Report of Independent Accountants
To the Board of Trustees of
The Montgomery Funds
In planning and performing our audit of the
financial statements of Montgomery Growth Fund,
Montgomery U.S. Emerging Growth Fund, Montgomery
Small Cap Fund, Montgomery Equity
Income Fund, Montgomery International Growth
Fund, Montgomery Global Opportunities Fund,
Montgomery Global Communications Fund, Montgomery
Emerging Markets Fund, Montgomery
Emerging Asia Fund, Montgomery Global 20 Fund
(formerly Montgomery Select 50 Fund),
Montgomery International 20 Portfolio, Montgomery
U.S. Select 20 Portfolio, Montgomery
Total Return Bond Fund, Montgomery Short Duration
Government Bond Fund, Montgomery
California Tax-Free Intermediate Bond Fund,
Montgomery Government Money Market Fund,
Montgomery Federal Tax-Free Money Fund and
Montgomery California Tax-Free Money Fund
(all portfolios of The Montgomery Funds)
(collectively the "Funds") for the period ended
June
30, 2000, we considered their 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,
not to
provide assurance on internal control.
The management of the Funds 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.
Those controls include the safeguarding of assets
against unauthorized acquisition, use or
disposition.
Because of inherent limitations in internal
control,
errors or fraud may occur and not be detected.
Also, projection of any evaluation of internal
control to future periods is subject to the risk
that
controls may become inadequate because of changes
in conditions or that the effectiveness of
their design and operation 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 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 internal control and
its operation, including controls for safeguarding
securities that we consider to be material weaknesses
as defined above as of June 30, 2000.
This report is intended solely for the information
and use of the Board of Trustees, management
and the Securities and Exchange Commission and
is not intended to be and should not be used by
anyone other than these specified parties.
August 18, 2000
