We have audited the financial statements on pages 2 to 4, which have been prepared under the accounting policies set out on page 4.

This report is made solely to the Vingtaine's principals, as a body. Our audit work has been undertaken so that we may state to the principals those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Vingtaine and the principals as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Procureurs and auditors:

The Procureurs are responsible for the preparation of financial statements which show the general balances of the Vingtaine and its revenue and expenditure for each financial year. The Procureurs are also responsible for keeping proper accounting records and for safeguarding the assets of the Vingtaine and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland)

We report to you our opinion as to whether the financial statements give a true and fair view. We also report to you if, in our opinion, the Procureurs have not kept proper accounting records or if we have not received all the information and explanations we require for our audit.

Basis of Opinion:

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Procureurs in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Vingtaine's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Qualified opinion arising from disagreement about accounting treatment involved:

Included within the fixed assets are investment properties with a carrying value of £24,152 which have not been revalued. This treatment is not consistent with Statement of Standard Accounting Practice No 19 - Accounting for Investment Properties, which requires that investment properties are carried at their open market value. It has not been practicable to quantify the effect that any such revaluation would have on the related revaluation reserve. Except for this failure to revalue investment properties, in our opinion the financial statements give a true and fair view of the state of the Vingtaine's affairs at 31 December 2007 and of its revenue and expenditure for the year then ended.

ALEX PICOT

Chartered Accountants
25 July 2008

Page 1

INCOME
United Kingdom Government
stock interest
Bank deposit interest
Sale of Vingtaine bank note

Less: EXPENDITURE
Water rates
Insurance
Advertising
Audit and accountancy fee
Bank charges
Maintenance
Maintenance of Allix's Shipyard
Sundry expenses

47
401
288
325
68
1,512
2,610
     60

8,299

5,311

 £2,988

40
375
211
300
135
36
1,978
     60

7,021

3,135

 £3,886

 
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
 

Total recognised gains and losses

0

-1.738
1,317
2,988

£2,567

0

-2,710
0
3,886

£1,176

The notes on page 4 form part of these financial statements.
Report of the Auditors - Page 2

LA VINGTAINE DE LA VILLE DE ST HELIER
BALANCE SHEET AT 31 DECEMBER 2007

ACCUMULATED FUNDS
Balance at 1 January 2007
Net revenue for the year
Add: Introduction of Vingtaine bank notes

Balance at 31 December 2007

FIXED ASSETS

INVESTMENTS

CURRENT ASSETS
Cash at bank and in hand
Bank interest due

CREDITORS: Amounts falling due
within one year

NET CURRENT ASSETS

The notes on page 4 form part of these financial statements.
Report of the Auditors - Page 3

LA VINGTAINE DE LA VILLE DE ST HELIER
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007

1 ACCOUNTING POLICIES

1.1 Basis of accounting

The financial statements have been prepared under the historical cost convention, modified by the annual revaluation of investments, and in accordance with accounting principles generally accepted in the Channel Islands, except with regard to the non-compliance with Statement of Standard Accounting Practice No. 19 (Accounting for Investment Properties)(SSAP 19).

1.2 Income

Income is accounted for on an accruals basis.

1.3 Fixed assets

Land and buildings are stated in the Balance Sheet at cost, which is not in compliance with SSAP 19. The standard requires that investment properties are stated at open market value at the balance sheet date. The Procureurs feel that the annual cost of revaluing the investment properties outweighs the benefits to the Vingtaine.

1.4 Investments

Investments are stated in the financial statements at their market value at the balance sheet date, the unrealised appreciation or depreciation being taken to the investment revaluation reserve.

Investments are valued at the mid market value on the last business day in the financial period.

Vingtaine bank notes are included at Procureurs' valuation.
 

2. INVESTMENT RESERVES
 

Balance at 1 January 2007
Transfer between reserves
Unrealised depreciation on revaluation
of investments
Realised profit on disposal of investment
Balance at 31 December 2007

3. FIXED ASSETS

Real property at cost:
Regency Arch, Regent Road
Allix's Shipyard, Havre des Pas

Investment
realisation
     £     
0
1,268
 
0
1,317
2,585

2007
£    

6,742
  17,410
£24,152
 

Total
 
£    
5,922
0
 
-1,738
1,317
5,501

2006
£    

6,742
   17,410
£24,152
 

£25,000 8½% Treasury Loan 2007
£23,000 7¾% Treasury Loan 2012/15
Vingtaine bank notes at Procureurs' valuation

2007
£    
23,683
22,720
  1,023
47,426

2007
£    
0
25,636
  1,023
26,659

2006
£    
25,433
25,624
  1,023
52,080

 
Following the sale during the year of a Vingtaine £1 bank note for £134, the Procureurs resolved to include the Vintaine's holding of bank note in the accounts.

Report of the Auditors - Page 4