A Financial Audit
A Report on the Audit of the Permanent School Fund’s Fiscal Year 2018 Financial Statements
In our audit report dated December 20, 2018, we concluded that the Permanent School Fund’s (the Fund) basic financial statements for fiscal year 2018 were materially correct and presented in accordance with accounting principles generally accepted in the United States of America. The Fund published our audit report as part of its basic financial statements, which it will post on its Web site at www.tea.texas.gov.
We also issued a report on internal control over financial reporting and on compliance and other matters as required by auditing standards (that report, including responses from management, is presented in the attachment to this letter). In that report, auditors identified that the General Land Office’s oil and gas mineral reserve valuation did not accurately reflect the value of the underlying mineral reserve holdings.
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The Office’s Oil and Gas Mineral Reserve Valuation Did Not Accurately Reflect the Value of the Underlying Mineral Reserve Holdings
The General Land Office’s (Office) oil and gas mineral reserve valuation did not include all Permanent School Fund (Fund) mineral holdings, resulting in the Fund inaccurately reporting the value of the underlying mineral holdings. This resulted in assets being understated by $437.8 million for the year ended August 31, 2018.