Report of Independent Auditors
To the Shareholders and
Board of Directors of
Alliance Municipal Income Fund, Inc.
In planning and performing our audit of the financial statements of Alliance
Municipal Income Fund, Inc. (comprising, respectively, the National, Insured
National, New York, California and Insured California Portfolios) 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 Alliance Municipal Income 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 control. Generally, internal
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 internal
controls include the safeguarding of assets against unauthorized acquisition,
use, or disposition.
Because of inherent limitations in 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
at October 31, 2000.
This report is intended solely for the information and use of the Board of
Directors and management of Alliance Municipal Income Fund, Inc., 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 12, 2000
