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<PAGE> PAGE 2
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SIGNATURE WILLIAM MAHER
TITLE CFO
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 155,257,100
<INVESTMENTS-AT-VALUE> 156,742,418
<RECEIVABLES> 2,465,774
<ASSETS-OTHER> 393,816
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 159,602,008
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 446,555
<TOTAL-LIABILITIES> 446,555
<SENIOR-EQUITY> 60,000,000
<PAID-IN-CAPITAL-COMMON> 99,710,124
<SHARES-COMMON-STOCK> 7,252,200
<SHARES-COMMON-PRIOR> 7,252,200
<ACCUMULATED-NII-CURRENT> 588,174
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (2,628,163)
<ACCUM-APPREC-OR-DEPREC> 1,485,318
<NET-ASSETS> 159,155,453
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,680,027
<OTHER-INCOME> 0
<EXPENSES-NET> 597,567
<NET-INVESTMENT-INCOME> 4,082,460
<REALIZED-GAINS-CURRENT> (99,173)
<APPREC-INCREASE-CURRENT> 1,380,130
<NET-CHANGE-FROM-OPS> 5,363,417
<EQUALIZATION> 0
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<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,400,460
<ACCUMULATED-NII-PRIOR> 468,671
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (2,489,756)
<GROSS-ADVISORY-FEES> 314,032
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 607,045
<AVERAGE-NET-ASSETS> 156,860,433
<PER-SHARE-NAV-BEGIN> 13.48
<PER-SHARE-NII> 0.56
<PER-SHARE-GAIN-APPREC> 0.18
<PER-SHARE-DIVIDEND> (0.55)
<PER-SHARE-DISTRIBUTIONS> 0
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<PER-SHARE-NAV-END> 13.67
<EXPENSE-RATIO> 0.77
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Report of Independent Auditors
To the Shareholders and Board of Directors
Voyageur Minnesota Municipal Income Fund, Inc.
Voyageur Minnesota Municipal Income Fund II, Inc.
Voyageur Minnesota Municipal Income Fund III, Inc.
Voyageur Arizona Municipal Income Fund, Inc.
Voyageur Florida Insured Municipal Income Fund
Voyageur Colorado Insured Municipal Income Fund, Inc.
In planning and performing our audits of the financial statements of Voyageur
Minnesota Municipal Income Fund, Inc., Voyageur Minnesota Municipal Fund II,
Inc., Voyageur Minnesota Municipal Income Fund III, Inc., Voyageur Arizona
Municipal Income Fund, Inc., Voyageur Florida Insured Municipal Income Fund,
and Voyageur Colorado Insured Municipal Income Fund, Inc.(the "Funds") for
the year ended March 31, 1998, we considered their 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 Funds 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 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 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 and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above at
March 31, 1998.
This report is intended solely for the information and use of the board of
directors and management of the Funds and the Securities and Exchange
Commission.
Philadelphia, PA
April 29, 1998
