UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
1. Investment Company Act Rule Number:
811-5742
2. State identification Number:
3. Exact name of investment company as specified in registration statement:
BLACKROCK FUNDS
4. Address of principal executive office (number, street, city, state,
Zip code):
400 BELLEVUE PARKWAY
WILMINGTON, DE 19809
Management Statement Regarding Compliance with Certain
Provisions of the Investment Company
Act of 1940
June 28, 2000
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA 19103
We, as members of management of the Large Cap Value Equity,
Large Cap Growth Equity, Small Cap Value Equity, Small Cap
Growth Equity, International Equity, International Emerging
Markets, Select Equity, Balanced, Money Market, U.S.
Treasury Money Market, Municipal Money Market, New Jersey
Municipal Money Market, North Carolina Municipal Money
Market, Ohio Municipal Money Market, Pennsylvania Municipal
Money Market, Virginia Municipal Money Market, Managed
Income, Tax-Free Income, Intermediate Government Bond, New
Jersey Tax-Free Income, Ohio Tax-Free Income, Pennsylvania
Tax-Free Income, Delaware Tax-Free Income, Kentucky Tax-Free
Income, GNMA, Micro-Cap Equity, International Small Cap
Equity, Strategic Portfolio I, Low Duration Bond,
Intermediate Bond, Government Income, Core Bond,
International Bond, High Yield Bond, Multi-Sector Mortgage
Securities Portfolio III, Mid-Cap Value Equity and Mid-Cap
Growth Portfolios (collectively the "Funds"), portfolios
of the BlackRock 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 effective
internal controls over compliance with those requirements.
We have performed an evaluation of the Funds' compliance
with the requirements of subsections (b) and (c) of Rule
17f-2 as of April 28, 2000 and from September 30, 1999
through April 28, 2000.
Based on this 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
April 28, 2000 and from September 30, 1999 through April 28,
2000, with respect to securities reflected in the investment
account of the Funds.
BlackRock Funds:
By:
/s/Karen H. Sabath
Karen H. Sabath
Managing Director, BlackRock Advisers, Inc.
Report of Independent Accountants
To the Board of Directors of
the BlackRock 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, about
the BlackRock Funds (the "Funds") consisting of the Large Cap
Value Equity, Large Cap Growth Equity, Small Cap Value Equity,
Small Cap Growth Equity, International Equity, International
Emerging Markets, Select Equity, Balanced, Money Market, U.S.
Treasury Money Market, Municipal Money Market, New Jersey
Municipal Money Market, North Carolina Municipal Money Market,
Ohio Municipal Money Market, Pennsylvania Municipal Money Market,
Virginia Municipal Money Market, Managed Income, Tax-Free Income,
Intermediate Government Bond, New Jersey Tax-Free Income, Ohio
Tax-Free Income, Pennsylvania Tax-Free Income, Delaware Tax-Free
Income, Kentucky Tax-Free Income, GNMA, Micro-Cap Equity,
International Small Cap Equity, Strategic Portfolio I, Low
Duration Bond, Intermediate Bond, Government Income, Core Bond,
International Bond, High Yield Bond, Multi-Sector Mortgage
Securities Portfolio III, Mid-Cap Value Equity and Mid-Cap Growth
Portfolios compliance with the requirements of subsections (b)
and (c) of Rule 17f-2 under the Investment Company Act of 1940
("the Act") as of April 28, 2000. 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 conducted in accordance with attestation
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 April 28,
2000, and with respect to agreement of security purchases and
sales, for the period from September 30, 1999 (the date of our
last examination), through April 28, 2000:
Confirmation of all securities held by institutions in book
entry form, at, the Federal Reserve Bank of Cleveland, the
Depository Trust Company, the Participatory Trust Company,
and Bankers Trust Company;
Confirmation of all securities out for transfer with brokers
or alternative procedures;
Reconciliation of all such securities to the books and
records of the Funds and the Custodian, PNC Bank, National
Association;
Confirmation of all repurchase agreements with brokers/banks
and agreement of underlying collateral with the custodian
records; and
Agreement of one hundred and thirteen security purchases and
one hundred and five security sales or maturities since our
last report from the books and records of the Funds to trade
confirmations or alternative procedures.
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 BlackRock 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
April 28, 2000 with respect to securities reflected in the
investment account of the Funds is fairly stated, in all material
respects.
This report is intended solely for the information and use of the
Board of Directors, management, and the Securities and Exchange
Commission and is not intended to be and should not be used by
anyone other than these specified parties.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
June 28, 2000
