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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
Investment 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: Date examination completed
811-05551 July 31, 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 representation statement:
AmSouth Mutual Funds
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4. Address of principal executive office (number, street, city, state, zip code):
3435 Stelzer Road Columbus, OH 43219
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[PRICEWATERHOUSECOOPERS LOGO]
INDEPENDENT ACCOUNTANT'S REPORT
To the Trustees of the AmSouth Mutual Funds
We have examined management's assertion about the AmSouth Mutual Funds'
(consisting of the Regional Equity Fund, the Equity Fund, the Equity Income
Fund, the Small Cap Fund, the Capital Growth Fund, the Balanced Fund, the Bond
Fund, the Government Income Fund, the Limited Maturity Fund, the Florida
Tax-Free Fund, the Municipal Bond Fund, the Prime Obligations Fund, the U.S.
Treasury Fund, and the Tax-Exempt Fund, collectively, "the Funds") compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 under the
Investment Company Act of 1940 as of 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 Fund'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' 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, with respect to securities of the Funds:
o Confirmation, or other procedures we considered necessary, of all
securities held in book entry form by the Federal Reserve Bank of
Atlanta, Chase Bank, or Depository Trust Company;
o Confirmation, or other procedures as we considered necessary, of all
mutual fund investments with transfer agents;
o Confirmation, or other procedures we deemed necessary, of all
repurchase agreements with brokers/banks and agreement of underlying
collateral with AmSouth Bank's records; and
o Reconciliation of all such securities to the books and records of the
Funds and AmSouth Bank.
o Physical verification of all securities held by AmSouth Bank.
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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 requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of July 31, 1998, with respect to securities reflected in
the investment accounts of the Funds 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.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Columbus, Ohio
September 18, 1998
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MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH CERTAIN PROVISIONS
OF THE INVESTMENT COMPANY ACT OF 1940
We, as members of management of the AmSouth Mutual Funds (comprising the
Regional Equity Fund, the Equity Fund, the Equity Income Fund, the Capital
Growth Fund, the Small Cap Fund, the Balanced Fund, the Bond Fund, the
Government Income Fund, the Limited Maturity Fund, the Florida Tax-Free Fund,
the Municipal Bond Fund, the Prime Obligations Fund, the U.S. Treasury Fund, and
the Tax-Exempt Fund) are responsible for complying with the requirements of Rule
17f-2, "Custody of Investments by Registered Management Investment Companies" of
the Investment Company of 1940. We are also responsible for establishing and
maintaining an effective internal control structure over compliance with the
requirements of Rule 17f-2 requirements. We have performed an evaluation of the
AmSouth Mutual Funds' compliance with the requirements of Rule 17f-2 as of July
31, 1998. Based on this evaluation, we assert that the Company was in compliance
with the provisions of subsection (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of July 31, 1998 with respect to securities reflected in
the investment account of the AmSouth Mutual Funds.
/s/ John Calvano
AmSouth Mutual Funds
