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Ernst & Young LLP
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REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Board of Trustees of Liberty Funds Trust I
In planning and performing our audit of the financial statements of Liberty
Tax-Managed Growth Fund II (formerly, Stein Roe Advisor Tax Managed Growth Fund
II and Liberty Tax Managed Aggressive Growth Fund (collectively, the "Funds")
(two of a series constituting Liberty Funds Trust I [the "Trust"]), for the
period ended October 31, 2000, we considered the Funds' 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 Trust 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, controls that are relevant to an audit pertain to
the Trust'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 any internal control, error 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 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 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
October 31, 2000.
This report is intended solely for the information and use of management and the
Board of Trustees of Liberty Funds Trust I and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone other than
these specified parties.
Boston, Massachusetts
December 14, 2000
