Music Library Association

Table Of Contents
June 30, 2010

INDEPENDENT AUDITOR'S REPORT . . . . . . . . . . . . . . . . . . . . . . . . 845

FINANCIAL STATEMENTS

Statements of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . 846

Statements of activities - 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 847

Statements of activities - 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 848

Statements of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 849

Notes to financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 850-855

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, 2010 and 2009, 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, 2010 and 2009, 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 1, 2010      

		2010		2009
ASSETS
Cash and cash equivalents	$	63,037	$	164,285
Accounts receivable		8,552		11,617
Prepaid expenses		0		10,000
Inventories		6,771		8,908
Investments in mutual funds:
Unrestricted		560,308		500,161
Temporarily restricted		59,072		32,645
Permanently restricted		157,192		157,192
Total investments in mutual funds		776,572		689,998
Equipment, net of accumulated depreciation
2010 - $4,055; 2009 - $3,554		1,504		2,005
Website costs, net of amortization		57,558		61,881
TOTAL ASSETS	$	913,994	$	948,694
LIABILITIES AND NET ASSETS
Accounts payable	$	22,908	$	10,799
Customer prepayments		57,700		81,025
Total liabilities		80,608		91,824
NET ASSETS
Unrestricted		617,122		667,033
Temporarily restricted		59,072		32,645
Permanently restricted		157,192		157,192
Total net assets		833,386		856,870
TOTAL LIABILITIES AND NET ASSETS	$	913,994	$	948,694

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	$	11,300	$	8,422	$	0	$	19,722
Dues		112,442		0		0		112,442
Sales of publications		167,871		0		0		167,871
Conventions		118,662		0		0		118,662
Interest and dividends		15,088		5,029		0		20,117
Realized and unrealized gain (loss) on investments, net		56,801		20,026		0		76,827
Other		2,424		0		0		2,424
Net assets released from restriction:
Payment of awards		7,050		(7,050)		0		0
Total public support and revenues		491,638		26,427		0		518,065
Expenses:
Program services:
General expenses		20,784		0		0		20,784
Publications		92,956		0		0		92,956
Conventions		205,445		0		0		205,445
Awards		7,050		0		0		7,050
Member services		17,632		0		0		17,632
Total program services		343,867		0		0		343,867
Supporting services:
Management and general		197,682		0		0		197,682
Total expenses		541,549		0		0		541,549
Change in net assets		(49,911)		26,427		0		(23,484)
Net assets, beginning		667,033		32,645		157,192		856,870
Net assets, ending	$	617,122	$	59,072	$	157,192	$	833,386

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