Independent Auditor's Report
To the Board of Directors of
Matthew 25 Fund, Inc.
We have examined management's assertion about Matthew 25 Fund, Inc.'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 December 11, 2000 included
in the accompanying Management Statement Regarding compliance with Certain
Provisions of the Investment Company Act of 1940. 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 made in accordance with standards established by the
American Institute of Certified Public Accountants 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 circumstance. Included among our procedures were the following tests
performed as of December 11, 2000, and with respect to agreement of security
purchases and sales, for the period from October 16, 2000 (the date of last
examination) through December 11, 2000:
* Count and inspection of all securities located in the vault of Abington Bank
in Jenkintown, PA without prior notice to management;
* Reconciliation of all such securities to the books and records of the
Company and Abington Bank;
* Agreement of four security purchases and six security sales or maturities
since the last report from the books and records of the Company
to broker confirmations.
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 Matthew 25 Fund, Inc. was in
compliance with the requirements of subsections (b) and (c) of Rule 17f-2
of the Investment Company Act of 1940 as of December 11, 2000 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 management of
Matthew 25 Fund, Inc. and the Securities and Exchange Commission and should
not be used for any other purpose.
Abington, Pennsylvania
/s/ Sanville & Company
December 12, 2000
Certified Public Accountants
