[C]
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
Investments 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:
333-44511
Date examination completed: February 13, 1998
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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 registration statement:
The Monitor Funds
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4.Address of principal executive office (number,street,city,state,zip code)
680 Swedesford Road, Wayne, PA, 19087-1693
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Exhibit 23
To the 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 December 31, 1997
and for the period from 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 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 December 31, 1997 and for the
period from June 30, 1997 (the date of our last examination) through
December 31, 1997, with respect to securities transactions:
1. Confirmation of all securities held as of December 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
December 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 December 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 our 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'
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 December 31, 1997 and for the period from June 30, 1997
through December 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.
/s/ KPMG PEAT MARWICK LLP
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KPMG Peat Marwick LLP
Columbus, Ohio
February 13, 1998
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of The Monitor Funds ("the Funds") are
responsible for complying with the requirements of subsections (b) and (c)
of 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 an effective internal control structure
over compliance with Rule 17f-2 requirements. We have performed an
evaluation of the Funds' compliance with the requirements of subsections
(b) and (c) of Rule 17f-2 as of December 31, 1997.
Based on the evaluation, we assert that the Funds were in compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of December 31, 1997, with respect to securities
reflected in the investment accounts of the Funds.
The Monitor Funds
/s/ ROBERT DELLACROSE
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Robert DellaCroce
Controller, Treasurer and Chief Financial Officer
