PRICEWATERHOUSECOOPERS (GRAPHIC APPEARS HERE)
Pricewaterhouse Coopers LLP
250 West Pratt Street
Suite 2100
Report of Independent Accountants Baltimore MD 21201 2304
Telephone (410) 783 7600
Facsimile (410) 783 7680
To the Board of Directors of:
DBAB Cash Reserve Fund, Inc. - Prime Series
DBAB Cash Reserve Fund, Inc. - Treasury Series
DBAB Cash Reserve Fund, Inc. - Tax Free Series
Flag Investors Emerging Growth Fund, Inc.
Flag Investors Equity Partners Fund, Inc.
Flag Investors Real Estate Securities Fund, Inc.
Flag Investors Communications Fund, Inc.
Flag Investors Value Builder Fund, Inc.
Flag Investors Short Intermediate Income Fund, Inc.
Flag Investors International Fund, 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, about DBAB Cash Reserve Fund, Inc. - Prime
Series, DBAB Cash Reserve Fund, Inc. - Treasury Series, DBAB Cash Reserve
Fund, Inc. - Tax Free Series, Flag Investors Emerging Growth Fund, Inc., Flag
Investors Equity Partners Fund, Inc., Flag Investors Real Estate Securities
Fund, Inc., Flag Investors Communications Fund, Inc., Flag Investors Value
Builder Fund, Inc., Flag Investors Short Intermediate Income Fund, Inc., Flag
Investors International Fund, Inc., (the Funds) 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, 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
October 30, 1999, and with respect to agreement of security purchases and
sales, for the period from May 31, 1999 (the date of our last examination),
through September 30, 1999:
- -Count and inspection of all securities located in the vault of Deutsche Bank
in New York without prior notice to management;
- -Confirmation of all securities held by institutions in book entry form The
Federal Reserve Bank of New York and The Depository Trust Company and CREST;
- -Confirmed all securities record-kept at banks with whom the Custodian and the
Funds have contracted to provide sub-custodian services without prior notice
to management;
- -Confirmation of all securities hypothecated, pledged, placed in escrow, or
out for transfer with brokers, pledgees and/or transfer agents;
- -Reconciliation of all such securities to the books and records of the Fund
and the Custodian;
- -Confirmation of all repurchase agreements with brokers/banks and agreement of
underlying collateral with Deutsche Bank records; and
- -Agreement of security purchases and security sales or maturities since our
last report from the books and records of the Fund 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 Fund's
compliance with specified requirements.
In our opinion, management's assertion that the Fund was in compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of September 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 the 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.
/s/ Pricewaterhouse Coopers LLP
Baltimore, Maryland
April 3, 2000
<PAGE>
Deutsche Asset Management
1 South Street
Baltimore MD 21202 3220
Telephone (410) 727 1700
Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940
We, as members of management of the U.S. Bond Index Portfolio, are responsible
for complying with the requirements of subsections (b) and (c) of Rule 17f-2,
Custody of Investments by Registered Management Investment Companies, of the
Investment Company of 1940. We are also responsible for establishing and
maintaining effective internal controls over compliance with those
requirements. We have performed an evaluation of the Company's compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 as of
December 31, 1999, and from May 31, 1999 through December 31, 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 December 31, 1999, and from May 31, 1999 through
December 31, 1999, with respect to securities reflected in the investment
account of the Company.
Deutsche Asset Management
DBAB Cash Reserve Fund, Inc. - Prime Series
DBAB Cash Reserve Fund, Inc. - Treasury Series
DBAB Cash Reserve Fund, Inc. - Tax Free Series
Flag Investors Emerging Growth Fund, Inc.
Flag Investors Equity Partners Fund, Inc.
Flag Investors Real Estate Securities Fund, Inc.
Flag Investors Communications Fund, Inc.
Flag Investors Value Builder Fund, Inc.
Flag Investors Short Intermediate Income Fund, Inc.
Flag Investors International Fund, Inc.
By: /s/ Amy Olmert
------------------------
Amy Olmert
Vice President of Administration
4/19/2000
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Date
Deutsche Bank Group (Graphic Appears Here)
<PAGE>
Washington, D.C. 20549
FORM N-17F-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 (17 CFR 370.17f-2)
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1. Investment Company Act File Number Date examination
BT Alex Brown Cash Reserve Fund, Inc., 811-3196 completed:
Flag Investors Communications Fund, Inc. 811-3383 September 30, 1999
Flag Investors Income 811-4827
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2. State Identification Numbers
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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3. Exact name of investment company as specified in registrations statement
See 1 above
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4. Address of principal executive office (number, street, city, state, zip
code)
1 South street, Baltimore, Maryland 21202-3220
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INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in
compliance with Rule 17f-2 under the Act and applicable state law,
examines securities and similar investments in the custody of the
investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and
appropriate state securities administrators when filing the
certificate of accounting required by Rule 17f-2 under the Act and
applicable state law. File the original and one copy with the
Securities and Exchange Commission's principal offices in
Washington, D.C., one copy with the regional office for the region
in which the investment company's principal business operations are
conducted, and one copy with the appropriate state
administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
