To the Audit Committee of the Board of Directors of
The Rushmore Fund, Inc.:
In planning and performing our audits of the financial statements of The
Rushmore Fund, Inc. (the "Fund") for the year ended August 31, 2000
(on which we have issued our report dated October 6, 2000), 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 the Fund's internal control.
The management of the Fund 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 accounting principles generally accepted in the United
States of America. Those controls include the safeguarding of assets
against unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, misstatements
due to error or fraud may occur and may 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 policies
and procedures may deteriorate.
Our consideration of the Fund's internal control would not necessarily
disclose all matters in the 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 the Fund's internal control and its operation,
including controls for safeguarding securities, that we consider to be
material weaknesses as defined above as of August 31, 2000.
This report is intended solely for the information and use of
management, the Audit Committee of the Board of Directors of The
Rushmore Fund, Inc., and the Securities and Exchange Commission and
is not intended to be used by anyone other than these specified parties.
Princeton, New Jersey
October 6, 2000
