Texas Permanent School Fund Comprehensive Annual Financial Report: 2015 Page: 28
98 p.View a full description of this report.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
deferred inflows of resources. Amounts are
considered measurable if they can be estimated or
otherwise determined. Expenditures are recognized
in the period in which the related fund liability is
incurred, if measurable.
Preparation of financial statements in conformity with
accounting principles generally accepted in the United
States of America requires management to make
estimates and assumptions that affect the reported
amounts of assets, liabilities, and disclosure of
contingent liabilities at the date of the financial
statements and the reported amounts of income and
expenditures during the reporting period. Externally
managed emerging market debt and emerging market
equity, as well as alternative investments, including
absolute return fund of funds, risk parity strategies,
commodities (real return investments), private equity
and real estate, are valued by the PSF(SBOE) at fair
values as determined by management. The real
assets investments are valued by the PSF(SLB) at fair
values as determined by management.
The GLO and TEA organizations each adopt an
agency-wide budget for legislative approval. Each of
these agencies' budgets encompasses operations of
the Fund overseen by their respective Boards.
However, there is no legally adopted budget
specifically for the Fund as a whole. These agency
budgets are prepared biennially and represent
appropriations authorized by the Legislature and
approved by the Governor of Texas (the General
Appropriations Act).
Assets, Income, Expenditures, and Operating
Transfers
Cash and Cash Equivalents
Cash and cash equivalents consist of money market
instruments, cash held at the State Treasury, cash
held in a FDIC insured bank account, foreign
currencies and other overnight funds. The
PSF(SBOE) cash in bank balance represents the U.S.
dollar equivalent of amounts held in foreign currencies
for which trade settlement is pending and dividend
payment is awaiting repatriation. The Fund's deposits
with the State Treasury are available upon demand
and are therefore presented as cash. Cash
equivalents on the balance sheet represent cash
balances that are invested in the money market fund
managed by the PSF(SBOE) custodian, The Bank of
New York Mellon Corporation (Custodian). Cash heldin the money market fund is primarily utilized to settle
investment obligations. Cash and cash equivalents
are an integral part of investment management of the
Fund. PSF(SLB) cash and cash equivalents includes
cash on hand, cash in local banks, cash in the State
Treasury and short-term highly liquid investments with
an original maturity of three months or less.
Receivables
The PSF(SBOE) reports receivables based on
revenues earned but not collected during the fiscal
year.
The PSF(SLB) reports receivables based on revenues
earned but not collected during the fiscal year. The
voluntary oil and gas royalty receivables are
calculated from production reports or remittance
advices; the payments and reporting of these royalties
are not legally due until the second month after
production occurs. The receivables for voluntary oil
and gas royalties are established based on the
information received in the remittance advices from
fiscal year end through October 2015 for the
production months August 2015 and earlier.
P F(S E) Investments
Investment transactions are recorded on a trade date
basis. Investments other than land endowment are
reported at fair value in accordance with GASB
Statement No. 31, Accounting and Financial
Reporting for Certain Investments and for External
Investment Pools. PSF(SBOE) investments, such as
equities and fixed income securities with readily
determinable fair values, are valued on the basis of
market valuations provided by the Custodian. Short-
term securities, which have maturities less than one
year at the time of purchase, are valued at amortized
cost, which approximates fair value.
Fair values of PSF(SBOE) absolute return fund of
funds are based on the net asset value (NAV)
provided to management by the investment advisors
of the funds.
Fair values of PSF(SBOE) risk parity strategies are
based on the NAV provided to management by the
general partner or the investment advisor, as
applicable for each investment structure.
Fair values of PSF(SBOE) real estate investments are
estimated by management using the latest valuation
provided by the general partners, adjusted for28
TEXAS PERMANENT SCHOOL FUND
NOTES TO THE FINANCIAL STATEMENTS
Upcoming Pages
Here’s what’s next.
Search Inside
This report can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Report.
Permanent School Fund (Texas). Texas Permanent School Fund Comprehensive Annual Financial Report: 2015, report, Autumn 2015; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth838482/m1/34/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.