WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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The Board of Trustees
ARK Funds:
In planning and performing our audit
of the financial statements of Emer
ging Markets Equity Portfolio and In
ternational Equity Portfolio, portfo
lios of ARK Funds, (the "Portfolios")
for the ten months ended October 31
, 2000, we considered its internal
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 requirements
of Form N-SAR, not to provide assur
ance on internal control.
The management of the Portfolios is
responsible for establishing and ma
intaining internal control. In ful
filling this responsibility, estima
tes and judgments by management are
required to assess the expected be
nefits and related costs of control
s. Generally, controls that are re
levant to an audit pertain to the e
ntity's objective of preparing fin
ancial statements for external pur
poses that are fairly presented in
conformity with generally accepte
d accounting principles. Those con
trols include the safeguarding of a
ssets against unauthorized acquisit
ion, use or disposition.
Because of inherent limitations in
internal control, errors or irregul
arities may occur and not be detect
ed. Also, projection of any evalua
tion of internal control to future
periods is subject to the risks that
it may become inadequate because of
changes in conditions or that the eff
ectiveness of the design and operation
may deteriorate.
Our consideration of internal control
would not necessarily disclose all ma
tters in internal control that might be
material weaknesses under standards es
tablished by the American Institute of
Certified Public Accountants. A mater
ial weakness is a condition in which the
design or operation of one or more of
the internal control components does not
reduce to a relatively low level the ri
sk that errors or irregularities in amou
nts 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 fun
ctions. However, we noted no matters in
volving internal control and its operation
, including controls for safeguarding secu
rities, that we consider to be material we
aknesses as defined above as of October 31
, 2000.
This report is intended solely for the inf
ormation and use of management and the Boa
rd of Trustees of the ARK Funds and the Se
curities and Exchange Commission and is no
t intended to be and should not be used by
anyone other than these specified parties.
Boston, Massachusetts
December 13, 2000
REPORT ON INTERNAL CONTROL
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