NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES Cash Reserves Portfolio (the "Portfolio") is registered under
the U.S. Investment Company Act of 1940, as amended, as a no-load, diversified, open-end management
investment company which was organized as a trust under the laws of the State of New York. The Declaration of
Trust permits the Trustees to issue beneficial interests in the Portfolio. Signature Financial Group (Grand
Cayman), Ltd. ("SFG") acts as the Portfolio's Administrator and Citibank, N.A. ("Citibank") acts as the
Investment Adviser. Citibank is a wholly-owned subsidiary of Citicorp, which in turn is a wholly-owned
subsidiary of Citigroup Inc. Citigroup Inc. was formed as a result of the merger of Citicorp and Travelers Group,
Inc. which was completed on October 8, 1998.
The preparation of financial statements in accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
The significant accounting policies consistently followed by the Portfolio are as follows:
A. Valuation of Investments Money market instruments are valued at amortized cost, which the Trustees have
determined in good faith constitutes fair value. This method involves valuing a portfolio security at its cost and
thereafter assuming a constant amortization to maturity of any discount or premium. The Portfolio's use of
amortized cost is subject to the Portfolio's compliance with certain conditions as specified under Rule 2a-7 of the
U.S. Investment Company Act of 1940.
B. Interest Income and Expenses Interest income consists of interest accrued and discount earned (including both
original issue and market discount) on the investments of the Portfolio, accrued ratably to the date of maturity,
plus or minus net realized gain or loss, if any, on investments. Expenses of the Portfolio are accrued daily. The