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THE NATIONAL TRUST FOR JERSEY

ANNUAL REPORT AND ACCOUNTS FOR 2011

16 New Street December 2011

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Corporate Members for 2011

Alex PicotAshburton

Aurum Jewellers Appleby

Basel Trust CorporationBDK Architects

Channel Islands Co-operative SocietyDeutsche Bank Offshore

F Le Gallais & SonsGranite ProductsHettich Jewellers

HSBC Bank InternationalJersey Electricity

Jersey WaterKedge Capital

LangloisMeridian Asset Management

Moore StephensNatWest

Nigel Pearce & Son JewellersRomerils

RonezSamarés Manor

Seymours Hotels of JerseyCustoms & Immigration Service

The Guiton GroupTrident Trust Company

Whitmill Trust CompanyRotary Club de la Manche

UBS

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We are delighted that the Trust continues to receive a wealth of support from our volunteers and we would like to offer our sincere gratitude to the following people who helped us in 2011:

Carol AdairSarah AndrewsJean ArthurDaphne AubertChris AubinMarie-Louise BackhurstRuth Baier-RollsJill BartholomewHarry BaudainsBill BeanBeaulieu SchoolRosemary BettIngrid BihetSimon BillotMark BlowerMichelle BuckleyChristine BurmanRichard BurmanBonnie ButelRod BryansFabian CarterGabriel CarterNick CarverJohn ClarkePatrick ClarkeRosemary CollierJudy CollinsRos ConnellValerie ConwayMary CornishRemi CouriardMichelle CuthbertSally DalmanMike DearingJohn de CarteretPam de GruchyStephen de GruchyDon DolbelDave DorganPat DorganMike DrydenJane EdwardsRoyan Ellis

Deanna EwensStuart FellFrank FalleJo FancourtMargaret du FeuDave FereyAndre FerrariOlga FinchCarol FitzgeraldFriends of the Tone DeafMary FriswellMary GaigerAntony GibbJane GilleyTracey GoodenoughTony GouyetteHilary GrantDerek GrayHSBC VolunteersLiz HaasGordon HallSue HardyAngelika Harms-StentifordChristopher HarrisSue HarrisDan HartiganJackie HorneRoger HorneCassie HortonMark HoweTina HullStella HenleyTricia HunterHeather IresonDavid IsherwoodYvonne IsherwoodJanet JennerJersey Bat GroupSara JobTricia KennedyJill KeoghSue KerleyJurat Bob Kerley

Aaron Le CouteurLaura Le CouteurMike Le CouteurSue Le GallaisDeputy Roy Le HerissierFrancois Le MaistreJean Le MaistreJenny Le MaistreJohn MallettSue Le MarquandAnn Le MottéeBob Le MottéePeter Le RossignolBob Le SueurRichard Le SueurGillian LenfestyMarilyn LeonardDavid LettoSue LewisAlexandra LiptrotSue LissendenJohn LordSarah MaguireSheila MalletMaureen ManionRuth MarietteMargo MarshWilliam MarshDavid MashiterMac McCreadyNeil MolyneuxJulia MeldrumKirsten MillerGreg MorelMichel MorelHelen MortonNeil MourantHelen MurphyMichael MurphyNT Conservation VolunteersNT Volunteer ShepherdsBarbara NelsonMalcolm Newton

Without such assistance the Trust's work would be severely curtailed, and certain projects would be postponed indefinitely. It is always difficult to personally thank all the individuals who contribute so positively to the work of the Trust including with such events as Black Butter, Open Day and The Sunset Concerts, but please be assured that your help is truly appreciated.

Mike NormanVincent ObbardArthur ParkesMary ParslowDarius PearceDerek PembertonRichard PerchardJean PetreJohn PinelKevin PinglauxAlcindo PintoRichard PirouetEmma QuintalRBC VolunteersHilary-Ann RatazziNanette RenaultSadie ReynardBruno RiodaAnita RiveGina RiveIan RollsClaire RondelPiers SanganColin SmithMaureen SmithJanet SnartRobin SnartSociété Archaeology DeptMike StentifordKen SyvretPaula ThelwellBob TompkinsJill TompkinsMike TouzelJenny UnderwoodTerry UnderwoodRobin UtleySimon VianelloJoan WaddingtonJohn WatersBeverley WildingClaudia WilliamsTim Wright

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Your Council is pleased to present the seventy-fifth Annual Report.

