Report of Independent Auditors
To the Shareholders and Board of Directors of
Insured Municipal Income Fund Inc.
In planning and performing our audit of the financial
statementsof Insured Municipal Income Fund Inc. for
the year ended March 31, 2000, we considered its
internal control, including control activities for
safeguarding securities, 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 Insured Municipal Income Fund
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 internal control. Generally, internal 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 internal
controls include the safeguarding of assets
against unauthorized acquisition, use, or
disposition.
Because of inherent limitations in any internal
control, misstatements due to errors 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 internal
control may become inadequate because of
changes in conditions,or that the degree
of compliance with the policies or procedures
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
specific internal control components does not
reduce to a relatively low level the risk that
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, including control activities for
safeguarding securities, and its operation that
we consider to be material weaknesses as defined
above as of March 31, 2000.
This report is intended solely for the information
and use of the shareholders, board of directors
and management of Insured Municipal Income Fund
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.
ERNST & YOUNG LLP
May 15, 2000
