<PAGE> PAGE 1
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000 C000000 0000773754
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001 A000000 THE RUSHMORE FUND, INC.
001 B000000 811-4369
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002 A000000 4922 FAIRMONT AVENUE
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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SIGNATURE TIMOTHY N. COAKLEY
TITLE VICE PRESIDENT
To the Board of Directors of
The Rushmore Fund, Inc.:
In planning and performing our audit of the financial statements of the
U.S. Government Bond Portfolio of The Rushmore Fund, Inc., for the
year ended August 31, 1998 (on which we have issued our report dated
September 25, 1998), we considered its internal control, including
control activities 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, and not to provide assurance on internal control.
The management of The Rushmore Fund, Inc. 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 controls. Generally,
controls that are relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control, error or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control 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 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 internal control components does not
reduce to a relatively low level the risk that misstatements caused by error
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 and
its operation, including controls for safeguarding securities, that we
consider to be material weaknesses as defined above as of August 31, 1998.
This report is intended solely for the information and use of management,
the Board of Directors of The Rushmore Fund, Inc., and the Securities and
Exchange Commission.
September 25, 1998
Deloitte & Touche LLP
- - 1 -Document ID #W00075
