommendations as of March 31 2020
Future Items Entity Activity Status Date State Office of Risk Management Risk Management Program Review Pending June 8 2020
GarzaGonzalez amp Associates Internal Audit Pending TBD
9
This page left blank intentionally
10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Department of Savings and Mortgage LendingAudit Activity Report as of March 31 2020
No outstanding items
8
Office of Consumer Credit Commissioner Status of Agency Activities and Outstanding Audit Findings and Recommendations as of March 31 2020
Future Items Entity Activity Status Date State Office of Risk Management Risk Management Program Review Pending June 8 2020
GarzaGonzalez amp Associates Internal Audit Pending TBD
9
This page left blank intentionally
10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
Office of Consumer Credit Commissioner Status of Agency Activities and Outstanding Audit Findings and Recommendations as of March 31 2020
Future Items Entity Activity Status Date State Office of Risk Management Risk Management Program Review Pending June 8 2020
GarzaGonzalez amp Associates Internal Audit Pending TBD
9
This page left blank intentionally
10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
This page left blank intentionally
10
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
GarzaGonzalez amp Associates CERTIFIED PUBLIC ACCOUNTANTS
FINANCE COMMISSION Austin Texas
INTERNAL AUDIT PLAN
For Fiscal Year 2020
11
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
TABLE OF CONTENTS Page Internal Auditorrsquos Report 1 I Methodology 2-3 II Audit Scope 4 III Texas Department of Banking
Internal Audit Plan 5 Risk Assessment 5-7
IV Department of Savings and Mortgage Lending
Internal Audit Plan 8 Risk Assessment 8-9
V Office of Consumer Credit Commissioner
Internal Audit Plan 10 Risk Assessment 10-12
Attachments
A Risk Assessment Summary A-1 Texas Department of Banking 13 A-2 Department of Savings and Mortgage Lending 14 A-3 Office of Consumer Credit Commissioner 15
B History of Areas Audited
B-1 Texas Department of Banking 16 B-2 Department of Savings and Mortgage Lending 17 B-3 Office of Consumer Credit Commissioner 18
12
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
GarzaGonzalez amp Associates
CERTIFIED PUBLIC ACCOUNTANTS
Finance Commission and Audit Committee Members Finance Commission of Texas Austin Texas Enclosed is the Finance Commissionrsquos proposed Internal Audit Plan (Plan) that was prepared for audits and other functions to be performed in fiscal year 2020 for the Texas Department of Banking (DOB) Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC) This Plan determines the scope of internal audit activities and is the source for assignment and prioritization of internal audit responsibilities for fiscal year 2020 Specific planning for audit procedures is a naturally ongoing process thus the Plan is reviewed annually and may be revised by the Finance Commission or Audit Committee as necessary This Plan has been prepared by GarzaGonzalez amp Associates an independent Certified Public Accounting firm following Generally Accepted Auditing Standards International Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditorsrsquo Code of Ethics contained in the Professional Practices Framework
April 2 2020
207 Arden Grove San Antonio TX 78215 210227-1389 Fax 227-0716
1 13
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
FINANCE COMMISSION Austin Texas
Internal Audit Plan
For Fiscal Year 2020
2
I Methodology
The Finance Commissionrsquos fiscal year 2020 Internal Audit Plan (Plan) was prepared using a risk assessment process where we reviewed various documents and questionnaires completed by the Audit Committee Chair executive management management and other staff from each of the 3 agencies as documented below These 3 agencies are considered financial regulatory agencies who were granted a self-directed semi-independent (SDSI) status by the Legislature With the SDSI status these agencies are responsible for its costs of operation prohibited from causing the general revenue fund to incur any cost and removed from the legislative budgeting process However the Finance Commission is responsible for setting their spending authority or limits Each agencyrsquos entire operating funds are generated from fees assessed to the businesses they regulate and are used to fund both direct and indirect costs The following documents from the 3 agencies were reviewed and considered in our risk assessment process
Operating Budgets Organizational Charts Policies and Procedures Applicable Laws and Rules Audit andor Monitoring Reports from Third Party Agencies Prior Internal Audit Reports
Questionnaires were developed for completion by the Audit Committee Chair Commissioners Deputy Commissioners Audit Contacts Division Directors and other staff to update our understanding of each division and its role within the overall scheme of the respective agency The questionnaires included topics such as issues andor concerns recent changes in key personnel time elapsed since last audit status of past audit findings and regulatory compliance requirements (ie TAC 202 Information
Security Standards and contract management) Utilizing information obtained through the completed questionnaires and background information reviewed audit areas for each of the 3 agencies were identified as potential audit topics A risk analysis was completed for each individual audit topic and then compiled to develop an overall risk assessment for each of the 3 agencies
14
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
FINANCE COMMISSION Internal Audit Plan
3
The following 8 risk factors were considered for each potential audit topic
1 Materiality Measure of the auditable unitrsquos financial materiality based on the dollar amount per year of assets receipts or disbursements for which the unit is responsible or non-financial materiality based on the number of licensees for which the unit is responsible or the magnitude of its responsibility related to the agencyrsquos primary mission
2 Time since Last Audit or Review Measure of the number of years between the date of the previous audit or review and the date of the risk assessment
3 Results of Last Audit or Review Measure of the results of the previous audit or review 4 Adequacy of Staffing Levels Measure of the adequacy of the staffing level of the
auditable unit as it relates to the achievement of its objectives
5 Policies and Procedures Measure of the existence of policies and procedures documenting the auditable unitrsquos activities
6 Compliance with Contracts Laws and Regulations
Measure of the magnitude of contracts laws andor regulations for which the auditable unit is responsible for complying
7 Susceptibility of Theft or Fraud Measure of the auditable unitrsquos risk and controls in place as it relates to theft or fraud
8 Issues or Concerns Measure of issues or concerns expressed by executive management the Finance Commission or Audit Committee
15
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
FINANCE COMMISSION Internal Audit Plan
4
II Audit Scope
In accordance with the International Standards for the Professional Practice of Internal Auditing the audit scope will encompass the examination and evaluation of the adequacy and effectiveness of the respective agencyrsquos system of internal control and the quality of performance in carrying out
assigned responsibilities The audit scope as applicable considers the following objectives Reliability and Integrity of Financial and Operational Information ndash Review the reliability and
integrity of financial and operating information and the means used to identify measure classify and report such information
Compliance with Policies Procedures Laws Regulations and Contracts ndash Review the
systems established to ensure compliance with those policies procedures laws regulations and contracts which could have a significant impact on operations and reports and determine whether the organization is in compliance
Safeguarding of Assets ndash Review the means of safeguarding assets and as appropriate verify
the existence of such assets Effectiveness and Efficiency of Operations and Programs ndash Appraise the effectiveness and
efficiency with which resources are employed Achievement of the Organizationrsquos Strategic Objectives ndash Review operations or programs to
ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
16
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
FINANCE COMMISSION Internal Audit Plan
5
III Texas Department of Banking Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 2 audits to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 16 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 16 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 16 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Revenue Accounting Process
IT Examinations
Payroll amp Human Resources
