INCOME TRUST
NSAR-B, 1997-07-30
Previous: EXPRESS DIRECT INCOME FUND INC, 485BPOS, 1997-07-30
Next: HARBINGER CORP, 424B1, 1997-07-30



<PAGE>      PAGE  1
000 B000000 05/31/97
000 C000000 0000946789
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 INCOME TRUST
001 B000000 811-07307
001 C000000 6126712772
002 A000000 IDS TOWER 10
002 B000000 MINNEAPOLIS
002 C000000 MN
002 D010000 55440
002 D020000 0010
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000  3
007 C010100  1
007 C020100 GOVERNMENT INCOME PORTFOLIO
007 C030100 N
007 C010200  2
007 C020200 HIGH YIELD PORTFOLIO
007 C030200 N
007 C010300  3
007 C020300 QUALITY INCOME PORTFOLIO
007 C030300 N
007 C010400  4
007 C010500  5
007 C010600  6
007 C010700  7
007 C010800  8
007 C010900  9
007 C011000 10
020 A000001 DONALDSON, LUFKIN JENRETTE SEC CORP.
020 B000001 13-2741729
020 C000001     37
020 A000002 JEFFERIES & CO.
020 B000002 95-2622900
020 C000002     29
020 A000003 OPPENHEIMER & CO., INC.
020 B000003 13-2798343
020 C000003      9
020 A000004 SMITH BARNEY INC.
020 B000004 13-1912900
020 C000004      6
<PAGE>      PAGE  2
020 A000005 MORGAN STANLEY & CO., INC.
020 B000005 13-2655998
020 C000005      3
020 A000006 STANDARD & POORS SECURITIES
020 B000006 13-2671951
020 C000006      2
020 A000007 SALOMON BROTHERS INC.
020 B000007 13-3082694
020 C000007      2
020 A000008 LAZARD FRERES & CO.
020 B000008 13-5545100
020 C000008      2
020 A000009 WEEDEN & CO. LP
020 B000009 13-3364318
020 C000009      1
020 C000010      0
021  000000       91
022 A000001 MERRILL LYNCH & CO., INC.
022 B000001 13-5674085
022 C000001   2210059
022 D000001    980701
022 A000002 GOLDMAN SACHS & CO.
022 B000002 13-5108880
022 C000002   2177158
022 D000002    620097
022 A000003 SALOMON BROTHERS INC.
022 B000003 13-3082694
022 C000003   1562334
022 D000003    881003
022 A000004 MORGAN STANLEY & CO., INC.
022 B000004 13-2655998
022 C000004   1131450
022 D000004    718257
022 A000005 DONALDSON, LUFKIN JENRETTE SEC CORP.
022 B000005 13-2741729
022 C000005    919445
022 D000005    542788
022 A000006 LEHMAN COMMERCIAL PAPER INC.
022 B000006 13-2501865
022 C000006   1100799
022 D000006    232938
022 A000007 J.P. MORGAN SECURITIES INC.
022 B000007 13-3224016
022 C000007    721300
022 D000007    586467
022 A000008 CREDIT SUISSE FIRST BOSTON CORP.
022 B000008 13-5659485
022 C000008    921640
022 D000008    181391
022 A000009 NATIONSBANK
022 B000009 75-0520130
<PAGE>      PAGE  3
022 C000009    745260
022 D000009    339225
022 A000010 PAINEWEBBER
022 B000010 13-2638166
022 C000010    411033
022 D000010    281225
023 C000000   14546148
023 D000000    7452901
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 Y
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
080 A00AA00 RELIANCE INSURANCE COMPANY
080 C00AA00     2500
081 A00AA00 N
081 B00AA00   0
082 A00AA00 N
082 B00AA00        0
083 A00AA00 N
083 B00AA00        0
084 A00AA00 N
084 B00AA00        0
085 A00AA00 Y
085 B00AA00 N
025 D000101       0
025 D000102       0
025 D000103       0
025 D000104       0
025 D000105       0
025 D000106       0
<PAGE>      PAGE  4
025 D000107       0
025 D000108       0
062 A000100 Y
062 B000100   0.0
062 C000100   5.4
062 D000100   0.0
062 E000100   0.0
062 F000100   4.6
062 G000100   0.0
062 H000100   0.0
062 I000100   1.4
062 J000100   0.0
062 K000100   0.1
062 L000100   0.0
062 M000100  53.4
062 N000100  35.1
062 O000100   0.0
062 P000100   0.0
062 Q000100   0.0
062 R000100   0.0
063 A000100   0
063 B000100 11.3
064 A000100 Y
064 B000100 N
071 A000100   3553312
071 B000100   2869646
071 C000100   1960048