We could not have envisaged such recognition in the media at the start of our 75th year by the simple act of putting a coat of paint on a building. La Caumine à Marie Best, a white icon in the centre of St Ouen's Bay, turned olive green as a symbol of our campaign, the Green House Project. It was aimed at encouraging householders to embrace simple, sustainable and often cost-cutting measures to help our environment. These measures have been adopted by the Trust in our properties particularly at Sous Les Bois which now has sheep wool insulation for roof lagging, a rainwater harvesting facility and low energy light bulbs. As the custodian of over 2% of the Island and twenty properties it is the Trust's duty to demonstrate a way to protect and preserve our environment for the future.

CouncilMike Stentiford MBE, our President of the last three years, stepped down from office after a tenure which has seen the Trust build into an organisation renowned throughout the Island as a protector of the coastline. Mike remains the Chairman of the Coastline Campaign. As a highly skilled communicator the Trust's profile has grown under his stewardship and the Trust thanks him for all that he has helped to achieve. Celia Jeune has taken up the reins of President and Christopher Harris has taken her place as one of the Vice Presidents. This year Michael Touzel, who has led the Development Committee for many years, retired from the post but is still on the committee so that his vast knowledge of the Island's properties is not lost. The committee is now led by Sue Kerley.

It is with sadness that we report the death of a much respected botanist and valued member, Joan Banks. A former member of Council and Lands Committee, Joan was always extremely supportive and a highly valued source of expertise on local flora and fauna. She is greatly missed and the Trust is planning to commemorate her with an inscription in the Highgrove Florilegium.

Events and AchievementsYour Trust seems to get busier every year and we are fortunate to be able to achieve so much with a relatively small workforce and limited resources.

The Green House Project ran throughout the year with excellent support from the Jersey Evening Post. Each month a particular pledge was highlighted in order to demonstrate the easy measures we can all put in place to create more sustainable homes.

We continued our well supported programme of 'Stepping Out Walks' each month with groups being led by experts to various parts of the Island and points of special interest. As ever the Trust is very grateful to those knowledgeable volunteers who act as guides on these occasions.

Our education officer organised 'Bug Safaris', 'Rock Pool Rambles' and the new 'Woodland Wanders' throughout the school holidays and some weekends. These programmes allow youngsters of all ages to learn more about our wondrous natural world and our impact upon it.

Spring Outing, May 2011Picture by John Lord

THE NATIONAL TRUST FOR JERSEY

REPORT OF THE COUNCIL 2011

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One of the imaginative events held to mark our 75th Anniversary was a vintage coach tour of various Trust properties including Sous Les Bois, Hamptonne Valley and Morel Farm. This culminated in a 1930s style afternoon tea at St. Lawrence Parish Hall. Members were encouraged to dress in the fashion of the thirties to add to the feel of the Spring Outing. Past President Ken Syvret guided the party through the country lanes with snippets of history and legal anecdotes on various properties and land along the way. It proved to be a most enjoyable and memorable day.The Annual Dinner, held at the Hotel L'Horizon, was well attended with the guest speaker from English Heritage, Dr. Simon Thurley, who delivered a thought-provoking and stimulating address. Due to the exceptionally warm Spring Le Noir Pré blossomed early. The floral count continues to increase year on year which is very gratifying for the Lands Team which has worked so hard to improve the water levels on the site. It may have been a sunny Spring but by the time we had our Câtel Fort Sundowner the skies were threatening and, although the party started outside, it was necessary to scuttle for shelter. However, the Fort's position allowed for stunning views of the incoming rainclouds!Open Day in September started bright but the weather deteriorated as the day continued. We were well supported by numerous volunteers needed for this exercise and we are grateful for our tenants who allowed their homes to be visited by the many interested Islanders and visitors. Both at Morel Farm and The Elms the 75th Anniversary theme was celebrated with tea and cakes and demonstrations of farming practices and recycling ideas.In October the President represented the Trust at a conference held by the International National Trusts Organisation. Delegates came from all over the world including South Africa, Australia, Canada, USA, Bermuda, Zanzibar, Poland and the Falkland Islands. It was an excellent way to learn and exchange ideas with Trusts working under similar financial constraints but often in very different political arenas. October also brought a bumper apple crop which was duly harvested and prepared for the Black Butter Festival. To stir the blackening brew at three in the morning on a starlit night was a memorable experience and thanks must go to Neil, Mac, and Dave for their staying power in the bakehouse, as well as all the volunteer peelers in the pressoir. Thanks are also extended to Karen Evans for her hard work as the background organiser for such a successful community activity.Undoubtedly, the highlight of the Trust's 75th year occurred on Saturday 5th November when the Bailiff, Michael Birt Q.C. was invited to turn the key on the front door of 16 New Street.

