Report of Independent Auditors on Internal Control
Board of Directors and
Shareholders
American General Series
Portfolio Company
In planning and performing our audit of the financial statements of
American General Series Portfolio Company (comprised of the Stock
Index Fund, MidCap Index Fund, Small Cap Index Fund,
International Equities Fund, Growth Fund, Growth & Income Fund,
Science & Technology Fund, Social Awareness Fund, Asset
Allocation Fund, Capital Conservation Fund, Government Securities
Fund, International Government Bond Fund, and Money Market
Fund) for the year ended May 31, 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 American General Series Portfolio Company 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 company's 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 May 31, 2000.
This report is intended solely for the information and use of the board
of directors and management of American General Series Portfolio
Company and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these
specified parties.
July 12, 2000 ERNST & YOUNG LLP
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