Report of Independent Auditors
Board of Trustees
Friends Ivory Funds
In planning and performing our audit of the financial statements of
Friends Ivory Funds (the "Funds") for the period ended
June 30, 2000, we considered their internal control, including
control activities for safeguarding securities, 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 internal control.
The management of the 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 internal control. Generally, internal controls
that are relevant to an audit pertain to the Funds' objective
of preparing financial statements for external purposes
that are fairly presented in conformity with generally
accepted accounting principles. Those internal controls
include the safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in any internal control,
misstatements due to errors or fraud may occur and not be
detected. Also, projections of any evaluation of internal
control to future periods are subject to the risk that
internal control may become inadequate because of changes
in conditions, or that the degree of compliance with the
policies or procedures 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 the specific internal control components does not reduce
to a relatively low level the risk that misstatements due to
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, including control activities
for safeguarding securities, and its operation that we consider
to be material weaknesses as defined above as of June 30, 2000.
This report is intended solely for the information and use of the
Board of Trustees and management of the Funds and the Securities
and Exchange Commission and is not intended to be and should not
be used by anyone other than these specified parties.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
July 21, 2000