Prepaid Funeral Guaranty Fund
ProcurementContract
ManagementHUB
Bank Examinations
Fixed Asset Management
Travel
Trust Examinations
Corporate Activities
Imaging amp Records
Management
Money Service Businesses
Financial Reporting
Perpetual Care Cemeteries
Prepaid Funeral Contracts
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-1 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-1 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 16 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Program Fines Penalties and Restitution Processes Fixed Asset Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Prepaid Funeral Guaranty Fund Trust Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Fixed Asset Management Bank Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
17
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
FINANCE COMMISSION Internal Audit Plan
6
The areas recommended for internal audits and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Revenue Accounting Process
The planned audit procedures include the following
a Review and obtain an understanding of the applicable rules laws and regulations of the Texas Administrative Code Texas Finance Code and Texas Government Code as related to the various fees fines and penalties (fees) assessed by DOB
b Obtain and review written policies and procedures collect available documentation and
conduct interviews to document formalinformal processes and controls related to the assessment collection and accounting for such fees
c Test for the completeness of assessments and collection of selected fees during the audit
period
d Test for timeliness of payment and deposit of selected fees and that the assessment was properly supported and accurately computed in accordance with applicable rules laws and regulations
e Perform analytical procedures to determine that reported revenues for various fees were
reasonable and consistent with actual operations
f Other procedures that may be deemed necessary during audit fieldwork 3 Imaging amp Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review DOBrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review DOBrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review DOBrsquos certified records retent ion schedule (RRS) and Form SLR 104
Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review DOBrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
18
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
FINANCE COMMISSION Internal Audit Plan
7
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to
determine whether they were destroyed in accordance with the RRS and DOBrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned during the audit period to
observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
4 Follow-up of Prior Year Internal Audits and Prepare the 2020 Annual Internal Audit Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
5 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
19
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
FINANCE COMMISSION Internal Audit Plan
8
IV Department of Savings and Mortgage Lending Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020
Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 12 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 12 potential audit topics and then compiled to develop an overall risk assessment
Following are the results of the risk assessment performed for the 12 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
Management Information Systems
Payroll and Human Resources
Records Management
Legal and Enforcement
Mortgage Examinations (Includes Training)
Thrift Examinations
Thrift Supervision and Compliance
Procurement Contract Management HUB amp Travel
Revenue Accounting Process
Mortgage Licensing and Registration
Consumer Protection
Financial Reporting (includes Fixed Assets)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-2 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-2 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 12 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Information Technology Change Management Follow-Up of the Prior Year Internal Audits
Fiscal Year 2018
Thrift Supervision and Compliance Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017 Thrift Examinations Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
20
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
FINANCE COMMISSION Internal Audit Plan
9
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review SMLrsquos written policies and procedures and conduct interviews to obtain
an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review SMLrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review SMLrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review SMLrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and SMLrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report
Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
21
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
FINANCE COMMISSION Internal Audit Plan
10
V Office of Consumer Credit Commissioner Internal Audit Plan
In addition to performing the 2020 risk assessment for preparation of this Internal Audit Plan (Plan) this Plan also includes 1 audit to be performed a follow-up of the prior year audit recommendations other tasks that may be assigned by the Finance Commission Audit Committee or executive management during the year and preparation of the Annual Internal Audit Report for fiscal year 2020 Risk Assessment
Utilizing information obtained through the completed questionnaires received and background information reviewed 17 audit areas were identified as potential audit topics A risk analysis utilizing the 8 risk factors mentioned in section I of this report was completed for each of the 17 potential audit topics and then compiled to develop an overall risk assessment Following are the results of the risk assessment performed for the 17 potential audit topics identified
HIGH RISK MODERATE RISK LOW RISK
TFEE Fund Investment Portfolio Administration
Fiscal Division (Includes
Purchasing Travel Payroll and Fixed Assets)
Management Information
Systems
Billing and Collection of Fees
Legal and Enforcement
Complaint Intake and
Investigation
TFEE Fund Grants Management
Motor Vehicle Sales Finance Examinations
Regulated Lenders Examinations
Records Management
Credit Access Business Examinations
Pawn Examinations
Property Tax Lender
Examinations
Human Resources
Business Licensing
Business Registration
Professional Licensing (Pawnshop Employees amp RMLO)
This report includes the ldquoRisk Assessment Summaryrdquo as Attachment A-3 and the ldquoHistory of Areas
Auditedrdquo as Attachment B-3 which identifies audits andor reviews performed from fiscal year 2010 through 2019 for the above 17 potential audit topics In the prior 3 years internal audits were performed in the following areas Fiscal Year 20191
Investment Administration Controls Information Technology Change Management Program Follow-Up of the Prior Year Internal Audits
1 Performed by McConnell amp Jones LLP
22
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
FINANCE COMMISSION Internal Audit Plan
11
Fiscal Year 2018 Property Tax Lender Examinations Follow-Up of the Prior Year Internal Audits
Fiscal Year 2017
Registration Texas Financial Education Endowment Fund Follow-Up of the Prior Year Internal Audits
The area recommended for internal audit and other functions to be performed for fiscal year 2020 are as follows 1 Completion of the Fiscal Year 2020 Risk Assessment and Preparation of this Internal Audit Plan 2 Records Management (Area)
The planned audit procedures include the following
a Review and obtain an understanding of state and federal laws and regulations and other requirements established by the Texas State Library and Archives Commission (TSLAC) as applicable to records management
b Obtain and review OCCCrsquos written policies and procedures and conduct interviews to
obtain an understanding of controls processes and current practices in place over the Area and to evaluate whether such controls adequately ensure compliance with applicable requirements identified in procedure a above
c Review OCCCrsquos organizational structure (ie Records Management Officer (RMO) Data
Owners and Data Custodians) to assess adequacy of the records management program
d Review OCCCrsquos certified records retention schedule (RRS) and Form SLR 104 Designation of State Agency Records Management Officer (RMO) to verify proper and timely submission
e Review OCCCrsquos current RRS to ensure compliance with applicable sections of the Texas
Government Code and the Texas Administrative Code
f Assess the oversight and management of user accounts for the systems used in the records management program
g Randomly select records from a listing of records deleted during the audit period to determine
whether they were destroyed in accordance with the RRS and OCCCrsquos internal procedures and destruction method was appropriate for the classification (public confidential etc)
