Affairs of the Association

Report of Independent Auditors

To the Board of Directors of The Texas State Historical Association

We have audited the accompanying statements of financial position of the Texas State Historical Association (the “Association”), a not-for-profit organization, as of August 31, 2012 and 2011, and the related statements of activities and changes in net assets, 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 Suites of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Association is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included 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 of August 31, 2012 and 2011, 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.

Dallas, Texas
March 13, 2013

Texas State Historical Association Statements of Financial Position

	August 31,
	2012		2011
Assets
Cash and cash equivalents	$	53,499	$	423,064
Investments		450,328		374,320
Receivables		65,347		73,710
Grant receivables, net		1,525,461		-
Pledges receivable		1,800		28,621
Inventory		202,884		211,038
Prepaid expenses and other assets		19,332		43,629
Fixed assets, net		6,265		13,087
Endowment investments		2,037,830		2,011,638
Total assets	$	4,362,746	$	3,179,107
Liabilities and Net Assets
Accounts payable and accrued liabilities	$	84,279	$	319,063
Total liabilities		84,279		319,063
Net assets (deficiency):
Unrestricted		(55,609)		316,186
Temporarily restricted		800,785		532,220
Permanently restricted		3,533,291		2,011,638
Total net assets		4,278,467		2,860,044
Total liabilities and net assets	$	4,362,746	$	3,179,107

See accompanying notes to financial statements.

Texas State Historical Association Statement of Activities and Changes in Net Assets

Year ended August 31, 2012

	Unrestricted		Temporarily Restricted		Permanently Restricted		Total
Revenue, gains, and other support:
Publications and other sales	$	310,755	$	-	$	-	$	310,755
Investment income		150,921		166,624		808		318,353
Contributions and grants		419,691		448,143		1,520,461		2,388,295
Association activities		175,854		-		-		175,854
Membership income		138,992		-		-		138,992
Educational activities		48,988		-		-		48,988
Contributed services		137,789		-		-		137,789
Philosophical society		46,069		-		-		46,069
Awards		10,475		-		-		10,475
Other income		100,520		-		-		100,520
Net assets released from donor and program restrictions	345,818		(345,818)		-		-
Total revenue, gains, and other support		1,885,872		268,949		1,521,269		3,676,090
Expenses:
Program services:
Digital gateway		114,703		-		-		114,703
Handbook production		131,905		-		-		131,905
Publications		206,773		-		-		206,773
Southwest historical quarterly		100,449		-		-		100,449
Educational activities		434,694		-		-		434,694
Association activities		406,467		-		-		406,467
Awards		27,409		-		-		27,409
Texas Almanac	261,507		-		-		261,507
Total program services		1,683,907		-		-		1,683,907
Fundraising		290,983		-		-		290,983
General and administrative	282,777		-		-		282,777
Total expenses	2,257,667		-		-		2,257,667
Transfer of net assets	-		(384)		384		-
Changes in net assets		(371,795)		268,565		1,521,653		1...