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
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 Asia
Pacific Equity, European Equity, Global Science and Technology,
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 IV, 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 September 29, 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 September 29,
2000, and with respect to agreement of security purchases and
sales, for the period June 30, 2000 (the date of our last
examination), through September 29, 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 thirty-three security purchases and sixty-three
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
September 29, 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
November 28, 2000
Management Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940
November 28, 2000
PricewaterhouseCoopers LLP
Two Commerce Square
2001 Market Street
Philadelphia, PA 19103
We, as members of management of the BlackRock Funds, (the
"Funds") consisting of consisting of the Asia Pacific
Equity, European Equity, Global Science and Technology,
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 IV, Mid-Cap Value Equity and
Mid-Cap Growth Portfolios, 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 September 29, 2000, and from
June 30, 2000 through September 29, 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
September 29, 2000 and from June 30, 2000 through September
29, 2000, with respect to securities reflected in the
investment account of the Funds.
BlackRock Funds
By:
/s/ Karen Sabath
Karen Sabath
Managing Director
