Baird, Kurtz & Dobson
City Center Square
1100 Main Street, Suite 2700
Kansas City, MO 64105-2112
816-221-6300 Fax 816-221-6380
www.bkd.com
Independent Accountants' Report
To the Board of Directors of
UMB Scout Balanced Fund, Inc.
and
the Securities and Exchange Commission:
RE: UMB Scout Balanced Fund, Inc.
Form N-17f-2
File Number 811-7323
We have examined management's assertion about UMB SCOUT BALANCED
FUND, INC.'s (the "Company's") compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 under the Investment Company Act
of 1940 (the "Act") as of January 31, 2000, included in the
accompanying Management Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940. Management is
responsible for the Company's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion
about the Company'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
Company'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 January
31, 2000, with respect to securities of UMB SCOUT BALANCED FUND, INC.,
without prior notice to management:
- - Confirmation of all securities held by the Federal Reserve Bank
of Kansas City, The Depository Trust Company, Participants
Trust Company, Brown Brothers Harriman & Co. and Euroclear in
book entry form;
- - Reconciliation of all such securities to the books and records
of the Company and the Custodian;
- - Confirmation of all repurchase agreements with brokers/banks
and agreement of underlying collateral with custodian records.
We believe that our examination provides a reasonable basis for our
opinion. Our examination does not provide a legal determination on
the Company's compliance with specified requirements.
In our opinion, management's assertion that UMB SCOUT BALANCED
FUND, INC. was in compliance with the requirements of subsections (b)
and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of
January 31, 2000 with respect to securities reflected in the
investment account of the Company is fairly stated, in all material
respects.
This report is intended solely for the information and use of
management of UMB SCOUT BALANCED FUND, INC. and the Securities and
Exchange Commission and is not intended to be and should not be used
by anyone other than these specified parties.
BAIRD, KURTZ & DOBSON
Kansas City, Missouri
April 10, 2000
Member of
Moores
Rowland
International
<PAGE>
Washington, D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar Investments
in the Custody of Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
1. Investment Company Act File Number: Date examination completed:
811-7323 January 31, 2000
2. State Identification Number:
AL *
AK 00
02059
AZ S-0047437-
QUAL
AR 95-
M0973-01
CA 309-
0435
CO IC-96-
11-035
CT SI45571
DE 8679
DC *
FL *
GA 56-
002875
HI *
ID 48840
IL 9943802
IN 95-0552-IC
IA I-35040
KS
96S0001317
KY M34790
LA 59136
ME 0-6826
MD SM980020
MA 989285
MI 227112
MN R-
38561.1
MS MF-98-
01-007
MO 1995-
00972
MT 33980
NE 30114
NV *
NH *
NJ *
NM 695880
NY S 27 53 18
NC *
ND U 556
OH 17500
OK SE-
321497
OR 98-0080
PA 95-10-
030MF
RI *
SC MF11224
SD 12178
TN RM98-
3640
TX C 48752
UT 006-6364-
13
VT
1/16/98-
20
VA 2611
WA C-
57914-e
WV MF-24124
WI 341391-
03
WY 20512
PUERTO RICO
Other (specify):
*Indicates Fund is registered in state but state does not issue
identification numbers
Securities in the UMB Scout Funds Combined Prospectus included on
one Notice Filing (Balanced Fund, Bond Fund, Capital Preservation
Fund, Kansas Tax-Exempt Bond Fund, Money Market Fund, Regional Fund,
Stock Fund, Stock Select Fund, Tax-Free Money Market Fund, Worldwide
Fund, Worldwide Select Fund)
3. Exact name of investment company as specified in registration
statement:
UMB Scout Balanced Fund, Inc.
4. Address of principal executive office: (number, street, city, state,
zip code)
700 Karnes Boulevard, BMA Tower, Kansas City, Missouri 64108
INSTRUCTIONS
This Form must be completed by the investment companies that have custody of
securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law. File the
original and one copy with the Securities and Exchange Commission's
principal office in Washington, D.C., one copy with the regional office for
the region in which the investment company's principal business operations
are conducted, and one copy with the appropriate state administrator(s), if
applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
Note: The estimated average burden hours are made solely for purposes of the
Paperwork Reduction Act, and are not derived from a comprehensive or even a
representative survey or study of the costs of SEC rules and forms. Direct
any comments concerning the accuracy of the estimated average burden hours for
compliance with SEC rules and forms to Kenneth A. Fogash, Deputy Executive
Director, U.S. Securities and Exchange Commission, 450 Fifth Street, N.W.,
Washington, D.C. 20549 and Gary Waxman, Clearance Officer, Office of
Management and Budget, Room 3208 New Executive Office Building, Washington,
D.C. 20503.
<PAGE>
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of UMB Scout Balanced Fund, Inc.
(the "Company"), are responsible for complying with the
requirements of subsections (b) and (c) of Rule 17F-2, "Custody
of Investments by Registered Management Investment 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 Company's compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 as of January 31, 2000 and
from June 30, 1999 through January 31, 2000.
Based on this evaluation, we assert that the Company was in
compliance with the requirements of subsections (b) and (c) of
Rule 17f-2 of the Investment Company Act of 1940 as of January
31, 2000 and from June 30, 1999 through January 31, 2000, with
respect to securities reflected in the investment account of the
Company.
UMB SCOUT BALANCED FUND, INC.
By /s/Ralph R. Santoro
Ralph R. Santoro, Senior Vice President
