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SIGNATURE RODD M. BAXTER
TITLE SECRETARY
EXHIBIT 77K
SG COWEN STANDBY TAX EXEMPT RESERVE FUND, INC.
CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
.
1. On May 5, 1999, based upon the recommendation of the Audit
Committee of the Registrant's Board of Directors, and in accordance
with Section 32 of the Investment Company Act of 1940, as amended,
and the rules thereunder, the Board of Directors determined not to
retain Ernst & Young LLP, as the Registrant's independent accountants
and voted to appoint KPMG LLP as the Registrant's independent
accountants for the fiscal year ending September 30, 1999.
2. During the Registrant's two most recent fiscal years ending
September 30, 1998, Ernst & Young reports on the Registrant's financial
statements contained no adverse opinion or disclaimer of opinion,
nor were they qualified or modified as to uncertainty, audit scope, or
accounting principles.
3. During the Registrant's two most recent fiscal years ended
September 30, 1998 there were no disagreements with Ernst & Young
LLP on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which
disagreements if not resolved to the satisfaction of Ernst & Young
LLP, would have caused it to make reference to the subject matter
of the disagreement in connection with its report.
4. During the Registrant's two most recent fiscal years, there
have been no "reportable events" as such term is described in Item
304(a)(1)(v) of Regulation S-K with respect to Ernst & Young LLP.
5. On May 5, 1999, the Registrant engaged KPMG LLP as its
principal accountants to audit the Registrant's financial statements.
During the Registrant's two most recent years through May 5, 1999,
the Registrant has not consulted with KPMG LLP on items which (i)
concerned the application of accounting principles to a specified
transaction, wither completed or proposed, or the type of audit
opinion that might be rendered on the Registrant's financial
statements or (ii) concerned the subject matter of a disagreement
or reportable event with Ernst & Young LLP.
6. The Registrant has requested Ernst & Young LLP to furnish it
with a lettr addressed to the Securities and Exchange Commission
stating whether Ernst & Young LLP agrees with the statements
contained in the second, third and fourth paragraphs above. A
copy of the letter from Ernst & Young LLP to the Securities
and Exchange Commission is filed as Annex I hereto.
EXHIBIT 77K
SG COWEN STANDBY TAX EXEMPT RESERVE FUND, INC.
CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
.
1. On May 5, 1999, based upon the recommendation of the Audit
Committee of the Registrant's Board of Directors, and in accordance
with Section 32 of the Investment Company Act of 1940, as amended,
and the rules thereunder, the Board of Directors determined not to
retain Ernst & Young LLP, as the Registrant's independent accountants
and voted to appoint KPMG LLP as the Registrant's independent
accountants for the fiscal year ending September 30, 1999.
2. During the Registrant's two most recent fiscal years ending
September 30, 1998, Ernst & Young reports on the Registrant's financial
statements contained no adverse opinion or disclaimer of opinion,
nor were they qualified or modified as to uncertainty, audit scope, or
accounting principles.
3. During the Registrant's two most recent fiscal years ended
September 30, 1998 there were no disagreements with Ernst & Young LLP
on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which
disagreements if not resolved to the satisfaction of Ernst & Young
LLP, would have caused it to make reference to the subject matter
of the disagreement in connection with its report.
4. During the Registrant's two most recent fiscal years, there
have been no "reportable events" as such term is described in Item
304(a)(1)(v) of Regulation S-K with respect to Ernst & Young LLP.
5. On May 5, 1999, the Registrant engaged KPMG LLP as its
principal accountants to audit the Registrant's financial statements.
During the Registrant's two most recent years through May 5, 1999,
the Registrant has not consulted with KPMG LLP on items which (i)
concerned the application of accounting principles to a specified
transaction, wither completed or proposed, or the type of audit
opinion that might be rendered on the Registrant's financial
statements or (ii) concerned the subject matter of a disagreement
or reportable event with Ernst & Young LLP.
6. The Registrant has requested Ernst & Young LLP to furnish it
with a lettr addressed to the Securities and Exchange Commission
stating whether Ernst & Young LLP agrees with the statements
contained in the second, third and fourth paragraphs above. A
copy of the letter from Ernst & Young LLP to the Securities
and Exchange Commission is filed as Annex I hereto.
(On Ernst & Young LLP letterhead)
May 12, 1999
Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Gentlemen:
We have read statements numbered two, three and four in the attached letter
from the SG Cowen Standby Reserve Fund, Inc. and the SG Cowen Standby Tax
Exempt Reserve Fund, Inc. which we understand will be filed with the
Commission, pursuant to Item 77K of Form N-SARs, as an annex to the Funds'
Form N-Sar report for the six months ended March 31, 1999. We agree with
the statements referenced above concerning our Firm in such form N-SAR.
Very truly yours,
/s/Ernst & Young LLP
_____________________
Ernst & Young LLP
