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 August 21, 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 whom have securities
included in such deposits.
Rushmore Trust confirmed to us that the portfolio securities owned by
the Fund on August 21, 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 August 21, 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 August
21, 1998. We determined that these securities, identified by such records
as the property of the Fund's Portfolio, were in agreement with the Fund's
records of securities owned at August 21, 1998. We also agreed an analysis
of portfolio transactions recorded subsequent to June 30, 1998, the date of
our most recent examination of the Fund's securities required under Rule
17f-2, 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
made 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 made 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
Washington, DC
October 2, 1998