A large crowd of well-wishers walked through the gates into the world of an early Georgian home resplendent with a Georgian cook serving syllabub in the kitchen. This project has taken many years to reach this point and we hope that the members will agree that it was well worth the considerable effort. The Trust now has a fantastic property in the centre of St. Helier as well as a wonderful venue for small weddings, soirées and dinner parties in the elegant drawing room and Victorian club room on the first floor. It is planned to have the house and its shop regularly open from April.

StaffWe are pleased to report that the properties team continue to work hard under the excellent guiding hand of Ernie Le Brun. New Street and Sous Les Bois were the main focus of activity with The Elms needing running repairs and Les Côtils Farm filling more of the team's diary near the end of the year.

The Lands Team, ably directed by Jon Horn, has gained Neil Harvey, a face the team know well. In the middle of August Will Kirby left us to

pursue a different lifestyle and nearer the end of the year Aimée Reading also left. Land management of so many different habitats requires many skills and the Trust is very well served by this small but dynamic squad.

As New Street neared completion Chris Addy was taken on as curator. His task has been to source period furniture, oversee the stocking of the shop and to plan the publicity, information and interactive activities in the house. He also plans the day-to-day running of the house and its venue hire.

The huge job of co-ordinating the preservation and protection of the Trust's properties as well as researching, collating and managing policies is in the very able hands of Charles Alluto to whom the Council and members owe a huge debt. He is unstinting with his time and effort and ably supported by an excellent office team. The thanks of the Council goes out to all the staff.

The Bailiff opening 16 New StreetPicture by the JEP

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Supporters of the TrustThe Trust is mindful that without the financial and practical help from major supporters it would be difficult to achieve such a large range of activities and events. In particular, the Council is indebted to the Jersey Electricity Company for a new truck for the Lands Team and for supporting the Green House Project.

The Royal Bank of Canada Jersey Ltd continues to support the work at St. Ouen's Pond and Grouville Marsh. The education programme continues to flourish with the help of HSBC and again the well-attended Sunset Concerts were made possible by sponsorship from Ashburton (Jersey) Ltd.

This special year was marked with a supplement in the JEP and the cost of this publication was met by Skipton International. The Co-op, Café Spice, Jersey Tourism, Ash Interiors and F. Le Gallais & Sons amongst others are also to be thanked for their generous help through the year. The Trust received a generous gift which allowed for the purchase of the valley below Hamptonne now designated Le Don Sinkins.

Your Trust values highly the work carried out by volunteers throughout the year and it is with sadness that we note the passing away of Derrick du Feu, who was such a stalwart at both the mill and The Elms. From jam-jar washing to directing traffic on Open Days, from stuffing envelopes to stirring black butter the National Trust volunteer is highly prized and appreciated.

