Report of Independent Auditors
Board of Directors and Shareholders
USLIFE Income Fund, Inc.
In planning and performing our audit of the financial statements of
USLIFE Income Fund, Inc. (the "Company") for the year ended June 30,
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 the Company 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 internal control. Generally, internal controls
that are relevant to an audit pertain to the Company's objective of
preparing financial statements for external purposes that are fairly
presented in conformity with accounting principles generally accepted in
the United States. Those internal controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in any 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 as of June 30, 2000.
This report is intended solely for the information and use of the board of
directors and management of USLIFE Income Fund, Inc. 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
Houston, Texas
July 19, 2000
