Report of Ernst & Young LLP, Independent Auditors
To the Board of Trustees and Shareholders of
FEDERATED INTERMEDIATE MUNICIPAL TRUST:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Federated Short-Term
Municipal Trust (the "Trust"), as of June 30, 2000, and the related
statement of operations, the statement of changes in net assets, and
financial highlights for the year then ended. These financial
statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The
statement of changes in net assets for the year ended June 30, 1999 and
the financial highlights for each of the four years then ended were
audited by other auditors whose report dated August 27, 1999 expressed
an unqualified opinion on that statement and those financial highlights.
We conducted our audit in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights 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 June 30,
2000, 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 audit provides a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Federated Short-Term Municipal Trust, at June 30,
2000, the results of its operations for the year then ended, the changes
in its net assets, and the financial highlights for the year then ended,
in conformity with accounting principles generally accepted in the
United States.
ERNST & YOUNG LLP
Boston, Massachusetts
August 9, 2000