071 D000100  146
072 A000100 12
072 B000100   134619
072 C000100        0
072 D000100        0
072 E000100        0
072 F000100     9426
072 G000100        0
072 H000100        1
072 I000100        0
072 J000100      181
072 K000100        0
072 L000100        0
072 M000100        8
072 N000100        0
072 O000100        0
072 P000100        0
072 Q000100        0
072 R000100       30
072 S000100        0
072 T000100        0
072 U000100        0
072 V000100        0
072 W000100        4
<PAGE>      PAGE  5
072 X000100     9650
072 Y000100        5
072 Z000100   124974
072AA000100        0
072BB000100      221
072CC010100    22413
072CC020100        0
072DD010100        0
072DD020100        0
072EE000100        0
073 A010100   0.0000
073 A020100   0.0000
073 B000100   0.0000
073 C000100   0.0000
074 A000100        0
074 B000100        0
074 C000100   251004
074 D000100  2400881
074 E000100        0
074 F000100        0
074 G000100        0
074 H000100     2024
074 I000100        0
074 J000100     7238
074 K000100        0
074 L000100    22037
074 M000100    41231
074 N000100  2724415
074 O000100   145986
074 P000100       30
074 Q000100        0
074 R010100        0
074 R020100        0
074 R030100    11865
074 R040100   362551
074 S000100        0
074 T000100  2203983
074 U010100        0
074 U020100        0
074 V010100     0.00
074 V020100     0.00
074 W000100   0.0000
074 X000100        0
074 Y000100        0
075 A000100        0
075 B000100  1772057
076  000100     0.00
025 A000201 MERRILL LYNCH
025 B000201 13-5674085
025 C000201 D
025 D000201    8752
<PAGE>      PAGE  6
025 A000202 DELETE
025 D000202       0
025 D000203       0
025 D000204       0
025 D000205       0
025 D000206       0
025 D000207       0
025 D000208       0
062 A000200 Y
062 B000200   0.0
062 C000200   0.0
062 D000200   0.0
062 E000200   0.0
062 F000200   0.0
062 G000200   0.0
062 H000200   0.0
062 I000200   2.8
062 J000200   0.0
062 K000200   0.0
062 L000200   0.8
062 M000200   0.0
062 N000200   0.4
062 O000200   0.0
062 P000200  75.4
062 Q000200  12.5
062 R000200   8.1
063 A000200   0
063 B000200  7.6
064 A000200 Y
064 B000200 N
070 A010200 Y
070 A020200 N
070 B010200 N
070 B020200 N
070 C010200 Y
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 Y
070 E020200 N
070 F010200 N
070 F020200 N
070 G010200 Y
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 Y
<PAGE>      PAGE  7
070 K020200 N
070 L010200 Y
070 L020200 Y
070 M010200 Y
070 M020200 Y
070 N010200 Y
070 N020200 Y
070 O010200 Y
070 O020200 N
070 P010200 Y
070 P020200 Y
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200   3150134
071 B000200   2464307
071 C000200   2680751
071 D000200   92
072 A000200 12
072 B000200   252459
072 C000200    18181
072 D000200        0
072 E000200        0
072 F000200    15503
072 G000200       28
072 H000200        0
072 I000200        0
072 J000200      120
072 K000200        0
072 L000200        0
072 M000200       11
072 N000200        0
072 O000200        0
072 P000200        0
072 Q000200        0
072 R000200       30
072 S000200        0
072 T000200        0
072 U000200        0
072 V000200        0
072 W000200        3
072 X000200    15695
072 Y000200       65
072 Z000200   255010
072AA000200    11905
072BB000200        0
072CC010200    42486
072CC020200        0
072DD010200        0
072DD020200        0
<PAGE>      PAGE  8
072EE000200        0
073 A010200   0.0000
073 A020200   0.0000
073 B000200   0.0000
073 C000200   0.0000
074 A000200        0
074 B000200        0
074 C000200    96095
074 D000200  2823309
074 E000200   223838
