<PAGE> PAGE 1
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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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<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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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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SIGNATURE JEFF MULLINS
TITLE ACCOUNTANT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837351
<NAME> First Pacific Mutual Fund
<SERIES>
<NUMBER> 01
<NAME> First Hawaii Municipal Fund
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<TABLE> <S> <C>
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</TABLE>
<TABLE> <S> <C>
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<CIK> 0000837351
<NAME> First Pacific Mutual Fund
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<NAME> First Idaho Tax-Free Fund
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</TABLE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON INTERNAL CONTROL STRUCTURE
Board of Directors and Shareholders
First Pacific Mutual Fund, Inc.
Honolulu, Hawaii
In planning and performing our audit of the financial statements of First
Pacific Mutual Fund, Inc. (comprising, respectively, First Hawaii Municipal Bond
Fund, First Hawaii Intermediate Municipal Fund and First Idaho Tax-Free Fund)
for the year ended September 30, 1997, we considered its internal control
structure, including procedures 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, not
to provide assurance on the internal control structure.
The management of First Pacific Mutual Fund, Inc. 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
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 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
September 30, 1997.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission, and should not be used for any other
purpose.
Philadelphia, Pennsylvania
November 7, 1997
