INDEPENDENT AUDITORS' REPORT
Endowments:
In planning and performing our audit of the financial
statements of Endowments (the "Trust"), comprising the
Growth and Income Portfolio and the Bond Portfolio, for
the year ended July 31, 2000 (on which we have issued our
report dated September 1, 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, and not to provide assurance
on the Trust's internal control.
The management of the Trust 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 accounting
principles generally accepted in the United States of
America. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or
disposition.
Because of inherent limitations in any internal control,
misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of internal
control to future periods are subject to the risk that it
may become inadequate because of changes in conditions or
that the degree of compliance with policies or procedures
may deteriorate.
Our consideration of the Trust'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 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 the Trust's internal control
and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as
defined above as of July 31, 2000.
This report is intended solely for the information and use
of management, the Board of Trustees of Endowments, Inc.
and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than
these specified parties.
DELOITTE & TOUCHE LLP
Los Angeles, California
September 1, 2000
