Report of Independent Auditors
Board of Directors
of First American Funds, Inc.
In planning and performing our audits of the financial
statements of First American Funds, Inc. (the "Funds")
for the year ended September 30, 2000, we considered
its internal control, including control activities for
safeguarding securities, 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 internal control.
The management of the Funds 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 internal control. Generally,
internal controls that are relevant to an audit pertain
to the Funds' objective of preparing financial statements
for external purposes that are fairly presented in
conformity with accounting principles generally accepted
in the United States. Those internal controls include
the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in any internal
control, misstatements due to errors 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 internal control may become inadequate because
of changes in conditions, or that the degree of
compliance with the policies or procedures 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 specific 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, including control activities for
safeguarding securities, and its operation
that we consider to be material weaknesses as defined
above as of September 30, 2000.
This report is intended solely for the information and
use of the Board of Directors and management of First
American Funds, 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.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
November 3, 2000
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