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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
Investment 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
811-4852 10/20/99
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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 representation statement:
Victory Portfolios
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4. Address of principal executive office (number, street, city, state, zip code):
3435 Stelzer Road, Ste. 1000, Columbus, OH 43219
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PRICEWATERHOUSECOOPERS LOGO
PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus OH 43215-3671
Telephone (614) 225 8700
Facsimile (614) 224 1044
INDEPENDENT ACCOUNTANTS' REPORT
To the Trustees of Gradison Government Reserves Fund,
We have examined management's assertion about Gradison Government Reserves
Fund's, (the "Fund"), compliance with the requirements of subsections (b) and
(c) of Rule 17f-2 under the Investment Company Act of 1940 as of September 30,
1999, included in the accompanying Management Statement Regarding Compliance
with Certain Provisions of the Investment Company Act of 1940. Management is
responsible for the Fund's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the
Fund's 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 Fund's 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 September 30, 1999, with respect to securities of the Fund:
- Count and inspection of all securities located in the vault of Key Trust
Company of Ohio, N.A. in Cleveland, Ohio;
- Confirmation, or other procedures as we considered necessary, of all
securities held in book entry form by the Federal Reserve Bank of
Cleveland, Depository Trust Company, Bank of New York, Morgan Stanley
Trust Company or Chase Bank;
- Confirmation, or other procedures as we considered necessary, of all
securities out for transfer with brokers;
- Reconciliation of all such securities to the books and records of the
Fund and Key Trust Company of Ohio, N.A.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
specified requirements.
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PRICEWATERHOUSECOOPERS LOGO
In our opinion, management's assertion that the Fund was in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of September 30, 1999, with respect to securities reflected in
the investment accounts of the Fund is fairly stated, in all material respects.
This report is intended solely for the information and use of management of the
Fund and the Securities and Exchange Commission and should not be used for any
other purpose.
/s/ PricewaterhouseCoopers LLP
Columbus, Ohio
October 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 Gradison Government Reserves Fund's, (the
"Fund"), are responsible for complying with the requirements of subsections (b)
and (c) or 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
Fund's compliance with the requirements of subsections (b) and (c) of Rule 17f-2
as of September 30, 1999. Based on this evaluation, we assert that the Fund is
in compliance with the provisions of subsections (b) and (c) of Rule 17f-2 of
the Investment Company Act of 1940 as of September 30, 1999, with respect to
securities reflected in the investment accounts of the Fund.
Gradison Government Reserves Fund
