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Report of Independent Auditors
Board of Trustees
of The Galaxy Fund
In planning and performing our audit of the financial
statements of The Galaxy Fund (the "Trust") for the year
ended October 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 the Trust 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 generally accepted accounting
principles. 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 October 31, 2000.
This report is intended solely for the information and
use of the board of trustees and management of The Galaxy
Fund and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other
than these specified parties.
Ernst & Young LLP
December 22, 2000
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