Fund for Government Investors
4922 Fairmont Avenue
Bethesda, Maryland 20814
To the Board of Directors of Fund for Government
Investors:
We are the auditors of Fund for Government Investors
(the Fund). Rushmore Trust and Savings, FSB (Rushmore
Trust), a related entity, is custodian of the Fund and
the Fund is therefore subject to the provisions of Rule
17f-2 under the Investment Company Act of 1940.
Accordingly, we have, without prior notice to the Fund
or to Rushmore Trust, accounted for the Fund's
investment securities held by Rushmore Trust as of the
close of business on June 30, 1998. It is understood
that this report is solely for the use of management
and for the information of the Securities and Exchange
Commission and should not be used for any other purpose.
Rushmore Trust, in addition to acting as custodian for
the Portfolios, is custodian for other customers.
Agents of Rushmore Trust hold, or account for by book
entry, securities that are the responsibility of
Rushmore Trust through custodial or trust agreements.
Securities held by agents of Rushmore Trust, while
identified by such agents as being deposited by Rushmore
Trust, cannot be identified by such agents as to the
specific customers of Rushmore Trust who have securities
included in such deposits.
Rushmore Trust confirmed to us that the portfolio
securities owned by the Fund on June 30, 1998 were held
for the account of Rushmore Trust by the Federal Reserve
Book Entry System (the Fed) as agent for Rushmore Trust.
We obtained confirmation from the Fed of the securities
held for the account of Rushmore Trust as of June 30, 1998.
We reviewed Rushmore Trust's reconciliation of the Fed's
confirmation to Rushmore Trust's internal records,
identifying securities held by the Fed as a part of Rushmore
Trust's aggregate security position with the Fed. We also
reviewed Rushmore Trust's records that show the owners of
the securities held by the Fed for the account of the
Rushmore Trust at June 30, 1998. We determined that these
securities, identified by such records as the property of
the Fund's Portfolios, were in agreement with the Fund's
records of securities owned at June 30, 1998. We also
agreed an analysis of portfolio transactions recorded
subsequent to December 31, 1997, the date of the last
audit of the financial statements, in the investment
accounts to supporting records and verified a sample
of portfolio security transactions to supporting records
and documentation.
Because the above procedures were not sufficient to
constitute an audit conducted in accordance with
generally accepted auditing standards, we do not express
an opinion on the investment accounts referred to above
as of the dates indicated. In connection with the
procedures referred to above, no matters came to our
attention that caused us to believe that the specified
accounts should be adjusted. Had we performed additional
procedures or had we conducted an audit of the financial
statements of the Fund in accordance with generally
accepted auditing standards, matters might have come to
our attention that would have been reported to you.
This report relates only to the investments specified
above and does not extend to the financial statements
of the Fund, taken as a whole for any date or period.
Deloitte & Touche LLP
Princeton, New Jersey
August 7, 1998
