000 B000000 03/31/97
000 C000000 869351
000 D000000 N
000 E000000 NC
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 THE NOTTINGHAM INVESTMENT TRUST II
001 B000000 811-6199
001 C000000 9199729922
002 A000000 105 N WASHINGTON ST., P.O. DRAWER 69
002 B000000 ROCKY MOUNT
002 C000000 NC
002 D010000 27802
002 D020000 0069
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 7
007 C010100 1
007 C020100 CAPITAL VALUE FUND
007 C030100 N
007 C010200 2
007 C010300 3
007 C010400 4
007 C020400 INVESTEK FIXED INCOME TRUST
007 C030400 N
007 C010500 5
007 C020500 ZSA EQUITY FUND
007 C030500 Y
007 C010600 6
007 C020600 ZSA ASSET ALLOCATION FUND
007 C030600 N
007 C010700 7
007 C020700 THE BROWN CAPITAL MANAGEMENT EQUITY FUND
007 C030700 N
007 C010800 8
007 C020800 THE BROWN CAPITAL MANAGEMENT BALANCED FUND
007 C030800 N
007 C010900 9
007 C020900 THE BROWN CAPITAL MANAGEMENT SMALL CO. FUND
007 C030900 N
007 C011000 10
020 A000001 JW CHARLES
020 C000001 6
020 A000002 WILLIAM O'NEIL
020 C000002 1
020 A000003 PAINE WEBBER
020 C000003 4
020 A000004 MERRILL LYNCH
020 C000004 4
020 A000005 BLAIR
020 C000005 1
020 A000006 BAIRD
020 C000006 2
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 20
022 A000001 WACHOVIA
022 C000001 0
022 D000001 0
022 A000002 MERRILL LYNCH
022 C000002 0
022 D000002 0
022 A000003 VINING SPARKS
022 C000003 0
022 D000003 0
022 A000004 C.J.LAWERENCE
022 C000004 0
022 D000004 0
022 A000005 ADAMS HARKNESS
022 C000005 0
022 D000005 0
022 A000006 TRUSTMARK BANK
022 C000006 0
022 D000006 0
022 A000007 SALOMON BROTHERS
022 C000007 0
022 D000007 0
022 A000008 LEGG MASON
022 C000008 0
022 D000008 0
022 A000009 SMITH BARNEY
022 C000009 0
022 D000009 0
022 A000010 UBS SECURITIES
022 C000010 0
022 D000010 0
023 C000000 0
023 D000000 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 Y
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
077 A000000 Y
077 B000000 Y
077 Q010000 Y
078 000000 N
080 A00AA00 ICI MUTUAL
080 C00AA00 2000
081 A00AA00 Y
081 B00AA00 22
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
028 A010100 45
028 A020100 0
028 A030100 0
028 A040100 107
028 B010100 70
028 B020100 0
028 B030100 0
028 B040100 18
028 C010100 26
028 C020100 108
028 C030100 0
028 C040100 66
028 D010100 35
028 D020100 0
028 D030100 0
028 D040100 361
028 E010100 42
028 E020100 0
028 E030100 0
028 E040100 8
028 F010100 53
028 F020100 0
028 F030100 0
028 F040100 0
028 G010100 271
028 G020100 108
028 G030100 0
028 G040100 560
028 H000100 271
062 A000100 N
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 0.0
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
071 A000100 534
071 B000100 952
071 C000100 7311
071 D000100 7
072 A000100 12
072 B000100 185
072 C000100 89
072 D000100 0
072 E000100 0
072 F000100 47
072 G000100 20
072 H000100 0
072 I000100 8
072 J000100 8
072 K000100 3
072 L000100 2
072 M000100 7
072 N000100 3
072 O000100 0
072 P000100 0
072 Q000100 32
072 R000100 4
072 S000100 10
072 T000100 39
072 U000100 0
072 V000100 0
072 W000100 3
072 X000100 186
072 Y000100 0
072 Z000100 88
072AA000100 99
072BB000100 0
072CC010100 357
072CC020100 0
072DD010100 88
072DD020100 0
072EE000100 77
073 A010100 0.1500
073 A020100 0.0000
073 B000100 0.7000
073 C000100 0.0000
074 A000100 8
074 B000100 357
074 C000100 0
074 D000100 1974
074 E000100 0
074 F000100 5322
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 40
074 K000100 0
074 L000100 49
074 M000100 3
074 N000100 7753
074 O000100 0
074 P000100 0
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 15
074 S000100 0
074 T000100 7738
074 U010100 619
074 U020100 0
074 V010100 12.50
