Report of Independent Accountants
To the Board of Directors and Shareholders of
Keyco Bond Fund, Inc.:
In planning and performing our audit of the financial statements
of Keyco Bond Fund, Inc. (the
"Fund") for the year ended September 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 September 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.
/S/ PricewaterhouseCoopers LLP
October 20, 2000
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