[C]
SECURITIES AND EXCHANGE COMMISSION ------------------------
WASHINGTON, D.C. 20549 OMB Approval
FORM N-17f-2 ------------------------
OMB Number 3235-0360
Certificate of Accounting of Securities and Similar Expires: July 31, 1994
Investments in the Custody of Estimated average burden
Management Investment Companies hours per response. 0.05
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number:
002-79285
Date examination completed: August 29, 1997
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2. State identification Number: N/A
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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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Other (specify):
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3. Exact name of investment company as specified in registration statement:
The ARCH Fund, Inc.
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4. Address of principal executive office (number, street, city, state, zip code)
3435 Stelzer Rd, Ste 1000, Columbus, OH, 43219
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EXHIBIT 23
To the Board of Directors of
ARCH Fund, Inc.
and the
Securities and Exchange Commission:
We have examined management's assertion about the ARCH Fund, Inc.'s
(the Funds') compliance with the requirements of subsection (b) and
(c) of Rule 17f-2 under the Investment Company Act of 1940 (the Act) as
of August 29, 1997 and for the period from May 30, 1997 through
August 29, 1997, included in the accompanying Management Statement
Regarding Compliance With Certain Provisions of the Investment Company Act
of 1940. Management is responsible for the Funds' compliance with those
requirements. Our responsibility is to express an opinion on management's
assertion about the Funds' 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 Funds' 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 August 29, 1997 and for the
period from May 30, 1997 (the date of our last examination) through
August 29, 1997, with respect to securities transactions, without prior
notice to management:
1. Confirmation of all securities held as of August 29, 1997 by institutions
in book entry form by the Federal Reserve Bank of St. Louis, Bank of
New York, Depository Trust Company, John Nuveen & Co., Aquila
Distributors, Federated Investors, Chase Manhattan Bank, and Bankers
Trust Company;
2. Verification of all securities purchased/sold but not received/delivered
and securities in transit as of August 29, 1997 via examination of
underlying trade ticket or broker confirmation;
3. Reconciliation of all such securities to the books and records of the
Funds and the Mercantile Bank; and
4. Agreement of selected security purchases, sales or maturities since our
last report date from the books and records of the Funds to broker
confirmations.
We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination of the Funds'
compliance with specified requirements.
In our opinion, management's assertion that the Funds were in compliance
with the above mentioned provisions of Rule 17f-2 of the Investment Company
Act of 1940 as of August 29, 1997 and for the period from May 30, 1997
through August 29, 1997 is fairly stated, in all material respects.
This report is intended solely for the information and use of management of
The ARCH Fund, Inc. and the Securities and Exchange Commission and should
not be used for any other purpose.
/s/ KPMG PEAT MARWICK LLP
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KPMG Peat Marwick LLP
Columbus, Ohio
October 3, 1997
September 18, 1997
Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940
We, as members of management of The ARCH Fund, Inc. (the Funds), are
responsible for complying with the requirements of subsections (b) and
(c) of Rule 17f-2, "Custody of Investments by Registered Investment
Companies," of the Investment Company Act of 1940. We are also responsible
for establishing and maintaining effective internal controls over
compliance with Rule 17f-2 requirements. We have performed an evaluation
of the Funds' compliance with the requirements of subsections (b) and (c)
of Rule 17f-2 as of August 29, 1997.
Based on this evaluation, we assert that the Funds were in compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of August 29, 1997 and for the period from May 30,
1997 through August 29, 1997, with respect to securities reflected in the
investment accounts of the Funds.
Sincerely,
/s/ WALTER B. GRIMM
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Walter B. Grimm
Assistant Secretary
