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:
811-05873 October 21, 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 MULTI INCOME 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 May 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 May 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 May 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
October 21, 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 May 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 May 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
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MASTER/FEEDER
MONEY MARKET PORTFOLIO
IFT - Money Market Portfolio February 1, 2002 - May 31, 2002
IFT - Cash Reserves February 1, 2002 - May 31, 2002
Money Fund February 1, 2002 - May 31, 2002
Templeton Money Fund II February 1, 2002 - May 31, 2002
US GOVERNMENT SECURITIES MMP
Federal Money Fund February 1, 2002 - May 31, 2002
IFT - US Gov't. Securities MMP February 1, 2002 - May 31, 2002
US GOVERNMENT ADJUSTABLE RATE MORTGAGE PORTFOLIO
FIST - Adjustable US Government Securities February 1, 2002- May 31, 2002
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES
Templeton Conservative Target Fund February 1, 2002 - May 31, 2002
Templeton Moderate Target Fund February 1, 2002 - May 31, 2002
Templeton Growth Target Fund February 1, 2002 - May 31, 2002
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
FTVIPT - Mutual Discovery Fund January 1, 2002 - May 31, 2002
FTVIPT - Mutual Shares Securities Fund January 1, 2002 - May 31, 2002
FRANKLIN INVESTOR SECURITIES TRUST
Franklin Total Return Fund February 1, 2002 - May 31,2002
Franklin Floating Rate Daily Access Fund February 1, 2002 -May 31, 2002
FRANKLIN FLOATING RATE TRUST February 1, 2002 - May 31, 2002
Franklin Gold and Precious Metals Fund December 1, 2001 - May 31, 2002
Franklin Capital Growth Fund December 1, 2001 - May 31, 2002
Franklin Multi-Income Trust December 1, 2001 - May 31, 2002