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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 14
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SIGNATURE JOHN R.ELDER
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000747576
<NAME> LANDMARK CASH RESERVES
<SERIES>
<NUMBER> 1
<NAME>LANDMARK FUNDS III
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<TABLE> <S> <C>
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<NAME> LANDMARK U.S. TREASURY RESERVES
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</TABLE>
To the Trustees of Landmark Balanced Fund
Page 21
February 6, 1996
H:\WPDOCS\L\LANDMARK\CASHRES.LTR
October 9, 1996
To the Trustees of
Landmark Cash Reserves
In planning and performing our audit of the financial statements
of Landmark Cash Reserves (the "Fund"), a series of the Landmark
Funds III, for the year ended August 31, 1996, we considered its
internal control structure, including procedures for safeguarding
investments, in order to determine our auditing procedures for
the purposes of expressing our opinion 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 Fund is responsible for establishing and
maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgements 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 reasonable, but not absolute, assurance that
assets are appropriately safeguarded against loss from
unauthorized use or 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 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 or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control 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 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 investments, that we consider to be
material weaknesses as defined above as of August 31, 1996.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
Price Waterhouse LLP
- 2 -
To the Trustees and Shareholders of
Landmark Funds III:
In planning and performing our audit of the financial
statements of Landmark U.S. Treasury Reserves (a separate
series of Landmark Funds III) for the year ended August 31,
1996 (on which we have issued our report dated October 4,
1996), we considered its internal control structure, including
procedures for safeguarding securities, in order 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, not to provide assurance on the
internal control structure.
The management of Landmark U.S. Treasury Reserves 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
reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or 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 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 or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control 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 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
August 31, 1996.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
October 4, 1996
