The Board of Trustees
ARK Funds:
In planning and performing our audit of the financial
statements of
Money Market Portfolio, Tax-Free Money Market Portfolio,
U.S.
Government Money Market Portfolio, U.S. Treasury Money
Market P
ortfolio, Short-Term Treasury Portfolio, Short-Term Bond
Portfolio,
Maryland Tax-Free Portfolio, Pennsylvania Tax-Free Portfo
lio, Income
Portfolio, Intermediate Fixed Income Portfolio, U.S. Gover
nment Bond
Portfolio, Balanced Portfolio, Equity Income Portfolio,
Value Equity
Portfolio, Equity Index Portfolio, Small-Cap Equity Port
folio, Blue Chip
Equity Portfolio, Capital Growth Portfolio, Mid-Cap Equi
ty Portfolio,
and International Equity Selection Portfolio, portfolios
of ARK Funds,
(the
"Portfolios") for the year ended April 30, 2000, we consi
dered its inter
nal control, including control activities 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 requirem
ents of Form N-SAR, not to provide assurance on internal
control.
The management of the Portfolios is responsible for estab
lishing and main
taining internal control. In fulfilling this responsibil
ity, estimates and jud
gments by management are required to assess the expected
benefits and
related costs of controls. Generally, controls that are
relevant to an
audit pertain to the entity's objective of preparing fina
ncial statements for
external purposes that are fairly presented in conformit
y with generally
accepted accounting principles. Those controls include
the safe
guarding of assets against unauthorized acquisition, use
or disposition.
Because of inherent limitations in internal control, erro
rs or irregularities
may occur and not be detected. Also, projection of any ev
aluation of internal
control to future periods is subject to the risks that it
may become inadequate
because of changes in conditions or that the effectiveness
of the design
and operation may deteriorate.
Our consideration of internal control would not necessar
ily
disclose all matters
in internal control that might be material weaknesses under
standards establis
hed by the American Institute of Certified Public Accountan
ts. A material
weak
ness is a condition in which the design or operation of one
or more of the I
nternal control components does not reduce to a relatively
low level
the risk that errors or irregularities in amounts that wou
ld be material in
relation to the financial statements being audited may oc
cur 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
internal control and its operation, including controls for
safeguarding secur
ities, that we consider to be material weaknesses as defi
ned above.
This report is intended solely for the information and use
of management,
the Board of Trustees of the ARK Funds and the Securities
and Exchange
Commission and is not intended and should not be used by
anyone other than
these specified parties.
Boston, Massachusetts
June 2, 2000
REPORT ON INTERNAL CONTROL
