Tobacco Settlement Permanent Trust Fund Audit

TOBACCO SETTLEMENT PERMANENT TRUST FUND Basic Financial Statements December 31, 2009 (With Independent Auditors' Report Thereon) TOBACCO SETTLEMENT PERMANENT TRUST FUND TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS’ REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 2-10 BASIC FINANCIAL STATEMENTS Statement of Fiduciary Net Assets 11 Statement of Changes in Fiduciary Net Assets 12 NOTES TO BASIC FINANCIAL STATEMENTS 13-19 Independent Auditors’ Report The Honorable Susan Combs Texas Comptroller of Public Accounts: We have audited the accompanying statement of fiduciary net assets of the Tobacco Settlement Permanent Trust Fund (the “Fund”), a private purpose trust fund of the State of Texas, as of December 31, 2009 and the related statement of changes in fiduciary net assets for the year then ended. These basic financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit 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 basic 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 ...