Panhandle-plains Management & Servicing Corporation

Nonprofit profile at a glance

EIN
455543346
IRS 990 coverage
2013–2019
Forms available
Form 990 2019
Location
Canyon, TX, USA
Phone
8063244115
Rating
71
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Scholarships, Student Financial Aid Services, Awards

Official website

Reported finances

Revenue
$651,943
Expenses
$1,504,126
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2019. Amounts in USD.

Leadership & pay

7 people listed

Executive titles in this filing

  • JIMMY PARKER (PRESIDENT)

Highest reported compensation

  • JIMMY PARKER (PRESIDENT): $220,039 total reported compensation
  • JOHN WRIGHT (SR VICE PRES): $206,166 total reported compensation
  • ZACH BELL (CFO): $151,735 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2019. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Master student loan servicer for panhandle-plains higher education authority, inc. (pphea), panhandle-plains student finance corporation (ppsfc), and other organizations. The corporation also performs management and oversight services for pphea and ppsfc, of which both are also related not-for-profit organizations. Also provides educational and charitable programs to decrease student loan defaults, promote financial aid outreach and financial literacy.

What it reported doing in 2019

Through august 31, 2020, the organization in conjunction with the panhandle non-profits, provided for services utilizing its developed student loan assistance manager (slam), which is a cohort default rate management system created to import national student loan data systems (nslds) data and allow schools to undertake default prevention activities. The system provides the school with user-friendly access to nslds data on the student loans of borrowers who attended the school and can be used to identify borrowers for default aversion activities and to estimate the institution's cohort default rate (which is important for schools to have continued eligibility to participate and receive title iv student aid funds for their students). Through august 31, 2020, the organization provided an outreach program with four coordinators with the purpose of educating junior and senior high school students attending small independent school districts' about financial aid.

Operating model

Revenue model
Other-operating. 96% of the money available for current operations came from other operating revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Expenses are high relative to revenue and program spending has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 82
  • Transparency & Controls: 66
  • Accountability: 91
  • Sustainability: 1
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 78.4%; rating input score 78
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Fail
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -130.7%; rating input score 1; 1st percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 38.4%; rating input score 3; 3rd percentile among comparable filings

Growth

  • Program expense growth: -20.2% per year; rating input score 0; 3rd percentile among comparable filings
  • Revenue growth: -17.5% per year; rating input score 0; 2nd percentile among comparable filings
  • Asset growth: -16.2% per year; rating input score 0; 3rd percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 78.4% of spending went to programs
  • Governance: 4 of 4 board members independent · 7 of 9 filing controls reported
  • Programs: 4 filed program accomplishments · $1.2M in reported program spending
  • Leadership: top reported pay $220K · 7 people listed · 1 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $242K reported
  • Consistency: 24 of 24 current checks pass
  • Schedules: 6 filed schedules · includes executive pay
  • Filing history: 7 filing years from 2013 to 2019
  • Contacts: How to reach this organization
  • Money network: 4 filed money-flow records
  • Related organizations: 2 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Sustainability: Operating margin scored 1/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • Review — Accountability: Governance controls: Document-retention policy not reported.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 3/100.