<PAGE>
UNITED STATES
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: June 30, 1997/
Investments in the Custody of /Estimateed average burden /
Management Investment Companies /hours per response... 0.05/
/--------------------------/
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
- --------------------------------------------------------------------------------
1. Investment Company Act File Number: Date examination completed:
811-3605 November 30, 1999
- --------------------------------------------------------------------------------
2. State identification Number:
------------------------------------------------------------------------
AL AK AZ AR CA CO
------------------------------------------------------------------------
CT DE DC FL GA HI
------------------------------------------------------------------------
ID IL IN IA KS KY
------------------------------------------------------------------------
LA ME MD MA MI MN
------------------------------------------------------------------------
MS MO MT NE NV NH
------------------------------------------------------------------------
NJ NM NY NC ND OH
------------------------------------------------------------------------
OK OR PA RI SC SD
------------------------------------------------------------------------
TN TX UT VT VA WA
------------------------------------------------------------------------
WV WI WY PUERTO RICO
------------------------------------------------------------------------
Other (specify):
- --------------------------------------------------------------------------------
3. Exact name of investment company as specified in registration statement:
The Northern Institutional Funds
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Address of principal executive office (number, street, city, state, zip
code):
4900 Sears Tower, Chicago, Illinois 60606
- --------------------------------------------------------------------------------
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 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
SEC 2198 (9-95)
<PAGE>
Report of Independent Accountants
on Applying Agreed-Upon Procedures
----------------------------------
To the Board of Trustees
The Northern Institutional Funds
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, that The Northern Institutional Funds' (the "Funds") complied with
the requirements of subsection (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 ("the Act") as of November 30, 1999. 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 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 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 November 30, 1999, and with respect to
agreement of security and similar investments purchases and sales, for the
period from August 31, 1999 (the date of our last examination) through November
30, 1999:
. Count and inspection of all securities and similar investments located in the
vault of The Northern Trust Company in Chicago, New York and London without
prior notice to management;
. Confirmation, or alternate procedures, of all domestic securities and similar
investments held by institutions in book entry form at the Depository Trust
Company, the Federal Reserve Bank of Chicago, the Bank of New York, and the
Participants' Trust Company;
. Confirmation, or alternate procedures, of all foreign securities and similar
investments held by various foreign sub-custodians;
. Confirmation, or alternate procedures, of all securities and similar
investments out for transfer with brokers;
. Reconciliation of confirmation results as to all such securities and
investments to the books and records of the Funds and The Northern Trust
Company;
<PAGE>
Board of Trustees
The Northern Institutional Funds Page 2
. Confirmation of all repurchase agreements with brokers/banks and agreement of
underlying collateral with The Northern Trust Company's records; and
. Agreement of three investment purchases and three investment sales or
maturities since our last examination 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 on the Funds' compliance with
specified requirements.
In our opinion, management's assertion that The Northern Institutional Funds
complied with the requirements of subsection (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 as of November 30, 1999 with respect to
securities and similar investments reflected in the investment accounts of the
Funds is fairly stated, in all material respects.
This report is intended solely for the information and use of management and the
Board of Trustees of The Northern Institutional Funds 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/ ERNST & YOUNG LLP
Chicago, Illinois
January 17, 2000
<PAGE>
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of The Northern Institutional Funds (the "Funds"),
are responsible for complying with the requirements of subsection (b) and (c) of
Rule 17f-2, "Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act 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 Funds' compliance
with the requirements of subsection (b) and (c) of Rule 17f-2 as of November 30,
1999, and from August 31, 1999 through November 30, 1999. The Portfolios
comprising The Northern Institutional Funds are as follows:
Equity Portfolios Fixed Income Portfolios
----------------- -----------------------
Balanced Portfolio Bond Portfolio
Diversified Growth Portfolio Intermediate Bond Portfolio
Equity Index Portfolio International Bond Portfolio
Focused Growth Portfolio Short-Intermediate Bond Portfolio
International Equity Index Portfolio U.S. Government Securities Portfolio
International Growth Portfolio U.S. Treasury Index Portfolio
Small Company Index Portfolio
Money Market Portfolios
-----------------------
Diversified Assets Portfolio
Government Portfolio
Government Select Portfolio
Tax-Exempt Portfolio
Based on this evaluation, we assert that the Funds were in compliance with the
requirements of subsection (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of November 30, 1999, and from August 31, 1999 through November
30, 1999, with respect to securities and similar investments reflected in the
investment account of the Funds.