h Randomly select records from a listing of records imagedscanned as applicable during the
audit period to observe the image quality and verify accuracy of the index
i Review various records to ensure they are retained at the security level appropriate for the record type and if applicable record has been transferred to TSLAC either for archiving or for archival review
j Other procedures that may be deemed necessary during audit fieldwork
23
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
FINANCE COMMISSION Internal Audit Plan
12
3 Follow-up of Prior Year Internal Audits and Preparation of the 2020 Annual Report Perform follow-up procedures to determine the status of prior year comments that were not fully implemented as of the fiscal year ended August 31 2019 and prepare the 2020 Annual Internal Audit Report The audit procedures will result in a determination that the recommendation is (1) Fully Implemented (2) Substantially Implemented (3) Incomplete or Ongoing or (4) Not Implemented
4 Other Tasks
Other tasks as may be assigned by the Finance Commission Audit Committee or executive management during the year
24
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
ATTACHMENTS
25
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
TEXAS DEPARTMENT OF BANKING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 162
1 Management Information Systems 2 2000 1 1650 2 3200 2 3000 2 2500 3 3600 2 1600 1 1000 1 8550
Moderate Risk 139 - 162
2 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 60003 IT Examinations 3 3000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 59004 Payroll amp Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 56505 Prepaid Funeral Guaranty Fund 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 3 3000 1 50006 ProcurementContract ManagementHUB 2 2000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 46507 Bank Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44008 Fixed Asset Management 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 4000
Low Risk lt 139
9 Travel 2 2000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 345010 Trust Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 340011 Corporate Activities 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1320012 Imaging amp Records Management 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 265013 Money Service Businesses 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220014 Financial Reporting 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120015 Perpetual Care Cemeteries 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 120016 Prepaid Funeral Contracts 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
Attachment A-1
1326
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Attachment A-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 149
1 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 158002 Payroll and Human Resources 3 3000 2 3300 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 156503 Records Management 1 1000 3 4950 1 1600 1 1500 2 2500 1 1200 1 800 2 2000 15550
Moderate Risk 141 - 149
4 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144005 Mortgage Examinations (Includes Training) 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144006 Thrift Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 144007 Thrift Supervision and Compliance 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 14400
Low Risk lt 141
8 ProcurementContract ManagemenHUB amp Travel 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 140009 Revenue Accounting Process 3 3000 1 1650 1 1600 1 1500 1 1250 2 2400 2 1600 1 1000 1 400010 Mortgage Licensing and Registration 2 2000 1 1650 1 1600 1 1500 2 2500 2 2400 1 800 1 1000 1 345011 Consumer Protection 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1220012 Financial Reporting (Includes Fixed Assets) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 11200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1427
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
Attachment A-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
Risk Assessment Summary
For Fiscal Year 2020
RISK FACTOR WEIGHT
1000 1650 1600 1500 1250 1200 800 1000
RISK FACTORS
1 2 3 4 5 6 7 8
Compliance
with
Time Since Results of Adequacy Contracts Susceptibility
Last Audit Last Audit of Staffing Policies and Laws amp of Theft or Issues or
POTENTIAL AUDIT TOPIC Materiality or Review or Review Levels Procedures Regulations Fraud Concerns Total
High Risk gt 156
1 TFEE Fund Investment Portfolio Administration 3 3000 1 1650 2 3200 2 3000 1 1250 2 2400 2 1600 1 1000 1 7100Fiscal Division (Includes Purchasing Travel Payroll amp
2 Fixed Assets) 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 2 2000 1 62503 Management Information Systems 2 2000 1 1650 2 3200 1 1500 1 1250 3 3600 2 1600 1 1000 1 5800
Moderate Risk 142 - 156
4 Billing and Collection of Fees 3 3000 1 1650 1 1600 1 1500 2 2500 2 2400 2 1600 1 1000 1 52505 Legal and Enforcement 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 52006 Complaint Intake and Investigation 2 2000 1 1650 1 1600 2 3000 1 1250 3 3600 1 800 1 1000 1 49007 TFEE Fund Grant Administration 2 2000 1 1650 1 1600 2 3000 1 1250 2 2400 2 1600 1 1000 1 45008 Motor Vehicle Sales Finance Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 44009 Regulated Lenders Examinations 3 3000 1 1650 1 1600 1 1500 1 1250 3 3600 1 800 1 1000 1 440010 Records Management 1 1000 3 4950 1 1600 1 1500 1 1250 1 1200 1 800 2 2000 1 430011 Credit Access Business Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 420012 Pawn Examinations 2 2000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 4200
Low Risk lt 142
13 Property Tax Lender Examinations 1 1000 1 1650 1 1600 1 1500 1 1250 3 3600 2 1600 1 1000 1 320014 Human Resources 1 1000 2 3300 1 1600 1 1500 1 1250 1 1200 2 1600 1 1000 1 245015 Business Licensing 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220016 Business Registration 2 2000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 220017 Professional Licensing (Pawnshop Employees amp RMLO) 1 1000 1 1650 1 1600 1 1500 1 1250 2 2400 1 800 1 1000 1 1200
Risk Factor Rating
1 - Low Risk2 - Moderate Risk3 - High Risk
1528
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
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32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
Attachment B-1
TEXAS DEPARTMENT OF BANKING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Bank Examinations B AB B AB E
2 Corporate Activities A G E
3 Financial Reporting A B EC
4 Fixed Asset Management C C A C
5 Imaging and Records Management A
6 IT Examinations A A E
7 Management Information Systems AD D D DW A D D DG DB E A1D
8 Money Service Businesses A A B E A1
9 Payroll and Human Resources C A V G C G CF FG
10 Perpetual Care Cemeteries A B E A1
11 Prepaid Funeral Contracts A B E A1
12 Prepaid Funeral Guaranty Fund A AE A1
13 ProcurementContract ManagementHUB C A C B C
14 Revenue Accounting Process A A B E A1
15 Travel C A C B CE
16 Trust Examinations A AE
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C Post-Payment audit performed by the Comptroller of Public Accounts
D IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
E Sunset Review performed by the Sunset Advisory Commission
F Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1629
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
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32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Attachment B-2
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Consumer Protection A B D
2 Financial Reporting (Includes Fixed Assets) E E B DE
3 Legal and Enforcement A B D
4 Management Information Systems C C C C C C AC BC CCD A1
5 Mortgage Examinations (Includes Training) A B D
6 Mortgage Licensing and Registration AG B D
7 Payroll and Human Resources E F E E F
8 ProcurementContract ManagementHUB amp Travel E E B DE
9 Records Management
10 Revenue Accounting Process A B D
11 Thrift Examinations AB A D
12 Thrift Supervision and Compliance A B AD
Note Performance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office (SAO)
C IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
D Sunset Review performed by the Sunset Advisory Commission
E Post Payment Audit performed by the Comptroller of Public Accounts
F EEO Policy Review performed by the Texas Workforce Commission
G Review performed by the Department of Public Safety
1730
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Attachment B-3
OFFICE OF CONSUMER CREDIT COMMISSIONER
History of Areas Audited
For Fiscal Year 2020
POTENTIAL AUDIT TOPIC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1 Billing and Collection of Fees B D
2 Business Licensing A F B DF
3 Business Registration A D
4 Complaint Intake and Investigation A D
5 Credit Access Business Examinations A D
