<PAGE> PAGE 1
000 B000000 12/31/97
000 C000000 0000352669
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 U
001 A000000 THE DECLARATION FUND
001 B000000 811-3176
001 C000000 6108321061
002 A000000 555 NORTH LANE, SUITE 6160
002 B000000 CONSHOHOCKEN
002 C000000 PA
002 D010000 19428
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C020100 DECLARATION CASH ACCOUNT
007 C030100 N
007 C010200 2
007 C020200 THE MICHIGAN HERITAGE FUND
007 C030200 N
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
015 A00AA01 CORESTATES
015 B00AA01 C
015 C01AA01 PHILADELPHIA
015 C02AA01 PA
015 C03AA01 19428
015 E01AA01 X
020 A000001 NONE
020 C000001 0
021 000000 0
022 A000001 GOLDMAN SACHS
022 B000001 13-5108800
022 C000001 17482
022 D000001 0
022 A000002 MERRILL LYNCH
022 B000002 13-5674085
<PAGE> PAGE 2
022 C000002 13462
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022 A000003 AMERICAN GENERAL FINANCE
022 B000003 34-0416090
022 C000003 1120
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022 A000004 AMERICAN EXPRESS CREDIT
022 B000004 11-1988350
022 C000004 159
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023 C000000 32422
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029 00AA00 N
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077 A000000 Y
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080 A00AA00 RELIANCE INSURANCE COMPANY
080 C00AA00 150
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<PAGE> PAGE 3
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062 B000100 99.3
062 C000100 0.0
062 D000100 0.0
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<PAGE> PAGE 4
072 D000100 0
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
SIGNATURE CHRIS D'AMBROSIO
TITLE TREASURER
SANVILLE & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
1514 OLD YORK ROAD
ABINGTON, PA 19001
(215) 884-8460
To the Board of Trustees of the
The Michigan Heritage Fund
In planning and performing our audit of the financial statements of The
Michigan Heritage Fund for the period July 27, 1997 (commencement of investment
operations) to December 31, 1997, we considered its internal control structure,
including procedures 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, not to provide
assurance on the internal control structure.
The management of The Michigan Heritage Fund is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgements by management are required to assess
the expected benefits and related costs of internal control structure policies
and procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors
or irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities 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 internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1997.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
Abington, Pennsylvania Sanville & Company
February 13, 1998 Certified Public Accountants
SANVILLE & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
1514 OLD YORK ROAD
ABINGTON, PA 19001
(215) 884-8460
To the Board of Trustees of the
Declaration Cash Account
In planning and performing our audit of the financial statements of the
Declaration Cash Account for the year ended December 31, 1997, we considered its
internal control structure, including procedures 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, not to provide assurance on the internal control structure.
The management of the Declaration Cash Account is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgements by management are required to assess
the expected benefits and related costs of internal control structure policies
and procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors
or irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities 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 internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1997.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
Abington, Pennsylvania Sanville & Company
February 13, 1998 Certified Public Accountants