The Northern Trust Company
By: /s/ Stuart Schuldt
------------------
Stuart Schuldt, Vice President
By: /s/ Brian Ovaert
----------------
Brian Ovaert, Senior Vice President
<PAGE>
UNITED STATES
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: June 30, 1997/
Investments in the Custody of /Estimateed average burden /
Management Investment Companies /hours per response... 0.05/
/--------------------------/
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
- --------------------------------------------------------------------------------
1. Investment Company Act File Number: Date examination completed:
811-3605 August 31, 1999
- --------------------------------------------------------------------------------
2. State identification Number:
------------------------------------------------------------------------
AL AK AZ AR CA CO
------------------------------------------------------------------------
CT DE DC FL GA HI
------------------------------------------------------------------------
ID IL IN IA KS KY
------------------------------------------------------------------------
LA ME MD MA MI MN
------------------------------------------------------------------------
MS MO MT NE NV NH
------------------------------------------------------------------------
NJ NM NY NC ND OH
------------------------------------------------------------------------
OK OR PA RI SC SD
------------------------------------------------------------------------
TN TX UT VT VA WA
------------------------------------------------------------------------
WV WI WY PUERTO RICO
------------------------------------------------------------------------
Other (specify):
- --------------------------------------------------------------------------------
3. Exact name of investment company as specified in registration statement:
The Northern Institutional Funds
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Address of principal executive office (number, street, city, state, zip
code):
4900 Sears Tower, Chicago, Illinois 60606
- --------------------------------------------------------------------------------
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 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
SEC 2198 (9-95)
<PAGE>
Report of Independent Accountants
on Applying Agreed-Upon Procedures
----------------------------------
To the Board of Trustees
The Northern Institutional Funds
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, that The Northern Institutional Funds' (the "Funds") complied with
the requirements of subsection (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 ("the Act") as of August 31, 1999. 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 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 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 31, 1999, and with respect to
agreement of security and similar investments purchases and sales, for the
period from April 30, 1999 (the date of our last examination) through August 31,
1999:
. Count and inspection of all securities and similar investments located in the
vault of The Northern Trust Company in Chicago, New York and London without
prior notice to management;
. Confirmation, or alternate procedures, of all domestic securities and similar
investments held by institutions in book entry form at the Depository Trust
Company, the Federal Reserve Bank of Chicago, the Bank of New York, and the
Participants' Trust Company;
. Confirmation, or alternate procedures, of all foreign securities and similar
investments held by various foreign sub-custodians;
. Confirmation, or alternate procedures, of all securities and similar
investments out for transfer with brokers;
. Reconciliation of confirmation results as to all such securities and
investments to the books and records of the Funds and The Northern Trust
Company;
<PAGE>
Board of Trustees
The Northern Institutional Funds Page 2
. Confirmation of all repurchase agreements with brokers/banks and agreement of
underlying collateral with The Northern Trust Company's records; and
. Agreement of three investment purchases and three investment sales or
maturities since our last examination 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 on the Funds' compliance with
specified requirements.
In our opinion, management's assertion that The Northern Institutional Funds
complied with the requirements of subsection (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 as of August 31, 1999 with respect to securities
and similar investments reflected in the investment accounts of the Funds is
fairly stated, in all material respects.
This report is intended solely for the information and use of management and the
Board of Trustees of The Northern Institutional Funds and the Securities and
Exchange Commission and is not intended to be and should not be used by any one
other than these specified parties.
/s/ ERNST & YOUNG LLP
Chicago, Illinois
January 17, 2000
<PAGE>
Management Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940
We, as members of management of The Northern Institutional Funds (the "Funds"),
are responsible for complying with the requirements of subsection (b) and (c) of
Rule 17f-2, "Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act 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 Funds' compliance
with the requirements of subsection (b) and (c) of Rule 17f-2 as of August 31,
1999, and from April 30, 1999 through August 31, 1999. The Portfolios comprising
The Northern Institutional Funds are as follows:
Equity Portfolios Fixed Income Portfolios
----------------- -----------------------
Balanced Portfolio Bond Portfolio
Diversified Growth Portfolio Intermediate Bond Portfolio
Equity Index Portfolio International Bond Portfolio
Focused Growth Portfolio Short-Intermediate Bond Portfolio
International Equity Index Portfolio U.S. Government Securities Portfolio
International Growth Portfolio U.S. Treasury Index Portfolio
Small Company Index Portfolio
Money Market Portfolios
-----------------------
Diversified Assets Portfolio
Government Portfolio
Government Select Portfolio
Tax-Exempt Portfolio
Based on this evaluation, we assert that the Funds were in compliance with the
requirements of subsection (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of August 31, 1999, and from April 30, 1999 through August 31,
1999 with respect to securities and similar investments reflected in the
investment account of the Funds.
