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<PAGE> PAGE 2
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SIGNATURE WENDY SWONGER
TITLE SUPERVISOR
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<PAGE>
Rule 10f-3 Transaction Report-The Prairie Funds
Record of security purchased under the Fund's Rule 10f-3 Procedures.
1. Name of the purchasing portfolio: Prairie Intermediate Bond Fund
------------------------------------------
2. Description of security purchased: Beckman Instruments Inc., Debentures
-----------------------------------------
7.05% due 6/01/2026 CUSIP 075816AA6
-----------------------------------------
3. Date of purchase: 05/23/96
----------------------------------------------------------
4. Underwriter from whom purchased: Goldman Sachs & Co.
-------------------------------------------
5. Name of affiliated underwriter: First Chicago Capital Markets
--------------------------------------------
6. Complete list of underwriters: Goldman Sachs & Co. Citicorp Securities, Inc.
---------------------------------------------
First Chicago Capital Markets, Morgan Stanley
---------------------------------------------
& Co., Inc.
-----------
7. Aggregate principal amount of purchase: $3,000,000 par, $2,989,800
------------------------------------
principal
---------
8. Aggregate principal amount of offering: $100,000,000 par, $99,660,000
------------------------------------
principal
---------
9. Purchase price/offering price (% of par, net of fees and expenses):
99.66/99.66
-----------
10. Date offering commenced: 05/23/96
---------------------------------------------------
11. Commission, spread, or profit: 0.65% of par amount
---------------------------------------------
12. Have each of the following conditions been satisfied:
Yes No
a. The securities are a part of an issue registered under the
Securities Act of 1933 which is being offered to the public,
or are "municipal securities" as defined in Section 3(a)(29) *
of the Securities Exchange Act of 1934. ---- ----
b. The securities were purchased at not more than the public
offering price prior to the end of the first full business
day after the first date on which the issue was offered
to the public, if not offered for subscription upon
exercise of rights or, if so offered, purchased on or
before the fourth day preceding the day on which the *
rights offering terminated. ---- ----
c. The securities were offered pursuant to an underwriting
agreement under which the underwriters committed to purchase
all of the securities being offered, except those purchased
by others pursuant to a rights offering, if the underwriters *
purchased any thereof. ---- ----
d. The commission, spread or profit received or to be received
by the principal underwriters of the securities is reasonable
and fair compared to the commission, spread or profit
received by other persons in connection with the
underwriting of similar securities being sold during a *
comparable period of time. ---- ----
e. In respect of any issue of securities other than municipal
securities the issuer of such securities purchased has been
in continuous operation for not less than three years,
including the operations of any predecessors, or in respect
of any issue of municipal securities, such issue has received
an investment grade rating from at least one of the
nationally recognized statistical rating organizations, or if
the issuer of the municipal securities purchased, or the
entity supplying the revenues from which the issue is to be
paid, has been in continuous operation for less than three
years, including the operation of any predecessors, the issue
has received one of the three highest ratings from one such *
rating organization. ---- ----
f. The Fund Series, any other Series of the Fund or any other
investment company advised by the Adviser did not purchase
in the aggregate an amount of securities of any class in
excess of 4% of the principal amount of the class of
securities being offered or $500,000 in principal amount,
whichever was greater, nor more than 10% of the principal *
amount of the offering. ---- ----
g. The consideration paid in purchasing the securities did *
not exceed 3% of the Series' total assets. ---- ----
h. No purchase of securities was made directly or indirectly *
from an Affiliated Underwriter. ---- ----
Portfolio Manager /s/ Mark Jackson Date 6-11-96
----------------------- --------
<PAGE>
AGENDA ITEM H
-------------
SELECTION OF INDEPENDENT ACCOUNTANTS
Explanatory Comment: It is necessary to consider the approval of Arthur
Andersen LLP as the independent accountants for each of the Funds.
RESOLVED, that the firm of Arthur Andersen LLP be, and it
hereby is, selected to act as independent accountants for
Prairie Funds, Prairie Institutional Funds, Prairie Municipal
Bond Fund, Inc. and Prairie Intermediate Bond Fund (the "Funds")
for each Fund's fiscal year ending on December 31, 1996, subject
to the terms and conditions of Section 32(a) of the Investment
Company Act of 1940, as amended, and the rules promulgated
thereunder;
FURTHER RESOLVED, that the retention of Arthur Andersen LLP as
each Fund's independent accountants is consistent with the best
interests of each Fund and its shareholders; and
FURTHER RESOLVED, that the schedule of fees for the services of
Arthur Andersen LLP for the fiscal year ending on December 31,
1996, in the form presented at this Meeting, be, and the same
hereby, is, approved.
