To the Fundsees of
The Monitor Funds
and the
Securities and Exchange Commission:
We have examined management's assertion about The Monitor Funds'
(the Funds) compliance with the requirements of subsection (b) and (c) of
Rule 17f-2 under the Investment Company Act of 1940 (the Act) as of May
31, 1997 and for the period from December 31, 1996 through May 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 Funds's compliance with
those requirements. Our responsibility is to express an opinion on
management's assertion about the Funds'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 Funds'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 May 31, 1997 and for the period from
December 31, 1996 (the date of our last examination) through May 31, 1997,
with respect to securities transactions, without prior notice to management:
1. Confirmation of all securities held as of May 31, 1997 by institutions in
book entry form by the Federal Reserve Bank, Bank of New York,
and Depository Trust Corporation;
2. Verification of all securities purchased/sold but not received/delivered
and securities in transit as of May 31, 1997 via examination of underlying
trade ticket or broker confirmation;
3. Reconciliation of all such securities to the books and records of the
Funds and The Huntington Trust Company, N.A.;
4. Confirmation of all repurchase agreements as of May 31, 1997 with
brokers/banks and agreement of underlying collateral with The
Huntington Trust Company, N.A. records; and
5. Agreement of selected security purchases, sales or maturities since the
last report date from the books and records of the Funds to broker
confirmations.
We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Funds's
compliance with specified requirements.
In our opinion, management's assertion that the Funds were in compliance
with the above mentioned provisions of Rule 17f-2 of the Investment Company
Act of 1940 as of May 31, 1997 and for the period from December 31, 1997
through May 31, 1997 is fairly stated, in all material respects.
This report is intended solely for the information and use of management of
The Monitor Funds and the Securities and Exchange Commission and should
not be used for any other purpose.
Columbus, Ohio
August 25, 1997
