To the Board of Trustees 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 subsections (b) and (c) of
Rule 17f-2 under the Investment Company Act of
1940 (the Act) as of July 31, 1998 and for the
period from May 29, 1998 through July 31, 1998,
included in the accompanying Management
Statement Regarding Compliance With Certain
Provisions of the Investment Company Act of 1940.
Management is responsible for the Funds' compliance
with those requirements. Our responsibility is to
express an opinion on management's assertion
about the Funds' 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' 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 July 31, 1998
and for the period from May 29, 1998 (the date of
our last examination) through July 31, 1998, with
respect to securities transactions, without prior notice
to management:
1. Confirmation of all securities held as of
July 31, 1998 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
July 31, 1998 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
July 31, 1998 with brokers/banks and agreement of
underlying collateral with the Huntington Trust
Company, N.A. records;
5. Agreement of 16 selected security purchases and
5 selected security sales since our last report
date from the books and records of the Funds to
broker confirmations during the period from
May 29, 1998 through July 31,1998.
We believe that our examination provides a
reasonable basis for our opinion. Our examination
does not provide a legal determination on the Funds'
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 July 31, 1998 and for the period
from May 29, 1998 through July 31, 1998 is fairly
stated, in all material respects.
This report is intended solely for the information and
use of management of the Funds and the Securities and
Exchange Commission and should not be used for any
other purpose.
Columbus, Ohio
August 27, 1998
