NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES CitiFunds Institutional U.S. Treasury Reserves (the "Fund") is a
diversified separate series of CitiFunds Institutional Trust (the "Trust"), a Massachusetts business trust. The Trust
is registered under the Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund invests all of its investable assets in U.S. Treasury Reserves Portfolio (the "Portfolio"), an
open-end, diversified management investment company for which Citibank, N.A. ("Citibank") serves as
Investment Adviser. The value of such investment reflects the Fund's proportionate interest (51.0% at August 31,
1999) in the net assets of the Portfolio. CFBDS, Inc. ("CFBDS"), acts as the Trust's Administrator and
Distributor. Citibank also serves as Sub-Administrator and makes shares available to customers through various
Shareholder Servicing Agents. 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 Fund are in conformity with generally accepted
accounting principles and are as follows:
A. Investment Income The Fund earns income, net of Portfolio expenses, daily on its investment in the Portfolio.
B. Federal Taxes The Fund's policy is to comply with the provisions of the Internal Revenue Code available to
regulated investment companies and to distribute to shareholders all of its taxable income. Accordingly, no
provision for federal income or excise tax is necessary.
C. Expenses The Fund bears all c