<PAGE> PAGE 1
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<PAGE> PAGE 2
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<PAGE> PAGE 7
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SIGNATURE ELLIOT KAUFFMAN
TITLE TREASURER
Sub-Item 77K: Changes in registrant's certifying accountant.
On October 6, 1997, Tait Weller & Baker was replaced as the
Registrant's independent certified public accountants. The decision to
replace Tait, Weller & Baker was based upon the seperation of certain
of the Firm's partners and professional employees who had been the
principal; providers of audit, accounting and tax services to the
Registrant and who have formed a new independent certified public
accounting firm. The Registrant's Board of Directors have approved the
change in auditors. Tait, Weller & Baker had served as the Registrant's
independent certified public accountants for the period November 8, 1995
(commencement of operations) to October 6, 1997. Tait, Weller & Baker's
report of the financial statements of the Registrant for that period did
not contain an adverse opinion or disclaimer of opinion or was not qualified
or modified as to uncertainty, audit scope or accounting principles.
There were no disagreements with Tait, Weller & Baker on any matter of
accounting principals or practices, financial statment disclosure, or
auditing scope of procedure during the period from November 8, 1995 to
October 31, 1996 and for the interim period from November 1, 1996
through October 6, 1997.
On October 6, 1997, the Registrant's Board of Directors also engaged the
firm of Briggs, Bunting & Dougherty, LLP to serve as its independent
certified public accountants. The Registrant represents that it had not
consulted with Briggs, Bunting & Dougherty, LLP at any time prior to
their engagement with respect to the application of accounting principals
to a specified transaction, either completed or proposed; or the type of
audit opinion that might be rendered on the Registrant's financial
statements.
December 16, 1997
Securities and Exchange Commission
Washington, D.C. 20549
RE: SIS Mercator Fund, Inc.
File No. 33-95102
Dear Sir or Madame:
We have read item 77K of the Form N-SAR of SIS Mercator Fund, Inc. for
the period ended October 31, 1997, and agree with the statements contained
therein.
Very Truly yours,
Tait, Weller, & Baker
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON INTERNAL CONTROL
STRUCTURE
Shareholders and Board of Directors
S.I.S. Mercator Fund, Inc.
Wayne, Pennsylvania
In planning and performning our audit of the financial statements of
S.I.S. Mercator Fund, Inc. (comprising, respectively, the Global Equity
Portfolio and the Global Income Portfolio) for the period ended
October 31, 1997, we considered its internal control structure, including
procedures 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 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 judgements 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 safeguarded against loss from unauthorized use
or disposition, and that transaction 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 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 fianancial 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 weakness, as defined above,
as of October 31, 1997.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission, and should not be used for
any other purpose.
Briggs, Bunting & Dougherty, LLP
Philadelphia, Pennsylvania
November 14, 1997