074 V020100 0.00
074 W000100 0.0000
074 X000100 254
074 Y000100 7738
075 A000100 0
075 B000100 6525
028 A010400 10
028 A020400 39
028 A030400 0
028 A040400 154
028 B010400 261
028 B020400 37
028 B030400 0
028 B040400 81
028 C010400 138
028 C020400 43
028 C030400 0
028 C040400 350
028 D010400 89
028 D020400 38
028 D030400 0
028 D040400 14
028 E010400 19
028 E020400 42
028 E030400 0
028 E040400 72
028 F010400 11
028 F020400 44
028 F030400 0
028 F040400 3
028 G010400 528
028 G020400 243
028 G030400 0
028 G040400 674
028 H000400 0
062 A000400 Y
062 B000400 0.0
062 C000400 0.0
062 D000400 0.0
062 E000400 0.0
062 F000400 0.0
062 G000400 0.0
062 H000400 0.0
062 I000400 0.0
062 J000400 0.0
062 K000400 0.0
062 L000400 0.6
062 M000400 5.8
062 N000400 66.3
062 O000400 0.0
062 P000400 7.9
062 Q000400 16.6
062 R000400 5.3
071 A000400 3692
071 B000400 4305
071 C000400 1121
071 D000400 33
072 A000400 12
072 B000400 828
072 C000400 21
072 D000400 0
072 E000400 0
072 F000400 53
072 G000400 18
072 H000400 0
072 I000400 0
072 J000400 7
072 K000400 2
072 L000400 1
072 M000400 7
072 N000400 3
072 O000400 0
072 P000400 0
072 Q000400 21
072 R000400 12
072 S000400 5
072 T000400 0
072 U000400 0
072 V000400 0
072 W000400 6
072 X000400 140
072 Y000400 35
072 Z000400 744
072AA000400 40
072BB000400 0
072CC010400 0
072CC020400 172
072DD010400 748
072DD020400 0
072EE000400 0
073 A010400 0.6500
073 A020400 0.0000
073 B000400 0.0000
073 C000400 0.0000
074 A000400 0
074 B000400 0
074 C000400 0
074 D000400 11634
074 E000400 0
074 F000400 0
074 G000400 0
074 H000400 0
074 I000400 0
074 J000400 0
074 K000400 0
074 L000400 112
074 M000400 2
074 N000400 11748
074 O000400 495
074 P000400 0
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 26
074 S000400 0
074 T000400 11227
074 U010400 1125
074 U020400 0
074 V010400 9.98
074 V020400 0.00
074 W000400 0.0000
074 X000400 66
074 Y000400 11227
075 A000400 0
075 B000400 15276
062 A000500 N
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 0.0
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
062 L000500 0.0
062 M000500 0.0
062 N000500 0.0
062 O000500 0.0
062 P000500 0.0
062 Q000500 0.0
062 R000500 0.0
071 A000500 2151
071 B000500 505
071 C000500 1689
071 D000500 30
072 A000500 6
074 N000500 2416
074 T000500 2368
075 A000500 0
075 B000500 6036
028 A010600 104
028 A020600 0
028 A030600 0
028 A040600 6
028 B010600 67
028 B020600 0
028 B030600 0
028 B040600 244
028 C010600 662
028 C020600 41
028 C030600 0
028 C040600 211
028 D010600 196
028 D020600 0
028 D030600 0
028 D040600 646
028 E010600 132
028 E020600 0
028 E030600 0
028 E040600 1079
028 F010600 139
028 F020600 42
028 F030600 0
028 F040600 23
028 G010600 1300
028 G020600 83
028 G030600 0
028 G040600 2209
028 H000600 0
062 A000600 N
062 B000600 0.0
062 C000600 0.0
062 D000600 0.0
062 E000600 0.0
062 F000600 0.0
062 G000600 0.0
062 H000600 0.0
062 I000600 0.0
062 J000600 0.0
062 K000600 0.0
062 L000600 0.0
062 M000600 0.0
062 N000600 0.0
062 O000600 0.0
062 P000600 0.0
062 Q000600 0.0
062 R000600 0.0
071 A000600 701
071 B000600 2993
071 C000600 7325
071 D000600 10
072 A000600 12
072 B000600 222
072 C000600 149
072 D000600 0
072 E000600 0
072 F000600 90
072 G000600 22
072 H000600 0
072 I000600 5
072 J000600 7
072 K000600 2
072 L000600 1
072 M000600 7
072 N000600 4
072 O000600 0
072 P000600 0
072 Q000600 26
072 R000600 10
072 S000600 7
072 T000600 22
072 U000600 5
072 V000600 0
072 W000600 5
072 X000600 213
072 Y000600 38
072 Z000600 196
072AA000600 770
072BB000600 0
072CC010600 4
072CC020600 0
072DD010600 198
072DD020600 0
072EE000600 0
073 A010600 0.2900
073 A020600 0.0000