The Northern Trust Company
By: /s/ Stuart Schuldt
------------------
Stuart Schuldt, Vice President
By: /s/ Brian Ovaert
----------------
Brian Ovaert, Senior Vice President
<PAGE>
UNITED STATES
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: June 30, 1997/
Investments in the Custody of /Estimateed average burden /
Management Investment Companies /hours per response... 0.05/
/--------------------------/
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
- --------------------------------------------------------------------------------
1. Investment Company Act File Number: Date examination completed:
811-3605 April 30, 1999
- --------------------------------------------------------------------------------
2. State identification Number:
------------------------------------------------------------------------
AL AK AZ AR CA CO
------------------------------------------------------------------------
CT DE DC FL GA HI
------------------------------------------------------------------------
ID IL IN IA KS KY
------------------------------------------------------------------------
LA ME MD MA MI MN
------------------------------------------------------------------------
MS MO MT NE NV NH
------------------------------------------------------------------------
NJ NM NY NC ND OH
------------------------------------------------------------------------
OK OR PA RI SC SD
------------------------------------------------------------------------
TN TX UT VT VA WA
------------------------------------------------------------------------
WV WI WY PUERTO RICO
------------------------------------------------------------------------
Other (specify):
- --------------------------------------------------------------------------------
3. Exact name of investment company as specified in registration statement:
The Northern Institutional Funds
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Address of principal executive office (number, street, city, state, zip
code):
4900 Sears Tower, Chicago, Illinois 60606
- --------------------------------------------------------------------------------
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 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
SEC 2198 (9-95)
<PAGE>
Report of Independent Accountants
on Applying Agreed-Upon Procedures
----------------------------------
To the Board of Trustees
The Northern Institutional Funds
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, that The Northern Institutional Funds' (the "Funds") complied with
the requirements of subsection (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 ("the Act") as of April 30, 1999. 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 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 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 April 30, 1999, and with respect to
agreement of security and similar investments purchases and sales, for the
period from November 30, 1998 (the date of our last examination) through April
30, 1999:
. Count and inspection of all securities and similar investments located in the
vault of The Northern Trust Company in Chicago, New York and London without
prior notice to management;
. Confirmation, or alternate procedures, of all domestic securities and similar
investments held by institutions in book entry form at the Depository Trust
Company, the Federal Reserve Bank of Chicago, the Bank of New York, and the
Participants' Trust Company;
. Confirmation, or alternate procedures, of all foreign securities and similar
investments held by various foreign sub-custodians;
. Confirmation, or alternate procedures, of all securities and similar
investments out for transfer with brokers;
. Reconciliation of confirmation results as to all such securities and
investments to the books and records of the Funds and The Northern Trust
Company;
<PAGE>
Board of Trustees
The Northern Institutional Funds Page 2
. Confirmation of all repurchase agreements with brokers/banks and agreement of
underlying collateral with The Northern Trust Company's records; and
. Agreement of three investment purchases and three investment sales or
maturities since our last examination 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 on the Funds' compliance with
specified requirements.
In our opinion, management's assertion that The Northern Institutional Funds
complied with the requirements of subsection (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 as of April 30, 1999 with respect to securities
and similar investments reflected in the investment accounts of the Funds is
fairly stated, in all material respects.
This report is intended solely for the information and use of management and the
Board of Trustees of The Northern Institutional Funds and the Securities and
Exchange Commission and is not intended to be and should not be used by any one
other than these specified parties.
/s/ ERNST & YOUNG LLP
Chicago, Illinois
January 17, 2000
<PAGE>
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of The Northern Institutional Funds (the "Funds"),
are responsible for complying with the requirements of subsection (b) and (c) of
Rule 17f-2, "Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act 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 Funds' compliance
with the requirements of subsection (b) and (c) of Rule 17f-2 as of April 30,
1999, and from November 30, 1999 through April 30, 1999. The Portfolios
comprising The Northern Institutional Funds are as follows:
Equity Portfolios Fixed Income Portfolios
----------------- -----------------------
Balanced Portfolio Bond Portfolio
Diversified Growth Portfolio Intermediate Bond Portfolio
Equity Index Portfolio International Bond Portfolio
Focused Growth Portfolio Short-Intermediate Bond Portfolio
International Equity Index Portfolio U.S. Government Securities Portfolio
International Growth Portfolio U.S. Treasury Index Portfolio
Small Company Index Portfolio
Money Market Portfolios
-----------------------
Diversified Assets Portfolio
Government Portfolio
Government Select Portfolio
Tax-Exempt Portfolio
Based on this evaluation, we assert that the Funds were in compliance with the
requirements of subsection (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of April 30, 1999, and from November 30, 1998 through April 30,
1999, with respect to securities and similar investments reflected in the
investment account of the Funds.
The Northern Trust Company
By: /s/ Stuart Schuldt
-----------------------------------
Stuart Schuldt, Vice President
By: /s/ Brian Ovaert
-----------------------------------
Brian Ovaert, Senior Vice President
