AUDITOR’S <strong>REPORT</strong>EXPLANATION OF THE CONTENTS OF THE <strong>ACCOUNTS</strong>7 Auditor’s ReportINDEPENDENT AUDITORS’ <strong>REPORT</strong> TO THE MINISTER FOR TREASURY <strong>AND</strong> RESOURCES OF THESTATES OF JERSEY <strong>AND</strong> THE COMPTROLLER <strong>AND</strong> AUDITOR GENERAL OF THE STATES OF JERSEYWe have audited the annual financial statement on the Accounts(“the Accounts”) of the <strong>States</strong> of Jersey for the year ended31 December <strong>2011</strong> in accordance with the Public Finances(Jersey) Law 2005. The Accounts comprise the ConsolidatedOperating Cost Statement, the Consolidated Balance Sheet, theConsolidated Statement of Total Recognised Gains and Losses,the Consolidated Cash Flow Statement and the related notes.The financial reporting framework that has been applied in theirpreparation is applicable law and United Kingdom GenerallyAccepted Accounting Practice as interpreted for the <strong>States</strong> ofJersey by the Jersey Financial Reporting Manual.Respective responsibilities of the Treasurer of the <strong>States</strong>, theComptroller and Auditor General of the <strong>States</strong> and auditorsAs explained more fully in the Statement of Responsibilities forthe Financial Report and Accounts, the Treasurer is responsiblefor the preparation of the Accounts in accordance with thePublic Finances (Jersey) Law 2005 and for being satisfied thatthey give a true and fair view in accordance with the JerseyFinancial Reporting Manual.The Comptroller and Auditor General’s responsibilities areto ensure that the Accounts are audited within 5 months ofthe end of the financial year. We have been appointed bythe Comptroller and Auditor General to audit and express anopinion on the Accounts in accordance with relevant legaland regulatory requirements and International Standardson Auditing (UK and Ireland). Those standards require us tocomply with the Auditing Practices Board’s Ethical Standardsfor Auditors.This report, including the opinion, has been prepared for andonly for the Minister for Treasury and Resources of the <strong>States</strong> ofJersey and the Comptroller and Auditor General of the <strong>States</strong>of Jersey in accordance with the Public Finances (Jersey)Law 2005 and for no other purpose. We do not, in giving thisopinion, accept or assume responsibility for any other purposeor to any other person to whom this report is shown or intowhose hands it may come save where expressly agreed by ourprior consent in writing.The maintenance and integrity of the <strong>States</strong> of Jersey’s websiteis the responsibility of the <strong>States</strong> of Jersey; the work carried outby the auditors does not involve consideration of these mattersand, accordingly, the auditors accept no responsibility for anychanges that may have occurred to the financial statementssince they were initially presented on the website. Legislation inJersey governing the preparation and dissemination of financialstatements may differ from legislation in other jurisdictions.Scope of the audit of the AccountsAn audit involves obtaining evidence about the amounts anddisclosures in the Accounts sufficient to give reasonableassurance that the Accounts are free from materialmisstatement, whether caused by fraud or error. Thisincludes an assessment of: whether the accounting policiesare appropriate to the <strong>States</strong>’ circumstances and havebeen consistently applied and adequately disclosed; thereasonableness of significant accounting estimates madeby the <strong>States</strong>; and the overall presentation of the financialstatements. In addition, we read all the financial and nonfinancialinformation in the Financial Report to identify materialinconsistencies with the audited financial statements. If webecome aware of any apparent material misstatements orinconsistencies we consider the implications for our report.Opinion on the AccountsIn our opinion the Accounts:• give a true and fair view, in accordance with the PublicFinances (Jersey) Law 2005, of the state of the <strong>States</strong> ofJersey’s affairs as at 31 December <strong>2011</strong> and of the incomeand expenditure and cash flows for the year then ended;• have been properly prepared in accordance with UnitedKingdom Generally Accepted Accounting Practice asinterpreted for the <strong>States</strong> of Jersey by the Jersey FinancialReporting Manual; and• have been prepared in accordance with the requirements ofthe Public Finances (Jersey) Law 2005.Opinion on other mattersIn our opinion, the information given in the Minister’s Report,the Annual Report, the Remuneration Report and the Annex isconsistent with the Accounts.Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matterswhere the Comptroller and Auditor General and the Treasuryand Resources Minister requires us to report to you if, in ouropinion:• proper accounting records have not been kept, or properreturns adequate for our audit have not been received from<strong>States</strong>’ funded bodies not visited by us; or• the <strong>States</strong>’ Consolidated Operating Cost Statement andConsolidated Balance Sheet are not in agreement with theaccounting records and returns; or• we have identified any evidence in the course of our normalaudit work that suggests that proper practice and therequirements of the 2005 Law may not have been followedby any of the Accounting Officers; or• we have not received all the information and explanations werequire for our audit.Sarah Isted (Senior Statutory Auditor)For and on behalf of PricewaterhouseCoopers LLPChartered Accountants and Statutory Auditors7 More London Riverside, London, SE1 2RTDate: 30 May 201266
PRIMARY STATEMENTSCONSOLIDATED OPERATING COST STATEMENT FOR THE YEAR ENDED 31 DECEMBER <strong>2011</strong>8 Primary Statements<strong>States</strong> of Jersey8.1 Consolidated Operating Cost Statementfor the year ended 31 December <strong>2011</strong>RevenueLevied by the <strong>States</strong> of JerseyNotes 2010 <strong>2011</strong>£’000 £’000Taxation revenue 443,685 477,056Island rate, duties, fees, fines and penalties 88,295 93,124Total Revenue Levied by the <strong>States</strong> ofJerseyEarned through Operations531,980 570,180Sales of goods and services 135,288 142,134Investment income 59,071 29,993Other revenue 19,402 50,709Total Revenue Earned through Operations 213,761 222,836Total Revenue 3 745,741 793,016Operating ExpenditureSocial Benefit Payments 165,620 166,256Staff costs 345,246 348,432Other Operating expenses 184,190 214,479Grants and Subsidies payments 40,187 37,960Depreciation 50,235 46,426Impairment of Fixed Assets 145,094 7,793Finance costs 5,338 5,170Total Operating Expenditure 935,910 826,516Non-Operating expenditureNet foreign-exchange losses 447 438Movement in pension liability 41,263 4,384(Gains) on disposal of assets (2,730) (2,718)Total Non-Operating Expenditure 38,980 2,104Total Expenditure 4 974,890 828,620Deficit for the Year (229,149) (35,604)67
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