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 June 30, 1998, and
for the period April 30, 1998 through June 30, 1998, 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 June 30,
1998, and for the period April 30, 1998 through June 30, 1998, with
respect to securities of SCOUT REGIONAL FUND, INC., without prior
notice to management:
* Securities owned as of the close of business on June 30, 1998,
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 June 30, 1998, 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
September 24, 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 June 30, 1998
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.
<PAGE>
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
June 30, 1998, and during the period April 30, 1998 (prior date of
Management's Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940) through June 30, 1998, 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
