To the Audit Committee of the Board of Trustees of
Fund for Government Investors:
We have examined management's assertion about Fund for
Government Investors' (the Fund's) compliance with the
requirements of subsections (b) and (c) of Rule 17f-2
under the Investment Company Act of 1940 (the Act) as
of July 19, 1999, included in the accompanying
Management Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940.
Management is responsible for the Fund's compliance
with those requirements. Our responsibility is to
express an opinion on management's assertion about the
Fund's compliance based on our examination.
Our examination was made in accordance with standards
established by the American Institute of Certified
Public Accountants and, accordingly, included examining,
on a test basis, evidence about the Fund's compliance
with those requirements and performing such other
procedures as we considered necessary in the
circumstances. Included among our procedures were the
following tests performed as of July 19, 1999, and
with respect to agreement of security purchases and
sales, for the period from December 31, 1998, the date
of our last audit, through July 19, 1999:
* Confirmation of all securities held by Rushmore Trust
and Savings, FSB (Rushmore Trust) in book entry form
for the account of the Fund;
* Confirmation from Rushmore Trust that the securities
held for the account of the Fund were held for the account
of Rushmore Trust by the Federal Reserve Book Entry System
(the Fed), as agent for Rushmore Trust;
* Confirmation with the Fed of all securities held by the
Fed in book entry form for the account of Rushmore Trust;
* Confirmation with brokers that all purchases and sales
outstanding were in agreement with the Fund's records;
* Reconciliation of all such securities to the books and
records of the Rushmore Trust and the Fund;
* Agreement of selected security purchases and security
sales since our last report from the books and records of
the Fund to broker confirmations.
We believe that our examination provides a reasonable basis
for our opinion. Our examination does not provide a legal
determination on the Fund's compliance with specified
requirements.
In our opinion, management's assertion that Fund for
Government Investors was in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2
of the Investment Company Act of 1940 as of July 19,
1999 with respect to securities reflected in the
investment account of the Fund is fairly stated, in
all material respects.
This report is intended solely for the information and use
of management of Fund for Government Investors, and the
Securities and Exchange Commission and is not intended to
be and should not be used by anyone other than these
specified parties.
Deloitte & Touche LLP
Princeton, New Jersey
August 6, 1999
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of Fund for Government
Investors (the Fund), are responsible for complying
with the requirements of subsections (b) and (c) of
Rule 17f-2, "Custody of Investments by Registered
Management Investment Companies," of the Investment
Company Act of 1940. We are also responsible for
establishing and maintaining effective internal
controls over compliance with those requirements. We
have performed an evaluation of the Fund's compliance
with the requirements of subsections (b) and (c) of
Rule 17f-2 as of July 19, 1999 and from December 31,
1998 (the date of our last audit) through July 19, 1999.
Based on this evaluation, we assert that the Fund was in
compliance with the requirements of subsections (b) and
(c) of Rule 17f-2 of the Investment Company Act of 1940
as of July 19, 1999 and from December 31, 1998 (the date
of Deloitte & Touche LLP's last audit) through July 19,
1999, with respect to securities reflected in the
investment accounts of Fund for Government Investors.
Daniel L. O'Connor
Chairman
Timothy N. Coakley
Vice President
