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SIGNATURE GEGORY D'AMICO
TITLE PRESIDENT
January 14, 1998
Cherry, Bekaert & Holland, L.L.P.
Certified Public Accountants
P.O. Box 788
Knoxville, TN 37901
Gentlemen:
In connection with your audit of the statement of assets and liabilities
of the IPS Millennium Fund, including the schedule for investments in
securities, as of November 30, 1997, and the related statements of
operations for the year then ended, changes in net assets for the two
years then ended, and the selected per share data and ratios for each of
the three years then ended for the purpose of expressing an opinion as to
whether the financial statements and selected per share data and ratios
present fairly, in all material respects, the financial position, results
of operations, and changes in net assets of IPS Millennium Fund in
conformity with generally accepted accounting principles, we confirm, to
the best of our knowledge and belief, the following representations made
to you during your audit.
1. We are responsible for the fair presentation in the financial
statements of financial position, results of operations, changes in net
assets, and selected per share data and ratios in conformity with
generally accepted accounting principles.
2. We have made available to you -
a. All financial records and related data.
b. All minutes of the meetings of stockholders, directors, and
committees of directors, or summaries or actions of recent meetings for
which minutes have not yet been prepared.
3. There have been no -
a. Irregularities involving management or employees who have
significant roles in the internal control structure or that could have a
material effect on the financial statements.
b. Communications from regulatory agencies, such as the SEC and
the Internal Revenue Service, concerning noncompliance with or
deficiencies in financial reporting practices, law, or regulation.
4. We have no plans or intentions that may materially affect the
carrying values or classification of assets and liabilities.
<PAGE>
Cherry, Bekaert & Holland, L.L.P.
January 14, 1998
page 2
5. Related party transactions and other transactions with affiliates,
including fees, commissions, purchases, and sales have been properly
recorded or disclosed in the financial statements.
6. There were none of the following:
a. Arrangements with financial institutions involving compensating
balances, or other arrangements involving restrictions on cash balances
and line of credit or similar arrangements.
b. Capital stock repurchase options or agreements, or capital
stock reserved for options, warrants, or other requirements.
c. Violations or possible violations of laws or regulations whose
effects should be considered for disclosure in the financial statements
or as a basis for recording a loss contingency.
d. Other material liabilities or gain or loss contingencies that
are required to be accrued or disclosed by Statement of Financial
Accounting Standards No. 5.
e. Material transactions that have not been properly recorded in
the accounting records underlying the financial statements.
7. We also advise you that to the best of our knowledge and belief -
a. Portfolio securities are stated at value as determined in
accordance with the valuation method set forth in the current prospectus.
All Company investments during the period were made in accordance with
the investment policies stated in the current prospectus.
b. The Fund has satisfactory title to all owned assets, and there
are no liens or encumbrances on such assets, nor has any asset been
pledged except as disclosed in the financial statements.
c. The Fund complied with the provisions of the Investment Company
Act of 1940 and the rules and regulations thereunder, complied with the
provisions of its prospectus and the requirements of the various Blue Sky
laws under which the Fund operates, and qualified as a regulated
investment company pursuant to subchapter M of the Internal Revenue Code.
The daily net asset value has been properly computed throughout the year
in accordance with rule 2a-4 of the Investment Company Act of 1940,
was correctly applied in the computation of daily capital stock sales and
redemption transactions.
d. The Fund did not make any commitments during the year as
underwriter, nor did it engage in any transactions made on margin, in
joint trading, or selling short.
e. The Fund intends to continue its qualification as a regulated
investment company.
f. The Fund, except to the extent indicated in its financial
statements, does not own any securities of persons who are directly
affiliated as defined in section 2(a)(3) of the Investment Company Act of
1940.
g. There were no investments in issuers 5 percent or more of whose
securities were owned by officers and directors of the Fund.
<PAGE>
Cherry, Bekaert & Holland, L.L.P.
January 14, 1998
Page 3
h. There are no unasserted claims or assessments that our lawyer
has advised us are probable of assertion and must be disclosed in
accordance with the provisions of Statement of Financial Accounting
Standards No. 5.
i. We have complied with all aspects of contractual agreements
that would have a material effect on the financial statements in the
event of noncompliance.
8. We have identified all accounting estimates that could be material
to the financial statements, including the key factors and significant
assumptions underlying those estimates, and we believe the estimates are
reasonable in the circumstances. There are no such estimates that may be
subject to material change in the near term that have not been properly
disclosed in the financial statements. We understand that near term
means the period within one year of the date of the financial statements.
9. We have no knowledge of concentrations existing at the date of the
financial statements that make the company vulnerable to the risk of a
near-term severe impact that have not been properly disclosed in the
financial statements. We understand that concentrations include
individual or group concentrations of customers, suppliers, lenders,
products, services, sources of labor or materials, licenses or other
rights, or operating areas or markets. We further understand that severe
impact means a significant financially disruptive effect on the normal
functioning of the company.
10. The Significant Accounting Policies disclosure includes
descriptions of all major services and principal markets. There are no
foreign-based activities and assets to be disclosed.
11. We have assessed the effects of the Year 2000 issue on the Fund,
and, we believe that we have provided for any necessary modifications to
our systems and procedures.
12. We understand you have examined or tested accounting records of
the Fund and other supporting evidence by methods and to the extent you
deemed appropriate for the purpose of expressing an opinion on the
financial statements, but that such test audits would not necessarily
disclose irregularities should any exist.
13. No events have occurred subsequent to November 30, 1997 that would
require adjustment to, or disclosure in, the financial statements.
Very truly yours,
IPS MILLENNIUM FUND
Greg D'Amico, President
Robert Loest, Vice President
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