Affairs of the Association

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, 2014 and 2013, 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 State Historical Association as of August 31, 2014 and 2013, and the results of its activities and its cash flows for the years then ended in conformity with GAAP.

Dallas, Texas
January 26, 2015

TEXAS STATE HISTORICAL ASSOCIATION STATEMENTS OF FINANCIAL POSITION

	August 31,
	2014		2013
Assets
Cash and cash equivalents	$	33,237	$	117,993
Investments		739,129		290,062
Receivables		72,376		62,832
Grant receivables, net		1,570,185		1,064,050
Pledges receivable		182,076		161,013
Inventory		105,695		110,008
Prepaid expenses and other assets		11,930		12,775
Fixed assets, net		1,793		2,849
Endowment investments		2,609,109		2,288,477
Total assets	$	5,325,530	$	4,110,059
Liabilities and Net Assets
Accounts payable and accrued liabilities	$	90,476	$	106,142
Line of credit	350,000		-
Total liabilities		440,476		106,142
Net assets (deficiency):
Unrestricted		(367,269)		(439,198)
Temporarily restricted		1,417,745		909,186
Permanently restricted	3,834,578		3,533,929
Total net assets	4,885,054		4,003,917
Total liabilities and net assets	$	5,325,530	$	4,110,059

See accompanying notes to financial statements.

TEXAS STATE HISTORICAL ASSOCIATION STATEMENT OF ACTIVITIES

Year ended August 31, 2014

	Unrestricted		Temporarily Restricted		Permanently Restricted		Total
Revenue, gains, and other support:
Publications and other sales	$	307,614	$	-	$	-	$	307,614
Investment income		262,419		255,976		649		519,044
Contributions and grants		260,837		745,300		750,000		1,756,137
Association activities		132,805		-		-		132,805
Membership fees		216,204		-		-		216,204
Educational activities		58,074		-		-		58,074
Contributed facilities and services		137,789		-		-		137,789
Philosophical society		73,153		-		-		73,153
Awards		15,900		-		-		15,900
Other income		106,135		-		-		106,135
Permanently restricted funds released by donor		-		450,000		(450,000)		-
Net assets released from donor and program restrictions		942,717		(942,717)		-		-
Total revenue, gains, and other support		2,513,647		508,559		300,649		3...