Report of Independent Accountants
To the Board of Directors of IAA Trust Company Mutual Funds
In planning and performing our audit of the financial statements of IAA Trust
Company Mutual Funds (the "Fund") (comprising, respectively, the IAA Trust
Growth Fund, Inc., the IAA Trust Asset Allocation Fund, Inc., the IAA Trust
Tax Exempt Bond Fund, Inc., and the IAA Trust Taxable Fixed Income Series
Fund, Inc. which includes the IAA Trust Money Market Series (formerly known
as the IAA Trust Money Market Fund, Inc.), the IAA Trust Short-Term
Government Bond Series and the IAA Trust Long-Term Bond Series) for the
year ended June 30, 2000, 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 the 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 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 June 30,
2000.
This report is intended solely for the information and use of the Board
of Directors, management and the Securities and Exchange Commission and
is not intended to be and should not be used by anyone other than these
specified parties.
PRICEWATERHOUSECOOPERS L.L.P.
August 10, 2000
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