FINANCIAL STATEMENTS AND AUDIT REPORT

Transcription

1 TEXAS STATE ALUMNI ASSOCIATION FINANCIAL STATEMENTS AND AUDIT REPORT FOR THE YEARS ENDED DECEMBER 31,2008

2 TEXAS STATE ALUMNI ASSOCIATION Table of Contents Independent Auditor's Report Financial Statements Statement of Financial Position 2 Statement of Activities 3 Statement of Cash Flows,.4 Notes to Financial Statements 5-7

3 Linda Teneyuque Gonzalez Certified Public Accountant 116 Fall Creek Drive Kyle, Tx INDEPENDENT AUDITOR'S REPORT To the Board of Trustees of Texas State Alumni Association I have audited the accompanying statements of financial position of Texas State Alumni Association (the Al umni Association) as of December 31, 2008 and the related statements of activi ties and cash flows, for the year then ended. These financial statements are the responsibility of the organization's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Texas State Alumni Association as of December 31, 2008 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. Kyle, Tx July 17,2009

4 Texas State Alumni Association Statement of Finanical Position December 31, 2008 Assets Current Assets Cash and Cash Equivalents Web Account Frost National Bank Frost Brokerage Total Current Assets Services Investments Marketable Equities Marketable Debt Securities Texpool Managed by Texas State University-San Marcos Fixed Income Investments at Frost National Bank Total Investments $ 62,841 87,092 23, , , , , ,222 Total Assets $ 1,165,569 Liabilities and Assets Current Liabilities Accounts Payable $ 12,143 Total Current Liabilities 12,143 Net Assets Unrestricted 480,011 Board Designated for Teague Alumni Endowment 573,434 Temporarily Restricted 99,981 Total Net Assets 1,153,426 Total Liabilities and Net Assets $ 1,165,569 The accompanying notes are an integral part of these financial statements. 2

5 Texas State Alumni Association Statement of Activities F or the Year Ended December 31, 2008 Temporarily Support and Revenue Unrestricted Restricted Total Memberships and Donations $ 256,336 s 49,050 s 305,386 Royalities 102, ,286 Fundraising 71,871 71,871 Merchandise Sales 9,003 9,003 Texas State University-San Marcos Support 10,388 10,388 Other Income 4,027 4,027 Dividiends and Interest 36,501 36,501 Other Investment Income 1,030 1,030 Realized Capital Gains (Losses) (6,321) (6,321) Unrealized Capital Gains (Losses) (233,786) (233,786) Total Support and Revenue 251,335 49,050 $ 300,385 Net Assets Released from Restrictions- Restriction Satisfied by Payment 47,600 (47,600) Total Unrestricted Support and Revenue s 298,935 s 1,450 s 300,385 Expenses Program Services Alumni Support $ 122,574 $ $ 122,574 University Support 24,850 24,850 Student Support 90,578 90,578 Support Services Administrati ve 129, ,552 Fundraising 105, ,293 Total Expenses 472, ,847 Increase (Decrease) in Net Assets (173,912) 1,450 (172,462) Net Assets, Beginning of Year 1,227,357 98,531 1,325,888 Net Assets, End of Year $ 1,053,445 $ 99,981 $ 1,153,426 The accompanying notes are an integral part of these financial statements...,.)

6 Texas State Alumni Association Statement of Cash Flows For the Year Ended December 31,2008 Cash flows from operating activities Change in net assets $ (172,462) Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Adjustment to net assets 5,535 Unrealized (gains )/losses 233,786 Increase in accounts payable 6,608 Net cash provided by operating activities 73,467 Cash flows from investing activities Net cash (used) by investing activities (128,938) Net decrease in cash and cash equivalents (55,471) Cash and cash equivalent at beginning of year 228,818 Cash and cash equivalents at end of year $ 173,347 The accompanying notes are an integral part of these financial statements.

