EX-99.77B ACCT LTTR

Report of
Independent
Registered
Public Accounting Firm

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

In planning and
performing our
audit of the
financial statements
of Federated Municipal
Securities Fund
Inc the Fund as
of and for the
year ended March 31
 2007 in accordance
with the standards
of the
Public Company
Accounting Oversight
Board United States
we considered its
internal control over
financial reporting
including control
activities for
safeguarding
securities as a basis
for designing our
auditing procedures
 for the purpose of
expressing our opinion
on the financial statements
 and to comply
with the requirements
of Form N-SAR but not
for the purpose of
expressing an opinion on the
effectiveness of the
Funds internal control
 over financial reporting
Accordingly we express no
such
opinion

The management of the
Fund is responsible
for establishing and
maintaining effective
internal control over
financial reporting
In fulfilling this
responsibility
estimates and judgments
by management are required
to assess the expected
benefits and related
costs of controls A
companys internal control
over financial
reporting is a process
designed to provide
reasonable assurance
regarding the reliability
 of financial
reporting and the
preparation of financial
 statements for external
purposes in accordance
with generally
accepted accounting
principles  Such
internal control
includes policies
and procedures that
provide
reasonable assurance
regarding prevention
or timely detection
of unauthorized
acquisition use or
disposition of a
companys assets that
 could have a material
effect on the financial statements

Because of its inherent
limitations internal
control over financial
reporting may not prevent
 or detect
misstatements Also
projections of any
evaluation of
effectiveness to
future periods are
subject to the risk
that controls may
 become inadequate
because of changes
in conditions or that
 the degree of compliance
with the polices or
procedures may deteriorate

A control deficiency
exists when the design
or operation of a control
does not allow management
or
employees in the normal
course of performing
their assigned functions
to prevent or detect
misstatements
on a timely basis
A significant deficiency
is a control deficiency
or combination of control
deficiencies
that adversely affects
the companys ability to
initiate authorize record
 process or report
external financial
data reliably in accordance
with generally accepted
accounting principles such
that there is more than
a
remote likelihood that a
misstatement of the companys
 annual or interim financial
statements that is more
than inconsequential will
not be prevented or detected
A material weakness is a
significant deficiency or
combination of significant
deficiencies that results
in more than a remote
likelihood that a material
misstatement of the annual
or interim financial statements
 will be not prevented or
detected

Our consideration of the
Funds internal control over
 financial reporting was
 for the limited purpose
described in the first
 paragraph and would not
necessarily disclose
all deficiencies in
internal control that
might be significant
deficiencies or material
weaknesses under standards
established by the Public
Company Accounting Oversight
Board United States  However
 we noted no deficiencies
in the Funds
internal control over
financial
reporting and its operation
 including controls for
safeguarding securities
that we consider to be
a material weakness as
defined above as of March
31 2007





This report is intended
solely for the information
and use of management and
 the Board of Directors of
 the
Fund and the Securities
and Exchange Commission
and is not intended to
be and should not be used
by
anyone other than these
specified parties




sERNST  YOUNG LLP



Boston Massachusetts
May 17 2007

EX-99.77E LEGAL

SUBITEM 77E
LEGAL PROCEEDINGS

Since October
2003 Federated
and related
entities collectively
Federated and various
Federated funds
Funds have been
named as defendants
in several class action
 lawsuits now pending
in the United States
District
Court for the District
of Maryland The lawsuits
were purportedly filed
on behalf of people who
purchased owned
and/or redeemed shares
of Federatedsponsored
mutual funds during
specified periods
beginning November 1 1998
The suits are generally
similar in alleging that
Federated engaged in illegal
and improper trading
 practices including
market timing and late
trading in concert with
certain institutional traders
 which allegedly caused
 financial injury to
the mutual fund
shareholders These lawsuits
 began to be filed shortly
after Federateds first public
 announcement
that it had received
requests for information
on
shareholder trading
activities in the Funds
from the SEC the Office
of the New York State
Attorney General NYAG
and other authorities
In that regard on
November 28 2005
Federated announced that
it had reached final
settlements with the
SEC and the NYAG with
respect to those matters
Specifically the SEC
and NYAG settled
proceedings against
three Federated subsidiaries
 involving undisclosed
market timing arrangements
 and late trading The SEC
 made findings that
Federated Investment
Management
Company FIMC an
SECregistered investment
adviser to various Funds
 and Federated Securities
Corp an
SECregistered brokerdealer
and distributor for the
Funds violated provisions
 of the Investment Advisers
 Act and
Investment Company Act
 by approving but not
disclosing three market
timing arrangements or
the associated
conflict of interest
between FIMC and the
funds involved in the
arrangements either
to other fund shareholders
 or to
the funds board and
that Federated Shareholder
Services Company formerly
an SECregistered transfer
agent
failed to prevent a
customer and a Federated
employee from late trading
 in violation of provisions
of the Investment
Company Act The NYAG
found that such conduct
 violated provisions
of New York State law
 Federated entered
into the settlements
without admitting or
denying the regulators
 findings As Federated
previously
reported in 2004
it has already paid
approximately 80 million
 to certain funds as
determined by an
independent consultant
As part
of these settlements
Federated agreed to pay
disgorgement and a civil
money penalty in the
aggregate amount of an
additional 72 million
and among other things
agreed that it would not
 serve as investment adviser
to any
registered investment
company unless i at least
75 of the funds directors
are independent of Federated
ii the
chairman of each such fund
is independent of Federated
iii no action may be taken
by the funds board or any
committee thereof unless
approved by a majority of
the independent trustees of
the fund or committee
respectively
and iv the fund appoints
a
senior officer who reports
to the independent trustees
and is responsible for
monitoring compliance by
the fund with applicable
laws and fiduciary duties
and for managing the process
 by which
management fees charged
to
a fund are approved The
settlements are described
in Federateds announcement
which along with previous
press releases and related
communications on those matters
 is available in the About
Us section of Federateds
website at FederatedInvestorscom
Federated and various
Funds have also been named
as defendants in several
additional lawsuits the
majority of
which are now pending
in the United States
District Court for the
Western District of
Pennsylvania alleging
among
other things excessive
advisory and Rule 12b1
fees
The board of the Funds
 has retained the law
firm of Dickstein Shapiro
LLP to represent the Funds
 in these lawsuits
Federated and the Funds
and their respective counsel
are reviewing the allegations
 and intend to defend this
litigation Additional
lawsuits based upon similar
allegations may be filed in
the future The potential
impact of
these lawsuits all of which
 seek unquantified damages
attorneys fees and expenses
and future potential similar
suits is uncertain Although
we do not believe that these
lawsuits will have a material
adverse effect on the Funds
there can be no assurance
that these suits ongoing
adverse publicity and/or
other developments resulting
from the
regulatory investigations
will not result in increased
Fund redemptions reduced sales
of Fund shares or other
adverse consequences for the
Funds




Current as of  81894