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022 A000002 GREENWICH CAPITAL MARKETS, INC.
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SIGNATURE STEPHEN G. HILL
TITLE PRESIDENT
To the Board of Trustees
of Heritage U.S. Government Income Fund
Page 2
December 16, 1996
DC-281035.01
For period ended 10-31-98
File Number 811-7980
Sub-Item 77.B
PRICEWATERHOUSECOOPERS LLP
- ------------------------------------------------------------------------------
PricewaterhouseCoopers LLP
Suite 2800
400 North Ashley Street
Tampa, FL 33602-4319
Telephone (813) 223-7577
December 17, 1998
To the Shareholders and 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, 1998, we
considered its internal control structure, 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
control activities. Generally, control activities 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 control activities include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or irregularities
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 any
specific internal control components 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 internal control,
including control activities for safeguarding securities, that we consider to be
material weaknesses as defined above as of October 31, 1998.
This report is intended solely for the information and use of management and the
Board of Trustees of the Heritage U.S. Government Income Fund and the Securities
and Exchange Commission.
/s/ PricewaterhouseCoopers LLP
- -------------------------------
PricewaterhouseCoopers LLP
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