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<PAGE> PAGE 10
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<PAGE> PAGE 11
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SIGNATURE KELLY O'NEILL
TITLE COMPLIANCE ADM.
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000353312
<NAME> IAA TRUST TAXABLE INCOME SERIES FUND, INC.
<SERIES>
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<NAME> IAA TRUST LONG-TERM BOND FUND
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<S> <C>
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</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
IAA Trust Company Mutual Funds
In planning and performing our audit of the financial statements and
financial highlights of the IAA Trust Company Mutual Funds (the "Fund")
(comprising, respectively, the IAA Trust Growth Fund, Inc., the IAA
Trust Asset Allocation Fund, Inc., the IAA Trust Tax Exempt Bond Fund,
Inc., and the IAA Trust Taxable Fixed Income Series Fund, Inc. which
includes the IAA Trust Money Market Series (formerly known as the IAA
Trust Money Market Fund, Inc.), the IAA Trust Short-Term Government
Bond Series and the IAA Trust Long-Term Bond Series) for the year
ended June 30, 1999, we considered its internal control, including
control over safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and financial highlights and to comply with the requirements
of Form N-SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and
judgements 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 Fund's objective of preparing financial statements
and financial highlights 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 controls, errors or fraud may
occur and may 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 any
specific internal control component 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 and financial highlights 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, including controls over safeguarding
securities that we consider to be material weaknesses as defined above as of
June 30, 1999.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
PRICEWATERHOUSE COOPERS L.L.P.
August 6, 1999
