REPORT OF INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
ON INTERNAL CONTROL STRUCTURE
The Board of Directors
RNC Mutual Fund Group, Inc.
Los Angeles, California
In planning and performing our audits of the financial
statements of RNC Money Market Fund and RNC Equity
Fund, each a series of RNC Mutual Fund Group, Inc., for
the year ended September 30, 2000, we considered their
internal control structures, including procedures for
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of
Form N-SAR, not to provide assurance on the internal
control structure.
The management of the Funds is responsible for
establishing and maintaining an internal control structure.
In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits
and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but
not absolute, assurance that assets are safeguarded against
loss from unauthorized use or disposition, and that
transactions are executed in accordance with management's
authorization and recorded properly to permit preparation
of financial statements in conformity with generally
accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be
detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that
the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would
not necessarily disclose all matters in the internal control
structure that might be material weaknesses under standards
established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which
the design or operation of the specific internal control
structure elements does not reduce to a relatively low level
the risk that errors or irregularities in amounts that would
be material in relation to the financial statements being
audited may occur and not be detected within a timely
period by employees in the normal course of performing
their assigned functions. However, we noted no matters
involving the internal control structure, including
procedures for safeguarding securities, that we consider to
be material weaknesses, as defined above, as of September
30, 2000.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission,
and should not be used for any other purpose.
Philadelphia, Pennsylvania
November 3, 2000
