U.S. 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 N-17F-2
1. Investment Company Act File Number: Date Examination completed:
811-08271 April 22, 2002
2. State Identification Number:
AL AK AZ AR CA CO
CT DE DC FL GA HI
ID IL IN IA KS KY
LA ME MD MA MI MN
MS MO MT NE NV NH
NJ NM NY NC ND OH
OK OR PA RI SC SD
TN TX UT VT VA WA
WV WI WY PUERTO RICO
3. Exact name of investment company as specified in registration statement:
FRANKLIN FLOATING RATE TRUST
4. Address of principal executive office: (number, street, city, state, zip
code)
One Franklin Parkway San Mateo, CA 94403
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of:
The Franklin Templeton Funds:
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Investment Company
Act of 1940, that the funds in Attachment I (hereafter referred to as the
"Funds") complied 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, 2002.
Management is responsible for the Funds' compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the
Funds' compliance based on our examination.
Our examination was made in accordance with attestation standards established by
the American Institute of Certified Public Accountants and, accordingly,
included examining, on a test basis, evidence about the Funds' 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, 2002, and with respect to agreement of
security purchases and sales, for the periods indicated:
o Inspection of the records of Franklin/Templeton Investors Services,
Inc. as they pertain to the security positions owned by the Funds and
held in book entry form.
o Reconciliation of such security positions to the books and records
of the Funds.
o Agreement of a sample of security purchases and sales since our
last report to the books and records of the Funds.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination of the Funds' compliance with
specified requirements.
In our opinion, management's assertion that the Funds were 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, 2002 with respect to securities reflected
in the investment accounts of the Funds are fairly stated, in all material
respects.
This report is intended solely for the information and use of management and the
Board of Directors 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
PricewaterhouseCoopers LLP
San Francisco, California
April 22, 2002
MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH CERTAIN PROVISIONS OF THE
INVESTMENT COMPANY ACT OF 1940
We, as members of management of Franklin Templeton Funds indicated in Attachment
I (the "Funds"), 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
Funds' compliance with the requirements of subsections (b) and (c) of Rule 17f-2
as of January 31, 2002 and for the periods indicated.
Based on this evaluation, we assert that the Funds were in compliance with the
requirements of subsection (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of January 31, 2002 and for the periods indicated with respect to
securities reflected in the investment accounts of the Funds.
By:
/s/ Kimberly H. Monasterio
-----------------------------------
Kimberley H. Monasterio
Principal Accounting Officer
ATTACHMENT I
FUND PERIOD COVERED
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
Franklin Strategic Income Investments Fund October 1, 2001 - January 31, 2002
Franklin S&P 500 Index Fund October 1, 2001 - January 31, 2002
Franklin Global Health Care Securities Fund October 1, 2001 - January 31, 2002
Franklin Value Securities Fund October 1, 2001 - January 31, 2002
Franklin Rising Dividends Fund October 1, 2001 - January 31, 2002
Franklin Small Cap Fund October 1, 2001 - January 31, 2002
Franklin Aggressive Growth Fund October 1, 2001 - January 31, 2002
Franklin Technology Fund October 1, 2001 - January 31, 2002
Franklin Templeton Asset Strategy Securities
Fund December 1, 2001 - January 31, 2002
Franklin Templeton International Securities
Fund December 1, 2001 - January 31, 2002
FRANKLIN STRATEGIC SERIES
Franklin Aggressive Growth Fund December 1, 2001 - January 31, 2002
Franklin Large Cap Growth Fund December 1, 2001 - January 31, 2002
Franklin US Long-Short Fund December 1, 2001 - January 31, 2002
Franklin Natural Resources Fund December 1, 2001 - January 31, 2002
Franklin Biotechnology Discovery Fund December 1, 2001 - January 31, 2002
Franklin Blue Chip Fund December 1, 2001 - January 31, 2002
Franklin Global Health Care Fund December 1, 2001 - January 31, 2002
Franklin Global Communications Fund December 1, 2001 - January 31, 2002
Franklin Strategic Income Fund December 1, 2001 - January 31, 2002
Franklin California Growth Fund December 1, 2001 - January 31, 2002
Franklin Technology Fund December 1, 2001 - January 31, 2002
Franklin Small Cap Growth Fund II December 1, 2001 - January 31, 2002
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES
Franklin Templeton Conservative Target Fund December 1, 2001 - January 31, 2002
Templeton Moderate Target Fund December 1, 2001 - January 31, 2002
Franklin Templeton Growth Target Fund December 1, 2001 - January 31, 2002
FRANKLIN VALUE INVESTORS TRUST
Franklin MicroCap Value Fund December 1, 2001 - January 31, 2002
Franklin Value Fund December 1, 2001 - January 31, 2002
Franklin Large Cap Value Fund December 1, 2001 - January 31, 2002
FRANKLIN INVESTORS SECURITIES TRUST
Franklin Total Return Fund December 1, 2001 - January 31, 2002
Franklin Floating Rate Daily Access Fund December 1, 2001 - January 31, 2002
MASTER/FEEDER
MONEY MARKET PORTFOLIO
IFT - Money Market Portfolio August 1, 2001 - January 31, 2002
IFT - Cash Reserves August 1, 2001 - January 31, 2002
Money Fund August 1, 2001 - January 31, 2002
Templeton Money Fund II August 1, 2001 - January 31, 2002
U.S. GOVERNMENT SECURITIES MMP
Federal Money Fund August 1, 2001 - January 31, 2002
IFT - US Government Securities MMP August 1, 2001 - January 31, 2002
U.S. GOVERNMENT ADJUSTABLE RATE MORTGAGE PORTFOLIO
FIST - Adjustable US Government Securities November 1, 2001 - January 31, 2002
Franklin Floating Rate Trust December 1, 2001 - January 31, 2002
Franklin Real Estate Securities Fund November 1, 2001 - January 31, 2002