Affairs of the Association

Affairs ofthe Association Financial Report Sprouse and Anderson, l.l.p. Accountants and Consultants 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 ofAugust 31, 2006 and 2005 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, 2006 and 2005, and the results of its activities and its cash flows for the year then ended , in conformity with accounting principles generally accepted in the United States ofAmerica. horvooáo i kmaH¿M.\-·^· January ig, 2007. Austin, Texas 1 28Southwestern Hutorical Quarterly]u\y TEXAS STATE HISTORICAL ASSOCIATION STATEMENT OF HNANCIAL POSITION AUGUST 31, 2006 and 2005 ASSETS 20062005 Cash and cash equivalents$ 377,223$367,301 Investments3,362,1943,520,290 Receivables97,08269,285 Pledge receivable, net ofan allowance for doubtful accounts of $-0-200,000 Inventory382,129349,146 Prepaid expenses23,326128,520 Fixed assets, net88,842145,245 Endowment investments1,875,5991,871,464 The Handbook of Texas Online: A Digital Gateway to Texas History TOTAL ASSETS$6,406,395$6.451,251 LIABILITIES AND NET ASSETS LIABILTnES Accounts payable and accrued liabilities125,27598,531 Capital lease obligation18.90345.056 Total Liabilities144,178143,587 NETASSETS Unrestricted Net Assets Board designated: Endowment/general1,295,5951,855,077 Publication fund896,464898,074 Handbook endowment117,509114,868 Total Board Designated2,309,5682,868,019 Unrestricted, undesignated_______^ ________Total Unrestricted Net Assets2,309,5682,868,019 Temporarily restricted2,077,0501,568,181 Permanently restricted1,875,5991,871,464 TOTAL NET ASSETS6,262,2176,307,664 TOTAL LIABILITIES AND NET ASSETS$6,406,3956,451,251 See Accompanying Notes to Financial Statements TEXAS STATE HISTORICAL ASSOCIATION STATEMENT OF ACTTVTnES FOR THE YEARS ENDED AUGUST 31 , 2006 AND 2005 20062005 REVENUES Publication and other sales Investment income Contributions Association activities Membership income Educational activities 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 Unrestricted $ 223,763 149,546 1,456,729 15,687 96,885 55,134 354,186 35,000 4,135 381.533 2,772,598 206,691 256,323 380,891 128,820 302,364 71,370 11,731 1,201,163 771.696 3,331,049 CHANGE IN NET ASSETS(558,451) CHANGE IN DONOR DESIGNATIONS BEGINNING NET ASSETS2.868.019 ENDING NET ASSETS$2,309,568 Temporarily Permanently RestrictedRestrictedTotal $ 22,558 100,285 767,559 (381,533) 508,869 508,869 1,568.181 $2,077,050 $ 135 4,000 4,135 4,135 $ 246,321 249,966 2,224,288 15,687 96,885 55,134 354,186 35,000 8,135 3,285,602 206,691 256,323 380,891 128,820 302,364 71,370 11,731 1,201,163 771.696 3,331,049 (45,447) 1,871,464 6.307.664 $1,875,599 $6,262,217 Unrestricted $ 173...