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<PAGE> PAGE 2
008 D02AA01 NJ
008 D03AA01 07102
008 D04AA01 4077
008 A00AA02 PRUDENTIAL INVESTMENT CORPORATION
008 B00AA02 S
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008 D02AA02 NJ
008 D03AA02 07101
011 A00AA01 PRUDENTIAL SECURITIES INCORPORATED
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011 C03AA01 10292
012 A00AA01 PRUDENTIAL MUTUAL FUND SERVICES LLC
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012 C03AA01 08906
013 A00AA01 PRICE WATERHOUSE LLP
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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SIGNATURE EUGENE S. STARK
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000822337
<NAME> THE PRUDENTIAL INSTITUTIONAL LIQUIDITY PORTFOLIO
<SERIES>
<NUMBER> 001
<NAME> THE PRUDENTIAL INSTITUTIONAL LIQUIDITY PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 477,187,272
<INVESTMENTS-AT-VALUE> 477,187,272
<RECEIVABLES> 3,403,916
<ASSETS-OTHER> 9,088
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 480,600,276
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,555,271
<TOTAL-LIABILITIES> 2,555,271
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 478,045,005
<SHARES-COMMON-STOCK> 478,045,005
<SHARES-COMMON-PRIOR> 314,093,623
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 478,045,005
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 24,655,385
<OTHER-INCOME> 0
<EXPENSES-NET> 2,068,681
<NET-INVESTMENT-INCOME> 22,586,704
<REALIZED-GAINS-CURRENT> 11,251
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 22,597,955
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (22,597,955)
<NUMBER-OF-SHARES-SOLD> 2,069,514,977
<NUMBER-OF-SHARES-REDEEMED> (2,053,657,829)
<SHARES-REINVESTED> 21,346,132
<NET-CHANGE-IN-ASSETS> 37,203,280
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 898,786
<INTEREST-EXPENSE> 0
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<AVERAGE-NET-ASSETS> 449,393,000
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.05)
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</TABLE>
May 21, 1997
To the Board of Directors of
Prudential Institutional Liquidity
Portfolio, Inc.
In planning and performing our audit of the
financial statements of Prudential
Institutional Liquidity Portfolio,
Inc. (comprised of the Institutional
Money Market Series) (the "Fund")
for the year ended March 31, 1997,
we considered its internal control
structure, including procedures for
safeguarding securities, in order to
determine our auditing procedures
for the purposes 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 internal control
structure.
The management of the Fund is responsible for
establishing and maintaining an
internal control structure. In
fulfilling this responsibility,
estimates and judgments by
management are required to assess
the expected benefits and related
costs of internal control structure
policies and procedures. Two of the
objectives of an internal control
structure are to provide management
with reasonable, but not absolute,
assurance that assets are
appropriately safeguarded against
loss from unauthorized use or
disposition and that transactions
are executed in accordance with
management's authorization and
recorded properly to permit
preparation of financial statements
in conformity with generally
accepted accounting principles.
Because of inherent limitations in any
internal control structure, errors
or irregularities may occur and may
not be detected. Also, projection
of any evaluation of the structure
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 the internal control
structure would not necessarily
disclose all matters in the internal
control structure 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 the specific internal
control structure elements does not
reduce to a relatively low level the
risk that errors or irregularities
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 internal control
structure, including procedures for
safeguarding securities, that we
consider to be material weaknesses
as defined above as of March 31,
1997.
This report is intended solely for the
information and use of management
and the Securities and Exchange
Commission.
PRICE WATERHOUSE LLP
For the fiscal period ended (a) March 31, 1997
File number (c)811-5336
SUB-ITEM 77C
Submission of Matters to a Vote of Security Holders
A Special Meeting of Shareholders was called for
October 30, 1996 and was adjourned until December 3,
1996.
At the December 3, 1996 meeting, the
shareholders approved the following proposals.
1. Approval that Edward D. Beach, Stephen C. Eyre,
Delayne D. Gold, Robert F. Gunia, Don G. Hoff, Robert
E. LaBlanc, Mendel A. Melzer, Richard A. Redeker,
Robin B. Smith, Stephen Stoneburn and Nancy H.
Teeters are duly elected to serve as Directors of the
Fund until the earlier to occur of (i)the next
meeting of Shareholders at which Directors are
elected and until his or her successor shall have
been duly elected and shall have qualified or (ii)
their terms expire in accordance with the Fund's
retirement policy. All such elected Directors are
all Directors currently in office.
