Report of Independent Auditors
Board of Trustees
of Ariel Mutual Funds
In planning and performing our audits of the financial statements
of Ariel Mutual Fund, Ariel Appreciation Fund and Ariel Premier
Bond Fund, comprising Ariel Mutual Funds (the Company) for the
year ended September 30, 2000, we considered their internal
control, including control activities for safeguarding securities, 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, and not to provide assurance on
internal control.
The management of the Company is responsible for establishing
and maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of internal control. Generally,
internal controls that are relevant to an audit pertain to the
Companys objective of preparing financial statements for external
purposes that are fairly presented in conformity with generally
accepted accounting principles. Those internal controls include the
safeguarding of assets against unauthorized acquisition, use, or
disposition.
Because of inherent limitations in any internal control,
misstatements due to errors or fraud may occur and not be
detected. Also, projections of any evaluation of internal control to
future periods are subject to the risk that internal control may
become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may
deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control 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 one or more of the
specific internal control components does not reduce to a relatively
low level the risk that errors or fraud in amounts that would be
material in relation to the consolidated 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 internal
control, including control activities for safeguarding securities, and
its operation 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 the
board of trustees and management of Ariel Mutual 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.
Ernst &
Young LLP
October 20, 2000