6 Fiscal Division (includes Purchasing Travel Payroll amp Fixed Assets) C C B CD
7 Human Resources C CG C G
8 Legal and Enforcement B D
9 Management Information Systems A E E E E E BE DE A1E
10 Motor Vehicle Sales Finance Examinations A D
11 Pawn Examinations A D
12 Professional Licensing (Pawnshop Employees amp RMLO) A F B DF
13 Property Tax Lender Examinations AD
14 Records Management
15 Regulated Lenders Examinations A D
16 TFEE Fund Grant Administration A A D
17 TFEE Fund Investment Portfolio Administration A D A1
NotePerformance Measures is included in the scope of the applicable audit area(s)
Legend (auditsreviews with asterisk are considered limited scope for the audit area)
A Internal audit performed by GarzaGonzalez amp Associates CPAs
A1 Internal audit performed by McConnell amp Jones LLP
B Audit performed by the State Auditors Office
C Post-Payment audit performed by the Comptroller of Public Accounts
D Sunset Review performed by the Sunset Advisory Commission
E IT assessment performed by the Department of Information Resources (DIR) or a third-party vendor procured through the DIR
F Review performed by the Department of Public Safety
G Review performed by the Texas Workforce Commission
1831
This page left blank intentionally
32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
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32
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Department of Banking Quarterly Investment Report December 1 2019 to February 29 2020
Seized Prepaid Funeral Funds Held in a Financial Institution
Book Value at November 30 2019
Interest Income
Received
Trustee
Fees Paid
Other
Deductions
Other
Additions Book Value at
February 29 2020 Financial Institution Investment
Type Maturity
Date Interest
Rate
$000 $000 $000 $000 $000 $000 NA NA
Total Seized Funds
Notes
$000 $000 $000 $000 $000 $000
s
s
Jesse Saucillo Investment Officer
Sami Chadli Investment Officer
3172020 Date
3192020 Date
33
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Trust-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Value at November 30 2019 Interest Income
Received Trustee
Fees Paid
(1) Other
Deductions
(2) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$143517034 $781699 $13811 $134415 $1309151 $145459658 -- -- $91196
Trust Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company United Texas Bank Dallas Texas (CD)
State Bank of Texas Dallas Texas (CD) Frontier Bank of Texas Elgin Texas (CD)
$72309846 $24697243 $24000000 $24452569
312020 12192020 12162020 4182020
152 195 185 243
$11875 $10948 $68373
Subtotal $145459658
(1) Other deductions is comprised of a single $134415 guaranty fund claim paid to consumer M Hernandez related to a PFC sold by El Paso Mission Funeral Home that was not previously reported to the Department
(2) Other additions include (a) $202800 of PFC payments from consumers regarding Hernandez Funeral Home (b) $150000 restitution received from Mr Kevin Keeney (c)$10000 restitution received from Mr Marc Gonzalez (d) $50000 restitution received from Mr Roy and Ms Kay Bryant and (e) $891191 restitution received from Ms Maria de la Luz Hernandez
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreementsThe above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo 3172020 Investment Officer Date
s Sami Chadli 3192020 Investment Officer Date
34
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
Insurance-Funded Prepaid Funeral Guaranty Fund Quarterly Investment Report December 1 2019 to February 29 2020
Book Interest Income Book Value at November 30 2019 Received
Trustee Fees Paid
Other Deductions
(1) Other
Additions BookMarket
Value at February 29 2020 Maturity
Date Interest
Rate Accrued Interest
on CDs
$64081702 $286080 $9432 $000 $552800 $64911150 $22511
Account Balances at TrusteeDepositories
Texas Treasury Safekeeping Trust Company AccessBank Denton Texas (CD)
Subtotal
$40347995 $24563155 $64911150
312020 7142020
152 223 $22511
(1) Other additions include assessments collected from permit holders on new insurance-funded contracts
These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements
The above investments are in compliance with the investment strategies of Administrative Memorandum 2016
s Jesse Saucillo Investment Officer
3172020 Date
s Sami Chadli Investment Officer
3192020 Date
35
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Department of Savings and Mortgage Lending Investment Officer Report as of February 29 2020
Recovery FundBeginning Balance Additions Interest Bank Ending Balance
1212019 Reductions Received Fees 2292020Cash amp Cash Equivalents $425894185 $3512900 $2087856 ($37012) $431457929
Bank Name Type Maturity Date Interest Rate BookMarket Value Accrued InterestTx Treasury Safekeeping Trust Co Overnight Repurchase Agreements 1212019 154 $306912873 $12986South Star Bank SSB CD - 24 months 4172020 105 25000000 29896Dalhart Federal Savings CD - 24 months 10182020 250 25000000 866319Horizon Bank SSB CD - 24 months 1312021 227 25000000 45715TBK Bank CD - 24 months 472021 300 24545056 110453First Fed Community Bank SSB CD - 18 months 6132021 170 25000000 92083
$431457929 $1157452
Investment Position Investment ComplianceThe Fund is capable of meeting all known obligations The Departments Investment Policy has been followed
Investment Officer sAntonia Antov Date 3162020
Investment Officer sSteven OShields Date 3162020
36
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Beginning Balance at 120119
Additions (Deductions) Interest Paid Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
15714616$ 82500$ 58817$ (6110)$ 15849823$ 1523
Prepared By s Adrian Alejandro Hernandez Date 03272020
Investment Officer s Christina Cuellar Hoke Date 03272020
Note These funds are held at the Texas Treasury Safekeeping Trust Company in overnight repurchase agreements The above investments are in compliance with the agencys investment policy
Residential Mortgage Loan Originator Recovery Trust Fund 3008
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
37
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
Beginning Balance at 120119 Additions Interest Paid Transfers
Grant Disbursements Paid Bank Fees
Ending Balance at 02292020
Current Interest Rate
Cash 130385995$ 36311901$ 560927$ -$ (2591946)$ (198669)$ 164468208$ 1523
Invested PortfolioBeginning Balance
at 120119 Additions Change in Value Transfers Transfer Out Paid FeesEnding Balance at
02292020
Cash in Bank -$ -$ 3874091$ -$ -$ -$ 3874091$ Investments - STIF 259506887 1592917 (2287839) (397362) 258414603 Interest amp Dividends Receivable 342657 32142 374799 Trade Receivables - - - Investments - Equities 1157454 (112881) 1044573 Investments - Alternatives 367294335 449696 367744031 Investments - Fixed Income 37234124 (7913475) 29320649 Investments - Futures - - - Investments - SWAPS at Fair Value 1595116 (1595116) - Total Assets-Invested Portfolio 667130573$ 1592917$ (7553382)$ -$ -$ (397362)$ 660772746$
Liabilities
Accounts Payable (1656824)$ 1351832$ -$ -$ -$ -$ (304992)$ Interest Payable (162909) 162909 - Trade Payables - (140575) (140575) Futures Contracts at Fair Value - - - Swaps at Fair Value (35492) (5039128) (5074620)
Total Liabilities (1855225)$ (3664962)$ -$ -$ -$ -$ (5520187)$
Total Net Fiduciary Assets-Invested Portfolio 665275348$ 655252559$
Total Endowment Funds 795661343$ 819720767$
Note These funds are invested with the Texas Treasury Safekeeping Trust Company The above investments are in compliance with the agencys investment policy
Reflects redistributed amount among the asset classes in addition to market value adjustment
Prepared By s Adrian Alejandro Hernandez Date 04032020
Investment Officer s Leslie Pettijohn Date 04032020
Office of Consumer Credit CommissionerFiscal Year 2020 - 2nd Quarter
Texas Financial Education Endowment Fund 3071
38
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
Texas Department of Banking
Operating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCE
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
Bank amp Trust Regulation $22740931 $25521034 $6555148 $6568081 ($12932) 1002 $13254194 $13281503 ($27309) 1002Penalties - Bank amp Trust Regulation 140000 0 0 10000 (10000) 00 0 10000 (10000) 00Non-Depository Supervision 2562127 3604957 909689 728563 181126 801 1804778 1876062 (71284) 1039Penalties - Non-Depository Supervision 1097740 82600 24000 66176 (42176) 2757 45500 98276 (52776) 2160Miscellaneous Revenues 492200 404800 101200 53137 48063 525 202400 113516 88884 561
TOTAL REVENUES $27032998 $29613391 $7590038 $7425956 $164081 978 $15306872 $15379356 ($72484) 1005
EXPENDITURES
Personnel CostsEmployee Compensation $16952793 $18890947 $4614248 $4259584 $354665 923 $9065046 $8521211 $543835 940Employee Benefits 4905696 5545899 1344714 1244572 100141 926 2638656 2452260 $186396 929Addl HealthRetirement 241770 279995 69018 61249 7769 887 135585 122740 $12845 905Other Personnel Costs 578444 406089 71165 98506 (27341) 1384 128879 169148 ($40269) 1312
