Over $1 Billion FY2004 FY2005

$501 Million $1 Billion FY2006 FY2007

Under $500 Million

Liquid Contingent Core

From Long-Term Pool Auxiliary Income

External Debt Service

Internal Loans for Capital Projects Plant and Equipment

Average Rates1
For the Year Ended June 30, 2007
Sources of Financial Capital Aaa/AAA Institutions Institutions Aa/AA A/A Institutions Baa/BBB Institutions

Lines of Credit Tax-Exempt Debt CP/VRDBs Fixed Rate Bonds Taxable Debt CP Fixed Rate Bonds

5.4% 3.8% 4.7% 5.4% 5.7%

5.4% 3.8% 4.7% 5.5% 5.8%

5.5% 3.9% 4.7% 5.6% 6.0%

5.62% 3.9% 4.8% 5.6% 6.3%

Note: Included estimated cost of liquidity if required Source: Prager, Sealy & Co., LLC

Indicative Financial Capital Returns1

For the Year Ended June 30, 2007

Liquid Hypothetical Limited-term Portfolio Endowment

4.8% 6.2% 16.9%

Dollars ($) in millions

Institution 1

Institution 2

Institution

Institution

Institution

Investments: Endowment $678 $2,338 Liquidity (Cash) $477 $708 Debt $626 $1,118 Fixed/ Variable Mix* in percent (%) 84/16 57/43 Blended Rate in percent (%) N/A 4.3
Private Universities
Dollars ($) in millions Institution 1 Institution 2

$1,621 $316 $667 75/25 N/A

Institution

$1,600 $765 $872 75/25 5.03

Institution

$3,898 $760 $551 80/20 4.75

Institution

Investments: Endowment $7,244 $6,590 Liquidity (Cash) $405 $152 Debt $1,212 $941 Fixed/ Variable Mix* in percent (%) 89/11 80/20 Blended Rate in percent (%) 5.17

$6,226 $142 $1,397 66/34 5.5 4.4

$29,219 $100 $3,135 82/18 5.5

$5,975 $345 $595 61/39 N/A

Institution

Institution

$357 $354 100/0

Institution

$1,700 $23 $224 $1,000 100/0 N/A Provisional 5.5

$3,488 $692 $1,105 45/55 4.4

Hypothetical Statement of Net Assets3

Dollars ($) in thousands

/ 0/0

/ 0/0

Cash and cash equivalents Limited term investments Operating assets in LT pool Internal loans to departments Prepaid expenses Capital activities Total Assets Accounts payable and accruals External bonds payable Due to (from) operations Deferred revenue Total Liabilities Net Assets

$ 51,000 75,000 20,000 $146,000 $350,000 4,500 4,400 $504,900 $ 3,900 344,000 25,000 8,201 $381,101 $123,799

$ 44,868 80,000 25,000 $149,868 $370,000 5,000 5,009 $529,877 $ 4,100 365,000 20,000 9,000 $398,100 $131,777

Hypothetical Statement of Net Revenues3

FY2007
Dollars ($) in thousands

Earnings on investments Interest on internal loans Total Revenues Interest on external bonds Debt related fees Salaries and related (treasury operations) Total Expenses Transfers to (from) treasury operations Budgeted interest paid to operations 3-month T-Bill Increase (Decrease) in Assets

$13,433 17,850 $31,283 16,340 100 250 $16,690 6,615 $ 7,978

Gail Hoffman Roberta Edge Victoria Nevois Laura McAndrew Edith Murphree Kim Pate Craig McCurley Tom Balish MaryFrances McCourt Stewart Cobine Al Rodack Shirley DeJarnette Brian Smith Pamela Arms Helen Kreider Michael Gower Yoke San Reynolds Jim Matteo Doug Breckel Chris Malins Kevin Walker Bret Perisho

Treasurer Associate Treasurer AVP for Treasury Senior Director, Treasury Operations VP for Finance Director, Fiscal Planning & Management Director, Office of Treasury Management Treasury Operations Manager Treasurer Managing Director & Assistant Treasurer Associate Treasurer Treasurer Director, Treasury & Risk Management Associate Treasurer Associate Treasurer VP for Finance VP for Finance & CFO Director of Treasury Operations CFO, Financial Management Senior Associate Treasurer Associate Controller Director of Finance (Medical Center)

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