Report of Independent Auditors
To the Board of Trustees
New Covenant Funds
In planning and performing our audit of the financial statements of the
New Covenant Funds (the "Funds") for the year ended June 30, 2000, we
considered their 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 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 internal control. Generally, internal controls that are
relevant to an audit pertain to the Funds' 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 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 misstatements
caused by 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 trustees and management of the 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.
Philadelphia, Pennsylvania
August 16, 2000
