Georgia Fund 1 Financial Reporting at Fiscal Year End 2014

Georgia Fund 1 is a Standard & Poor’s AAAf rated investment pool which is managed by the Office of the State Treasurer (OST) to maintain a constant net asset value (NAV) of $1.00. OST reports monthly to participants on an amortized cost basis. The interest income, as well as gains and losses, net of administrative fees of Georgia Fund 1, are allocated to participants based on each participant’s average daily balance each month. The primary objective for Georgia Fund 1 since the pool’s inception is preservation of principal. OST continues to operate and report monthly to participants on an amortized cost basis. Starting with fiscal year 2014, the investments will be valued for financial reporting purposes twice a year (June 30th and December 31st) at fair value and participants will be informed of the fair valuation factor (1.0000 for June 30, 2014 and December 31, 2014) that enables them to adjust their statement balances to fair value.