Subtotal Personnel Costs $22678703 $25122930 $6099145 $5663911 $435234 929 $11968166 $11265358 $702808 941
TravelIn-State $1367830 $1513093 $314673 $329711 ($15037) 1048 $781016 $710171 $70845 909Out-of-State 658574 709330 115450 111502 3948 966 291960 294443 (2483) 1009
Subtotal Travel $2026404 $2222423 $430123 $441213 ($11089) 1026 $1072976 $1004614 68362 936
Operating CostsProfessional Fees $300071 $321504 $31946 $45265 ($13319) 1417 $54187 $66475 ($12288) 1227Consumables 37249 38000 9500 9679 (179) 1019 13659 13640 19 999Office Utilities 41717 46022 8871 8900 (28) 1003 26759 26669 89 997Rent - BuildingSpace 388330 426635 102584 103453 (869) 1008 252350 253112 (762) 1003Rent - EquipmentOther 25179 35178 6403 5965 437 932 16985 16252 732 957Communications 298025 303074 95114 51710 43404 544 165361 120268 45093 727Information Technology 165118 334818 9508 9508 0 1000 149390 149390 0 1000Employee Training 282911 329264 44363 42183 2180 951 116042 111096 4946 957Misc Operating Costs 425321 433543 40406 48140 (7734) 1191 135139 167580 (32441) 1240
Subtotal Operating Costs $1963921 $2268038 $348695 $324803 $23891 931 $929871 $924483 $5389 994
TOTAL EXPENDITURES $26669028 $29613391 $6877963 $6429927 $448036 935 $13971013 $13194455 $776559 944
EXPENDITURES (OVER) $363970 $0 $712074 $996029 ($283955) $1335859 $2184902 ($849043)UNDER REVENUES
39
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Texas Department of Banking
Overview of Budget Variances for the Second Quarter of Fiscal Year 2020 - (Variances in excess of $1000 and 5 from budget are reported)
Non-Depository Supervision ndash The variance for the quarter is due to the timing of collected assessments This variance will be offset in future quarter assessments
Penalties - Non-Depository Supervision ndash The variance is due to higher than anticipated collected penalties from unlicensed money service businesses and prepaid funeral contract permit holders
Miscellaneous Revenues ndash The variance for the quarter relates to lower than budgeted interest payments from the Treasury than anticipated This is due to bank assessments that are now reduced quarterly which lowered the available bank balance
Employee Compensation and Benefits ndash The positive variance relates to vacant staff positions Vacancies in terms of FTEs as of February 29 2020 are listed below
Administrative 5 Examiners 18
Other Personnel Costs ndash The negative variance is due to lump sum payments related to two unanticipated separations
Travel Breakdown
In-State Travel Out-of-State TravelRegulatory Supervision $29132866 $6259478 Development and Training $2405094 $4363186 Other Regulatory Activities $952186 $527505 Non-Employee $480948 $000
Total $32971094 $11150169
Professional Fees ndash The negative variance is due to the hiring of a temporary help desk contractor to support IT needs This variance was approved by the Commissioner
Communications ndash The positive variance is due to the cancellation of an electronic subscription and lower than anticipated telephone expenditures
Misc Operating Costs ndash The negative variance is related to hiring a temporary employee in the Consumer Assistance area due to existing vacancies This variance was approved by the Commissioner
40
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
TEXAS DEPARTMENT OF BANKING
Liquidity Report
For the Quarter Ending February 29 2019
Actual
Cash at Beginning of Period $ 15975352 Revenues Over (Under) Expenditures $ 996029 Increase (Decrease) in PayablesEncumbrances $ 107126 (Increase) Decrease in Receivables $ 55576 Cash at End of Period $ 17134084
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning $ 6265917 Payables (net of receivables) $ 2030797 Lump Sums for Retirements $ 649380 Program Funds $ - Other $ -Total Reserved Cash Balance $ 8946094
Unreserved Cash Balance Future Operations $ 8187990 Total Unreserved Cash Balance $ 8187990
Total Cash Balance $ 17134084
Unreserved CashFY2020 Monthly Budget 332 months
41
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
Department of Savings and Mortgage LendingOperating Statement and Budget Analysis
For the Quarter Ending February 29 2020
QUARTER PERFORMANCE FY 2020 PERFORMANCEFY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGETREVENUES
Thrift IndustryAssessments $ 2517501 $ 2609638 $ 646132 $ 660278 $ (14146) -22 $ 1286043 $ 1300189 $ (14146) -11Application Fees 14600 20000 5000 32500 (27500) -5500 16000 48000 (32000) -2000
Mortgage IndustryLicensing Fees 3117153 3024935 1015515 1185560 (170045) -167 2526120 2799346 (273226) -108Administrative Penalties 410869 - - 86252 (86252) 00 - 220651 (220651) 00
Misc Revenues 239605 203000 50100 39751 10349 207 100200 83482 16718 167TOTAL REVENUES $ 6299727 $ 5857573 $ 1716747 $ 2004341 $ (287594) -168 $ 3928363 $ 4451668 $ (523305) -133
EXPENDITURESPersonnel Costs
Employee Compensation $ 3718849 $ 4019558 $ 974430 $ 944840 $ 29590 30 $ 1926159 $ 1887215 $ 38944 20Employee Benefits 1228137 1335363 322255 316237 6018 19 633855 622177 11678 18Addl HealthRetirement 53983 60011 14544 14025 519 36 29044 28000 1044 36Other Personnel Costs 72435 78795 22758 20945 1813 80 39435 37322 2113 54
Subtotal Personnel Costs $ 5073403 $ 5493727 $ 1333987 $ 1296047 $ 37940 28 $ 2628493 $ 2574714 $ 53779 20
TravelIn-State $ 209785 $ 213500 $ 49875 $ 39169 $ 10706 215 $ 106750 $ 94520 $ 12230 115Out-of-State 46827 72700 17425 22187 (4762) -273 35850 40036 (4186) -117
Subtotal Travel $ 256612 $ 286200 $ 67300 $ 61357 $ 5943 88 $ 142600 $ 134556 $ 8044 56
Operating CostsProfessional Fees $ 75959 $ 83500 $ 16600 $ 1962 $ 14638 882 $ 46000 $ 18269 $ 27731 603Consumables 10785 11000 2750 1429 1321 480 5500 3694 1806 328Office Utilities 15401 16761 3993 3330 664 166 8143 7056 1087 133Rent - BuildingSpace 2690 6050 2225 1659 566 255 5600 4827 773 138Rent - EquipmentOther 1085 1250 - - - 00 1250 1223 27 22Communications 56364 74566 12705 11606 1099 87 48306 46080 2226 46Information Technology 110597 128183 23000 21789 1211 53 40918 39669 1249 31Employee Training 47550 54000 7850 6919 931 119 21850 20797 1053 48Misc Operating Costs 224875 159740 22350 21927 423 19 74333 70149 4184 56
Subtotal Operating Costs $ 545305 $ 535050 $ 91473 $ 70621 $ 20852 228 $ 251900 $ 211765 $ 40135 159
TOTAL EXPENDITURES $ 5875320 $ 6314977 $ 1492760 $ 1428024 $ 64736 43 $ 3022993 $ 2921034 $ 101959 34
EXPENDITURES (OVER)UNDER REVENUES $ 424407 $ (457404) $ 223987 $ 576317 $ (352330) -1573 $ 905370 $ 1530634 $ (625264) -691
42
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Department of Savings and Mortgage Lending
Budget Variance Analysis
For the Quarter Ending February 29 2020
Revenues
Overall revenues are at 133 over budget
Thrift Industry
Application Fees ndash This category is significantly over budget due to application fees received related to the conversions of Charles Schwab SSBs
Mortgage Industry
Licensing Revenues ndash Overall licensing revenues are 108 over budget due to higher than budgeted RMLO license new and renewal applications received
Fines and Penalties ndash No amount was budgeted
Expenditures
Overall expenditures are at 34 under budget
Professional Fees ndash This category is under budget due to lower than budgeted expenditures for legal services performed by Office of Attorney General
Travel ndash This category is 56 under budget
Travel Breakdown 2nd Qtr FY20 Category In-State Out-of-State TotalRegulation and Supervision $82405 $13978 $96383Development and Training 11158 24039 35197Other Regulatory Activities 0 2019 2019Non-Employee Travel 957 957Total $94520 $40036 $134556
43
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Department of Savings and Mortgage LendingLiquidity Report
For the Quarter Ending February 29 2020
ACTUALCash at Beginning of Period $ 11081314
Revenues Over (Under) Expenditures CY 576317Revenues Over (Under) Expenditures PY 3583Increase (Decrease) in Payables (10802)(Increase) Decrease in Receivables 5647Cash at End of Period $ 11656059
Reserved Cash Balance Bldg maintenanceIT $ - Long-term facilities planning 6273736 Payables (net of receivables) 482874 Lump Sums for Retirements 200900 Program Funds - Other -Total Reserved Cash Balance $ 6957510
Unreserved Cash Balance Future Operations $ 4698549Total Unreserved Cash Balance $ 4698549Total Cash Balance $ 11656059
Unreserved CashFY2020 Monthly Budget 89 months
44
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Office of Consumer Credit Commissioner Operating Statement and Budget Analysis For the Quarter Ending February 29 2020
FY 2019 FY 2020 2nd Quarter 2nd Quarter (Over)Under Percent YTD YTD (Over)Under Percent
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
REVENUES
IndustryConsumer Lending Industry $2072126 $2140633 $924051 $1523235 ($599184) 1648 $2038852 $2096318 ($57466) 1028Credit Access Industry 1181425 1166200 $666753 $1050800 (384047) 1576 1147963 1105175 42788 963MVSF Industry 4397417 933300 $223784 $276026 (52242) 1233 457848 657740 (199891) 1437Pawn 1059100 925632 $10011 $7875 2136 787 21904 25948 (4044) 1185Registered Entities 315676 293760 $180199 $231590 (51391) 1285 252572 308345 (55773) 1221Penalties 143500 0 $0 $12700 (12700) 00 0 37700 (37700) 00
