INDEPENDENT AUDITORS' REPORT
To the Board of Trustees of Federated Municipal Securities
Income Trust:
In planning and performing our audit of the financial statements
of Federated Municipal Securities Income Trust (the "Trust")
(including Federated California Municipal Income Fund, Federated
Michigan Intermediate Municipal Trust, Federated New York
Municipal Income Fund, Federated North Carolina Municipal Income
Fund, Federated Ohio Municipal Income Fund and Federated
Pennsylvania Municipal Income Fund) for the year ended August 31,
2000, (on which we have issued our report dated October 13,
2000), we considered its 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, and not to provide assurance on the Trust's 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 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 of America.
Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control,
misstatements due to error 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 the
internal control may become inadequate because of changes in
conditions or that the degree of compliance with policies or
procedures may deteriorate.
Our consideration of the Trust's 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 due to 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 the Trust's internal control and its operation,
including controls for safeguarding securities, that we consider
to be material weaknesses as defined above as of August 31, 2000.
This report is intended solely for the information and use of
management, the Trustees and Shareholders of Federated Municipal
Securities Income Trust, and the Securities and Exchange
Commission and is not intended to be, and should not, be used by
anyone other than these specified parties.
DELOITTE & TOUCHE LLP
October 13, 2000
