Report of Ernst & Young LLP, Independent Auditors
Board of Trustees
of U.S. Global Accolade Funds
In planning and performing our audits of the financial
statements of the U.S. Global Accolade Funds (comprising,
respectively, the Bonnel Growth Fund, MegaTrends Fund, and
Regent Eastern European Fund, collectively, the Funds) for
the year ended October 31, 2000, we considered its internal
control, including control activities for safeguarding
securities, 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, and not to provide assurance on internal control.
The management of the Funds is responsible for establishing
and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs
of internal control. Generally, internal controls that are
relevant to an audit pertain to the Funds objective of
preparing financial statements for external purposes that
are fairly presented in conformity with accounting
principles generally accepted in the United States. Those
internal controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control,
misstatements due to errors or fraud may occur and not be
detected. Also, projections of any evaluation of internal
control to future periods are subject to the risk that
internal control may become inadequate because of changes in
conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control 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 one or more of the specific internal control
components does not reduce to a relatively low level the
risk that errors or fraud 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 internal
control, including control activities for safeguarding
securities, and its operation that we consider to be
material weaknesses as defined above as of October 31, 2000.
This report is intended solely for the information and use
of the board of trustees and management of the U.S. Global
Accolade 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
December 13, 2000
Boston, Massachusetts