074 F000200    35312
074 G000200        0
074 H000200        0
074 I000200        0
074 J000200    24793
074 K000200        0
074 L000200    67487
074 M000200        0
074 N000200  3270834
074 O000200    70790
074 P000200       49
074 Q000200        0
074 R010200        0
074 R020200        0
074 R030200        0
074 R040200      931
074 S000200        0
074 T000200  3199064
074 U010200        0
074 U020200        0
074 V010200     0.00
074 V020200     0.00
074 W000200   0.0000
074 X000200        0
074 Y000200        0
075 A000200        0
075 B000200  2612544
076  000200     0.00
025 A000301 BANK OF AMERICA
025 B000301 94-1687655
025 C000301 D
025 D000301   27933
025 A000302 FIRST CHICAGO
025 B000302 36-3595942
025 C000302 D
025 D000302   16447
025 A000303 SALOMON BROTHERS
025 B000303 13-3082694
025 C000303 D
025 D000303   14108
025 A000304 MORGAN (JP)
<PAGE>      PAGE  9
025 B000304 13-3224016
025 C000304 D
025 D000304    9034
025 A000305 DELETE
025 D000305       0
025 D000306       0
025 D000307       0
025 D000308       0
062 A000300 Y
062 B000300   0.0
062 C000300   2.9
062 D000300   0.0
062 E000300   0.0
062 F000300   0.0
062 G000300   0.0
062 H000300   0.5
062 I000300   8.2
062 J000300   0.0
062 K000300   0.0
062 L000300   1.4
062 M000300  24.9
062 N000300  21.5
062 O000300   0.0
062 P000300  26.3
062 Q000300  13.7
062 R000300   0.6
063 A000300   0
063 B000300 16.3
064 A000300 Y
064 B000300 N
070 A010300 Y
070 A020300 N
070 B010300 N
070 B020300 N
070 C010300 Y
070 C020300 Y
070 D010300 N
070 D020300 N
070 E010300 Y
070 E020300 Y
070 F010300 N
070 F020300 N
070 G010300 Y
070 G020300 Y
070 H010300 N
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 Y
<PAGE>      PAGE  10
070 K020300 N
070 L010300 Y
070 L020300 Y
070 M010300 Y
070 M020300 Y
070 N010300 Y
070 N020300 Y
070 O010300 Y
070 O020300 N
070 P010300 Y
070 P020300 Y
070 Q010300 N
070 Q020300 N
070 R010300 N
070 R020300 N
071 A000300    433574
071 B000300    524515
071 C000300   1418379
071 D000300   31
072 A000300 12
072 B000300   120249
072 C000300      599
072 D000300        0
072 E000300        0
072 F000300     8395
072 G000300        0
072 H000300       11
072 I000300        0
072 J000300      138
072 K000300        0
072 L000300        0
072 M000300        7
072 N000300        0
072 O000300        0
072 P000300        0
072 Q000300        0
072 R000300       30
072 S000300        0
072 T000300        0
072 U000300        0
072 V000300        0
072 W000300       14
072 X000300     8595
072 Y000300        0
072 Z000300   112253
072AA000300     9396
072BB000300        0
072CC010300    20434
072CC020300        0
072DD010300        0
072DD020300        0
<PAGE>      PAGE  11
072EE000300        0
073 A010300   0.0000
073 A020300   0.0000
073 B000300   0.0000
073 C000300   0.0000
074 A000300        0
074 B000300        0
074 C000300   210833
074 D000300  1498500
074 E000300     8989
074 F000300        0
074 G000300        0
074 H000300        0
074 I000300        0
074 J000300     5713
074 K000300        0
074 L000300    21866
074 M000300    39006
074 N000300  1784907
074 O000300    41408
074 P000300       22
074 Q000300        0
074 R010300        0
074 R020300        0
074 R030300        0
074 R040300   127823
074 S000300        0
074 T000300  1615654
074 U010300        0
074 U020300        0
074 V010300     0.00
074 V020300     0.00
074 W000300   0.0000
074 X000300        0
074 Y000300        0
075 A000300        0
075 B000300  1551723
076  000300     0.00
SIGNATURE   LESLIE L. OGG                                
TITLE       GENERAL COUNSEL     
 