FinancesLast year's report highlighted the precariousness of the Trust's financial position and it is sad to report that nothing has changed in the year. The Trust continues to run at an annual deficit in excess of £250,000 and so is considering the sale of a long lease on La Ronce which it purchased in 1987, in order to release much needed cash resources to address the repair backlog on its bequeathed and gifted properties which is currently just under £3M. The Trust also wishes to adapt some of the outbuildings within its care in order to create self-catering holiday accommodation as a means of supplementing its income by £60,000-£70,000 per annum. However, such an initiative will require large sums of money and it is unclear as to how this will be sourced at this present time.

The teams at The Elms achieve amazing things on a shoestring. The membership can be justly proud of their results but Council is aware that running at a deficit is not a long term option. There is a pressing need to increase both income and individual and corporate membership.

ConclusionDuring this special year the National Trust for Jersey has continued to enhance its reputation to protect and preserve what is best of Jersey's open and built environment. No. 16 has made us more visible in Town and shown the value of old urban buildings and what can be achieved.

The work of protecting our very special coastline continues. Our work with Durrell and the Environment Department on the 'Birds on the Edge' project is a fine example of collaboration. Plémont continues to yearn for protection from development. In the Autumn members of Council visited the Guernsey National Trust and were shown some of their properties. It was a very valuable experience, meeting with like souls. It is envisaged that we could support each other more fully in years to come.

Although there is much to do and achieve with the few resources available your Council remains optimistic.

Celia Jeune – President

La Ronce, April 2011Picture by John Lord

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INCOME AND EXPENDITURE

INCOMING RESOURCES

Bequests, donations and sponsorship 12 198,046) — ) 198,046) 265,850)

Investment income 4 117,156) 3,213) 120,369) 116,029)

Rents receivable 285,291) — ) 285,291) 298,604)

Subscriptions received 59,907) — ) 59,907) 50,417)

Bank deposit interest 859) 337) 1,196) 1,146)

661,259) 3,550) 664,809) 732,046)

TRADING ACTIVITIES

Net Income/(deficit) from Quétivel MillGrève de Lecq Barracks and 16 New Street 13 2,474) — ) 2,474) (58)

Total Incoming Resources 663,733) 3,550) 667,283) 731,988)

RESOURCES USED

Operating expenses 14 736,185) 550) 736,735) 578,167)

Administration expenses 15 188,523) — ) 188,523) 164,971)

Total Resources used 924,708) 550) 925,258) 743,138)

NET (OUTGOING)/INCOMING RESOURCESFOR THE YEAR (260,975) 3,000) (257,975) (11,150)

OTHER RECOGNISED GAINS & LOSSES

Realised gain on sale of investments – ) (5,652) (5,652) – )

Unrealised (loss)/gain on revaluation of investments (190,863) (6,326) (197,189) 690,100)

(190,863) (11,978) (202,841) 690,100)

NET MOVEMENT IN FUNDS (451,838) (8,978) (460,816) 678,950)

Balance brought forward at 1st January 2011 5,799,566) 217,975) 6,017,541) 5,338,591)

Balance carried forward at 31st December 2011 £5,347,728) £208,997) £5,556,725) £6,017,541)

The Notes on pages 10 to 14 form an integral part of these accounts.

THE NATIONAL TRSTATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31st DECEMBER 2011

Notes Unrestricted Restricted Total Funds Total FundsFunds Funds 2011 2010

£ £ £ £

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RUST FOR JERSEY

FIXED ASSETSInvestments 4 4,490,570) 4,824,392)Land and buildings 5 873,957) 821,457)Motor Vehicles & Plant 6 29,328) 10,859)

5,393,855) 5,656,708)

CURRENT ASSETSStocks at cost 14,022) 8,316)Debtors and prepayments 67,267) 41,504)Cash at banks 7 596,011) 866,492)

677,300) 916,312)CREDITORS — Amounts falling duewithin one yearSundry creditors 114,430) 130,479)

NET CURRENT ASSETS 562,870) 785,833)

TOTAL ASSETS LESS CURRENT LIABILITIES 5,956,725) 6,442,541)

CREDITORS — Amounts falling dueafter one year 9 400,000) 425,000)

NET ASSETS £5,556,725) £6,017,541)

FUNDSUnrestricted 10 5,347,728) 5,799,566)Restricted 11 208,997) 217,975)

£5,556,725) £6,017,541)

2011 2010

Notes £ £ £ £

BALANCE SHEET — 31st DECEMBER 2011

The Notes on pages 10 to 14 form an integral part of these accounts.

