Report of Independent Accountants
To the Board of Directors and Shareholders
of Municipal Advantage Fund Inc.
In planning and performing our audit of the
financial statements of Municipal Advantage
Fund Inc. (the "Fund") for the year ended
October 31, 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 internal control.
The management of the Fund 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
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 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 October 31, 2000.
This report is intended solely for
the information and use of the Board
of Directors, 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.
PricewaterhouseCoopers LLP
New York, New York
December 11, 2000
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