Securities and Exchange Commission
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 CRF 270.17f-2]
| 1. Investment Company Act File Number: 814-00098 |
Date examination completed: April 29, 2004 |
| 2. | State Identification Number: |
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PUERTO RICO |
Other (specify):
| 3. | Exact name of investment company as specified in registration statement: |
Equus II Incorporated
| 4. | Address of principal executive office:(number, street, city, state, zip code) |
2727 Allen Parkway, 13th Floor, Houston, Texas 77008
Management Statement Regarding Compliance with Certain Provisions of the Investment Company Act of 1940.
We, as members of management of Equus II Incorporated (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 April 29, 2004, and from January 6, 2004 through April 29, 2004.
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 April 29, 2004, and from January 6, 2004 through April 29, 2004, with respect to securities reflected in the investment account of the Company.
| Equus II Incorporated | ||
| By: | /s/ NOLAN LEHMANN | |
| Nolan Lehmann | ||
| Title |
President | |
Report of Independent Registered Public Accounting Firm
To the Board of Directors of
Equus II Incorporated
We have examined management’s assertion, included in the accompanying Management Statement Regarding Compliance with Certain Provisions of the Investment Company Act of 1940, about Equus II Incorporated’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 April 29, 2004. 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 conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) 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 April 29, 2004, and with respect to agreement of security purchases and sales, for the period from January 6, 2004 (the date of our last examination), through April 29, 2004:
| • | Count and inspection of all securities located in the vault of Frost National Bank (the “Custodian”) in San Antonio, Texas without prior notice to management; |
| • | Confirmation of all securities hypothecated, pledged, placed in escrow, or out for transfer with brokers, pledgees and/or transfer agents; and |
| • | Reconciliation of all such securities to the books and records of the Company and the Custodian. |
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 Equus II Incorporated was in compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of April 29, 2004 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 the Board of Directors, management, and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.
/s/ PricewaterhouseCoopers LLP
Houston, Texas
March 8, 2005