Affairs of the Association

Affairs ofthe Association FinancialReport Padgett Stratemann & Co., l.l.p. Accountants and Advisors To the Members of The Texas State Historical Association Independent Auditors' Report We have audited the accompanying statements of financial position of the Texas State Historical Association (Association) as of August 31, 2007 and 2006 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 the Association as ofAugust 31, 2007 and 2006, and the changes of its net assets and its cash flows for the years dien ended, in conformity with accounting principles generally accepted in the United States of America. fie ' , Stralunane ^do.j L.Lf February 26, 2008 Austin, Texas 112Southwestern Historical QuarterlyJuly TEXAS STATE HISTORICAL ASSOCIATION STATEMENT OF FINANCIAL POSITION AUGUST 31, 2007 and 2006 ASSETS 20072006 Cash and cash equivalents$ 160,069$377,223 Investments3,202,5273,362,194 Receivables112,49897,082 Pledge receivable, net ofan allowance for doubtful accounts of$-0-100,000200,000 Inventory343,809382,129 Prepaid expenses21,39423,326 Fixed assets, net54,60688,842 Endowment investments1,900,9541,875,599 The Handbook of Texas Online: A Digital Gateway to Texas History________: ________ TOTAL ASSETS$5,895,857$6,406,395 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued liabilities102,622125,275 Capital lease obligation ________^18,903 Total Liabilities102,622144,178 NETASSETS Unrestricted Net Assets Board designated: Endowment/general1,840,1801,295,595 Publication fund- 896,464 Handbook endowment _______- 117.509 Total Board Designated1,840,1802,309,568 Unrestricted, undesignated________s _______=. Total Unrestricted Net Assets1,840,1802,309,568 Temporarily restricted2,052,1012,077,050 Permanenüy restricted1,900,9541,875,599 TOTAL NET ASSETS5,793,2356,262,217 TOTAL LIABILITIES AND NET ASSETS$5,895,8576,406,395 See Accompanying Notes to Financial Statements TEXAS STATE HISTORICAL ASSOCIATION TEXAS STATE HISTORICAL ASSOCIATION STATEMENT OF ACiTvTnES FORTHE YEARS ENDED AUGUST 31, 2007 AND 2006 20072006 REVENUES Publicadon and odier sales Investment income Contributions Association activities Membership income Educational activities Annual Meedng Contributed services Philosophical Society Awards Net assets released from donor and program restrictions TOTAL REVENUES EXPENSES Program Services: Digital Gateway Handbook production Publications Southwestern Historical Quarterly Educational activities Association activities Awards Fundraising General and administrative TOTAL EXPENSES CHANGE IN NET ASSETS BEGINNING NET ASSETS ENDING NET ASSETS 1,468,746 133,365 218,819 341,013 98,349 297,089 109,090 11,666 19,274 709,469 1,938,134 (469,388) 2.309,568 $1,840,180 Temporarily Restricted $ 29,788 317,299 121,331 Unrestricted $ 204,081 330,695 21,314 16,196 72,762 33,058 44,729 210,944 35,000 6,600 493,367(493,367) (24,949) (24,949) 2,077,050 Permanently Restricted $ 355 25,000 25,355 25,355 Total $ 233,869 648,349 167,645 16,196 72,762 33,058 44,729 210,944 35,000 6,600 Unrestricted $ 223,763 149,546 1,456,729 15,687 96,885 55,134 354,186 35,000 4,135 381,533 1,469,152 2,772,598 133,365 218,819 341,013...