Baird, Kurtz & Dobson
City Center Square
1100 Main Street, Suite 2700
Kansas City, MO 64105-2112
816-221-6300 Fax 816-221-6380
www.bkd.com
Independent Accountants' Report
To the Board of Directors of
UMB Scout Capital Preservation Fund, Inc.
and
the Securities and Exchange Commission:
RE: UMB Scout Capital Preservation Fund, Inc.
Form N-17f-2
File Number 811-08511
We have examined management's assertion about UMB SCOUT CAPITAL
PRESERVATION FUND, INC.'s (the "Company's") compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 under the
Investment Company Act of 1940 (the "Act") as of June 30, 1999,
included in the accompanying Management Statement Regarding
Compliance with Certain Provisions of the Investment Company Act
of 1940. Management is responsible for the Company's compliance
with those requirements. Our responsibility is to express an
opinion on management's assertion about the Company's compliance
based on our examination.
Our examination was made in accordance with standards established
by the American Institute of Certified Public Accountants and,
accordingly, included examining, on a test basis, evidence about
the Company's compliance with those requirements and performing
such other procedures as we considered necessary in the
circumstances. Included among our procedures were the following
tests performed as of June 30, 1999, with respect to securities
of about UMB SCOUT CAPITAL PRESERVATION FUND, INC., without prior
notice to management:
Confirmation of all securities held by the Federal Reserve Bank
of Kansas City, The Depository Trust Company, Participants Trust
Company, the Morgan Stanley Trust Company, UMB Bank - N.Y., and
Euroclear in book entry form;
Reconciliation of all such securities to the books and records of
the Company and the Custodian;
Confirmation of all repurchase agreements with brokers/banks and
agreement of underlying collateral with custodian records.
We believe that our examination provides a reasonable basis for
our opinion. Our examination does not provide a legal
determination on the Company's compliance with specified
requirements.
In our opinion, management's assertion that about UMB SCOUT
CAPITAL PRESERVATION FUND, INC. was in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 as of June 30, 1999 with respect
to securities reflected in the investment account of the Company
is fairly stated, in all material respects.
This report is intended solely for the information and use of
management of about UMB SCOUT CAPITAL PRESERVATION FUND, INC. and
the Securities and Exchange Commission and is not intended to be
and should not be used by anyone other than these specified
parties.
Baird, Kurtz & Dobson
Kansas City, Missouri
September 22, 1999
Member of
Moores
Rowland
International
<PAGE>
Washington, D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
1. Investment Company Act File Number: Date examination
completed:
811-08511 June 30, 1999
2. State Identification Number:
AL *
AK 98 02648
AZ S-0057440-QUAL
AR 98-M0144-01
CA *
CO IC-98-14-096
CT SI46025
DE *
DC *
FL *
GA 56-003044
HI *
ID 49022
IL 9941539
IN 98-0154IC
IA I-40771
KS 98S0000983
KY M34790
LA 59136
ME MF-R-99-8451
MD SM980388
MA 789278
MI 227380
MN R-40432.1
MS MF-98-02-110
MO 1998-00212
MT 38632
NE 036643
NV *
NH *
NJ *
NM 981974
NY S 28 21 76
NC 7539
ND U943
OH 17699
OK I-119098
OR 98-0080
PA 98-02-045MF
RI *
SC MF11349
SD 14240
TN RM98-3642
TX C-55304
UT B00098969
VT 2/11/98-02
VA 2629
WA C-58245-C
WV MF-24532
WI 344040-03
WY 20815
PUERTO RICO
Other (specify):
*Indicates Fund is registered in state but state does not
issue identification numbers
Securities in the UMB Scout Funds Combined Prospectus
included on one Notice Filing (Balanced Fund, Bond Fund, Capital
Preservation Fund, Kansas Tax-Exempt Bond Fund, Money Market
Fund, Regional Fund, Stock Fund, Stock Select Fund, Tax-Free
Money Market Fund, Worldwide Fund, Worldwide Select Fund)
3. Exact name of investment company as specified in registration
statement:
UMB Scout Capital Preservation Fund, Inc.
4. Address of principal executive office: (number, street, city,
state, zip code)
700 Karnes Blvd, BMA Tower, Kansas City, Missouri 64108
INSTRUCTIONS
This Form must be completed by the investment companies that have
custody of securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in
compliance with Rule 17f-2 under the Act and applicable state
law, examines securities and similar investments in the custody
of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission
and appropriate state securities administrators when filing the
certificate of accounting required by Rule 17f-2 under the Act
and applicable state law. File the original and one copy with
the Securities and Exchange Commission's principal office in
Washington, D.C., one copy with the regional office for the
region in which the investment company's principal business
operations are conducted, and one copy with the appropriate state
administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
Note: The estimated average burden hours are made solely for
purposes of the Paperwork Reduction Act, and are not derived from
a comprehensive or even a representative survey or study of the
costs of SEC rules and forms. Direct any comments concerning the
accuracy of the estimated average burden hours for compliance
with SEC rules and forms to Kenneth A. Fogash, Deputy Executive
Director, U.S. Securities and Exchange Commission, 450 Fifth
Street, N.W., Washington, D.C. 20549 and Gary Waxman, Clearance
Officer, Office of Management and Budget, Room 3208 New Executive
Office Building, Washington, D.C. 20503.
<PAGE>
Baird, Kurtz & Dobson
City Center Square
1100 Main Street, Suite 2700
Kansas City, MO 64105-2112
816-221-6300 Fax 816-221-6380
www.bkd.com
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of UMB Scout Capital Preservation
Fund, Inc. (the "Company"), are responsible for complying with
the requirements of subsections (b) and (c) of Rule 17F-2,
"Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act of 1940. We are also
responsible for establishing and maintaining effective internal
controls over compliance with those requirements. We have
performed an evaluation of the Company's compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 as of June
30, 1999 and from April 30, 1999 through June 30, 1999.
Based on this evaluation, we assert that the Company was in
compliance with the requirements of subsections (b) and (c) of
Rule 17f-2 of the Investment Company Act of 1940 as of June 30,
1999 and from April 30, 1999 through June 30, 1999, with respect
to securities reflected in the investment account of the Company.
UMB SCOUT CAPITAL PRESERVATION FUND, INC.
By /s/Laurence J. Schmidt
Laurence J. Schmidt, Senior Vice President
Members of
Moores
Rowland
International
