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SIGNATURE THEODORE W. HOWARD
TITLE V.P. & TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE ANNUAL REPORT TO
SHAREHOLDERS DATED SEPTEMBER 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000203493
<NAME> UNITED MUNICIPAL BOND FUND, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 868,238
<INVESTMENTS-AT-VALUE> 863,550
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</TABLE>
EX-99.B-77B
INDEPENDENT AUDITORS' REPORT
To the Directors of United Municipal Bond Fund, Inc.:
In planning and performing our audit of the financial statements of United
Municipal Bond Fund, Inc. (the "Fund") for the year ended September 30, 1999 (on
which we have issued our report dated November 5, 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, and not to provide assurance on the Fund's internal control.
The management of the Fund 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
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 any internal control, misstatements due to
error 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 policies or procedures may deteriorate.
Our consideration of the Fund's 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 internal control 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 the
Fund's internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
September 30, 1999.
This report is intended solely for the information and use of management, the
Board of Directors of United Municipal Bond 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.
Deloitte & Touche LLP
November 5, 1999
EX-99.B-77C
UNITED MUNICIPAL BOND FUND, INC.
SUB-ITEM 77C: Submission of matters to a vote of security
holders:
(a) A Special Meeting of Shareholders was held June 22, 1999.
(b) Auditors were approved.
(c) Matters voted upon at the Special Meeting:
Item 1. To elect the Board of Directors:
Broker
For Withhold Non-Votes*
J. Concannon 72,401,750 2,416,229 0
J. Dillingham 72,410,765 2,407,214 0
D. Gardner 72,221,931 2,596,048 0
L. Graves 72,417,583 2,400,396 0
J. Harroz Jr. 72,228,755 2,589,224 0
J. Hayes 72,167,160 2,650,819 0
R. Hechler 72,304,514 2,513,465 0
H. Herrmann 72,286,253 2,531,726 0
G. Johnson 72,135,798 2,682,181 0
W. Morgan 72,259,139 2,558,840 0
R. Reimer 72,201,505 2,616,474 0
F. Ross 72,407,433 2,410,546 0
E. Schwartz 72,308,724 2,509,255 0
K. Tucker 72,378,206 2,439,773 0
F. Vogel 72,437,393 2,380,586 0
Item 2. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent accountants for its current fiscal year:
Broker
For Against Abstain Non-Votes*
71,422,798 487,955 2,907,226 0
Item 3. To approve or disapprove the amendment to the Fund's investment
management agreement with Waddell & Reed Investment Management Company:
Broker
For Against Abstain Non-Votes*
66,831,336 4,161,123 3,581,761 243,759
Item 5. To approve or disapprove the Fund's Articles of Incorporation to
change the par value of Fund shares to $0.001:
Broker
For Against Abstain Non-Votes*
65,575,006 3,223,844 6,019,129 0
*Broker non-votes are proxies received by the Fund from brokers or nominees when
the broker or nominee neither has received instructions from the beneficial
owner or other persons entitled to vote nor has discretionary power to vote on
a particular matter.
EX-99.B-77I
UNITED MUNICIPAL BOND FUND, INC.
SUB-ITEM 77I
(a) and (b): Terms of New or Amended Securities
The Fund has four classes of shares. Prior to October 4,
1999, the Fund offered only two classes of shares to the
public. Shares outstanding on that date were designated as
Class A shares and Class Y shares. As of October 4, 1999,
the Fund also offers Class B shares and Class C shares.
Class B shares have a deferred sales charge on shares sold
within six calendar years and are subject to a 0.25% service
charge and a 0.75% distribution charge. Class C shares have
a 1% deferred sales charge on shares sold within twelve
months and are subject to a 0.25% service charge and a 0.75%
distribution charge.
Each share (regardless of class) has one vote. All shares
of the Fund vote together as a single class, except as to
any matter for which a separate vote of any class is
required by the Investment Company Act of 1940, and except
as to any matter which affects the interests of one
particular classes, in which case only the shareholders of
the affected class are entitled to vote, as a separate
class. Shares are fully paid and nonassessable when
purchased. The addition of the Class B and Class C shares
had no effect on the rights of the existing shareholders.
EX-99.B-77Q1(a)(d)
UNITED MUNICIPAL BOND FUND, INC.
SUB-ITEM 77Q1 Exhibits
(a) and (d)
Articles Supplementary filed by EDGAR on July 2, 1999, as
Exhibit EX-99.B(a)mbartsup to Post-Effective Amendment No.
40 to the Registration Statement on Form N-1A (incorporated
by reference herein).
EX-99.B-77Q1(e)
UNITED MUNICIPAL BOND FUND, INC.
SUB-ITEM 77Q1(e) Changes to the registrant's investment
advisory contract:
EXHIBIT A TO INVESTMENT MANAGEMENT AGREEMENT
FEE SCHEDULE
A cash fee computed each day on net asset value for the Fund at the annual rates
listed below:
Net Assets Fee
Up to $500 million 0.525% of net assets
Over $500 million and up to $1 billion 0.50% of net assets
Over $1 billion and up to $1.5 billion 0.45% of net assets
Over $1.5 billion 0.40% of net assets
