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Report of Independent Auditors
The Board of Directors and Shareholders
EquiTrust Series Fund, Inc.
In planning and performing our audit of the financial statements of EquiTrust
Series Fund, Inc. for the year ended July 31, 2000, we considered its internal
control, including control activities for safeguarding securities, in order to
determining 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 internal control.
The management of EquiTrust Series Fund, Inc. 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 it may become inadequate because
of changes in conditions or that the effectiveness of the 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 errors 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 at July 31, 2000.
The report is intended solely for the information and use of the Board of
Directors and management of EquiTrust Series Fund, 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.
Ernst & Young LLP
August 31, 2000