Miscellaneous Revenue 262431 210000 $57127 $49924 7203 874 103023 105574 (2552) 1025TOTAL REVENUES $9431675 $5669525 $2061924 $3152150 ($1090226) 1529 $4022161 $4336800 ($314638) 1078
EXPENDITURES
Personnel CostsEmployee Compensation $5084961 $5247775 $1312661 $1193574 $119087 909 $2585193 $2388886 $196307 924Employee Benefits 1787102 1608490 $413674 $389825 23849 942 799940 759630 40310 950Addl HealthRetirement 74870 308745 $77760 $69092 8667 889 154163 139407 14756 904Other Personnel Costs 174451 113870 $28117 $22906 5212 815 55495 46322 9173 835
Subtotal Personnel Costs $7121384 $7278880 $1832212 $1675397 $156815 914 $3594790 $3334245 $260545 928
TravelIn-State $771680 $769500 $192375 $159163 $33212 827 $384750 $349305 $35445 908Out-of-State 7834 8500 $2125 $6275 (4150) 2953 4250 13472 (9222) 3170
Subtotal Travel $779513 $778000 $194500 $165438 $29062 851 $389000 $362777 $26223 933
Operating CostsProfessional Fees $101035 $226450 $56613 $12808 $43805 226 $113225 $114940 ($1715) 1015Consumables 12190 16000 $4000 $3942 58 986 8000 6818 1182 852Office Utilities 18732 21400 $5350 $4174 1176 780 10700 8688 2012 812Rent - BuildingSpace 23908 24750 $6188 $6179 8 999 12375 14686 (2311) 1187Rent - EquipmentOther 2995 3300 $825 $1106 (281) 1341 1650 1981 (331) 1201Communications 69932 69775 $17444 $16433 1011 942 34888 33215 1673 952Information Technology 274972 237699 $59425 $37740 21685 635 118849 53518 65332 450Employee Training 13553 13500 $3375 $2570 805 761 6750 3094 3656 458Misc Operating Costs 340929 330187 $82547 $68062 14485 825 165094 136046 29048 824
Subtotal Operating Costs $858245 $943061 $235766 $153015 $82750 649 $471531 $372985 $98546 791
TOTAL EXPENDITURES $8759143 $8999941 $2262477 $1993850 $268627 881 $4455321 $4070007 $385314 914
$672532 ($3330416) ($200554) $1158300 ($1358854) ($433160) $266793 ($699953)
QUARTER PERFORMANCE FY 2020 PERFORMANCE
UNDER REVENUES
EXPENDITURES (OVER)
45
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Office of Consumer Credit Commissioner Overview of Budget Variances for 2nd Quarter FY 2020 Revenues- 1078 of YTD budget
MVSF Industry The revenue variance for the MVSF industry relates to a higher than expected rate of reinstatements (late renewals) and for new license applications with late filing fees generally for retroactive effect to cover unlicensed activity Most of this revenue variance was reported in the first quarter Registered Entities The revenue variance for the registered entities relates to the timing differences in renewal cycles especially for crafted metal dealers transitioning to a December renewal time frame Additionally registered creditors experienced a higher than expected rate of reinstatements (late renewals) and for new registration applications with late filing fees generally for retroactive effect to cover unregistered activity
Expenditures- 914 of budget
Salaries and Wages Expenditures are 941 of the projected budget The variance is primarily due to vacancies The OCCC has chosen to defer the hiring of three financial examiners until later in the calendar year Additionally the agency has one posted position that has been difficult to fill Travel Expenditures are at 93 of the YTD budget Travel expenses were below budget during the 2nd quarter due to several examiner vacancies and a traditional decline in travel activity during December
In-State Out-State Regulatory Supervision $27860075 $326656
Development amp Training 6922856 1020516 Other Reg Activities - -
Non-Employee 147611 - Total $34930542 $1347172
Professional Fees and Information Technology Professional fees are at budget and IT costs are under budget due to a misclassification when the accruals were being done in FY 19 The reversal of the accrual has an impact in FY 20 because the accrual does not offset the payment of the invoice in the same category Further certain expenses for Information Technology including acquisition of hardware scheduled for normal retirement are not expected to be incurred until later in the fiscal year Misc Operating Costs Miscellaneous operating costs are recorded at 824 of the projection which is under budget primarily due to timing differences in expenses not yet recognized but expected later in the fiscal year Two of the substantive differences related to the assessment for the Statewide Cost Allocation Plan ($11500) and for Fees for Receiving Electronic Payment (under budget by $16 300 but costs expected to be incurred later in year)
46
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Actual
Cash at Beginning of Period $ 12412431Revenues Over (Under) Expenditures 1159980Increase (Decrease) in PayablesEncumbrances 7478(Increase) Decrease in Receivables 121228Cash at End of Period $ 13701117
Reserved Cash Balance Building MaintenanceIT $ - Long-term facilities planning 6264767 Payables (net of receivables) 693264 Lump sums for Retirements 202643 Program Funds - Other - Total Reseved Cash Balance 7160674
Unreserved Cash Balance Future Operations $ 6540443 Total Unreserved Cash Balance $ 6540443
$ 13701117 Total Cash Balance
Unreserved Cash FY 2020 Monthly Budget 87
Office of Consumer Credit Commissioner
Liquidity ReportFor the Quarter Ending February 29 2020
47
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Texas Financial Education Endowment (TFEE)
TFEE Report ndash April 17 2020 ACTIVITIES RELATING TO THE TEXAS FINANCIAL ENDOWMENT FUND Since the Finance Commission meeting in February the Texas Financial Education Endowment (TFEE) Fund has reimbursed $2762972 to 2018-2019 grant recipients Two grant recipient reimbursements are still being processed The 4th period TFEE 2018-2019 Grant Cycle report is attached
The Grant Advisory Committee recommended ten 2020-2021 TFEE grant recipients which were approved by the Finance Commission at the last meeting The organizations are as follows Building Financial Capacity Coalition Center for Transforming Lives Easter Seals of Greater Houston Family Eldercare Family Services Association of San Antonio FirstLight Community Foundation Foundation Communities Girl Scouts of Northeast Texas Texas State Affordable Housing Corporation and Womenrsquos Resource Center of Greater Houston Each recipient was awarded between $5000 and $40000 of the $300000 in TFEE funds for this grant cycle The 2020-2021 TFEE grant cycle started on March 1st Semi-annual reports are due by July 31st
48
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Progress report prepared for the Finance Commission of Texas
TEXAS FINANCIAL
EDUCATION ENDOWMENT 2018-19 GRANT CYCLE
SEMI-ANNUAL GRANT REPORT No 4
JULY 1 2019 ndash DECEMBER 31 2019
49
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Contents
SUMMARY 1 BUILDING FINANCIAL CAPACITY COALITION 3 CENTER FOR TRANSFORMING LIVES 4 FAMILY SERVICE ASSOCIATION OF SAN ANTONIO 5 FIRSTLIGHT COMMUNITY FOUNDATION 6 GOODWILL INDUSTRIES OF CENTRAL TEXAS 7 HARRIS COUNTY DEPARTMENT OF EDUCATION 8 MANSFIELD MISSION CENTER 9 TRINITY BASIN PREPARATORY 10 WOMENrsquoS RESOURCE OF GREATER HOUSTON 11
50
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
Grant Advisory Committee
Lori McCool Finance Commission Representative Vince E Puente Sr Finance Commission Representative
Eric Norrington Credit Access Business Industry Representative Steven OrsquoShields Department of Savings and Mortgage Lending Representative
Laura Rosen Consumer Advocate Representative Roy Lopez Financial Education Consultant
Grant Coordinator
Andrea Johnson Office of Consumer Credit Commissioner
2018-19 TFEE Grant Recipients
Building Financial Capacity Coalition K-12 Financial Education amp Capability Center for Transforming Lives Financial Coaching Family Services Association of San Antonio Financial Coaching FirstLight Community Foundation K-12 Financial Education amp Capability Goodwill Industries of Central Texas Adult Financial Education amp Capability Harris County Department of Education K-12 Financial Education amp Capability Mansfield Mission Center Financial Coaching Trinity Basin Preparatory K-12 Financial Education amp Capability Womens Resource of Greater Houston Adult Financial Education amp Capability
51
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
2
Summary Background
The Texas Financial Education Endowment (TFEE) Grant Program awarded nine organizations an aggregate amount of $250000 in grant funds for program activities during the 2018-19 grant cycle These organizations strive to increase and promote the financial capability of all Texas consumers
Program Highlights During the fourth reporting period (July 1 2019 ndash December 31 2019) TFEE funds provided 1797 hours of direct financial education training to 3277 Texas consumers through group presentations and one-on-one financial coaching sessions In addition 570 teachers were trained to be better prepared to provide financial education to their students in accordance with Texas standards