<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER>  1
   <NAME>  GOVERNMENT  INCOME PORTFOLIO
<PERIOD-TYPE>                   	6-MOS
<FISCAL-YEAR-END>                          	MAY-31-1997
<PERIOD-END>                               	NOV-30-1996
<INVESTMENTS-AT-COST>                              1814207684		      
<INVESTMENTS-AT-VALUE>                           1868737176
<RECEIVABLES>                                        	15994484
<ASSETS-OTHER>                              	21439412
<OTHER-ITEMS-ASSETS>                                 	0
<TOTAL-ASSETS>                              	1906171072
<PAYABLE-FOR-SECURITIES>                             	22905816
<SENIOR-LONG-TERM-DEBT>                              	0
<OTHER-ITEMS-LIABILITIES>                      	31249425
<TOTAL-LIABILITIES>                            	54155241
<SENIOR-EQUITY>                                      	0
<PAID-IN-CAPITAL-COMMON>                    	0
<SHARES-COMMON-STOCK>                        	0
<SHARES-COMMON-PRIOR>                        	0
<ACCUMULATED-NII-CURRENT>                      	0
<OVERDISTRIBUTION-NII>                               	0
 <ACCUMULATED-NET-GAINS>                       	0
<OVERDISTRIBUTION-GAINS>                           	0
<ACCUM-APPREC-OR-DEPREC>                     	0
<NET-ASSETS>                                	1852015831
<DIVIDEND-INCOME>                             	0
<INTEREST-INCOME>                              	61724838
<OTHER-INCOME>                                       	0
<EXPENSES-NET>                                	4349753
<NET-INVESTMENT-INCOME>                       	57375085
<REALIZED-GAINS-CURRENT>                     	(260862)
<APPREC-INCREASE-CURRENT>                     	60825122
<NET-CHANGE-FROM-OPS>                        	96762583
<EQUALIZATION>                                       	0
<DISTRIBUTIONS-OF-INCOME>                   	0
<DISTRIBUTIONS-OF-GAINS>                             	0
<DISTRIBUTIONS-OTHER>                                	0
<NUMBER-OF-SHARES-SOLD>                       	0
<NUMBER-OF-SHARES-REDEEMED>                	0
<SHARES-REINVESTED>                            	0
<NET-CHANGE-IN-ASSETS>                       	1851975831
<ACCUMULATED-NII-PRIOR>                         	0
<ACCUMULATED-GAINS-PRIOR>                   	0
<OVERDISTRIB-NII-PRIOR>                              	0
<OVERDIST-NET-GAINS-PRIOR>                       	0
<GROSS-ADVISORY-FEES>                          	4254050 
<INTEREST-EXPENSE>                                   	0
<GROSS-EXPENSE>                                	4349753
<AVERAGE-NET-ASSETS>                        	1746014484
<PER-SHARE-NAV-BEGIN>                             	0
<PER-SHARE-NII>                                    	0
<PER-SHARE-GAIN-APPREC>                           	0
<PER-SHARE-DIVIDEND>                             	0
<PER-SHARE-DISTRIBUTIONS>                            	0
<RETURNS-OF-CAPITAL>                                 	0
<PER-SHARE-NAV-END>                               	0
<EXPENSE-RATIO>                                    	0
<AVG-DEBT-OUTSTANDING>                               	0
<AVG-DEBT-PER-SHARE>                                 	0
 



