<SEC-DOCUMENT>0001752724-23-057084.txt : 20230315
<SEC-HEADER>0001752724-23-057084.hdr.sgml : 20230315
<ACCEPTANCE-DATETIME>20230315125515
ACCESSION NUMBER:		0001752724-23-057084
CONFORMED SUBMISSION TYPE:	N-CEN
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20221231
FILED AS OF DATE:		20230315
DATE AS OF CHANGE:		20230315
EFFECTIVENESS DATE:		20230315

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Ares Dynamic Credit Allocation Fund, Inc.
		CENTRAL INDEX KEY:			0001515324
		IRS NUMBER:				454969053
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-CEN
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-22535
		FILM NUMBER:		23734294

	BUSINESS ADDRESS:	
		STREET 1:		2000 AVENUE OF THE STARS
		STREET 2:		12TH FLOOR
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90067
		BUSINESS PHONE:		(310) 201-4200

	MAIL ADDRESS:	
		STREET 1:		2000 AVENUE OF THE STARS
		STREET 2:		12TH FLOOR
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90067

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Ares Senior Credit Strategies Fund, Inc.
		DATE OF NAME CHANGE:	20110314
</SEC-HEADER>
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<p style="margin:0in;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;"><font face="times new roman" lang=EN-US style="font-size:14.5pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;margin-left:81.55pt;margin-right:80.75pt;margin-top:4.7pt;text-align:center;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Report</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.25pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Independent</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.25pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Registered</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.25pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Public</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.45pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Accounting</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;">Firm</font></p>

<p style="margin:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-top:.55pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:9.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-left:5.95pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">To</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">Shareholders</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.3pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.25pt;line-height:12.55pt;">and</font></p>

<p style="margin:0in;margin-left:5.95pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">Board</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">Directors</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">Ares</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">Dynamic</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;line-height:12.55pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">Credit</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">Allocation</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;line-height:12.55pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;line-height:12.55pt;">Fund,</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;line-height:12.55pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;line-height:12.55pt;">Inc.</font></p>

<p style="margin:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:10.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-left:5.95pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">In planning</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">and performing our audit of the financial
statements of Ares Dynamic Credit Allocation Fund, Inc. (the Fund) as of and
for the year ended December 31, 2022, in accordance with the standards of the
Public Fund Accounting Oversight Board (United States) (PCAOB), we considered
the Fund&#8217;s internal control over financial reporting, including controls over
safeguarding securities, as a basis for designing our auditing procedures</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">for</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">purpose</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">expressing</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">our</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">opinion</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">on</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">financial</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">statements</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.35pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">and</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">to comply with the requirements</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of Form N-CEN, but not for the purpose of
expressing an opinion on the effectiveness of the Fund&#8217;s internal control over
financial reporting.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:5.95pt;margin-right:0in;margin-top:.1pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Accordingly,</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.45pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">we</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">express</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">no</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">such</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;">opinion.</font></p>

<p style="margin:0in;margin-top:.55pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:5.95pt;margin-right:6.55pt;margin-top:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">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 fund&#8217;s 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 U.S. generally accepted accounting principles. A fund&#8217;s
internal control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the Fund; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with U.S. generally accepted accounting principles, and that
receipts and expenditures of the Fund are being made only in accordance with authorizations
of management</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">and</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">directors</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Fund;</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">and</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">(3)</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">provide</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">reasonable</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">assurance</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">regarding
prevention or timely detection of unauthorized acquisition, use or disposition
of a Fund&#8217;s assets that could have a material effect on the financial statements.</font></p>

<p style="margin:0in;margin-top:.45pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:5.95pt;margin-right:6.55pt;margin-top:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Because of its inherent
limitations, internal control</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">over
financial reporting may not prevent</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">or</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">detect</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">misstatements.</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Also,</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">projections</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.4pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">any</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.4pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">evaluation</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">effectiveness</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">to future periods are subject to the risk
that controls</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">may</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">become inadequate</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">because of changes</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">in</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">conditions,</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">or</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.4pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">that</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">degree</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of compliance</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">with</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">policies</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">or</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.4pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">procedures may deteriorate.</font></p>

<p style="margin:0in;margin-top:.35pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:5.95pt;margin-right:6.0pt;margin-top:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">A deficiency in internal control
over financial reporting exists when the design or operation</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.3pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">a</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">control</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">does</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.3pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">not</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">allow</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.35pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">management</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.4pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">or</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">employees,</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.3pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">in</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">normal</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">course</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control over
financial reporting,</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">such that there
is</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.15pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">a reasonable</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">possibility that a</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">material</font></p>









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<p style="margin:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:14.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:5.95pt;margin-right:9.25pt;margin-top:4.7pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">misstatement</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Fund&#8217;s</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">annual</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">or</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">interim</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">financial</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">statements</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.4pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">will</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">not</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">be</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.2pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">prevented
or detected on a timely basis.</font></p>

<p style="margin:0in;margin-top:.4pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:5.95pt;margin-right:5.55pt;margin-top:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Our consideration of the Fund&#8217;s 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 material weaknesses under standards established by the
PCAOB. However, we noted no deficiencies in the Fund&#8217;s internal control over
financial reporting and its operation, including controls over safeguarding
securities,</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">that</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">we</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">consider</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">to</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">be</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">a</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.3pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">material</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">weakness</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">as</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.3pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">defined</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">above</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.05pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">as</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.25pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.25pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">December 31, 2022.</font></p>

<p style="margin:0in;margin-top:.5pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:5.95pt;margin-right:6.55pt;margin-top:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">This</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">report</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">is</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">intended</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;">
</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">solely</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">for</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">information
and</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">use</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">of</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.4pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">management</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.3pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">and</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">the</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.1pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Board of Directors of Ares Dynamic Credit
Allocation Fund, Inc. and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these specified
parties.</font></p>

<p style="margin:0in;"><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-top:.1pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-top:.1pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">/s/ ERNST &amp; YOUNG, LLP</font></p>

<p style="margin:0in;margin-top:.1pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Los</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.8pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">Angeles,</font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:-.75pt;"> </font><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">California</font></p>

<p style="margin:0in;margin-top:.1pt;"><font face=Arial,sans-serif lang=EN-US style="font-size:11.0pt;">March 1, 2023</font></p>




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