The financial statements were approved and authorised by the Council on 13th March 2012 and signed on their behalf by

Celia Jeune, PresidentMichael Murphy, Honorary Treasurer

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THE NATIONAL TRUST FOR JERSEYNOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31st DECEMBER 2011

1. The National Trust for Jersey was founded in 1936 and incorporated by Act of the States of Jersey dated1st May 1937.

2. ASSETS AND LIABILITIES NOT RECOGNISED IN THE FINANCIAL STATEMENTSThe National Trust for Jersey’s main objective is to permanently preserve and safeguard places of historic interestand natural beauty for the benefit of the Island. This is mainly achieved through the acquisition of properties eitherthrough donation, bequest or purchase, upon the basis that they will not be sold at any time in the future. As a resultthese properties held for preservation are not assets in the normal sense and bring with them a permanent responsibilityfor their future care that imposes perpetual financial liabilities, the full extent of which cannot be quantified.

Under Financial Reporting Standard 15, the Trust would be required to capitalise on its balance sheet all tangiblefixed assets, although it does permit this to be applicable only to assets acquired or improvements made after 1stMarch 2000 under certain circumstances. The Council of The National Trust For Jersey has considered the positioncarefully and has concluded that, in the Trust’s particular circumstances, the application of FRS15 to properties heldfor preservation would result in a distorted view of the Trust’s financial position. As stated above these properties arenot “assets” in the normal sense, as any value placed on them would be more than offset by the liability formaintaining them in perpetuity. The Trust has therefore excluded these properties from the balance sheet. The Trustacknowledges that this is not in accordance with FRS15 and this departure has been duly noted by the auditors.

3. ACCOUNTING POLICIES(a) Convention used

The financial statements have been prepared in accordance with generally accepted accounting practice in theUnited Kingdom (UK GAAP). The financial statements are prepared under the historical convention as modifiedby the annual revaluation of listed investments to market value.The Financial Statements do not comply with FRS30 ‘Heritage Assets’. The Council does not consider that theresources required to evaluate and collate the necessary information required to comply with this Standard arematched by the benefits of compliance.

(b) Subscriptions receivedSubscriptions are included for the calendar year to which they relate.

(c) Bequests and donationsMonetary bequests and donations are included in the Statement of Financial Activities when they are received.As mentioned in Note (f) below, bequests and donations of property are not recorded in these accounts.

(d) Investment incomeDividends are included in these accounts, net of UK and other overseas tax, on the date they are receivable.

(e) InvestmentsInvestments are stated at market value, based on the middle market price ruling at the balance sheet date, andobtained from the Trust’s Investment Managers.Realised gains and losses on sales of investments are reflected in the Statement of Financial Activities and thentransferred to the Investment Realisation Reserve in the Balance Sheet.Unrealised gains and losses at the balance sheet date are reflected in the Statement of Financial Activities andthen transferred to the Investment Revaluation Reserve in the Balance Sheet.

(f) Land and buildingsAs explained in Note 2, land and buildings received from benefactors are not recorded in these accounts, whileland and buildings purchased are recorded at cost. A list of properties owned by the Trust, or for which the Trustis responsible on a “care and maintenance” basis, may be found in the Trust’s handbook.

(g) Capital expenditureCapital expenditure on the Trust’s heritage property portfolio including the cost of additions and alterations, iswritten off in the Statement of Financial Activities in the year that it is incurred.Expenditure on plant and equipment, and fixtures and fittings costing over £1,000 is capitalised.

(h) DepreciationNo depreciation is provided on freehold property. Depreciation is charged over Motor Vehicles, Plant andMachinery at 20% on a reducing balance basis over their useful economic lives.

(i) Income taxNo Jersey income tax has been provided as the Trust has been granted exemption from paying tax.

