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U.S. 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
Date examination completed: December 31, 1998
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1. Investment Company 1940 Act File Number: 811-6082
2. State Identification Number: NE
3. Exact number of investment company 1933 Act Registration #33-34154
as specified in registration statement: 1940 Act Registration #811-6082
4. Address of principal executive office: The Riverfront Funds
3435 Stelzer Rd.
Columbus, OH 43219-3035
Report of Independent Accountants
To the Board of Trustees of
The Riverfront 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 Riverfront Funds, comprised of The Riverfront U.S.
Government Securities Money Market Fund, The Riverfront Small Company Select
Fund, The Riverfront Balanced Fund, The Riverfront U.S. Government Income Fund,
The Riverfront Income Equity Fund, and The Riverfront Large Company Select Fund,
(collectively, the "Fund") was 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 December 31, 1998 with respect to securities and similar investments
reflected in the investment account of the Fund. Management is responsible for
the Fund's 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 Fund'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 December 31, 1998, and with respect to agreement of security and
similar investment purchases and sales, for the period from May 29, 1998 (the
date of last examination) through December 31, 1998:
- - Confirmation of all securities and similar investments held by the Federal
Reserve Bank of Cleveland, Bankers Trust Company, and the Depository Trust
Company in book entry form;
- - Reconciliation of confirmation results as to all such securities and
investments to the books and records of the Fund and the Custodian,
Provident Bank;
- - Confirmation of all repurchase agreements with brokers/banks and agreement
of underlying collateral with The Bank of New York (Tri-Party Custodian)
records; and
- - Agreement of six security and/or investment purchases and six security
and/or investment sales or maturities since our last examination from the
books and records of the Fund 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 Fund's compliance with
specified requirements.
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In our opinion, management's assertion that The Riverfront Funds was in
compliance with the requirements of subsection (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 as of December 31, 1998, with respect to
securities and similar investments reflected in the investment account of the
Fund, is fairly stated, in all material respects.
This report is intended solely for the information and use of management of The
Riverfront Funds and the Securities and Exchange Commission and is not intended
to be and should not be used by anyone other than these specified parties.
Ernst & Young LLP
Cincinnati, Ohio
January 22, 1999
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Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
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We, as members of management of The Riverfront Funds (the "Fund"), are
responsible for complying with the requirements of subsection (b) and (c) of
Rule 17f-2, "Custody of Investment 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 Fund's compliance with the
requirements of subsection (b) and (c) of Rule 17f-2 as of December 31, 1998.
Based on this evaluation, we assert that the Fund was in compliance with the
requirements of subsection (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of December 31, 1998 with respect to securities and similar
investments reflected in the investment account of the Fund.
The Riverfront Funds
By:
/s/ Walter B. Grimm
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Walter B. Grimm, President
