EXHIBIT 1
John Michaels, CPA
223 Main Street
Woodbridge, NJ 07095
732-634-0148
732-855-4961 Fax
Report of Independent Accountants
To the Board of Directors of
MH Elite Portfolio of Funds, Inc.
We have examined management's assertion about MH Elite Portfolio of Funds, Inc.
(the "Company") compliance with the requirements of subsections (b) and (c) of
Rule 17f-2 under the Investment Company Act of 1940 ("the Act") as of September
30, 2000 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 September 30, 2000, and the period from August 15, 2000
through September 30, 2000 with respect to agreement of purchases and sales
of securities and similiar investments, without prior notice to management.
Reconciliation of confirmation results as to all such securities and similiar
investments to the books and records of the Company and the Custodian.
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 the MH Elite Portfolio of Funds, Inc.
was in compliance with the above mentioned provisions of Rule 17f-2 of the
Investment Company Act of 1940 as of September 30, 2000 is fairly stated,
in all material respects.
This report is intended solely for the information and use of management of
MH Elite Portfolio of Funds, Inc. and Securities and Exchange Commission and
should not be used for any other purpose.
J. Michaels, CPA
Woodbridge, NJ
October 10, 2000
