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SECURITIES AND EXCHANGE COMMISSION --------------------------
WASHINGTON, D.C. 20549 OMB Approval
FORM N-17f-2 --------------------------
OMB Number: 3235-0360
Certificate of Accounting of Securities and Similar Expires: July 31, 1994
Investment in the Custody of Estimated average burden
Management Investment Companies hours per response... 0.05
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number: Date examination completed
811-2378 June 30, 1999
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2. State identification Number: N/A
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify):
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3. Exact name of investment company as specified in representation statement:
Circle Income Shares, Inc.
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4. Address of principal executive office (number, street, city, state, zip code):
P. O. Box 77004, Indianapolis, Indiana 46277-7004
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ARTHUR ANDERSEN LLP
INDEPENDENT AUDITOR'S REPORT
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To the Board of Directors of
Circle Income Shares, Inc.
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, that Circle Income Shares, Inc. (the Company) complied 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. 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 conducted in accordance with attestation 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, and with respect to agreement
of security purchases and sales, for the period from April 30, 1999 (date of
last examination) through June 30, 1999:
o Confirmation of all securities held by institutions in book entry form
(Federal Reserve Bank of Cleveland, The Depository Trust Co.;
o Reconciliation of all such securities to the books and records of the
Company and Bank One Trust Co., the Custodian;
o Agreement of one (1) security purchase 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 Circle Income Shares, Inc. complied
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
Circle Income Shares, 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.
ARTHUR ANDERSEN LLP
Columbus, Ohio,
July 30, 1999
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[LOGO] CIRCLE INCOME SHARES, INC.
P.O. Box 77004, Indianapolis, Indiana 46277-7004 o (317) 321-8180
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July 30, 1999
Arthur Andersen LLP
41 South High Street
Suite 2100
Columbus, Ohio 43215
Dear Sirs:
We, As members of management of Circle Income Shares, 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 Companies," of the
Investment Company Act of 1940. We are also responsible for establishing and
maintaining effective internal controls over 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 to June 30, 1999, with
respect to securities reflected in the investment account of the Company.
Circle Income Shares, Inc.
By:
/s/ Bruce Glor
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Bruce Glor, President