Financial Status
Amount Awarded $25000000
No 1 (January 1 2018 ndash June 30 2018) $4459876 No 2 (July 1 2018 - December 31 2018) $5661921No 3 (January 1 2019 ndash June 1 2019) $8470211
Building Financial Capacity Coalition $1259145Center for Transforming Lives $000Family Service Association of San Antonio $000FirstLight Community Foundation $400000Goodwill Industries of Central Texas $806987Harris County Department of Education $000Mansfield Mission Center $596042Trinity Basin Preparatory $180135Womenrsquos Resource of Greater Houston $779808
$4022117Total Requested Amount to Date $22614125 of Funds Expended to Date 9046
Amount Of Funds Remaining $2385875Reimbursement Reports pending review
Previous Reimbursement totals
Reimbursement Requests (No 4 July 1 2019 ndash December 31 2019)
Total Requested Amount for Reimbursement Request No 4
52
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
3
Building Financial Capacity Coalition (BFCC) The Building Financial Capacity Coalitionrsquos mission is to foster community prosperity for the Rio Grande Valley by enhancing the knowledge and skills needed for improved financial decision making
The BFCC Money Smart Ambassador Program was created to teach young adults the importance and the basics of personal finances BFCC partners with local high schools to embed the curriculum into required classes and holds an Annual Financial Literacy Summit in partnership with congressmen from the area
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEAR | AMOUNT AWARDED $29000
FUNDS REQUESTED THIS PERIOD $1259145 | TOTAL REIMBURSED YTD $1552096
Program Update During the fourth reporting period BFCC reached 80 teachers and students through direct training BFCC continued to modify and extend their program for at risk teen mothers These teens cannot participate in the ambassador program as it stands so it was modified to a one day training programming to help these students in need
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Trained teachers reached over 3000 students bull Provided train-the-trainer program for 132 teachers bull Provided 92 hours of direct financial education services to participants bull Money Smart Ambassador Program and Congressional Summits with the support of
Congressman Filemon Vela were held in several locations across the Rio Grande Valley
Biggest Challenges bull Tracking success of the programs especially when using the existing survey bull Embedding the curriculum into the high schools bull Smart Ambassadors are high school seniors and they are bombarded with activities their senior
year bull Administrative turnover with the largest school district they work on this project with
53
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
4
Center for Transforming Lives (CTL) Center for Transforming Lives helps homeless and impoverished women children and families move from poverty to independence through homeless services (an emergency shelter for women and housing assistance for families) Early Childhood Development (providing free or subsidized early childhood education to impoverished and homeless families) and Financial Empowerment Services (individual financial coaching and other programs to promote financial self-sufficiency)
The goal for this program is to empower participants to develop financial self-sufficiency credit improvement and asset building through one-on-one long term financial coaching
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3300000
Program Status to Date CTL had no new information to report regarding the last six months of the 2018-2019 TFEE grant
The program was successfully completed by the 2019 mid-year reporting period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 601 total participants served in the last fiscal year bull 63 financial education workshops were delivered to 573 duplicated participants bull 1411 individual coaching sessions were delivered to 441 unduplicated participants bull 68 of participants who completed four coaching sessions achieved at least one of their goals
o Increase income savings and credit score o 19 participants completed program requirements for matched savings towards asset
purchases 3 first home 2 post-secondary education 14 small businesses
Biggest Challenges bull Although achievable they state the tracking data was much more labor intensive than
anticipated
54
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
5
Family Service Association of San Antonio (FSASA) Family Service Association of San Antonio seeks to increase economic opportunities for low-income families and individuals The Financial Empowerment Services program provides San Antonio residents financial education and capability services through one-on-one financial counseling The focus is on reducing debt increasing credit scores savings banking and wealth building
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $000 | TOTAL REIMBURSED YTD $3137387
Program Status to Date FSASA has far exceeded their goal for the 2018-2019 TFEE grant cycle
In total they reached 3835 participants with 2196 direct contact hours of one-on-one financial coaching sessions
In addition FSASA helped 555 individuals increase their credit scores by 35 points and 527 participants reduced their debt by 10
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull They have found the best way to affect behaviors is to provide financial counseling on an
ongoing basis o 90 day follow-up and reevaluation of financial goals is essential
bull Strong programmatic achievements and our participants achieve high outcomes in a relatively short period of time
Biggest Challenges bull Staffing enough people to assist clients ndash theyrsquove increased funding streams and added an
additional financial counselor
55
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
6
FirstLight Community Foundation (FLCF) FirstLight Community Foundation strives to help youth and families in the El Paso and Las Cruces communities improve their lives by achieving financial independence FLCF has focused on the Brighter U Financial Literacy Program which provides implementation of financial education into El Paso Independent School District High Schools Brighter U is an engaging online resource that uses video animations and interactive activities to bring complex financial concepts to life for students
The FLCF is a 501(c)(3) charitable foundation that was founded in 2015 in order to do more for and give back to the underserved communities FLCF has incorporated financial literacy and scholarships as a focus for the foundation in order to help the youth and families achieve financial independence
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $16000
FUNDS REQUESTED THIS PERIOD $400000 | TOTAL REIMBURSED YTD $1600000
Program Status to Date During the fourth reporting period FLCF reached 525 students through a total of 1360 direct hours of learning There has been an overall strong push for implementation of the Brighter U Financial Literacy Program in the schools for all three of the districts FLCF sponsor and additional schools are expected to participate in Spring 2020
They report by and large schools that have launched the program have demonstrated great success They expect continued utilization success with and the overall benefits of the Brighter U Program will help lead to the implementation and launch of the program in more campuses even beyond the grant period
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 450 participants with financial education bull Dedicated 1919 direct hours of service to participants bull Provided services to 11 schools
Biggest Challenges bull Direct outreach to non-participating schools to utilize the program bull Implementing the program can be difficult since students still need to focus most of their
academic time on their regular classroom subjects
56
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
7
Goodwill Industries of Central Texas Goodwill Industries of Central Texas strives to increase the financial knowledge and capability of low-income clients leading to increased self-sufficiency and economic security Goodwill has developed a strong curriculum that clients enjoy combining didactic elements and the relevant information clients need to achieve financial capability Goodwill generates lifelong connections to work where clients have access to meaningful employment and educational opportunities
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $806987| TOTAL REIMBURSED YTD $3179487
Program Status to Date During the fourth grant cycle reporting period Goodwill Industries had more trainers offering workshops and individual sessions making for more training dates available They have shown a good return rate of clients attending several trainings
