OKLAHOMA PUBLIC EMPLOYEES RETIREMENT PLAN
ADMINISTERED BY THE OKLAHOMA PUBLIC EMPLOYEES RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 AND 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The following are the significant accounting policies followed by the Oklahoma Public Employees
Retirement Plan (the "Plan").
Basis of Accounting
The financial statements are prepared using the accrual basis of accounting under which expenses
are recorded when the liability is incurred, revenues are recorded in the accounting period in which
they are earned and become measurable, and investment purchases and sales are recorded as of
their trade dates.
The Plan is administered by the Oklahoma Public Employees Retirement System ("OPERS") a
component unit of the State of Oklahoma (the "State"), which together with other similar funds
comprise the fiduciary-pension trust funds of the State. As set forth in Title 74, of the Oklahoma
Statutes, at Section 921, administrative expenses are paid with funds provided by operations of the
In June of 1999, the Government Accounting Standards Board ("GASB") issued Statement No. 34
(the "Statement") Basic Financial Statements - and Management's Discussion and Analysis - for State
and Local Governments. This Statement establishes financial reporting standards for state and local
governments. The requirements of this Statement are effective for periods beginning after June 15,
2001, in three phases based on a government's total annual revenues in the first fiscal year ending
after June 15, 1999. As the Statement primarily relates to disclosure requirements, no impact is
expected on the Plan's net assets or changes in its net assets. Management plans on adopting this
Statement for fiscal year 2001 based on the State's planned adoption for fiscal year 2001.
The Plan is authorized to invest in eligible investments as approved by the Board of Trustees (the
"Board") as set forth in its investment policy.
Plan investments are reported at fair value. The short-term investment fund is comprised of an
investment in units of commingled trust funds of the Plan's custodial agent, which is reported at cost,
which approximates fair value. Debt and equity securities are reported at fair value, as determined by
the Plan's custodial agent, using pricing services or prices quoted by independent brokers based on
the latest reported sales prices at current exchange rates for securities traded on national or
international exchanges. The fair value of the pro rata share of units owned by the Plan of domestic
equity index funds, a domestic equity commingled trust fund, international equity index funds, and two
emerging markets commingled or mutual funds is determined by the respective fund trustee based on
quoted sales prices of the underlying securities. The fair value of the real estate funds is provided by
the funds' managers based on the value of the underlying real estate properties as determined from
Net investment income includes net appreciation (depreciation) in the fair value of investments,
interest income, dividend income, investment income from real estate, securities lending income and
expenses and investment expenses, which includes investment management and custodial fees and
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