 

 




</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<NAME> HIGH YIELD PORTFOLIO
<PERIOD-TYPE>                   	12-MOS
<FISCAL-YEAR-END>                          	MAY-31-1997
<PERIOD-START>                             	JUN-10-1996
<PERIOD-END>                               	MAY-31-1997
<INVESTMENTS-AT-COST>                       	3070000308
<INVESTMENTS-AT-VALUE>                      	3178553781
<RECEIVABLES>                                 	92280534
<ASSETS-OTHER>                                       	       0
<OTHER-ITEMS-ASSETS>                                 	0
<TOTAL-ASSETS>                              	3270834315
<PAYABLE-FOR-SECURITIES>                       	70789519
<SENIOR-LONG-TERM-DEBT>                              	0
<OTHER-ITEMS-LIABILITIES>                       	980422
<TOTAL-LIABILITIES>                            	71769941
<SENIOR-EQUITY>                                      	0
<PAID-IN-CAPITAL-COMMON>                             	0
<SHARES-COMMON-STOCK>                                	0
<SHARES-COMMON-PRIOR>                                	0
<ACCUMULATED-NII-CURRENT>                            	0
<OVERDISTRIBUTION-NII>                               	0
<ACCUMULATED-NET-GAINS>                              	0
<OVERDISTRIBUTION-GAINS>                             	0
<ACCUM-APPREC-OR-DEPREC>                             	0
<NET-ASSETS>                                	3199064374
<DIVIDEND-INCOME>                             	18180667
<INTEREST-INCOME>                              	252458755
<OTHER-INCOME>                                       	0
<EXPENSES-NET>                                 	15629727
<NET-INVESTMENT-INCOME>                       	255009695 
<REALIZED-GAINS-CURRENT>                      	11905305
<APPREC-INCREASE-CURRENT>                     	42485867
<NET-CHANGE-FROM-OPS>                         	309400867
<EQUALIZATION>                                       	0
<DISTRIBUTIONS-OF-INCOME>                            	0
<DISTRIBUTIONS-OF-GAINS>                             	0
<DISTRIBUTIONS-OTHER>                                	0
<NUMBER-OF-SHARES-SOLD>                              	0
<NUMBER-OF-SHARES-REDEEMED>                          	0
<SHARES-REINVESTED>                                  	0
<NET-CHANGE-IN-ASSETS>                      	3199034374
<ACCUMULATED-NII-PRIOR>                              	0
<ACCUMULATED-GAINS-PRIOR>                            	0
<OVERDISTRIB-NII-PRIOR>                              	0
<OVERDIST-NET-GAINS-PRIOR>                           	0
<GROSS-ADVISORY-FEES>                          	15502709
<INTEREST-EXPENSE>                                   	0
<GROSS-EXPENSE>                                	15695175
<AVERAGE-NET-ASSETS>                        	2794433015
<PER-SHARE-NAV-BEGIN>                                	0
<PER-SHARE-NII>                                      	0
<PER-SHARE-GAIN-APPREC>                              	0
<PER-SHARE-DIVIDEND>                                 	0
<PER-SHARE-DISTRIBUTIONS>                            	0
<RETURNS-OF-CAPITAL>                                 	0
<PER-SHARE-NAV-END>                                  	0
<EXPENSE-RATIO>                                      	0
<AVG-DEBT-OUTSTANDING>                               	0
<AVG-DEBT-PER-SHARE>                                 	0
 



 

 




