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SIGNATURE PAUL BUCUVALAS
TITLE MANAGING DIRECTOR
Page
The Board of Trustees
Putnam Tax Exempt Income Fund
In planning and performing our audit of the financial
statements of Putnam Tax Exempt Income Fund for the year ended
September 30, 1999, we considered its 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 Putnam Tax Exempt Income Fund 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
irregularities may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risks that it may become inadequate
because of changes in conditions or that the effectiveness of
the 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 errors
or irregularities 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.
This report is intended solely for the information and use of
management, the Board of Trustees of Putnam Tax Exempt Income
Fund, and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than
these specified parties.
KPMG LLP
Boston, Massachusetts
November 10, 1999
July 16, 1999
Securities and
Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Sirs:
We have read the statements made by John D.
Hughes, Treasurer of The Putnam Funds (copy
attached), which we understand will be filed in
response to Sub-Item 77k of Form N-SAR and agree
with the statements concerning our firm
contained therein.
Very truly yours,
/s/ PricewaterhouseCoopers
July 12, 1999
Mr. B. Robert Rubin, Partner
PricewaterhouseCoopers LLP
One Post Office Square
Boston, Massachusetts 02109
Dear Mr. Rubin:
On June 3, 1999, the Audit and Pricing
Committee of the Putnam funds listed on the
attached Exhibit 1 voted to recommend to the
Trustees not to retain PricewaterhouseCoopers
LLP as the independent accountants for such
funds. The Trustees are expected to consider
this recommendation at their upcoming meeting in
July.
In accordance with the requirements of Item 304
of
Regulation S-K, please provide us with a letter
from your firm addressed to the Securities and
Exchange Commission stating your agreement with
the following:
1. On June 3, 1999, the Audit and Pricing
Committee
of the Putnam funds specified on
Exhibit 1 voted not to retain
PricewaterhouseCoopers LLP as the
funds' independent accountants. The
Trustees are expected to consider this
recommendation at their upcoming
meeting in July.
2. PricewaterhouseCoopers LLP's reports
on the funds'
financial statements for fiscal years
ended in 1997 and 1998 did not contain
an adverse opinion or a disclaimer of
opinion, nor were such reports
qualified or modified as to
uncertainty, audit scope or accounting
principles.
3. During the funds' fiscal years ended
in 1997 and
1998, and through the date hereof, (i)
there were no disagreements with
PricewaterhouseCoopers LLP on any
matter of accounting principles or
practices, financial statement
disclosure, or auditing scope or
procedure, which disagreements,
July 12, 1999 -2-
Mr. B. Robert Rubin, Partner
if not resolved to the satisfaction of
PricewaterhouseCoopers LLP, would have
caused it to make reference to the
subject matter of the
disagreement in its report on the
financial statements for such years
and (ii) there were no "reportable
events" as defined in paragraph (a)
(l) (v) of item 304 of Regulation S-K.
A copy of your letter will be filed with
the Securities and Exchange Commission along
with this letter as an exhibit to each fund's
next form N-SAR (in accordance with Sub-Item 77k
of form N-SAR).
Sincerely,
/s/ John D. Hughes
Treasurer of
The Putnam Funds
Exhibit 1
Trust/Fund 1940 Act
1933 Act
SEC File No:
Sec File No:
Putnam Growth Opportunities Fund 811-7237
33-56339
Putnam Investors Fund 811-159 2-
10783
Putnam Premier Income Trust 811-5452
33-19648
Putnam Research Fund 811-7237
33-56339
Putnam California Tax Exempt Income Fund
811-3630
2-81011
Putnam California Tax Exempt Money Market
811-5333
33-17211
Fund
Putnam Asia Pacific Growth Fund 811-6202 33-37528
Putnam Tax Exempt Income Fund 811-2675 2-57165
Putnam Convertible Income-Growth Trust 811-2280
2-43384
Putnam Global Growth Fund 811-1403 2-25258
Putnam Income Fund 811-653 2-11147
Putnam Managed Municipal Income Trust 811-5740
33-26292
Putnam Master Income Trust 811-5375 33-18169
Putnam Equity Income Fund 811-2742 2-58869
Putnam Growth & Income Fund II 811-7223 33-55979
Putnam High Yield Advantage Fund 811-4616 33-2710
Putnam Intermediate U.S. Government Income 811-6257
33-37991
Fund
Putnam Investment Grade Municipal Trust 811-5901
33-30934
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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Putnam Tax Exempt Income Fund
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<TOTAL-LIABILITIES> 28,972,554
<SENIOR-EQUITY> 0
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<OVERDIST-NET-GAINS-PRIOR> (26,309,481)
<GROSS-ADVISORY-FEES> 10,292,561
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 18,782,488
<AVERAGE-NET-ASSETS> 238,719,907
<PER-SHARE-NAV-BEGIN> 9.30
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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</TABLE>
