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SECURITIES AND EXCHANGE COMMISSION --------------------------
WASHINGTON, D.C. 20549 OMB Approval
FORM N-17f-2 --------------------------
OMB Number: 3235-0360
Certificate of Accounting of Securities and Similar Expires: July 31, 1994
Investment in the Custody of Estimated average burden
Management Investment Companies hours per response... 0.05
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number: Date examination completed
811-8644 December 11, 1997
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2. State identification Number: N/A
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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 representation statement:
Variable Insurance Funds
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4. Address of principal executive office (number, street, city, state, zip code):
3435 Stelzer Road, Columbus, Ohio 43219
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| Coopers | COOPERS & LYBRAND L.L.P.
| &Lybrand |
| a professional services firm
INDEPENDENT ACCOUNTANT'S REPORT
To the Trustees of the AmSouth Equity Income Fund
of the Variable Insurance Funds:
We have examined management's assertion about the compliance of the AmSouth
Equity Income Fund of the Variable Insurance Funds (the "Fund") with the
requirements of subsections (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 as of December 11, 1997, included in the accompanying
Management Statement Regarding Compliance With Certain Provisions of the
Investment Company Act of 1940. Management is responsible for the Fund's
compliance with those requirements. Our responsibility is to express an opinion
on management's assertion about the Fund's 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 Fund's 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 December 11, 1997, with respect to securities of the Fund:
* Confirmation, or other procedures we considered necessary, of all
securities held in book entry form by the Federal Reserve Bank of
Atlanta or Depository Trust Company;
* Confirmation, or other procedures as we considered necessary, of all
mutual fund investments with transfer agents; and
* Reconciliation of all such securities to the books and records of the
Fund and AmSouth Bank.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
specified requirements.
In our opinion, management's assertion that the Fund was in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of December 11, 1997, with respect to securities reflected in the
investment accounts of the Fund is fairly stated, in all material respects.
Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International,
a limited liability association incorporated in Switzerland.
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This report is intended solely for the information and use of management of the
Fund and the Securities and Exchange Commission and should not be used for any
other purpose.
/s/ COOPERS & LYBRAND L.L.P.
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Coopers & Lybrand L.L.P.
Columbus, Ohio
February 9, 1998
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MANAGEMENT ASSERTION REGARDING COMPLIANCE WITH CERTAIN
PROVISIONS OF THE INVESTMENT COMPANY ACT OF 1940
We, as members of management of the AmSouth Equity Income Fund of the Variable
Insurance Funds (the "Fund") are responsible for complying with the
requirements of subsections (b) and (c) for Rule 17f-2, "Custody of Investments
by Registered Management Companies," of the Investment Company Act of 1940. We
are also responsible for establishing and maintaining effective internal
controls over compliance with those requirements. We have performed an
evaluation of the Fund's compliance with the requirements of subsections (b)
and (c) of Rule 17f-2 as of December 11, 1997. Based on this evaluation, we
assert that the Fund was in compliance with the provisions of subsections (b)
and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of December 11,
1997, with respect to securities reflected in the investment accounts of the
Fund.
AmSouth Equity Income Fund of the Variable Insurance Funds
