40-17F2 1 c18281de40v17f2.txt FORM N-17F-2 -------------------------- OMB APPROVAL -------------------------- OMB Number: 3235-0360 Expires: July 31, 2009 Estimated average burden hours per response.....2.1 -------------------------- UNITED STATES 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 CFR 270.17f-2] -------------------------------------------------------------------------------- 1. Investment Company Act File Number: Date examination completed: 811-499 August 20, 2007 -------------------------------------------------------------------------------- 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 Other (specify): -------------------------------------------------------------------------------- 3. Exact name of investment company as specified in registration statement: RiverSource Income Series, Inc. -------------------------------------------------------------------------------- 4. Address of principal executive office (number, street, city, state, zip code): 50606 Ameriprise Financial Center, Minneapolis, MN 55474 -------------------------------------------------------------------------------- INSTRUCTIONS This Form must be completed by 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 l7f-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 SEC 2198 (10-03) REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of RiverSource Income Series, Inc.: 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 RiverSource Income Builder Basic Income Fund, RiverSource Income Builder Moderate Income Fund, and RiverSource Income Builder Enhanced Income Fund of RiverSource Income Series, Inc. (the Funds) complied with the provisions of subsection (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940 as of May 31, 2007 and during the period from January 31, 2007 (the date of our last examination) through May 31, 2007. Management is responsible for the Funds' compliance with those provisions. 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 standards established by the Public Company Accounting Oversight Board (United States) 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, 2007 and the period from January 31, 2007 through May 31, 2007, with respect to securities transactions: - Reconciliation of all such securities from the books and records of the Funds to the transfer agent; - Test of selected security transactions; and - Examination of underlying documentation of all securities, if any, purchased but not received, with the transfer agent. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Funds' compliance with the specified requirements. In our opinion, management's assertion that the Funds were in compliance with the above mentioned provisions of Rule 17f-2 of the Investment Company Act of 1940 as of May 31, 2007 and for the period from January 31, 2007 through May 31, 2007 is fairly stated in all material respects. This report is intended solely for the information and use of management of the Funds and the Securities and Exchange Commission and should not be used for any other purpose and is not intended to be and should not be used by anyone other than these specified parties. KPMG LLP Minneapolis, MN August 20, 2007 MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH CERTAIN PROVISIONS OF THE INVESTMENT COMPANY ACT OF 1940 We, as members of management of RiverSource Income Builder Basic Income Fund, RiverSource Income Builder Moderate Income Fund, and RiverSource Income Builder Enhanced Income Fund of RiverSource Income Series, Inc. (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, 2007 and from January 31, 2007 through May 31, 2007. Based on this evaluation, we assert 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, 2007 and from January 31, 2007 through May 31, 2007, with respect to securities reflected in the investment account of the Funds. AMERIPRISE FINANCIAL, INC. By: /s/ Jeffrey P. Fox ------------------------------------ Jeffrey P. Fox, Vice President-Investment Accounting