Independent Auditors' Report
To the Board of Directors of
Scout Regional Fund, Inc.
and
the Securities and Exchange Commission:
RE: Scout Regional Fund, Inc.
Form N-17f-2
File Number 811-4860
We have examined management's assertion about SCOUT REGIONAL FUND, INC.'s (the
"Company's") compliance with certain rules under the Investment Company Act of
1940 (the "Act") as of December 31, 1997, and for the period June 30, 1997
through December 31, 1997, included in the accompanying Management Statement
Regarding Compliance with Certain Provisions of the Investment Company Act of
1940. Management is responsible for the Company's compliance with those
requirements. Our responsibility is to express an opinion on management's
assertion about the Company'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 Company'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 December 31, 1997, and for the period June 30, 1997 through
December 31, 1997, with respect to securities of SCOUT REGIONAL FUND, INC.,
without prior notice to management:
Securities owned as of the close of business on December 31, 1997, shown
by the books and records were verified with the custodian, UMB Bank, n.a.,
which verification includes confirmation of securities with the Depository
Trust Company and the Federal Reserve Bank, which use the book entry method of
accounting for securities;
Securities purchased/sold but not received/delivered, hypothecated,
pledged, placed in escrow, or out for transfer with brokers, pledgees and/or
transfer agents were verified to supporting data where the securities were
in-transit resulting from purchase or sale transactions;
Reconciliation of all such securities to the books and records of the
Company and the Custodian.
We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Company's
compliance with specified requirements.
In our opinion, management's assertion that Scout Regional Fund, Inc. was in
compliance with certain provisions of Rule 17f-2 of the Investment Company Act
of 1940 as of December 31, 1997, is fairly stated, in all material respects.
This report is intended solely for the information and use of management of
Scout Regional Fund, Inc. and the Securities and Exchange Commission and
should not be used for any other purpose.
Kansas City, Missouri
March 17, 1998
Washington, D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar Investments in
the Custody of Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
1. Investment Company Act File Number: Date examination completed:
811-4860 December 31, 1997
2. State Identification Number:
AL
AK 98 02176
AZ S-0033493-QUAL
AR 93-M515-01
CA 505-5204
CO IC-92-03-564
CT SI 45575
DE
DC *
FL *
GA 56-002872
HI
ID 48844
IL 9737045
IN 91-0446 IC
IA I-26193
KS 87S0001009
KY M29408
LA 54080**
ME MF98-6741
MD SM980021
MA 96-6994-MR
MI 227113
MN R-35201.1
MS MF-98-01-001
MO 203294
MT 28405
NE 014850
NV
NH
NJ *
NM 980209
NY S 27 53 23
NC
ND 62477
OH 12282
OK I-321097
OR 98-0080**
PA 91-08-012MF
RI
SC MF11228
SD 9889
TN RM98-0284
TX C-39435
UT B00039221**
VT 1/16/98-23
VA 2615
WA C-57894
WV MF-24145
WI 341392-03
WY 20514
PUERTO RICO
Other (specify):
* Indicates Fund is registered in state but state does not issue
identification numbers
**Securities in the Scout Funds Combined Prospectus included on one Notice
Filing (Balanced Fund, Bond Fund, Money Market Fund, Regional Fund, Stock
Fund, Tax-Free Money Market Fund, Worldwide Fund)
3. Exact name of investment company as specified in registration statement:
Scout Regional Fund, Inc.
4. Address of principal executive office: (number, street, city, state, zip
code)
700 Karnes Boulevard, BMA Tower, Kansas City, Missouri 64108
INSTRUCTIONS
This Form must be completed by the investment companies that have custody of
securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance
with Rule 17f-2 under the Act and applicable state law, examines securities
and similar investments in the custody of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and
appropriate state securities administrators when filing the certificate of
accounting required by Rule 17f-2 under the Act and applicable state law.
File the original and one copy with the Securities and Exchange Commission's
principal office in Washington, D.C., one copy with the regional office for
the region in which the investment company's principal business operations
are conducted, and one copy with the appropriate state administrator(s), if
applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
Note: The estimated average burden hours are made solely for purposes of the
Paperwork Reduction Act, and are not derived from a comprehensive or even a
representative survey or study of the costs of SEC rules and forms. Direct
any comments concerning the accuracy of the estimated average burden hours for
compliance with SEC rules and forms to Kenneth A. Fogash, Deputy Executive
Director, U.S. Securities and Exchange Commission, 450 Fifth Street, N.W.,
Washington, D.C. 20549 and Gary Waxman, Clearance Officer, Office of
Management and Budget, Room 3208 New Executive Office Building, Washington,
D.C. 20503.
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
Management believes that Scout Regional Fund, Inc. was in compliance with the
provisions of Rule 17f-2 of the Investment Company Act of 1940 as of December
31, 1997, and during the period June 30, 1997 (prior date of Management's
Statement Regarding Compliance with Certain Provisions of the Investment
Company Act of 1940) through December 31, 1997, with respect to securities
reflected in the investment account of Scout Regional Fund, Inc.
SCOUT REGIONAL FUND, INC.
By /s/Laurence J. Schmidt
Laurence J. Schmidt, Senior Vice President
