Exhibit 99.77K

April 4, 2008

Timothy Mundy
Deloitte & Touche LLP
1700 Market Street
Philadelphia, Pennsylvania  19103

RE: Hilliard-Lyons Government, Inc. (Registrant)

Dear Mr. Mundy:

Please provide us with a letter from your firm addressed to the Securities and
Exchange Commission stating your agreement with the following disclosures in the
Registrant's report on Form N-SAR for the period ended February 29, 2008.

Item 77K Change in registrant's certifying accountant

Deloitte & Touche LLP ("Deloitte") reported on the financial statements of the
Fund for each of the fiscal years ended August 31, 2006 and August 31, 2007 did
not contain an adverse opinion or a disclaimer of opinion and was not qualified
or modified as to uncertainty, audit scope or accounting principles. During the
fiscal years ended August 31, 2006 and August 31, 2007 and the interim period
between September 1, 2007 through the date of Deloitte's resignation, there were
no disagreements between the Fund and Deloitte on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure, which disagreement(s), if not resolved to the satisfaction of
Deloitte, would have caused it to make reference to the subject matter of the
disagreement(s) in connection with its reports. During the fiscal years ended
August 31, 2006 and August 31, 2007 and the interim period between September 1,
2007 through the date of Deloitte's resignation, there were no reportable events
as defined in Item 304(a)(1)(v) of Regulation S-K promulgated by the Securities
and Exchange Commission.

On March 18, 2008, the Audit Committee recommended, and the Board approved, the
appointment of Cohen Fund Audit Services, Ltd., an independent registered public
accounting firm, to audit the Fund's 2008 financial statements, subject to
completion of the terms of its engagement. Cohen Fund Audit Services, Ltd. was
formally engaged as the independent registered public accountants of the Fund on
March 18, 2008.

A copy of your letter will be filed with the Securities and Exchange Commission
along with this letter as an exhibit to the Registrant's Form N-SAR for the
period ended February 29, 2008 (in accordance with Sub-Item 77K of Form N-SAR).

Sincerely,

Stephanie J. Ferree
Assistant Vice President



           SUB-ITEM 77K. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT

      On March 18, 2008, the Audit Committee of the Board of Directors of
Hilliard-Lyons Government Fund, Inc. (the "Fund") and the Board accepted the
resignation of Deloitte & Touche LLP ("Deloitte") as the Fund's independent
registered public accountants.

      Deloitte's report on the financial statements of the Fund for each of the
fiscal years ended August 31, 2006 and August 31, 2007 did not contain an
adverse opinion or a disclaimer of opinion and was not qualified or modified as
to uncertainty, audit scope or accounting principles. During the fiscal years
ended August 31, 2006 and August 31, 2007 and the interim period between
September 1, 2007 through the date of Deloitte's resignation, there were no
disagreements between the Fund and Deloitte on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure, which disagreement(s), if not resolved to the satisfaction of
Deloitte, would have caused it to make reference to the subject matter of the
disagreement(s) in connection with its reports. During the fiscal years ended
August 31, 2006 and August 31, 2007 and the interim period between September 1,
2007 through the date of Deloitte's resignation, there were no reportable events
as defined in Item 304(a)(1)(v) of Regulation S-K promulgated by the Securities
and Exchange Commission.

      The Fund has requested that Deloitte furnish it with a letter addressed to
the SEC stating whether or not it agrees with the above statements. A copy of
such letter, dated April 14, 2008, is filed as Sub-Item 77Q1 to this Form N-SAR.

      On March 18, 2008, the Audit Committee recommended, and the Board
approved, the appointment of Cohen Fund Audit Services, Ltd., an independent
registered public accounting firm, to audit the Fund's 2008 financial
statements, subject to completion of the terms of its engagement. Cohen Fund
Audit Services, Ltd. was formally engaged as the independent registered public
accountants of the Fund on March 18, 2008.



April 14, 2008

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549

To Whom It May Concern:

We have read Item 77K of Form N-SAR for the semi-annual reporting period ended
February 29, 2008 of Hilliard-Lyons Government Fund, Inc. and are in agreement
with the statements contained therein. We have no basis to agree or disagree
with other statements of the registrant contained in the above-referenced
filing.

Yours truly,

/s/ Deloitte & Touche LLP
-------------------------
    Deloitte & Touche LLP