073 B000600 0.0000
073 C000600 0.0000
074 A000600 1720
074 B000600 0
074 C000600 0
074 D000600 2099
074 E000600 0
074 F000600 4293
074 G000600 0
074 H000600 0
074 I000600 0
074 J000600 0
074 K000600 1
074 L000600 63
074 M000600 3
074 N000600 8179
074 O000600 0
074 P000600 0
074 Q000600 0
074 R010600 0
074 R020600 0
074 R030600 0
074 R040600 7
074 S000600 0
074 T000600 8172
074 U010600 607
074 U020600 0
074 V010600 13.45
074 V020600 0.00
074 W000600 0.0000
074 X000600 150
074 Y000600 8172
075 A000600 0
075 B000600 10675
062 A000700 N
062 B000700 0.0
062 C000700 0.0
062 D000700 0.0
062 E000700 0.0
062 F000700 0.0
062 G000700 0.0
062 H000700 0.0
062 I000700 0.0
062 J000700 0.0
062 K000700 0.0
062 L000700 0.0
062 M000700 0.0
062 N000700 0.0
062 O000700 0.0
062 P000700 0.0
062 Q000700 0.0
062 R000700 0.0
071 A000700 3278
071 B000700 916
071 C000700 2677
071 D000700 34
072 A000700 12
072 B000700 19
072 C000700 27
072 D000700 0
072 E000700 0
072 F000700 20
072 G000700 8
072 H000700 0
072 I000700 6
072 J000700 6
072 K000700 2
072 L000700 2
072 M000700 7
072 N000700 7
072 O000700 0
072 P000700 0
072 Q000700 24
072 R000700 10
072 S000700 4
072 T000700 0
072 U000700 0
072 V000700 0
072 W000700 6
072 X000700 102
072 Y000700 66
072 Z000700 10
072AA000700 64
072BB000700 0
072CC010700 0
072CC020700 105
072DD010700 10
072DD020700 0
072EE000700 124
073 A010700 0.0500
073 A020700 0.0000
073 B000700 0.5600
073 C000700 0.0000
074 A000700 0
074 B000700 197
074 C000700 0
074 D000700 0
074 E000700 0
074 F000700 4220
074 G000700 0
074 H000700 0
074 I000700 0
074 J000700 0
074 K000700 3
074 L000700 8
074 M000700 1
074 N000700 4429
074 O000700 22
074 P000700 0
074 Q000700 0
074 R010700 0
074 R020700 0
074 R030700 0
074 R040700 2
074 S000700 0
074 T000700 4405
074 U010700 265
074 U020700 0
074 V010700 16.61
074 V020700 0.00
074 W000700 0.0000
074 X000700 62
074 Y000700 4405
075 A000700 0
075 B000700 1380
028 A010800 60
028 A020800 0
028 A030800 0
028 A040800 130
028 B010800 16
028 B020800 0
028 B030800 0
028 B040800 10
028 C010800 24
028 C020800 174
028 C030800 0
028 C040800 83
028 D010800 37
028 D020800 0
028 D030800 0
028 D040800 80
028 E010800 29
028 E020800 0
028 E030800 0
028 E040800 251
028 F010800 202
028 F020800 106
028 F030800 0
028 F040800 21
028 G010800 368
028 G020800 280
028 G030800 0
028 G040800 575
028 H000800 0
062 A000800 N
062 B000800 0.0
062 C000800 0.0
062 D000800 0.0
062 E000800 0.0
062 F000800 0.0
062 G000800 0.0
062 H000800 0.0
062 I000800 0.0
062 J000800 0.0
062 K000800 0.0
062 L000800 0.0
062 M000800 0.0
062 N000800 0.0
062 O000800 0.0
062 P000800 0.0
062 Q000800 0.0
062 R000800 0.0
071 A000800 1837
071 B000800 1497
071 C000800 3283
071 D000800 46
072 A000800 12
072 B000800 76
072 C000800 27
072 D000800 0
072 E000800 0
072 F000800 25
072 G000800 10
072 H000800 0
072 I000800 4
072 J000800 8
072 K000800 2
072 L000800 2
072 M000800 7
072 N000800 7
072 O000800 0
072 P000800 0
072 Q000800 24
072 R000800 10
072 S000800 4
072 T000800 0
072 U000800 0
072 V000800 0
072 W000800 6
072 X000800 109
072 Y000800 64
072 Z000800 58
072AA000800 106
072BB000800 0
072CC010800 104
072CC020800 0
072DD010800 58
072DD020800 0
072EE000800 250
073 A010800 0.2100
073 A020800 0.0000
073 B000800 0.9200
073 C000800 0.0000
074 A000800 28
074 B000800 451
074 C000800 0
074 D000800 813
074 E000800 0
074 F000800 2574
074 G000800 0
074 H000800 0
074 I000800 0
074 J000800 0
074 K000800 9
074 L000800 15
074 M000800 2
074 N000800 3892
074 O000800 14
074 P000800 0
074 Q000800 0
074 R010800 0
074 R020800 0
074 R030800 0
074 R040800 3
074 S000800 0
074 T000800 3875
074 U010800 285
