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SIGNATURE C. H. SHEPHERD
TITLE SECRETARY
To the Board of Directors
Alterman Investment Fund, Inc.
Atlanta, Georgia
In planning and performing our audit of the financial statements of ALTERMAN
INVESTMENT FUND, INC. for the year ended April30, 1997, we considered its
internal control structure, including procedures 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, but not to provide assurance on the internal control structure.
The management of ALTERMAN INVESTMENT FUND, INC. is responsible for establishing
and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure 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 the internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements 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 the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
April30, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
BIRNBREY, MINSK & MINSK LLC
Atlanta, Georgia
June 9, 1997
ITEM 77Q2
Based upon a review of Forms 3, 4 or 5, or written representations that
no Form 5 was required, furnished to Registrant by its directors, officers
subject to the provisions of Section 16 of the Securities Exchange Act of 1934,
as amended ( the "Exchange Act") and persons holding ten percent (10%) or more
of the outstanding Common Stock of Registrant, Registrant believes that all
filing requirements of such persons under Section 16 of the Exchange Act during
the fiscal year ended April 30, 1997 have been satisfied.
<TABLE> <S> <C>
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL INFORMATION CONTAINED IN THIS FORM N-SAR AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION
</LEGEND>
<CIK> 0000315127
<NAME> Alterman Investment Fund, Inc.
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