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: 
        811-05569                               June 15, 2003


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 UNIVERSAL 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 April 30, 2003.
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 April 30, 2003, 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 April 30, 2003 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
June 15, 2003






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 April 30, 2003 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 April 30, 2003 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 Value Investors Trust
      Franklin MicroCap Value Fund      February 1, 2003 - April 30, 2003
      Franklin Value Fund               February 1, 2003 - April 30, 2003
      Franklin Large Cap Growth Fund    February 1, 2003 - April 30, 2003
      Franklin Balance Sheet 
      Investment Fund                   February   1,  2003  - April 30, 2003

Franklin Investors Securities Trust
      Franklin Total Return Fund        February  1,  2003 -  April 30, 2003
      Franklin Floating Rate Daily 
      Access Fund                       February   1,  2003  - April 30, 2003
      Franklin Short Intermediate U.S. 
      Government Sec. Fund              February  1, 2003 - April 30, 2003
      Franklin Convertible Securities 
      Fund                              February   1,  2003  - April 30, 2003

Franklin Custodian Funds
      Franklin Growth Series            March 1,  2003 - April  30, 2003
      Franklin Utilities Series         March 1,  2003 - April  30, 2003
      Franklin Dyna Tech Series         March 1,  2003 - April  30, 2003
      Franklin Income Series            March 1,  2003 - April  30, 2003
      Franklin U.S. Government 
      Securities Fund                   March 1,  2003 - April 30, 2003

Franklin Gold and Precious Metals Fund  February   1,  2003  - April 30, 2003
Franklin Capital Growth Fund            February  1,  2003 -  April 30, 2003
Franklin Universal Trust                November  1,  2002 -  April 30, 2003
Franklin Strategic Mortgage Portfolio   November   1,  2002  - April 30, 2003
Franklin Floating Rate Trust            February  1,  2003 -  April 30, 2003