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<PAGE> PAGE 2
013 B010001 KANSAS CITY
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<PAGE> PAGE 4
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<PAGE> PAGE 6
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SIGNATURE GREGORY B GETTS
TITLE FUND ADMINISTRATOR
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 1,730,851
<INVESTMENTS-AT-VALUE> 2,036,806
<RECEIVABLES> 262,397
<ASSETS-OTHER> 54,508
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,353,711
<PAYABLE-FOR-SECURITIES> 191,905
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 64,179
<TOTAL-LIABILITIES> 256,084
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 998,460
<SHARES-COMMON-STOCK> 101,701
<SHARES-COMMON-PRIOR> 47,611
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 793,212
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 305,955
<NET-ASSETS> 2,097,627
<DIVIDEND-INCOME> 6,380
<INTEREST-INCOME> 281
<OTHER-INCOME> 0
<EXPENSES-NET> 19,062
<NET-INVESTMENT-INCOME> (12,401)
<REALIZED-GAINS-CURRENT> 857,374
<APPREC-INCREASE-CURRENT> 261,913
<NET-CHANGE-FROM-OPS> 1,106,886
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 133,928
<NUMBER-OF-SHARES-REDEEMED> 79,838
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,664,617
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (64,162)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 12,186
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 129,047
<AVERAGE-NET-ASSETS> 1,004,054
<PER-SHARE-NAV-BEGIN> 9.09
<PER-SHARE-NII> (0.17)
<PER-SHARE-GAIN-APPREC> 11.71
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 20.63
<EXPENSE-RATIO> 1.95
</TABLE>
The Shareholders and
Board of Directors
The Thurlow Growth Fund, Inc.
Palo Alto, California
In planning and performing our audit of the financial statements of The Thurlow
Growth Fund, Inc. for the year ended June 30, 1999, 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, not
to provide assurance on internal control.
The management of The Thurlow Growth Fund, Inc. is responsible for establishing
and maintaining internal control. In fulfilling this responsibility, estimates
and judgements 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, error 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 the internal control structure 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 the internal control structure components does not reduce to a
relatively low level the risk that misstatements caused by error 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 operations, including controls for
safeguarding securities, that we consider to be material weaknesses as defined
above as of June 30, 1999.
This report is intended solely for the information and use of management, the
Board of Directors and the Securities and Exchange Commission.
Kansas City, Missouri
August 23, 1999
Sub-Item 77K: Changes in registrant's certifying accountant
Arthur Andersen LLP resigned as auditor of The Thurlow Funds, Inc.
(the "Fund") prior to the close of the Fund's fiscal year ended June 30, 1999.
During the period Arthur Andersen LLP audited the Fund, its report on the
financial statements for the Fund did not contain an adverse opinion or a
disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit
scope, or accounting principles.
Subsequent to the resignation of Arthur Andersen LLP, the Fund's Board
of Directors approved the appointment of Baird, Kurtz & Dobson to become the
auditor of the Fund as of May 1, 1999.
During the period Arthur Andersen LLP audited the Fund and the period
preceding its resignation, the Fund did not have any disagreement with Arthur
Andersen LLP of the type that, if not resolved to the satisfaction of Arthur
Andersen LLP, would have caused Arthur Andersen LLP to have made a reference to
the subject matter of the disagreement in connection with its report.
During the period Arthur Andersen LLP audited the Fund and the period
preceding its resignation, there were no events of the kind identified in
Item 304(a)(1)(v)(A)-(D) of Regulation S-K.
During the period beginning with the Fund's commencement of operations
and ending with the resignation of Arthur Andersen LLP, neither the Fund, nor
someone on its behalf, consulted Baird, Kurtz & Dobson regarding any matter
identified in Item 304(a)(2) of Regulation S-K.
<PAGE>
September 7, 1999
Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Sir/Madam:
We have read Sub-Item 77K included in the amended Form NSAR dated September 7,
1999, of The Thurlow Funds, Inc. with the Securities and Exchange Commission and
are in agreement with the statements contained therein.
Very truly yours,
ARTHUR ANDERSEN LLP
/s/Dale J. Kent
By
Dale J. Kent
Copy to:
Mr. Thomas F. Thurlow, The Thurlow Funds, Inc.