074 U020800 0
074 V010800 13.60
074 V020800 0.00
074 W000800 0.0000
074 X000800 57
074 Y000800 3875
075 A000800 0
075 B000800 2556
028 A010900 12
028 A020900 0
028 A030900 0
028 A040900 256
028 B010900 22
028 B020900 0
028 B030900 0
028 B040900 66
028 C010900 174
028 C020900 121
028 C030900 0
028 C040900 33
028 D010900 171
028 D020900 0
028 D030900 0
028 D040900 0
028 E010900 17
028 E020900 0
028 E030900 0
028 E040900 0
028 F010900 1238
028 F020900 0
028 F030900 0
028 F040900 46
028 G010900 1634
028 G020900 121
028 G030900 0
028 G040900 401
028 H000900 0
062 A000900 N
062 B000900 0.0
062 C000900 0.0
062 D000900 0.0
062 E000900 0.0
062 F000900 0.0
062 G000900 0.0
062 H000900 0.0
062 I000900 0.0
062 J000900 0.0
062 K000900 0.0
062 L000900 0.0
062 M000900 0.0
062 N000900 0.0
062 O000900 0.0
062 P000900 0.0
062 Q000900 0.0
062 R000900 0.0
071 A000900 3050
071 B000900 584
071 C000900 4358
071 D000900 13
072 A000900 12
072 B000900 38
072 C000900 23
072 D000900 0
072 E000900 0
072 F000900 51
072 G000900 13
072 H000900 0
072 I000900 5
072 J000900 6
072 K000900 2
072 L000900 2
072 M000900 7
072 N000900 7
072 O000900 0
072 P000900 0
072 Q000900 24
072 R000900 10
072 S000900 4
072 T000900 0
072 U000900 0
072 V000900 0
072 W000900 6
072 X000900 137
072 Y000900 61
072 Z000900 -15
072AA000900 66
072BB000900 0
072CC010900 105
072CC020900 0
072DD010900 0
072DD020900 0
072EE000900 122
073 A010900 0.0000
073 A020900 0.0000
073 B000900 0.3600
073 C000900 0.0000
074 A000900 1308
074 B000900 12
074 C000900 0
074 D000900 0
074 E000900 0
074 F000900 5682
074 G000900 0
074 H000900 0
074 I000900 0
074 J000900 0
074 K000900 1
074 L000900 9
074 M000900 3
074 N000900 7015
074 O000900 493
074 P000900 0
074 Q000900 0
074 R010900 0
074 R020900 0
074 R030900 0
074 R040900 3
074 S000900 0
074 T000900 6519
074 U010900 434
074 U020900 0
074 V010900 15.01
074 V020900 0.00
074 W000900 0.0000
074 X000900 110
074 Y000900 6519
075 A000900 0
075 B000900 3835
SIGNATURE C. FRANK WATSON III
TITLE TREASURER
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
The Nottingham Investment Trust II:
In planning and performing our audit of the financial statements of the Capital
Value Fund (a portfolio of The Nottingham Investment Trust II) for the year
ended March 31, 1997 (on which we have issued our report dated April 25, 1997),
we considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply with
the requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of the Capital Value Fund is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors and
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
March 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/S/ DELOITTE & TOUCHE LLP
Pittsburgh, Pennsylvania
April 25, 1997
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
The Nottingham Investment Trust II:
In planning and performing our audit of the financial statements of Investek
Fixed Income Trust (a portfolio of The Nottingham Investment Trust II) for the
year ended March 31, 1997 (on which we have issued our report dated April 25,
1997), we considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply with
the requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of Investek Fixed Income Trust is responsible for establishing
and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors and
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
March 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/S/ DELOITTE & TOUCHE LLP
Pittsburgh, Pennsylvania
April 25, 1997
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
The Nottingham Investment Trust II:
In planning and performing our audit of the financial statements of the ZSA
Asset Allocation Fund (a portfolio of The Nottingham Investment Trust II) for
the year ended March 31, 1997 (on which we have issued our report dated April
25, 1997), we considered its internal control structure, including procedures
for safeguarding securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, not to provide assurance on the internal
control structure.
The management of the ZSA Asset Allocation Fund is responsible for establishing
and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors and
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
March 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/S/ DELOITTE & TOUCHE LLP
Pittsburgh, Pennsylvania
April 25, 1997
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
The Nottingham Investment Trust II:
In planning and performing our audit of the financial statements of The Brown
Capital Management Equity Fund (a portfolio of The Nottingham Investment Trust
II) for the year ended March 31, 1997 (on which we have issued our report dated
April 25, 1997), we considered its internal control structure, including
procedures for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements
and to comply with the requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of The Brown Capital Management Equity Fund is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors and
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
March 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/S/ DELOITTE & TOUCHE LLP
Pittsburgh, Pennsylvania
April 25, 1997
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
The Nottingham Investment Trust II:
In planning and performing our audit of the financial statements of The Brown
Capital Management Balanced Fund (a portfolio of The Nottingham Investment Trust
II) for the year ended March 31, 1997 (on which we have issued our report dated
April 25, 1997), we considered its internal control structure, including
procedures for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements
and to comply with the requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of The Brown Capital Management Balanced Fund is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors and
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
March 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/S/ DELOITTE & TOUCHE LLP
Pittsburgh, Pennsylvania
April 25, 1997
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
The Nottingham Investment Trust II:
In planning and performing our audit of the financial statements of The Brown
Capital Management Small Company Fund (a portfolio of The Nottingham Investment
Trust II) for the year ended March 31, 1997 (on which we have issued our report
dated April 25, 1997), we considered its internal control structure, including
procedures for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements
and to comply with the requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of The Brown Capital Management Small Company Fund is responsible
for establishing and maintaining an internal control structure. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control structure
policies and procedures. Two of the objectives of an internal control structure
are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition and
that transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors and
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
March 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/S/ DELOITTE & TOUCHE LLP
Pittsburgh, Pennsylvania
April 25, 1997
<PAGE>