7 TEXAS STATE ALUMNI ASSOCIATION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2008 Note 1 Organization Texas State Alumni Association (the Alumni Association) is anon-profit corporation formed in September, 1995 to support the educational activities of Texas State University-San Marcos (the University), perpetuate the association offormer students and faculty, and to recognize and honor those individuals who have made significant contributions to the Alumni Association or the University. Prior to September 1,1996, the Alumni Association's activities were reopened with the Texas State University-San Marcos Development Foundation (the Development Foundation). During that time, the University supported the Development Foundation and the Alumni Association with administrators, faculty and staff, and provided space, facilities, and equipment for its operations. That arrangement continues today. No dollar amount has been placed on this support. Note 2 Summary of Significant Accounting Policies Basis of Accounting The financial statements of the Alumni Association are prepared on the accrual basis of accounting, which means that revenues are reported when earned and expenditures are reported when the liability is incurred. Basis of Presentation The financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. ] 17, "Financial Statements of Not-for-Profit Organizations." Under SFAS No. 117, the Alumni Association is required to report information regarding its financial position and activities according to three classes of net assets: Unrestricted net assets - Net assets that are neither permanently restricted nor temporarily restricted by donor-imposed stipulations. Property and equipment are included in unrestricted net assets. Temporarily restricted net assets - Net assets that result from contributions and other inflow of assets that are limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the corporation pursuant to those stipulations. When a donor restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Permanently restricted net assets - Net assets that are subject to donor-imposed restrictions that such assets be maintained permanently. Generally, the donor permits the corporation to expend all or part of the income earned from the related assets for general or specific purpose. 5

8 TEXAS STATE ALUMNI ASSOCIATION NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2008 Note 2 Summary of Significant Accounting Policies (Continued) Contributions The Alumni Association elected to adopt SF AS No. 116, Accounting/or Contributions Received and Contributions Made, in In accordance with SFAS No. 116, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions. Promises to Give Contributions are recognized when the donor makes a promise to give to the Alumni Association that is, in substance, unconditional. All donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Cash and Cash Equivalents For purposes of the statement of cash flows, the Alumni Association considers all highly liquid investments available for current use with maturities of three months or less to be cash equivalents. Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Federal Income Taxes The Alumni Association is a not-for-profit organization that is exempt from Federal Income Tax under Section 501 (c.) (3) of the Internal Revenue Code. Note 3 Investments Marketable securities at Frost at cost and market value on December 31,2008 were: Description Cost Market Value Equities at 407,961 $385,084 $330,103 Frost Brokerage Services Equities at 363, , ,198 Frost National Bank Fixed Income 301, ,144 Totals $ $

9 TEXAS STATE ALUMNI ASSOCIATION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2008 Note 4 Net Assets and Temporarily Net Assets Unrestricted net assets include Board designated funds for the Teague Alumni Endowment that was set up by the Board from an initial donation from Marvin 0 Teague. The Board's intention is to grow the endowment to one million dollars, and then use only earnings after that. The endowment has grown from royalty revenue received under a contract with First USA Bank, which expired April 30, 2001, and a new royalty contract with MBNA America Bank, NA beginning on that date. In 2003, $126,280 received from an estate was added. Funds are held in investments that are managed by Frost National Bank. Temporarily restricted net assets represent alumni donations restricted to Texas State University- San Marcos's departments, student scholarships and to local chapters of alumni associations. Temporarily restricted net assets at year end, December 31, 2008 totaled $99,981. Note 5 Charter Lifetime Memberships In 2004, the Alumni Association began offering Charter Lifetime Memberships for a donation of $1,000. After December 31,2004, the Lifetime Membership donation was increased to $2,000, with an initial payment of $250 and payments of $250 for seven consecutive months. As of December 31,2008, there were donations of $27,000 for lifetime memberships. Note 6 Functional Allocations of Expenses The costs of providing the various programs and activities have been summarized on a functional basis in the statement of activities. Accordingly, certain cost have been allocated among the programs and supporting services benefited. 7