Music Library Association: Table of Contents June 30, 2008

INDEPENDENT AUDITOR’S REPORT 872

FINANCIAL STATEMENTS

Statements of financial position 873

Statements of activities – 2008 874

Statements of activities – 2007 875

Statements of cash flows 876

Notes to financial statements 877–881

Independent Auditor’s Report

To the Board of Directors

Music Library Association

Middleton, Wisconsin

We have audited the accompanying statements of financial position of Music Library Association as of June 30, 2008 and 2007, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Music Library Association as of June 30, 2008 and 2007, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

October 7, 2008

	2008	2007
ASSETS
Cash and cash equivalents:
Unrestricted	$ 106,094	$ 109,237
Restricted, Mellon Grant	12,544	12,622
Total cash and cash equivalents	118,638	121,859
Certificate of deposit	65,585	60,000
Accounts receivable	14,241	7,355
Prepaid expenses	9,600	0
Inventories	8,607	8,345
Investments in mutual funds:
Unrestricted	644,369	644,452
Temporarily restricted	65,455	67,695
Permanently restricted	157,192	157,192
Total investments in mutual funds	867,016	869,339
Equipment, net of accumulated depreciation 2008 - $3,761; 2007 - $3,430	3,433	1,257
Web site	8,300	0
TOTAL ASSETS	$1,095,420	$1,068,155
LIABILITIES AND NET ASSETS
Accounts payable	$ 27,129	$ 7,379
Customer prepayments	65,955	57,040
Mellon Grant payable	12,544	12,622
Total liabilities	105,628	77,041
NET ASSETS
Unrestricted	767,145	766,227
Temporarily restricted	65,455	67,695
Permanently restricted	157,192	157,192
Total net assets	989,792	991,114
TOTAL LIABILITIES AND NET ASSET	$1,095,420	$1,068,155

The accompanying notes are an integral part of these financial statements.

	Unrestricted	Temporarily restricted	Permanently restricted	Total
Changes in net assets:
Public support and revenues:
Contributions	$ 37,571	$ 12,180	$ 0	$ 49,751
Dues	126,130	0	0	126,130
Sales of publications	181,846	0	0	181,846
Conventions	140,071	0	0	140,071
Interest and dividends	48,196	14,559	0	62,755
Realized and unrealized loss on investments, net	(69,130)	(22,179)	0	(91,309)
Other	7,858	0	0	7,858
Net assets released from restriction:
Payment of awards	6,800	(6,800)	0	0
Total public support and revenues	479,342	(2,240)	0	477,102
Expenses:
Program services:
General expenses	16,725	0	0	16,725
Publications	108,432	0	0	108,432
Conventions	156,394	0	0	156,394
Awards	6,800	0	0	6,800
Member services	15,862	0	0	15,862
Total program services	304,213	0	0	304,213
Supporting services:
Management and general	174,211	0	0	174,211
Total expenses	478,424	0	0	478,424
Change in net assets	918	(2,240)	0	(1,322)
Net assets, beginning	766,227	67...