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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: Date examination completed:
811-4236 June 30, 1999
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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:
One Group Mutual Funds
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4. Address of principal executive office (number, street, city, state, zip code):
3435 Stelzer Road, Columbus, Ohio 43219
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EXHIBIT 23
PRICEWATERHOUSECOOPERS PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus, OH 43215-3671
Telephone (614) 225-8700
Facsimile (614) 224-1044
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of One Group Mutual Funds
We have examined management's assertion about the Treasury Only Money Market
Fund, the Small Cap Growth Fund (formerly the Small Capitalization Fund), the
Small Cap Value Fund (formerly the Pegasus Small Cap Opportunity Fund), the Mid
Cap Growth Fund (formerly the Growth Opportunity Fund), the Mid Cap Value Fund
(formerly the Disciplined Value Fund), the Diversified Mid Cap Fund (formerly
the Pegasus Mid Cap Opportunity Fund), the Large Cap Growth Fund (formerly the
Large Company Growth Fund), the Large Cap Value Fund (formerly the Large Company
Value Fund), the Equity Income Fund (formerly the Income Equity Fund), the
Diversified Equity Fund (formerly the Value Growth Fund), the Balanced Fund
(formerly the Asset Allocation Fund), the Equity Index Fund, the Market
Expansion Index Fund (formerly the Pegasus Market Expansion Fund), the
International Equity Index Fund, the Diversified International Fund (formerly
the Pegasus International Equity Fund), the Short-Term Bond Fund (formerly the
Limited Volatility Bond Fund), the Intermediate Bond Fund, Bond Fund (formerly
the Pegasus Bond Fund), the Income Bond Fund, the Government Bond Fund, the
Treasury & Agency Fund and the High Yield Bond (twenty-two series of One Group
Mutual Funds, hereafter referred to as the "Funds") compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 as of June 30, 1999 as it relates to the collateral held in
exchange for securities lent on behalf of the Funds, which is 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 June 30, 1999, with respect to collateral held in exchange for
securities lent on behalf of the Funds:
o Confirmation, or other procedures as we considered necessary, of all
securities held as collateral in book entry form by The Depository Trust
Company, the Federal Reserve Bank and brokers/banks;
o Confirmation, or other procedures as we considered necessary, of all
repurchase agreements and underlying collateral with brokers/banks;
o Confirmation, or other procedures as we considered necessary, of all
Master Note Agreements and Letter of Credit Agreements entered into with
brokers/banks as collateral and;
o Reconciliation of all such securities held as collateral to the books and
records of the Funds and Bank One Trust Company, N.A.
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.
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In our opinion, management's assertion 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 June 30, 1999, is fairly stated, in all material
respects.
This report is intended solely for the information and use of the trustees and
management of the Funds and the Securities and Exchange Commission and should
not be used for any other purpose.
/s/ PRICEWATERHOUSECOOPERS LLP
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PricewaterhouseCoopers LLP
August 20, 1999
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MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH CERTAIN PROVISIONS OF
THE INVESTMENT COMPANY ACT OF 1940
We, as members of management of the Treasury Only Money Market Fund, the Small
Cap Growth Fund (formerly the Small Capitalization Fund), the Small Cap Value
Fund (formerly the Pegasus Small Cap Opportunity Fund), the Mid Cap Growth Fund
(formerly the Growth Opportunity Fund), the Mid Cap Value Fund (formerly the
Disciplined Value Fund), the Diversified Mid Cap Fund (formerly the Pegasus Mid
Cap Opportunity Fund), the Large Cap Growth Fund (formerly the Large Company
Growth Fund), the Large Cap Value Fund (formerly the Large Company Value Fund),
the Equity Income Fund (formerly the Income Equity Fund), the Diversified Equity
Fund (formerly the Value Growth Fund), the Balanced Fund (formerly the Asset
Allocation Fund), the Equity Index Fund, the Market Expansion Index Fund
(formerly the Pegasus Market Expansion Fund), the International Equity Index
Fund, the Diversified International Fund (formerly the Pegasus International
Equity Fund), the Short-Term Bond Fund (formerly the Limited Volatility Bond
Fund), the Intermediate Bond Fund, Bond Fund (formerly the Pegasus Bond Fund),
the Income Bond Fund, the Government Bond Fund, the Treasury & Agency Fund and
the High Yield Bond (twenty-two series of One Group Mutual Funds, hereafter
referred to as the "Funds") are responsible for complying with requirements of
subsections (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 Rule 17f-2 requirements.
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 June 30,
1999, with respect to collateral held in exchange for securities lent on
behalf of the Funds.
One Group Mutual Funds
By: /s/ MARK REDMAN
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Mark Redman, President
One Group Mutual Funds
