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[Letterhead]
March 19, 1999
To the Board of Directors of
Scioto Investment Company
We have examined management's assertion about Scioto Investment Company's (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 December 31,
1998 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 December 31, 1998, and with respect to agreement of security
purchases and sales, for the period from November 30, 1998 (the date of our last
examination) through December 31, 1998:
- - Confirmation of all securities held by institutions in book entry form
of the Fifth Third/The Ohio Company,
- - Reconciliation of all such securities to the books and records of the
Company and the Custodian, and
- - Agreement of five security purchases and nine security sales or
maturities since our last report from the books and records of the
Company to broker confirmations.
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 Scioto Investment 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 December 31, 1998 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
Scioto Investment Company and the Securities and Exchange Commission and should
not be used for any other purpose.
Yours truly,
/s/ Deloitte & Touche LLP
