NOTE 1. INTERIM FINANCIAL STATEMENTS
In the opinion of management of Colonial High Income Municipal Trust (the Fund), a series of Colonial Trust I,
the accompanying financial statements contain all normal and recurring adjustments necessary for the fair
presentation of the financial position of the Fund at June 30, 1997, and the results of its operations, the changes in
its net assets and the financial highlights for the six months then ended.
NOTE 2. ACCOUNTING POLICIES
ORGANIZATION: Colonial High Income Municipal Trust (the Fund), is a Massachusetts business trust
registered under the Investment Company Act of 1940, as amended, as a diversified, closed-end, management
investment company. The Fund's investment objective is to provide high current income, generally exempt from
federal income taxes, by investing primarily in medium and lower quality municipal securities. The Fund authorized
an unlimited number of shares.
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates. The following
significant accounting policies are consistently followed by the Fund in the preparation of its financial statements.
SECURITY VALUATION AND TRANSACTIONS: Debt securities generally are valued by a pricing service
based upon market transactions for normal, institutional-size trading units of similar securities. When management
deems it appropriate, an over-the-counter or exchange bid quotation is used.
Short-term obligations with a maturity of 60 days or less are valued at amortized cost.
Portfolio positions which cannot be valued as set forth above are valued at fair value under procedures approved
by the Trustees.