Federated U.S. Government Bond Fund
Form N-SAR
Sub-Item 77K: Changes in registrant's certifying accountant
On May 19, 1999, the Fund's Board of Directors, upon the recommendation
of the Audit Committee of the Board of Directors, requested and
subsequently accepted the resignation of Arthur Andersen LLP ("AA") as
the Fund's independent auditors. AA's reports on the Fund's financial
statements for the fiscal years ended August 31 1998 and August 31,
1999, contained no adverse opinion or disclaimer of opinion nor were
they qualified or modified as to uncertainty, audit scope or accounting
principles. During the Fund's fiscal years ended August 31, 1998 and
August 31, 1999, (i) there were no disagreements with AA on any matter
of accounting principles or practices, financial statement disclosure or
auditing scope or procedure, which disagreements, if not resolved to the
satisfaction of AA, would have caused it to make reference to the
subject matter of the disagreements in connection with its reports on
the financial statements for such years, and (ii) there were no
reportable events of the kind in Item 304(a)(1)(v) of Regulation S-K
under the Securities Exchange Act of 1934, as amended.
The Fund by action of its Board of Directors, upon the recommendation of
the Audit Committee of the Board, has engaged Ernst & Young LLP
("E&Y") as the independent auditors to audit the Fund's financial
statements for the fiscal year ending August 31, 2000. During the
Fund's fiscal years ended August 31, 1998 and August 31, 1999, neither
the Fund nor anyone on its behalf has consulted AA on items which (i)
concerned the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit opinion
that might be rendered on the Fund's financial statements or (ii)
concerned the subject of a disagreement (as defined in paragraph
(a)(1)(iv) of Item 304 of Regulation S-K) of reportable events (as
described in paragraph (a)(1)(v) of said Item 304).
