Report of Independent Auditors
To the Shareholders and
Board of Directors of
Alliance Institutional Funds
In planning and performing our audit of the financial statements of
Alliance Institutional Funds (comprising, respectively, of the Alliance
Premier Growth Institutional Fund, Alliance Quasar Institutional Fund,
Alliance Real Estate Investment Institutional Fund and Alliance
International Premier Growth Institutional Fund) for the year ended
October 31, 2000, we considered its internal control, including control
activities for safeguarding securities, to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, and not to
provide assurance on internal control.
The management of Alliance Institutional Funds is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of control. Generally,
internal controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those internal controls include the safeguarding of assets
against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, misstatements due to
errors or fraud may occur and not be detected. Also, projections of any
evaluation of internal control to future periods are subject to the risk
that internal control may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the specific internal control components does
not reduce to a relatively low level the risk that errors or fraud in
amounts that would be material in relation to the financial statements
being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions.
However, we noted no matters involving internal control, including
control activities for safeguarding securities, and its operation that we
consider to be material weaknesses as defined above at October 31, 2000.
This report is intended solely for the information and use of the Board
of Directors and management of Alliance Institutional Funds, and the
Securities and Exchange Commission and is not intended to be and should
not be used by anyone other than these specified parties.
ERNST & YOUNG LLP
December 15, 2000
