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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]
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1. Investment Company Act File Number: Date examination completed:
811-06580 10-31-99
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2. State Identification Number:
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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:
SouthTrust Funds
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4. Address of principal executive office (number, street, city, state,
zip code):
Federal Investors Tower, Pittsburgh, PA 15222-3779
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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 of administrator(s), if
applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
SEC 2198 (11-91)
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Trustees
of the SouthTrust Funds:
We have examined management's assertion about the SOUTHTRUST FUNDS (the "Funds")
compliance with the requirements of subsections (b) and (c) of Rule 17f-2 under
the Investment Company Act of 1940 (the "Act") as of October 31, 1999 included
in the accompanying Management Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940. The SouthTrust Funds include
the Bond Fund, U.S. Treasury Money Market Fund, Value Fund, Income Fund, Growth
Fund, and Alabama Tax-Free Income Fund. Management is responsible for the Funds'
compliance with the requirements of the Act. Our responsibility is to express an
opinion on management's assertion about the Funds' 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 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 October 31, 1999 and for the period from April 30, 1999 (the
date of the last examination) through October 31, 1999, with respect to
agreement of security purchases and sales:
- Confirmation of all securities held by institutions in book
entry form (the Federal Reserve, the Depository Trust Company,
and Mellon Bank of New York);
- Confirmation of all securities hypothecated, pledged, placed
in escrow, or out for transfer with brokers, pledgees, and/or
transfer agents;
- Reconciliation of all such securities to the books and records
of the Funds and SouthTrust Bank, N.A., the Custodian;
- Confirmation of all repurchase agreements with brokers/banks
and agreement of underlying collateral with SouthTrust Bank,
N.A. records; and
- Agreement of two (2) security purchases and two (2) security
sales or maturities for each fund identified above (since the
date of our last examination) from the books and records of
the Funds 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 Funds' compliance with
specified requirements.
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In our opinion, management's assertion that the SouthTrust 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 October 31, 1999 with respect to securities
reflected in the investment account of the SouthTrust Funds is fairly stated, in
all material respects.
This report is intended solely for the information and use of management of the
SouthTrust Funds and the Securities and Exchange Commission and should not be
used for any other purpose.
Birmingham, Alabama
November 24, 1999
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MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH CERTAIN
PROVISIONS OF THE INVESTMENT COMPANY ACT OF 1940
We, as members of the SouthTrust Funds (the "Funds"), the investment company,
and SouthTrust Bank, N.A., the custodian, 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 an effective
internal control structure 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 October 31, 1999 and for the period
from April 30, 1999 (the date of the last examination) through October 31, 1999.
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 October 31, 1999 and for the period from April 30, 1999 (the
date of the last examination) through October 31, 1999 with respect to
securities reflected in the investment account of the Funds.
SouthTrust Funds SouthTrust Bank, N.A.
By: /s/ Beth Broderick By: /s/ Roger L. Brown
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Beth Broderick Roger L. Brown
Vice President & Assistant Treasurer Senior Vice President
Birmingham, Alabama
November 24, 1999
