General Government
Securities Money
Market Fund
ANNUAL REPORT November 30, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
Contents
THE FUND
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
8 Statement of Assets and Liabilities
9 Statement of Operations
10 Statement of Changes in Net Assets
11 Financial Highlights
13 Notes to Financial Statements
19 Report of Independent Auditors
20 Important Tax Information
FOR MORE INFORMATION
Back Cover
The Fund
General Government Securities
Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for General Government Securities
Money Market Fund, covering the 12-month period from December 1, 1998 through
November 30, 1999. Inside, you'll find valuable information about how the fund
was managed during the reporting period, including a discussion with the fund's
portfolio manager, Bernard W. Kiernan, Jr.
When the reporting period began, the Federal Reserve Board had just completed a
series of short-term interest-rate cuts in an attempt to stimulate economic
growth after the spread of a global financial crisis in overseas markets. Its
strategy apparently worked, because signs of renewed economic strength in the
U.S. and abroad became evident early in 1999, fueling fears that inflationary
pressures might re-emerge.
As a result, after remaining relatively steady during the first quarter of 1999,
yields on money market securities rose in response to expectations that the
Federal Reserve Board might raise short-term interest rates. In fact, the
Federal Reserve Board raised rates three times during the summer and fall of
1999 in an attempt to forestall a potential resurgence of inflation.
We appreciate your confidence over the past year, and we look forward to your
continued participation in General Government Securities Money Market Fund
Sincerely,
/s/Stephen E. Canter
_______________________
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
December 15, 1999
2
DISCUSSION OF FUND PERFORMANCE
Bernard W. Kiernan, Jr., Portfolio Manager
How did General Government Securities Money Market Fund perform during the
period?
For the 12-month period ended November 30, 1999, the fund produced a yield of
4.33% for Class A shares and 4.09% for Class B shares, which, taking into
account the effect of compounding, created an effective yield of 4.42% for Class
A shares and 4.17% for Class B shares.(1)
What factors influenced the fund's performance?
For the U.S. economy, economic uncertainty and fear, largely a result of the
Asian financial crisis and Russian default, marked the beginning of the
reporting period. The Federal Reserve Board, in an attempt to cushion the United
States economy from negative overseas events, sharply lowered short-term
interest rates.
Global markets remained unsettled as 1999 began. However, despite continued
concerns regarding uncertainty about Japanese economic reform and devaluation of
the Russian ruble, the general atmosphere of crisis eased, and the focus of U.S.
monetary policy makers shifted back to the domestic economy. As concern over the
impact of offshore events faded, the Fed began to voice concerns about
inflationary pressures.
The performance of the U.S. economy in the first quarter of 1999 was much
stronger than expected. Even though the Gross Domestic Product (GDP) grew at a
rate of 4.3%, inflation was benign. Despite a tight labor market, there was no
evidence of advancing wage pressure. Many economic analysts believed that
advances in technology would make it possible for the economy to grow faster
than previously thought possible without igniting inflation. Despite concern
that imbalances in the economy might eventually derail the nine-year economic
expansion, the U.S. economy continued to grow and the Fed held steady on
short-term interest rates.
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
A surprisingly large jump in the Consumer Price Index in May pushed policy
makers closer to a rate hike. Although the Fed did not immediately raise
interest rates, it did announce a significant shift, adopting a "bias" towards
tightening -- that is, raising short-term rates. With that shift in bias came a
resulting change in market psychology, and market participants began to
anticipate a move by the Fed toward higher rates.
That move came in June, when at its Open Market Committee meeting, the Fed
raised short-term rates by 0.25%. At the same time, however, it announced that
it was shifting its bias back to neutral - indicating no intention of an
immediate rate increase. The market hoped that this pre-emptive strike to head
off the threat of inflation would signal an end to Fed tightening.
Such hopes would be short-lived, however, as strong economic growth with rising
wages and benefits renewed inflationary concerns. At its August Open Market
Committee meeting, the Fed raised the federal funds rate by an additional 0.25%,
and signaled its added resolve by raising the discount rate by 0.25%. Although
second quarter GDP growth dropped to a seemingly more sustainable, less
inflationary 1.9% , the effects of the two short-term rate hikes have yet to
fully affect the performance of the economy.
As the fund' s fiscal year ended, the economy continued to send mixed signals.
