<PAGE> PAGE 1
000 B000000 12/31/97
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007 C010500 5
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013 A00AA01 ERNST & YOUNG L.L.P.
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<PAGE> PAGE 2
015 C01AA01 BOSTON
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015 E01AA01 X
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<PAGE> PAGE 3
025 D00AA06 0
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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SIGNATURE PAUL JASINSKI
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information
extracted from Merrimac Cash Fund Premium Class,
form N-SAR for the period ended December 31, 1997
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> Merrimac Cash Fund Premium Class
<S> <C>
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<TABLE> <S> <C>
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<LEGEND>
This schedule contains summary financial information
extracted from Merrimac Cash Fund Institutional Class,
form N-SAR for the period ended December 31, 1997
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> Merrimac Cash Fund Institutional Class
<S> <C>
<PERIOD-TYPE> 12-MOS
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<PERIOD-END> DEC-31-1997
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<TABLE> <S> <C>
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<LEGEND>
This schedule contains summary financial information
extracted from Merrimac Treasury Fund Premium Class,
form N-SAR for the period ended December 31, 1997
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 021
<NAME> Merrimac Treasury Fund Premium Class
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
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<TABLE> <S> <C>
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<LEGEND>
This schedule contains summary financial information
extracted from Merrimac Treasury Fund Institutional Cla
form N-SAR for the period ended December 31, 1997
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 022
<NAME> Merrimac Treasury Fund Institutional Class
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 73,916,346
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Report of Ernst & Young LLP, Independent Auditors
To the Board of Trustees of
The Merrimac Funds
In planning and performing our audit of the financial statements of the Merrimac
Cash Fund and the Merrimac Treasury Fund (the "Merrimac Funds") for the period
ended December 31, 1997, we considered its internal control, including control
activities for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements
and to comply with the requirements of Form N-SAR, and not to provide assurance
on the internal control.
The management of the Merrimac Funds is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of controls. Generally, controls that are relevant to an audit pertain to
the entity's objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of specific internal control components does not reduce to a relatively low
level the risk that errors or fraud in amounts that would be material in
relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal control and
its operation, including controls for safeguarding securities, that we consider
to be material weaknesses as defined above at December 31, 1997.
This report is intended solely for the information and use of the board of
trustees and management of the Merrimac Funds and the Securities and Exchange
Commission.
Boston, MA
February 13, 1998