2. Approval that the proposed amendment of the
Fund's fundamental investment restriction relating to
investment in shares of investment companies as
described in such Fund's proxy statement, which
amendment permits the Fund to invest up to 10% of its
total assets in shares of other investment companies,
is hereby in all respects approved.
Affirmative Negative
votes cast votes
cast
157,381,791
5,546,234
3. Approval that the proposed elimination of the
Fund's fundamental investment restriction relating to
investment in securities of unseasoned issuers, as
described in such Fund's proxy statement, is hereby
in all respects approved.
Affirmative Negative
votes cast votes
cast
157,417,222
5,682,550
4. Approval that the proposed changes in the Fund's
fundamental investment policies and restrictions of
the Fund relating to investing in restricted and
illiquid securities, as set forth in such Fund's
proxy statement, are hereby in all respects approved.
Affirmative Negative
votes cast votes
cast
158,173,882
4,925,890
5. Approval that the proposed changes in the Fund's
investment policies and restrictions to permit the
Fund to invest a greater portion of its assets in
bank obligations, as set forth in such Fund's proxy
statement, are hereby in all respects approved.
Affirmative Negative
votes cast votes
cast
149,941,590
13,158,182
6. Approval that the proposed elimination of the
investment restriction of the Fund limiting the
Fund's investment in securities of any issuer in
which officers and directors or trustees of the Fund
or the Adviser own more than a specified interest, as
set forth in such Fund's proxy statement, is hereby
in all respects approved.
Affirmative Negative
votes cast votes
cast
157,411,159
5,688,613
7. Approval that the selection of independent
accountants for the Fund conditioned upon the right
by vote of a majority of such Fund's outstanding
voting shares at any meeting called for the purpose
to terminate such employment forthwith without
penalties, is in all respects hereby ratified,
approved and confirmed.
Affirmative Negative
votes cast votes
cast
208,489,310
11,825,024
February 25, 1997
Mr. Richard A. Redeker, President
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, New Jersey 07102-4072
Dear Mr. Redeker:
This is to confirm that the client-auditor
relationship between Deloitte & Touche llp
and the following Prudential Mutual Funds
has been terminated:
The BlackRock Government Income Trust
Global Utility Fund, Inc.
Prudential Allocation Fund
Prudential California Municipal Fund
Prudential Distressed Securities Fund,
Inc.
Prudential Diversified Bond Fund, Inc.
Prudential Dryden Fund
Prudential Equity Income Fund
Prudential Europe Growth Fund, Inc.
Prudential Global Limited Maturity
Fund, Inc.
Prudential Institutional Liquidity
Portfolio, Inc.
Prudential Jennison Series Fund, Inc.
Prudential MoneyMart Assets, Inc.
Prudential Multi-Sector Fund, Inc.
Prudential Municipal Bond Fund
Prudential Municipal Series Fund
Prudential Pacific Growth Fund, Inc.
Prudential Special Money Market Fund,
Inc.
Prudential Structured Maturity Fund,
Inc.
Prudential World Fund, Inc.
The Global Total Return Fund, Inc.
The Target Portfolio Trust
Yours very truly,
DELOITTE & TOUCHE LLP
New York, New York
cc: Office of the Chief Accountant
SECPS Letter File
Securities and Exchange Commission
Mail Stop 9-5
450 5th Street, N.W.
Washington, D.C. 20549
February 25, 1997
Mr. Douglas McCorkindale, President
First Financial Fund, Inc.
The High Yield Plus Fund, Inc.
Gateway Center Three
100 Mulberry Street
Newark, New Jersey 07102-4072
Dear Mr. McCorkindale:
This is to confirm that the client-auditor
relationship between Deloitte & Touche llp
and the following Prudential Mutual Funds
has been terminated:
First Financial Fund, Inc.
The High Yield Plus Fund, Inc.
Yours truly,
DELOITTE & TOUCHE LLP
New York, New York
cc: Office of the Chief Accountant
SECPS Letter File
Securities and Exchange Commission
Mail Stop 9-5
450 5th Street, N.W.
Washington, D.C. 20549
April 16, 1997
Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Dear Sirs:
We have read and agree with the comments
contained in the attached letter dated April
16, 1997.
Yours truly,
DELOITTE & TOUCHE LLP
New York, New York