(j) Employees’ retirement fundThe Council has established a discretionary fund for the payment of a gratuity on the retirement of its employees.At the end of each calendar year a sum of money, which is related to the employee’s salary, is transferred to theFund from the Accumulated Fund.

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THE NATIONAL TRUST FOR JERSEY

NOTES TO THE ACCOUNTS (Continued)

7. CASH AT BANKS

UNRESTRICTED FUNDS:Current and interest bearing accounts 420,661) 723,595)

RESTRICTED FUNDS:Croad bequest 16,045) 16,008)Tenants’ deposit 25,069) 25,010)Alexandra Settlement 134,236) 101,879)

£596,011) £866,492)

2011 2010£ £

6. MOTOR VEHICLES, PLANT& MACHINERY

COST

Book value at 1st January 2011 10,859) 13,777)Acquired in year 27,721) – )Less: depreciation (9,252) (2,918)

Book Value at 31st December 2011 £29,328) £10,859)

2011 2010£ £

Unrestricted 1,960,779) 4,476,399) 117,156) 2,050,891) 4,769,339) 112,713) Restricted 40,665) 14,171) 3,213) 97,490) 55,053) 3,316)

£2,001,444) £4,490,570) £120,369) £2,148,381) £4,824,392) £116,029)

4. INVESTMENTS Market value is based upon the mid-market price at the balance sheet date.The investment portfolio comprises quoted equities and bonds.

2011 2010Cost Market Income Cost Market Income

Value Value£ £ £ £ £ £

5. LAND AND BUILDINGS

Properties purchased or gifted since the publication of the handbook in 2005 are as follows:

2006 Coastland Le Don Anquetil St Ouen Gift2006 Coastland Field 138 St Mary Gift2006 Farmland Field 53A Trinity Purchase2007 Woodland Le Don Nerou St Helier Gift2007 Coastland Devil’s Hole St Mary Gift2007 Woodland Le Don Lewis Grouville Gift2007 Coastland Field 128A St Mary Purchase2007 Orchard Field 823 Trinity Gift2008 Farmland Field 714 St Peter Purchase2008 Woodland Le Don Chambers St Lawrence Gift2008 Farmland Le Don Berni Trinity Gift2008 Heathland Le Don de la Mare St Mary Gift2009 Coastland Le Don Harrison St Martin Gift2009 Farmland Le Don Vautier St Ouen Gift2009 Meadowland Fields 699/704/707 St Peter/St Lawrence Purchase2009 Woodland Le Don Mourant Trinity Gift2011 Meadowland Le Don Sinkins St Lawrence Purchase

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THE NATIONAL TRUST FOR JERSEYNOTES TO THE ACCOUNTS (Continued)

Croad bequest 27,029) (512) 26,517)Tenants’ deposits 12,984) 59) 13,043)Alexandra Settlement 177,962) (8,525) 169,437)

£217,975) (£8,978) £208,997)

The Croad bequest was made on the condition that it was used to purchase, restore and maintain property.

11. RESTRICTED FUNDS Balance at Movement Balance at1/1/11 in year 31/12/11

£ £ £

10. UNRESTRICTED FUNDS Accumulated Investment InvestmentFund Realisation Revaluation Total

Reserve Reserve Fund£ £ £ £

Balance at 1st January 2011 1,322,623) 1,758,996) 2,717,947) 5,799,566)Net incomings (outgoings) for the year (260,975) — ) — ) ( 260,975)Movement in unrealised gain (loss)on investments — ) — )) (190,863) (190,863)

Balance at 31st December 2011 £1,061,648) £1,758,996) £2,527,084) £5,347,728)

9. CREDITORS amount falling due after more than one year

Bank loan (see note No. 8) £400,000) £425,000)

2011 2010£ £

In memory of the late Mr and Mrs Charles Le Quesne (La Rosière) 6,250)

Luigia Pierrina Memorial Trust 35,000)

Estate of the late Mr Basil George 5,000)

Estate of the late Mrs I N Dome 10,000)

