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SIGNATURE DARLENE F. REGO
TITLE TREASURER
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[LETTERHEAD OF PRICE WATERHOUSE LLP]
January 30, 1998
To the Trustees of Freedom Tax Exempt Money Fund and
Freedom California Tax Exempt Money Fund
In planning and performing our audits of the financial statements of Freedom Tax
Exempt Money Fund and Freedom California Tax Exempt Money Fund (the "Funds") for
the year ended December 31, 1997, we considered their internal control
structure, including procedures for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinions on
the financial statements and to comply with the requirements of Form N-SAR, and
not to provide assurance on the internal control structure.
The management of the Funds is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management with a
reasonable, but not absolute, assurance that assets are appropriately
safeguarded against loss from unauthorized use of disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and may not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions of that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal controls structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within in a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
Price Waterhouse LLP
Boston, Massachusetts
