PricewaterhouseCoopers LLP
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Chicago, Il 60601-1210
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Report of Independent Accountants
To the Board of Directors of IAA Trust Company Mutual Funds:
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, about IAA Trust Company's Mutual Funds' (the Fund's) compliance
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, 2000. Management is
responsible for the Fund's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the
Fund'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 Fund'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, 2000, and with respect to agreement
of security purchases and sales, for the period from March 31, 2000 (the date of
our last examination), through June 30, 2000:
o Confirmation of all securities held by institutions in book entry form, at the
Depository Trust Company and Citibank;
o Reconciliation of all such securities to the books and records of the Fund and
the Custodian, IAA Trust; and
o Agreement of eighteen security purchases and eighteen security sales or
maturities since our last report from the books and records of the Fund to
trade confirmations.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
specified requirements.
In our opinion, management's assertion that IAA Trust Company Mutual Funds was
in compliance with the requirements of subsection (b) and (c) of Rule 17f-2 of
the Investment Company Act of 1940 as of June 30, 2000 with respect to
securities reflected in the investment account of the Fund is fairly stated, in
all material respects.
This report is intended solely for the information and the use of Board of
Directors, management, and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these specified
parties.
PricewaterhouseCoopers LLP
September 22, 2000
