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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 Prime Money Market Fund, the
Bond Fund (formerly the Pegasus Bond Fund), the Income Bond Fund, the
Intermediate Bond Fund and the Diversified International Fund (formerly the
Pegasus International Equity Fund) (five 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 securities held by Bank One Trust
Company, N.A., 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 the securities held by Bank One
Trust Company, N.A.:
o Confirmation, or other procedures as we considered necessary, of all
securities held by Bank One Trust Company, N.A.;
o Reconciliation of all such securities held 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, except for noncompliance as described
in management's report, 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 Prime Money Market Fund, the Bond Fund
(formerly the Pegasus Bond Fund), the Income Bond Fund, the Intermediate Bond
Fund and the Diversified International Fund (formerly the Pegasus International
Equity Fund) (five 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 the securities held by Bank One Trust Company, N.A.,
except for the application of monthly mortgage backed security paydowns.
One Group Mutual Funds
By: /s/ MARK REDMAN
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Mark Redman, President
One Group Mutual Funds
