Music Library Association

INDEPENDENT AUDITOR’S REPORT . . . . . . . . . . . . . . . . . . . . . . . . 895

FINANCIAL STATEMENTS

Statements of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . 896

Statements of activities – 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 897

Statements of activities – 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 898

Statements of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899

Notes to financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 900–905

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, 2011 and 2010, 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, 2011 and 2010, 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.

September 30, 2011

SVA Certified Public accountants, s.c.

	2011		2010
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	91,304	$	63,037
Accounts receivable		8,893		8,552
Inventories		6,508		6,771
Total current assets		106,705		78,360
INVESTMENTS
Investments in mutual funds:
Unrestricted		586,378		560,308
Temporarily restricted		98,277		59,072
Permanently restricted		157,192		157,192
Total investments in mutual funds		841,847		776,572
PROPERTY AND EQUIPMENT
Equipment, net of accumulated depreciation 2011 - $4,556; 2010 - $4,055		1,003		1,504
WEBSITE COSTS, NET OF AMORTIZATION		30,863		57,558
TOTAL ASSETS	$	980,418	$	913,994
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable	$	14,991	$	22,908
Customer prepayments		72,360		57,700
Total current liabilities		87,351		80,608
NET ASSETS
Unrestricted:
Board designated		884		0
Other		636,714		617,122
Total unrestricted		637,598		617,122
Temporarily restricted		98,277		59,072
Permanently restricted		157,192		157,192
Total net assets		893,067		833,386
TOTAL LIABILITIES AND NET ASSETS	$	980,418	$	913,994

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	$	11,534	$	11,976	$	0	$	23,510
Dues		122,115		0		0		122,115
Sales of publications		158,572		0		0		158,572
Conventions		173,811		0		0		173,811
Interest and dividends		16,507		6,342		0		22,849
Realized and unrealized gain on investments, net		76,779		29,437		0		106,216
Other		2,173		0		0		2,173
Net assets released from restriction: Payment of awards		8,550		(8,550)		0		0
Total public support and revenues		570,041		39,205		0		609,246
Expenses:
Program services:
General expenses		21,729		0		0		21,729
Publications		86,286		0		0		86,286
Conventions		190,242		0		0		190,242
Awards		8,550		0		0		8,550
Member services		13,338		0		0		13,338
Total program services		320,145		0		0		320,145
Supporting services:
Management and general		229,420		0		0		229,420
Total expenses		549,565		0		0		549,565
Change in net assets		20,476		39,205		0		59,681
Net assets, beginning		617,122		59,072		157,192		833,386
Net assets, ending...