Coastline Campaign 35,768)

The Royal Bank of Canada – Blue Water Project 25,000)

In memory of the late Mr Richard Sinkins 40,000)

Jersey Electricity 17,000)

HSBC Bank International 20,000)

Sundry donations 4,028)

) Restricted Funds — Croad bequest £198,046)

12. BEQUESTS, DONATIONS AND SPONSORSHIP

Bequests and donations have been received from the followingduring the year:

2011£

8. BANK LOANThe Trust has a bank loan totalling £425,000 (2010: £425,000) which is repayable by 3rd March 2018 and bearsinterest at a rate which fluctuates with The Royal Bank of Scotland International Ltd base rate and is secured on theTrust’s freehold property Brook Farm.

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Receipts from admissions 1,821) 1,755)Receipts from sale of goods 9,050) 3,935)Less: Cost of goods sold (3,665) (1,503)

5,385) 2,432)

7,206) 4,187)Expenses (4,732) (4,219)Closing Creditor – ) (26)

Net (Deficit) Surplus £2,474) (£58)

13. QUÉTIVEL MILL & GRÈVE DE LECQ BARRACKS &16, NEW STREET

2011 2010£ £ £ £

14. OPERATING EXPENSES

Wages and social security 280,503) 264,066)Coastline Campaign 15,643) 54,812)Property maintenance 385,870) 210,892)Rent, rates and insurance 21,596) 23,765)Transport costs 19,737) 12,414)Retirement contributions 10,092) 10,970)Plant 3,294) 1,248)

£736,735) £578,167)

The costs relating to the acquisition, preservation and maintenance of land and property of aesthetic, historic or naturalinterest are shown as operating expenses.

2011 2010£ £

15. ADMINISTRATION EXPENSES

Salaries and social security 128,546) 103,557)Bank interest and charges 17,140) 13,212)Printing, stationery, advertising and postage 7,849) 9,810)Retirement contributions 6,460) 6,066)Office expenses 9,903) 10,314)Legal and professional fees 9,565) 10,566)Audit fee 2,750) 2,750)General expenses 6,310) 8,696)

£188,523) £164,971)

2011 2010£ £

THE NATIONAL TRUST FOR JERSEYNOTES TO THE ACCOUNTS (Continued)

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16. RESERVES FOR OUR ONGOING FINANCIAL OBLIGATIONSThe key objective of The National Trust for Jersey is to permanently safeguard buildings of historic interest andareas of natural beauty for the benefit of the Island. Protecting the Island’s heritage for everyone to enjoy requiressubstantial financial resources each year.

Our buildings require constant maintenance to keep them in a good standard of repair and our lands need ongoingmanagement to secure and enhance their ecological value. This is a permanent commitment and with your helpand continuing support we will successfully meet the challenge. We have reviewed our future expenditure for ourproperties over the next 10 years and this has identified a backlog of repairs costing approximately £2,890,000.attoday’s prices. In addition there are a large number of unquantified outstanding tasks for our lands, such as drystone wall repairs, woodland management and new fencing, which means that the overall backlog figure is muchhigher. Given the extent of the tasks facing us and the increasing areas of land and number of properties we areresponsible for, it is likely that in the absence of very substantial donations and unencumbered legacies, the costwill always outweigh available funding.

RESERVES POLICYIn light of the above pressures, the Trust’s Council has established a number of stretching reserve targets. Themain features of our reserves policy are as follows:

a. Reserves are an inherent part of the Trust’s risk management process. The need for reserves will varydepending on the Trust’s financial position and our assessment of the risks the Trust faces at a particular time.

b. The need for reserves will be assessed as part of our strategic planning process and annual budgeting process.c. Reserves exist to provide short-term protection against downward fluctuations in annual revenues or capital

receipts, such as legacies, or to provide long-term strategic financial support.d. The reserves policy balances the need to build up long-term reserves against the need for short-term

spending on our core purposes.e. e. The policy aims to build up the Trust’s financial assets over the long-term to provide much needed

investment income for our properties.

The specific unrestricted fund targets we have established are detailed below.

