Independent Auditors' Report
To the Board of Directors of
UMB Scout Bond Fund, Inc.
and
the Securities and Exchange Commission:
RE: UMB Scout Bond Fund, Inc.
Form N-17f-2
File Number 811-3558
We have examined management's assertion about UMB SCOUT BOND FUND, INC.'s
(the "Company's") compliance with certain rules under the Investment
Company Act of 1940 (the "Act") as of December 31, 1998, and for the
period June 30, 1998 through December 31, 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 December 31,
1998 and for the period June 30, 1998 through December 31, 1998, with
respect to securities of UMB SCOUT BOND FUND, INC., without prior notice to
management:
* Securities owned as of the close of business on December 31, 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, Participating Trust Company Depository and
the Federal Reserve Bank, which use 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 UMB Scout Bond Fund, Inc. was
in compliance with certain provisions of Rule 17f-2 of the Investment
Company Act of 1940 as of December 31, 1998, is fairly stated, in all
material respects.
This report is intended solely for the information and use of
management of UMB Scout Bond Fund, 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.
/s/ BAIRD, KURTZ & DOBSON
Kansas City, Missouri
February 19, 1999
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:
811-3558 December 31, 1998
2. State Identification Number:
AL *
AK 98 02173
AZ S-0033492-QUAL
AR 85-M0995-01
CA 504-5891
CO IC-91-02-933
CT SI45570
DE *
DC *
FL *
GA 56-002876
HI *
ID 48841
IL 9841136
IN 85-0449 IC
IA I-19076
KS 83S0000725
KY M29407
LA *
ME MF98-6738
MD M980019
MA 989277
MI 227117
MN R-28089.1
MS MF-98-01-006
MO Q-MT-1289
MT 9201
NE 030298
NV *
NH *
NJ *
NM 980243
NY S 27 53 22
NC *
ND U557
OH 15243
OK I-321697
OR *
PA 87-08-114MF
RI *
SC MF11225
SD 10195
TN RM98-3641
TX C 39434
UT *
VT 1/16/98-21
VA 2610
WA C-57911
WV MF-24125
WI 341390-03
WY 20517
PUERTO RICO
Other (specify):
*Indicates Fund is registered in state but state does not issue
identification numbers
**Securities in the UMB 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:
UMB Scout Bond 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 UMB Scout Bond Fund, Inc. was in compliance with
the provisions of Rule 17f-2 of the Investment Company Act of 1940 as
of December 31, 1998, and during the period from June 30, 1998 (prior
date of Management's Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940) through December 31,
1998, with respect to securities reflected in the investment account of
UMB Scout Bond Fund, Inc.
UMB SCOUT BOND FUND, INC.
By /s/Laurence J. Schmidt
Laurence J. Schmidt, Senior Vice President
