Report of Independent Auditors
To the Shareholders and
Board of Trustees of
Liquid Institutional Reserves
In planning and performing our audits of the financial
statements of Liquid Institutional Reserves (comprising,
respectively, the Money Market Fund, Government Securities
Fund and Treasury Securities Fund) for the year ended April
30, 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, not to provide
assurance on the internal control.
The management of Liquid Institutional Reserves is
responsible for establishing and maintaining internal
control. In fulfilling this responsibility, estimates and
judgements 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 entitys
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 any internal control,
error or fraud may occur and not be detected. Also,
projections of any evaluation of internal control 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 internal control would not necessarily
Disclose all matters in internal control that might be
material weaknesses under standards established by the
American Institute of Certifies 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
mistakes 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 at April 30, 2000.
This report is intended solely for the information and use
of the shareholders, Board of Trustees and management of
Liquid Institutional Reserves 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
June 7, 2000
