BlackRock AMT-Free Municipal Bond Portfolio, Ohio Municipal Bond
Portfolio, Delaware Municipal Bond Portfolio, Kentucky Municipal
Bond Portfolio ("Registrant")

SUB-ITEM 77B:   Accountant's report on internal control

January 26, 2007

To the Securities and Exchange Commission:

The report on internal control of the Registrant's independent
registered public accounting firm, Deloitte & Touche LLP
("Deloitte"), is filed with this Form N-SAR-B.  Deloitte's report
describes a control deficiency in the operation of the
Registrant's internal control over financial reporting that
Deloitte considers to be a material weakness as of September 30,
2006, as described in their report.

Subsequent to the initial filing of the Registrant's Form N-SAR,
the Registrant identified the following control deficiency that
was determined to be a material weakness in the Registrant's
internal control over financial reporting at September 30, 2006.
The Registrant's controls related to the review and analysis of
relevant terms and conditions of transfers of certain assets
pertaining to inverse floater structures were not operating
effectively to appropriately determine whether the transfers of
assets qualified for sale accounting under the provisions of
Statement of Financial Accounting Standards No. 140, "Accounting
for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities" ("SFAS 140").  As a result these
controls did not detect that certain transfers were not
appropriately recorded as borrowings.  Accordingly, the
Registrant's financial statements as of and for the period ended
September 30, 2006, including prior periods where applicable,
were restated to appropriately reflect transfers of such
securities as secured borrowings and report the related income
and expense.  These adjustments had no impact on net assets, net
asset value per share or total return.

Subsequent to September 30, 2006, but prior to the evaluation of
the design and operation of the Registrant's disclosure controls
and procedures at January 26, 2007, the Registrant's disclosure
controls and procedures were modified to enhance the review and
analysis of the relevant terms and conditions of transfers of
securities in connection with inverse floater structures in light
of SFAS 140.

(b)  There have been no changes in the Registrant's internal
control over financial reporting (as defined in Rule 30a-3(d)
under the Investment Company Act of 1940, as amended) that
occurred during the second half of the Registrant's fiscal year
that have materially affected, or are reasonably likely to
materially affect, the Registrant's internal control over
financial reporting.  However, as discussed above, subsequent to
September 30, 2006, the Registrant has enhanced controls related
to the application of SFAS 140.







     REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees and Shareholders of the BlackRock Funds:


In planning and performing our audits of the financial
statements of the BlackRock Funds, consisting of the AMT-
Free Municipal Bond (formerly Tax-Free Income), Ohio
Municipal Bond (formerly Ohio Tax-Free Income), Delaware
Municipal Bond (formerly Delaware Tax-Free Income), and
Kentucky Municipal Bond (formerly Kentucky Tax-Free Income)
Portfolios (the "Portfolios"), as of and for the year ended
September 30, 2006 (on which we have issued our report
dated November 22, 2006, January 26, 2007, as to the
effects of the restatement described in Note I), 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 Portfolios' internal control over financial reporting.
Accordingly, we express no such opinion.

The management of the Portfolios 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.  The Portfolios' 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 the Portfolios' 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
policies 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 Portfolios' 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 Portfolios' 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 not be prevented or detected.

Our consideration of the Portfolios' 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, as discussed
below we noted certain deficiencies in the Portfolios'
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 September 30, 2006.

The Portfolios' controls related to the review and analysis
of the relevant terms and conditions of certain transfers
of securities did not operate effectively to appropriately
determine whether the transfers qualified for sale
accounting under the provisions of Statement of Financial
Accounting Standards No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of
Liabilities."  As a result of this material weakness, the
statement of assets and liabilities, including the schedule
of investments, as of September 30, 2006, the related
statement of operations for the year then ended and the
financial highlights for each of the five years in the
period then ended of each Portfolio were restated in order
to appropriately account for such transfers of securities
as secured borrowings, rather than sales.  The principal
effects of the adjustments on the 2006 financial statements
were to increase assets and liabilities by corresponding
and equal amounts, and to increase interest income and
interest expense by corresponding and equal amounts.  In
addition, adjustments were made to certain ratios reported
in the financial highlights for 2006 and certain prior year
ratios were restated.  This material weakness was
considered in determining the nature, timing, and extent of
audit tests applied in our audits of the financial
statements as of and for the year ended September 30, 2006,
of the Portfolios and this report does not affect our
report on such financial statements.

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

DELOITTE & TOUCHE LLP

Philadelphia, Pennsylvania
November 22, 2006 (January 26, 2007 as to the material weakness)