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<PAGE> PAGE 8
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SIGNATURE KEVIN MCGANN
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<S> <C>
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INDEPENDENT AUDITOR'S REPORT
To The Board of Directors and Shareholders
Tep Fund, Inc.
New York, New York 10016
We have audited the accompanying statements of net assets of Tep Fund, Inc.,
as of November 30, 1999 and 1998, including the portfolio of investments in
tax-exempt securities as of November 30, 1999, and the related statements of
operations and changes in net assets for each of the two years then ended,
and the selected per share data and ratios for the years ended November 30,
1999, 1998, 1997, 1996 and 1995. These financial statements and per share data
and ratios are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and per share data and
ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and per
share data and ratios are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of November 30, 1999, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and selected per share data and
ratios referred to above present fairly, in all material respects, the
financial position of Tep Fund, Inc. as of November 30, 1999 and 1998, the
results of its operations and changes in its net assets for each of the
years then ended, and the selected per share data and ratios for the years
ended November 30, 1999, 1998, 1997, 1996 and 1995 in conformity with
generally accepted accounting principles.
PUSTORINO, PUGLISI & CO., LLP
New York, New York
January 5, 2000
