Independent Auditors' Report
The Shareholders and Board of Directors of
Centura Funds, Inc.:
We have audited the accompanying statements
of assets and liabilities of Centura Funds,
Inc. - Large Cap Equity Fund, Mid Cap Equity
Fund, Small Cap Equity Fund, Government Income
Fund, Quality Income Fund, North Carolina
Tax-Free Bond Fund, and Money Market Fund
(the Funds), including the schedules of
portfolio investments, as of April 30, 2000,
and the related statements of operations for
the period then ended, and the statements of
changes in net assets and the financial
highlights for each of the two years in
the period then ended (period from May 11,
1999 through April 30, 2000 for the Quality
Income Fund). These financial statements
and the financial highlights are the
responsibility of the Funds' management.
Our responsibility is to express an
opinion on these financial statements and
financial highlights based on our audits.
The accompanying financial highlights for
the periods ended April 30, 1998 and prior
were audited by other auditors whose report
thereon dated May 22, 1998 expressed an
unqualified opinion on the financial statements.
We conducted our audits in accordance with
auditing standards generally accepted in the
United States of America. Those standards
require that we plan and perform the audit to
obtain reasonable assurance about whether the
financial statements and financial highlights
are free of material misstatement. An audit
includes examining, on a test basis, evidence
supporting the amounts and disclosures in the
financial statements. Our procedures included
verification of securities owned as of April 30,
2000, by examination, correspondence with brokers
and other appropriate audit procedures. An audit
also includes assessing the accounting principles
used and significant estimates made by management,
as well as evaluating the overall financial
statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and
financial highlights referred to above present
fairly, in all material respects, the financial
position of each of the aforementioned funds
comprising the Centura Funds, Inc. as of April 30,
2000, the results of their operations for the
period then ended, and the changes in their net
assets and the financial highlights for each of
the two years in the period then ended (period
from May 11, 1999 through April 30, 2000 for the
Quality Income Fund), in conformity with
accounting principles generally accepted in
the United States of America.
KPMG LLP
Columbus, Ohio
June 21, 2000