Goodwill has incorporated real-life event stimulating activities into the training sessions to encourage critical thinking and habit building
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 248 participants with financial education bull Hosted 114 group presentations bull Assisted seven participants in establishing or increasing their savings bull Average credit scores increased by 38
Biggest Challenges bull At this time Goodwill Industries of Central Texas reports no significant setbacks
57
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
8
Harris County Department of Education (HCDE) Harris County Department of Education (HCDE) collaborates with 25 school districts in Harris County to provide specialized services that school districts are unable to provide For example HCDE provides therapy services staff development training for teachers and administration adult education after-school programs and other services In addition through the 2018-19 TFEE Grant Cycle HCDE plans to train 70 High School mathematics social studies and career and technical educators how to implement the Texas State Board of Educationrsquos newly adopted career and technology course Financial Mathematics
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS | AMOUNT AWARDED $19000
FUNDS REQUESTED THIS PERIOD $000 |TOTAL REIMBURSED YTD $1805875
Program Status to Date In June 2019 HCDE conducted a six-hour financial literacy professional development course titled New Course New Challenges Tackling Texas Financial Literacy Through Financial Professional Development The purpose and goal of the program was to train 70 high school mathematics social studies and Career amp Technical Educators on how to implement the Texas State Board of Education newly adopted high school Career amp Technical Education course Financial Mathematics
Their program ended in June 2019 They had no new program data to report for the final reporting period of the 2018-2019 TFEE grant
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 100 of the participants rated the session overall as either good or excellent bull Additionally all the participants reported the training expanded their knowledge of the topic
Biggest Challenges bull Budget revisions for funding the program bull Completing the RFP process and obtaining board approval by scheduled workshop date bull Getting all districts to attend the workshop
58
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
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62
9
Mansfield Mission Center (MMC) Mansfield Mission Center is a non-profit organization committed to holistic family development in Mansfield Independent School District and surrounding areas MMC interrupts financial crisis for families and helps them create a long-term plan to turn their financial situation around MMCrsquos wrap-around approach helps ensure families are safe by being able to afford to stay in their homes keeping utilities turned on and food in the fridge Once stable coaches give clients the support and resources to create and implement long-term financial and employment goals
PROGRAM TYPE FINANCIAL COACHING
GRANT TERM TWO YEARS I AMOUNT AWARDED $33000
FUNDS REQUESTED THIS PERIOD $596042 | TOTAL REIMBURSED YTD $3300000
Program Status to Date During the fourth reporting period MMC provided 423 direct service hours to 237 participants through one-on-one financial coaching MMC offered financial assistance with GED class expenses to students who attended financial coaching outside of class Moving forward MMC will continue to strategically integrate financial education and employment or education services
MMC learned they need to meet their clientsrsquo physical and social needs in order to better implement their financial services
This organization plans to continue focusing on increasing household income for clients and increase the number of clients that become banked and increase their savings
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull Provided 237 participants with long-term financial counseling bull Provided 423 direct service hours to participants bull 2 participants reported reducing their usage of consumer loan products or other debt bull Participants saw an average savings increase of $12300
Biggest Challenges bull Creating an intake procedure that can be implemented across all departments so it is easier for
clients to utilize all services an d only have to qualify for them once
59
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
10
Trinity Basin Preparatory (TBP) Trinity Basin Preparatory is an open enrollment charter school that has been awarded funding in order to expand the BizKid$ Entrepreneur Contest to 24 classrooms or all of the 7th and 8th grade classes Each classroom will work as a team to compete in the contest The contest gives the students a hands-on opportunity to become more financially literate and work on critical thinking reading writing mathematics and team work
PROGRAM TYPE K-12 FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $17000
FUNDS REQUESTED THIS PERIOD $180135 |TOTAL REIMBURSED YTD $000
Program Status to Date
During the fourth grant cycle period Trinity Basin Preparatory continued to report problems with participation They state only eleven of the twenty-eight 7th and 8th grade classes (256 students) participated in the BizKid$ program Partnership staffing changes also played a role in participation in the program They also report prepost assessment issues
TBP has only requested reimbursement for program expenses pertaining specifically to the BizKid$ program
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements
bull 256 students in the BizKid$ in-person financial literacy classes bull Delivered financial literacy education components to several 7th and 8th grade classes bull 256 students learned how to write a business plan bull Made new connections with local credit unions to help support financial literacy programs
Biggest Challenges
bull Not having a captive audience meaning not able to control who is included in the program bull Student participation
60
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
11
Womenrsquos Resource of Greater Houston The Womenrsquos Resource of Greater Houston provides services that help to ensure that women from all walks of life can become financially stable and self-sufficient by acquiring essential financial knowledge skills and confidence needed to make sound financial decisions By fostering strong partnerships with other social service agencies and offering services free of charge and at a convenient time and place Womenrsquos Resource has found an excellent way to reach people who would not otherwise have access to their programs and services Womenrsquos Resources offers two programs for our adult clients - YourLife Finance Classes (group presentations) and YourLife Possibility Groups (small group counseling)
PROGRAM TYPE ADULT FINANCIAL EDUCATION amp CAPABILITY
GRANT TERM TWO YEARS |AMOUNT AWARDED $3300000
FUNDS REQUESTED THIS PERIOD $779808|TOTAL REIMBURSED YTD $2520192
Program Status to Date
During the third reporting period Womenrsquos Resource provided a total of 1976 participants with financial education through group classes and small group financial counseling Most of the participants seeking services are low-income in a state of transition and are often hard to contact
The new curriculum has been deployed and WRGH is working to develop a new partnership for all of their Your Life programs WRGH attributes improved outcomes during the second 2019 reporting period due to the introduction of the new curriculum The organization reports class participants are attending more classes in their six series allowing WRGH to measure outcomes over time
WRGH is now going on to form a pilot program with the United Way and the Houston Area Womenrsquos Center to develop best practices for increasing financial capabilities for domestic violence survivors in both an emergency shelter setting and also as they transition to independent living
Reporting Period Update (July 1 2019 ndash December 31 2019)
Major Achievements bull 97 of participants reported learning something new bull Provided 1976 participants with financial education services bull Provided 194 financial education classes bull 58 of participants attended two or more classes bull 32 of participants took four or more classes bull 86 of participants said they would recommend the class to a friend bull Retention rate is better than expected with a being group size of ten and ending with eight
Biggest Challenges bull Two significant challenges revisions to guides and curriculum bull Increasing the class offerings for volunteer class instruction
o Now pairing experienced volunteers with new volunteers to co-teach classes
61
This page left blank intentionally
62
This page left blank intentionally
62
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