ITEM 77L Change in Accounting Principles and Practices

As required, effective January 1, 2001, the Fund has adopted
the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began amortizing and accreting all
premiums and discounts on debt securities as required for
adherence to generally accepted accounting principles.  The
financial statements and notes to financial statements have
been adjusted accordingly for Federal Municipal
Opportunities Fund, Inc., which were materially impacted by
this change.