The General FundThis fund represents the Trust’s working reserve and has been established to help us ensure that we are able tocontinue with our obligations in the event of a shortfall in income or a sudden upturn in expenditure. The target setis equivalent to three months’ annual ordinary income. This amounts to £115,803.

Repair Backlog ReserveThis reserve provides funds to support the capital repair program for the Trust’s historic buildings over a ten yearperiod. These repairs are considered to be essential for keeping the properties in a good state of repair and forensuring that they yield best value in relation to rental income. The fund amounts to £82,770 against a target of£2,890,000.

Coastline FundThis reserve provides funds for the acquisition and maintenance of coastline acquired by the Trust since theCoastline Campaign was established in 2006. The fund amounts to £172,939 and this figure is dependent upondonations and fund raising events.

Investment FundThis reserve generates income sufficient to cover approximately 20% of the Trust’s annual expenditure excludingcapital project costs. The capital value of the fund amounts to £4,500,000 and the income is included in the generalinvestment income.

General Fund Repair Backlog Coastline Investment Total Fund£ £ £ £ £

Balance as at 31st December 2011 £115,803 £82,770 £172,939 £4,500,000 £4,871,512Target as at 31st December 2011 £115,803 £2,890,000 £172,939 £4,500,000 £7,678,742

Balance of unrestricted fundsas at 31st December 2011 – – – – £5,347,728

THE NATIONAL TRUST FOR JERSEYNOTES TO THE ACCOUNTS (Continued)

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INDEPENDENT REPORT OF THE AUDITORS TO THE MEMBERS OFTHE NATIONAL TRUST FOR JERSEY

We have audited the financial statements of the National Trust for Jersey for the year ended 31 December 2011 on pages8 to 14. The financial framework that has been applied in their preparation is applicable law and United KingdomAccounting Standards.

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

Respective Responsibilities of the Honorary Treasurer and the AuditorsIn accordance with the Trust’s rules, the Honorary Treasurer is responsible to the Council for the preparation of the financialstatements. Consequently, the Honorary Treasurer is required to prepare financial statements for each accounting periodwhich give a true and fair view of the financial affairs of the Trust and of its results for the year. In preparing those financialstatements the Honorary Treasurer is required to:

� Select suitable accounting policies and then apply them consistently;

� Make judgements and estimates that are reasonable and prudent;

� State whether applicable accounting standards have been followed subject to any material departures disclosed andexplained in the accounts;

� Keep proper accounting records, which enable the Council to demonstrate that the accounts as prepared are inaccordance with the Trust’s Principal Documents and the Law.

The Council is responsible for the management of the Trust in accordance with its Principal Documents and the Law. TheCouncil is also responsible for safeguarding the assets of the Trust and for taking reasonable steps for the prevention anddetection of fraud and other irregularities.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law andInternational Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing PracticesBoard’s Ethical Standards on Auditing.

We read the information contained in the annual report and consider whether it is consistent with the audited accounts. Weconsider the implications for our report if we become aware of any apparent misstatements or material inconsistencies withthe accounts. Our responsibilities do not extend to any information outside the annual report.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to givereasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of whether the accounting policies are appropriate to the Trust’s circumstances and have beenconsistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the HonoraryTreasurer; and the overall presentation of the financial statements.

Opinion on financial statementsAs explained in Note 2 of the financial statements, no value is placed on land and buildings held for preservation. This isnot in accordance with the requirements of Financial Reporting Standard (‘FRS’) No.15 ‘Tangible Fixed Assets’. Note 1(a)identifies that the financial statements have not been prepared in accordance with FRS 30 ‘Heritage Assets’. Except for thedepartures from FRS15 and FRS30, in our opinion the financial statements:

� give a true and fair view of the state of affairs of the Trust as at 31 December 2011 and of its statement of financialactivities for the year then ended;

� have been properly prepared in accordance with United Kingdom Accounting Standards.

40 EsplanadeSt HelierJersey Reads (Audit) Limited

Chartered Accountants.13th March 2012

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16 4th Proof