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SIGNATURE JAMES W. ROSENBERGER
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<NAME> DUFF & PHELPS UTILITIES TAX FREE INC.
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Report of Independent Auditors
To the Shareholders and Board of Directors
Duff & Phelps Utilities Tax-Free Income Inc.
In planning and performing our audit of the financial statements of Duff &
Phelps Utilities Tax-Free Income Inc. for the year ended October 31, 1999, 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 internal control.
The management of Duff & Phelps Utilities Tax-Free Income Inc. 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 a
r
e
relevant to an audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in conformity with
generally accepted accounting principles. 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 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 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 leve
l
the risk that misstatements caused by errors 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 securiti
e
s,
that we consider to be material weaknesses as defined above at October 31,
1999.
This report is intended solely for the information and use of management of
Duff & Phelps Utilities Tax-Free Income Inc. and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone other
than these specified parties.
/s/ ERNST & YOUNG LLP
Chicago, Illinois
November 18, 1999
