The General Land Office (Office) did not disclose in the Permanent School Fund’s (Fund) financial statements the existence of certain related investment entities as required by
accounting and reporting standards. Those related investment entities were limited liability companies created by, for, and on behalf of the Office to provide legal protection for certain investments.
The Office also did not have policies and procedures designed to govern why the investment entities would be established and how they would be used, managed, and dissolved when no longer needed.
As of November 2017, auditors had identified 20 related investment entities that should be disclosed as related entities on the Fund’s financial statements. The balances of the Fund investments held
by related investment entities totaled $470.5 million at August 31, 2017.
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