Report of Ernst & Young LLP, Independent Auditors


To the Board of Directors and Shareholders of
Federated Municipal Securities Fund, Inc.

We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Federated Municipal Securities
Fund, Inc. (the "Fund"), as of March 31, 2002, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended and the financial highlights
for each of the three years in the period then ended.  These financial
statements and financial highlights are the responsibility of the Fund's
management.  Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.  The financial
highlights for each of the two years in the period ended March 31, 1999 were
audited by other auditors whose report, dated May 14, 1999, expressed an
unqualified opinion on those financial highlights.

We conducted our audits in accordance with auditing standards generally
accepted in the United States.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.  Our procedures included confirmation
of securities owned as of March 31, 2002, by correspondence with the custodian
and brokers, or other appropriate auditing procedures where replies from
brokers were not received.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Federated Municipal Securities Fund, Inc. at March 31, 2002, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended and the financial highlights for
each of the three years in the period then ended, in conformity with
accounting principles generally accepted in the United States.



Boston, Massachusetts
May 10, 2002