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Report of Independent Accountants
To the Board of Trustees of
the Fountain Square Funds
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, that the Fountain Square Funds (the "Company") were in compliance
with the requirements of subsection (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 ("the Act") as of March 31, 1998 with respect to securities
and similar investments reflected in the investment account of the Company.
Management is responsible for the Company's compliance with those requirements.
Our responsibility is to express an opinion on management's assertion about the
Company's compliance based on our examination.
Our examination was made without prior notice to management. 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 Company'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 March 31, 1998, and with respect to agreement of security and
similar investments purchases and sales, for the period from July 31, 1997
(the date of last examination) through March 31, 1998;
- - Confirmation of all securities and similar investments held by the Federal
Reserve Bank of Cleveland, State Street Bank & Trust Co., N.A., Depository
Trust Company, and Participant Trust Company in book entry form;
- - Reconciliation of confirmation results as to all such securities and
investments to the books and records of the Company and the Custodian;
- - Confirmation of all repurchase agreements with brokers/banks and agreement of
underlying collateral with Fifth Third Bank and tri-party custodian records;
and
- - Agreement of 6 security and/or investment purchases and 7 security and/or
investment sales or maturities since our last examination from the books and
records of the Company 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 Company's compliance
with specified requirements.
In our opinion, management's assertion that the Fountain Square Funds were in
compliance with the requirements of subsection (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 as of March 31, 1998, with respect to securities
and similar investments reflected in the investment account of the Company, is
fairly stated, in all material respects.
This report is intended solely for the information and use of management of the
Fountain Square Funds and the Securities and Exchange Commission and should not
be used for any other purpose.
/s/ Ernst & Young LLP
Cincinnati, Ohio
June 4, 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 Fountain Square Funds (the "Company"), are
responsible for complying with the requirements of subsection (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 effective controls over compliance with those
requirements. We have performed an evaluation of the Company's compliance with
the requirements of subsection (b) and (c) of Rule 17f-2 as of March 31, 1998.
Based on this evaluation, we assert that the Company was in compliance with the
requirements of subsection (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of March 31, 1998 with respect to securities and similar
investments reflected in the investment account of the Company.
Fountain Square Funds
By:
/s/ STEPHEN G. MINTOS
- -----------------------
Stephen G. Mintos
President
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UNITED STATES ------------------------------
SECURITIES AND EXCHANGE COMMISSION OMB APPROVAL
WASHINGTON, D.C. 20549 ------------------------------
OMB Number: 3235-0360
FORM N-17f-2 Expires: July 31, 1994
Estimated average burden
Certificate of Accounting of Securities and Similar hours per response..... 0.05
Investments in the Custody of ------------------------------
Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number: Date examination completed:
Section 11- 5569 3/31/98
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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:
FOUNTAIN SQUARE FUNDS
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4. Address of principal executive office (number, street, city, state, zip code):
3435 Stelzer Road Columbus Ohio 43219-3035
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INSTRUCTIONS
This Form must be completed by investment companies that have custody of securities or similar investments.
INVESTMENT COMPANY
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with Rule 17f-2 under the Act and applicable state
law, examines securities and similar investments in the custody of the investment company.
ACCOUNTANT
3. Submit this Form to the Securities and Exchange Commission and appropriate state securities administrators when filing the
certificate of accounting required by Rule 17f-2 under the Act and applicable state law. File the original and one copy with
the Securities and Exchange Commission's principal office in Washington, D.C., one copy with the regional office for the
region in which the investment company's principal business operations are conducted, and one copy with the appropriate state
administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
SEC 2198(11-91)
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