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002 A000000 880 CARILLON PARKWAY
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022 A000001 STATE STREET BANK AND TRUST COMPANY
022 B000001 04-1867445
022 C000001 361112
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022 A000002 GREENWICH SECURITIES
022 B000002 13-2697091
022 C000002 107363
<PAGE>
<PAGE> PAGE 2
022 D000002 123585
022 A000003 DEAN WITTER REYNOLDS, INC.
022 B000003 94-1671384
022 C000003 38881
022 D000003 36002
022 A000004 LEHMAN BROTHERS, INC.
022 B000004 13-2518466
022 C000004 30428
022 D000004 30431
022 A000005 SMITH BARNEY, INC.
022 B000005 13-3371860
022 C000005 30323
022 D000005 30220
022 A000006 MARK TWAIN BANK
022 B000006 04-2954687
022 C000006 4979
022 D000006 8718
022 A000007 PRUDENTIAL SECURITIES, INC.
022 B000007 22-2347336
022 C000007 5180
022 D000007 6074
022 A000008 R.W. PRESSPRICH
022 B000008 13-3570685
022 C000008 3452
022 D000008 2797
022 A000009 BANK OF AMERICA
022 B000009 94-1687665
022 C000009 2057
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022 A000010 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000010 13-5674085
022 C000010 1997
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023 C000000 587866
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<PAGE>
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<PAGE>
<PAGE> PAGE 4
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<PAGE>
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<PAGE>
<PAGE> PAGE 7
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SIGNATURE STEPHEN G. HILL
TITLE PRESIDENT
<PAGE>
<PAGE>
For period ended 10-31-96
File Number 811-7980
Sub-Item 77.B
Suite 2800 Telephone (813) 223-7577
400 North Ashley Street
P.O.Box 2640
Tampa, FL 33601-2640
______________________________________________________________________________
PRICE WATERHOUSE LLP
December 16, 1996
To the Board of Trustees
of Heritage U.S. Government Income Fund
In planning and performing our audit of the financial statements of the Heritage
U.S. Government Income Fund (the "Fund") for the year ended October 31, 1996, we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purposes of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, and not to provide assurance on the internal control
structure.
The management of the Fund is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are appropriately
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and may not be detected. Also, projection of any
evaluation of the structure 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 the internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities 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 the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
October 31, 1996.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/ Price Waterhouse LLP
- -------------------------------
Price Waterhouse LLP
<PAGE>
<PAGE>
For period ending 10-31-96
File Number 811-7980
77.C. Matters submitted to a vote of securities holders.
The following matters were submitted to a vote of securities holders at the
annual meeting of shareholders of Heritage U.S. Government Income Fund (the
"Fund") held on January 24, 1996:
(1) Election of Class I Trustees as follows:
SHARES
WITHHELD
FOR AUTHORITY
Class I
Donald W. Burton 2,900,110.421 9,356.874
David M. Phillips 2,900,110.421 9,356.874
The following Trustees served as Trustees but did not stand for reelection
during this period:
Class II
James L. Pappas
Richard K. Riess
Class III
Thomas A. James
C. Andrew Graham
Eric Stattin
(2) Approval of the selection of Coopers & Lybrand L.L.P. as independent
accountants of the Fund for the fiscal year ended October 31, 1996:
2,905,052.607 shares were voted in favor of, 3,002.607 shares were voted
against, and 1,412.081 abstained from voting on the motion to approve the
selection of Coopers & Lybrand L.L.P. as independent accountants of the Fund for
the fiscal year ended October 31, 1996.
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<AVG-DEBT-PER-SHARE> $0
<PAGE>
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