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SIGNATURE GERARD J. FENERTY
TITLE TREASURER
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<SHARES-COMMON-STOCK> 9,594,774
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<PAGE>
[LETTERHEAD FOR DELOITTE & TOUCHE LLP]
INDEPENDENT AUDITORS' REPORT
To the Directors of
The GNMA Fund Accumulation Program, Inc.:
In planning and performing our audit of the financial statements of The GNMA
Fund Accumulation Program, Inc. (the "Program") for the year ended December 31,
1998 (on which we have issued our report dated February 23, 1998), 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, and not to provide assurance on the Program's internal control.
The management of the Program 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 any 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 it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the Program's 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 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 the Program's
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1998.
This report is intended solely for the information and use of management, the
Board of Directors of The GNMA Fund Accumulation Program, Inc., and the
Securities and Exchange Commission.
/s/ Deloitte & Touche LLP
February 23, 1998