</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 1
   <NAME> QUALITY INCOME FUND
<PERIOD-TYPE>                          12-MOS
<FISCAL-YEAR-END>                                        MAY-31-1997
<PERIOD-START>                                          JUNE-10-1996
<PERIOD-END>                                             MAY-31-1997
<INVESTMENTS-AT-COST>                                      1688560923
<INVESTMENTS-AT-VALUE>                                     1718321998
<RECEIVABLES>                                                 5712652
<ASSETS-OTHER>                                               39006077
<OTHER-ITEMS-ASSETS>                                                0
<TOTAL-ASSETS>                                             1784904043
<PAYABLE-FOR-SECURITIES>                                     41408277
<SENIOR-LONG-TERM-DEBT>                                             0
<OTHER-ITEMS-LIABILITIES>                                   127844697
<TOTAL-LIABILITIES>                                         169252974
<SENIOR-EQUITY>                                                     0
<PAID-IN-CAPITAL-COMMON>                                            0
<SHARES-COMMON-STOCK>                                               0
<SHARES-COMMON-PRIOR>                                               0
<ACCUMULATED-NII-CURRENT>                                           0
<OVERDISTRIBUTION-NII>                                              0
<ACCUMULATED-NET-GAINS>                                             0
<OVERDISTRIBUTION-GAINS>                                            0
<ACCUM-APPREC-OR-DEPREC>                                            0
<NET-ASSETS>                                               1615654069
<DIVIDEND-INCOME>                                              598893
<INTEREST-INCOME>                                           120249224
<OTHER-INCOME>                                                      0
<EXPENSES-NET>                                                8595499
<NET-INVESTMENT-INCOME>                                     112252618
<REALIZED-GAINS-CURRENT>                                      9395624
<APPREC-INCREASE-CURRENT>                                    20434131
<NET-CHANGE-FROM-OPS>                                       142082373
<EQUALIZATION>                                                      0
<DISTRIBUTIONS-OF-INCOME>                                           0
<DISTRIBUTIONS-OF-GAINS>                                            0
<DISTRIBUTIONS-OTHER>                                               0
<NUMBER-OF-SHARES-SOLD>                                             0
<NUMBER-OF-SHARES-REDEEMED>                                         0
<SHARES-REINVESTED>                                                 0
<NET-CHANGE-IN-ASSETS>                                     1615624069
<ACCUMULATED-NII-PRIOR>                                             0
<ACCUMULATED-GAINS-PRIOR>                                           0
<OVERDISTRIB-NII-PRIOR>                                             0
<OVERDIST-NET-GAINS-PRIOR>                                          0
<GROSS-ADVISORY-FEES>                                         8395071
<INTEREST-EXPENSE>                                                  0
<GROSS-EXPENSE>                                               8595499
<AVERAGE-NET-ASSETS>                                       1418379346
<PER-SHARE-NAV-BEGIN>                                               0
<PER-SHARE-NII>                                                     0
<PER-SHARE-GAIN-APPREC>                                             0
<PER-SHARE-DIVIDEND>                                                0
<PER-SHARE-DISTRIBUTIONS>                                           0
<RETURNS-OF-CAPITAL>                                                0
<PER-SHARE-NAV-END>                                                 0
<EXPENSE-RATIO>                                                     0
<AVG-DEBT-OUTSTANDING>                                              0
<AVG-DEBT-PER-SHARE>                                                0


</TABLE>

KPMG Peat Marwick LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN  55402

Independent Auditors' Report on
Internal Accounting Control
The Board of Trustees and
Unitholders
Income Trust:
In planning and performing our
audits of the financial statements
of Government Income Portfolio,
High Yield Portfolio, and Quality
Income Portfolio (portfolios within
Income Trust) for the period from
June 10, 1996 (commencement of
operations) to May 31, 1997, we
considered their internal control
structure, including procedures 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
assurance on the internal control
structure.
The management of Income Trust is
responsible for establishing and
maintaining a
system of internal accounting
control.  In fulfilling this
responsibility, estimates and
judgments by management are
required to assess the expected
benefits and related costs
of internal control structure
policies and procedures. Two of the
objectives of an internal control
structure are to provide management
with reasonable, but not absolute,
assurance that assets are
safeguarded against loss from
unauthorized use or disposition and
that transactions are executed in
accordance with management's
authorization and recorded properly
to permit the preparation of
financial statements in conformity
with generally accepted accounting
principles.
Because of inherent limitations in
any internal control structure,
errors or irregularities may occur
and not be detected. Also,
projection of any evaluation of the
structure to future periods is
subject to the risk that it may
become inadequate because of
changes in conditions or that the
effectiveness of the design and
operation may deteriorate.
Our consideration of the internal
control structure would not
necessarily disclose all matters in
the internal control structure 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 the
specific internal
control structure elements does not
reduce to a relatively low level
the risk that errors or
irregularities 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
matter
involving the internal control
structure, including procedures for
safeguarding securities, that we
consider to be a material weakness
as defined above as of May 31,
1997.

This report is intended solely for
the information and use of
management and the Securities and
Exchange Commission.
KPMG Peat Marwick LLP

Minneapolis, Minnesota
June 3, 1997




© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission