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093226 1 (1971-03-12)

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Mr  Darryl R  Francis, President
Federal Reserve Bank of St  Louis
St  Louis, Missouri  63166

Dear Mr  Francis

     We have reviewed the activities of the Little Rock Branch
of the Federal Reserve Bank of St  Louis, relating to the cancel-
lation, destruction and accounting for currency unfit for circu-
lation   Our review, which was completed in January 1971, was
performed pursuant to provisions of Public Law 89-427, approved
May 20, 1966

     Our audit consisted of a review and evaluation of internal
audit and controls relating to the cancellation, verification and
destruction of unfit currency, and an examination of related ac-
counting records pertaining to these functions

     We found that the operations reviewed were conducted in a
generally satisfactory manner


     We wish to express our appreciation for the courtesy and
cooperation extended our representatives during this review

     An information copy of this letter is being sent to the Vice
President and Manager of the Little Rock Branch

                                     Sincerely yours,


                                     W. H  Sheley,
                                     Regional Man


50TH  ANNIVERSARY  1921-


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UNITED STATES GENERAL ACCOUNTING  OFFICE
        DALLAS  REGIONAL OFFICE
        ROOM 500 1512 COMMERCE STREET
           DALLAS, TEXAS 75201
               MAR1  2 1971


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