Affairs of the Association

Whitleypenn

Dallas Office
8343 Douglas Avenue
Dallas, Texas 75225
214.393.9300 Main
whitleypenn.com

Report of Independent Auditors

To the Board of Directors of The Texas State Historical Association

We have audited the accompanying financial statements of Texas State Historical Association, which comprise the statements of financial position as of August 31, 2013 and 2012, and the related statements of activities, and cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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 audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Texas Stale Historical Association as of August 31, 2013 and 2012, and the results of its activities and its cash flows for the years then ended in conformity with GAAP.

Dallas, Texas
February 25, 2014

	August 31,
	2013	2012
Assets
Cash and cash equivalents	$ 117,993	53,499
Investments	290,062	450,328
Receivables	62,832	65,347
Grant receivables, net	1,064,050	1,525,461
Pledges receivable	161,013	1,800
Inventory	110,008	202,884
Prepaid expenses and other assets	12,775	19,332
Fixed assets, net	2,849	6,265
Endowment investments	2,288,477	2,037,830
Total assets	$ 4,110,059	$ 4,362,746
Liabilities and Net Assets
Accounts payable and accrued liabilities	106,142	84,279
Total liabilities	106,142	84,279
Net assets (deficiency):
Unrestricted	(439,198)	(55,609)
Temporarily restricted	909,186	800,785
Permanently restricted	3,533,929	3,533,291
Total net assets	4,003,917	4,278,467
Total liabilities and net assets	$ 4,110,059	$ 4,362,746

See accompanying notes to financial statements.

	Unrestricted	Temporarily Restricted	Permanently Restricted	Total
Revenue, gains, and other support:
Publications and other sales	$ 260,705	$ -	$ -	$ 260,705
Investment income	136,690	164,674	638	302,002
Contributions and grants	446,409	231,875	-	678,284
Association activities	160,663	-	-	160,663
Membership income	132,757	-	-	132,757
Educational activities	56,316	-	-	56,316
Contributed services	137,789	-	-	137,789
Philosophical society	38,981	-	-	38,981
Awards	6,350	-	-	6,350
Other income	59,673	-	-	59,673
Net assets released from donor and program restrictions	288,148	(288,148)	-	-
Total revenue, gains, and other support	$ 1,724,481	$ 108,401	$ 638	$ 1,833,520
Expenses:
Program services:
Digital gateway	89,217	-	-	89,217
Handbook production	101,232	-	-	101,232
Publications	264,715	-	-	264,715
Southwest historical quarterly	96,879	-	-	96,879...