Independent Auditors' Report
To the Board of Directors of
Scout Tax-Free Money Market Fund, Inc.
and
the Securities and Exchange Commission:
RE: Scout Tax-Free Money Market Fund, Inc.
Form N-17f-2
File Number 811-3556
We have examined management's assertion about SCOUT TAX-FREE MONEY
MARKET FUND, INC.'s (the "Company's") compliance with certain rules
under the Investment Company Act of 1940 (the "Act") as of April 30,
1998, and for the period December 31, 1997 through April 30, 1998,
included in the accompanying Management Statement Regarding Compliance
with Certain Provisions of the Investment Company Act of 1940.
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 made in accordance with 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 April 30,
1998, and for the period December 31, 1997 through April 30, 1998, with
respect to securities of SCOUT TAX-FREE MONEY MARKET FUND, INC.,
without prior notice to management:
* Securities owned as of the close of business on April 30, 1998,
shown by the books and records were verified with the custodian, UMB
Bank, n.a., which verification includes confirmation of securities
with the Depository Trust Company, which uses the book entry method of
accounting for securities;
* Securities purchased/sold but not received/delivered,
hypothecated, pledged, placed in escrow, or out for transfer with
brokers, pledgees and/or transfer agents were verified to supporting
data where the securities were in-transit resulting from purchase or
sale transactions;
* Reconciliation of all such securities to the books and records of
the Company and the Custodian.
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 Scout Tax-Free Money Market
Fund, Inc. was in compliance with certain provisions of Rule 17f-2 of
the Investment Company Act of 1940 as of April 30, 1998, is fairly
stated, in all material respects.
This report is intended solely for the information and use of
management of Scout Tax-Free Money Market Fund, Inc. and the Securities
and Exchange Commission and should not be used for any other purpose.
Kansas City, Missouri
July 23, 1998
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 270.17f-2]
1. Investment Company Act File Number: Date examination completed:
811-3556 April 30, 1998
2. State Identification Number:
AL *
AK 98 02178
AZ S-0033497-QUAL
AR 87-M202-01
CA 504-5892
CO IC-91-02-934
CT SI 45573
DE *
DC *
FL *
GA 56-002878
HI *
ID 48846
IL 9738148
IN 85-0448 IC
IA I-19077
KS 86S0000282
KY M29403
LA 54080**
ME MF98-6743
MD SM980024
MA 96-6997-MR
MI 227115
MN R-28108.1
MS MF-98-01-004
MO Q-MT-1298
MT 9202
NE 015643
NV *
NH *
NJ *
NM 980211
NY S 27 53 19
NC *
ND 62479
OH 10279
OK I-321297
OR 98-0080**
PA 87-08-115MF
RI *
SC MF11219
SD 10197
TN RM98-0280
TX C-39439
UT B00039221**
VT 1/16/98-24
VA 2613
WA C-57893
WV MF-24122
WI 341395-03
WY 20515
PUERTO RICO
Other (specify):
*Indicates Fund is registered in state but state does not issue
identification numbers
**Securities in the Scout Funds Combined Prospectus included on one
Notice Filing (Balanced Fund, Bond Fund, Money Market Fund,
Regional Fund, Stock Fund, Tax-Free Money Market Fund, Worldwide Fund)
3. Exact name of investment company as specified in registration statement:
Scout Tax-Free Money Market Fund, Inc.
4. Address of principal executive office: (number, street, city, state,
zip code)
700 Karnes Boulevard, BMA Tower, Kansas City, Missouri 64108
INSTRUCTIONS
This Form must be completed by the 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 office 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
Note: The estimated average burden hours are made solely for purposes
of the Paperwork Reduction Act, and are not derived from a
comprehensive or even a representative survey or study of the costs of
SEC rules and forms. Direct any comments concerning the accuracy of
the estimated average burden hours for compliance with SEC rules and
forms to Kenneth A. Fogash, Deputy Executive Director, U.S. Securities
and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C.
20549 and Gary Waxman, Clearance Officer, Office of Management and
Budget, Room 3208 New Executive Office Building, Washington, D.C.
20503.
<PAGE>
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
Management believes that Scout Tax-Free Money Market Fund, Inc. was in
compliance with the provisions of Rule 17f-2 of the Investment Company
Act of 1940 as of April 30, 1998, and during the period from December 31,
1997 (prior date of Management's Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940) through April 30, 1998,
with respect to securities reflected in the investment account of Scout
Tax-Free Money Fund, Inc.
SCOUT TAX-FREE MONEY MARKET FUND, INC.
By /s/Laurence J. Schmidt
Laurence J. Schmidt, Senior Vice President
