June 19, 2000
To the Board of Directors of Reserve Investment Funds, Inc. and
Shareholders of Government Reserve Investment Fund and Reserve
Investment Fund
In planning and performing our audits of the financial statements
of Government Reserve Investment Fund and Reserve Investment Fund
(hereafter referred to as the "Funds") for the year ended May 31,
2000, we considered their internal control, including control
activities for safeguarding securities, in order 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, not to provide assurance on internal
control.
The management of the 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 controls. Generally,
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 controls include the safeguarding
of assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud
may occur and not be detected. Also, projection of any evaluation
of internal control to future periods is subject to the risk that
controls may become inadequate because of changes in conditions
or that the effectiveness of their design and
operation 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 internal control components does
not reduce to a relatively low level the risk that misstatements
caused by error 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 and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses as
defined above as of May 31, 2000.
This report is intended solely for the information and use of management,
the Board of Directors of Reserve Investment Funds, Inc., and the
Securities and Exchange Commission and is not intended to be
and should not be used by anyone other then these specified parties.
PRICEWATERHOUSECOOPERS
PricewaterhouseCoopers LLP
Baltimore, Maryland