Third quarter GDP growth accelerated to a rapid 4.8%, yet key indicators of
employment costs, job creation and inflation were at lower levels than would be
expected given such economic strength. A continued fear of inflationary
pressures led the Fed to institute a third rate hike in November. The Fed's
primary concern continues to be the tightness of the U.S. labor market. At the
end of the fund' s fiscal year, there appeared to be no imminent threat of
inflation. The question remains, however, how long the economy can sustain its
current rate of growth without igniting unfavorable inflationary pressures.
4
What is the fund's current strategy?
The shift in market psychology towards rising rates had a negative impact on
money market performance. The stock market showed increased volatility, and such
volatility often spilled over into the Treasury bond and money markets. Currency
market volatility impacted the performance of dollar-denominated fixed-income
securities. During the period there was also the occasional "flight to quality"
when credit concerns lead investors to seek out bonds and money market
instruments of only the highest quality issuers.
In response, your fund has adopted a somewhat defensive strategy, reducing the
average maturity of our investments and building a liquidity cushion. This
higher level of cash should aid in protecting the fund from potential future
volatility, as well as position the fund to benefit if interest rates rise in
the near future.
December 15, 1999
(1) EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND REINVESTED
MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS FLUCTUATE.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND. YIELD FIGURES PROVIDED FOR CLASS B SHARES REFLECT THE ABSORPTION OF FUND
EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT
MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN
ABSORBED, THE FUND'S CLASS B YIELDS WOULD HAVE BEEN LOWER. WITHOUT THE EXPENSE
ABSORPTION, THE FUND'S CLASS B SHARES WOULD HAVE PRODUCED A YIELD OF 4.06% AND
AN EFFECTIVE YIELD OF 4.14%.
The Fund 5
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
November 30, 1999
Annualized
Yield on
Date of Principal
U.S. GOVERNMENT AGENCIES--103.0% Purchase (%) Amount ($) Value ($)
Federal Farm Credit Bank, Consolidated Systemwide
Floating Rate Notes
<S> <C> <C> <C>
1/28/2000 5.57 (a) 50,000,000 50,000,000
2/9/2000 5.55 (a) 25,000,000 24,999,089
3/17/2000 5.55 (a) 50,000,000 49,997,248
Federal Home Loan Banks, Discount Notes
12/1/1999 5.57 37,979,000 37,979,000
2/4/2000 5.59 67,278,000 66,615,966
2/4/2000 5.03 16,365,000 16,354,890
2/22/2000 4.89 50,000,000 49,994,520
3/2/2000 5.04 28,727,000 28,374,615
3/15/2000 4.94 10,000,000 9,862,625
5/26/2000 5.24 40,000,000 39,992,560
7/13/2000 5.44 40,000,000 39,981,803
7/28/2000 5.70 25,000,000 24,101,667
12/1/2000 5.86 47,400,000 47,347,386
Federal Home Loan Banks, Floating Rate Notes
2/4/2000 5.59 (a) 50,000,000 50,000,000
4/7/2000 5.60 (a) 25,000,000 24,995,716
4/14/2000 5.59 (a) 50,000,000 49,991,701
6/21/2000 5.60 (a) 100,000,000 99,978,242
8/11/2000 5.67 (a) 100,000,000 100,000,000
10/5/2000 5.62 (a) 50,000,000 50,000,000
Federal Home Loan Banks, Notes
1/14/2000 4.77 65,000,000 65,001,992
Federal Home Loan Mortgage Corporation,
Discount Notes
3/2/2000 4.97 3,640,000 3,595,907
6/13/2000 5.42 25,000,000 24,303,958
Federal National Mortgage Association,
Discount Notes
12/2/1999 5.32 25,000,000 24,996,347
2/4/2000 4.89 25,000,000 24,789,653
3/10/2000 5.14 26,845,000 26,840,086
4/20/2000 4.96 25,000,000 24,994,414
5/22/2000 5.10 25,000,000 24,994,284
8/17/2000 5.77 20,000,000 19,211,333
Federal National Mortgage Association,
Floating Rate Notes
12/1/1999 5.58 (a) 50,000,000 50,000,000
8/9/2000 5.67 (a) 100,000,000 99,965,574
6
Annualized
Yield on
Date of Principal
U.S. GOVERNMENT AGENCIES (CONTINUED) Purchase (%) Amount ($) Value ($)
Student Loan Marketing Association,
Floating Rate Notes
2/25/2000 5.60 (a) 50,000,000 49,994,227
Student Loan Marketing Association, Notes
11/1/2000 5.80 8,654,000 8,662,367
TOTAL INVESTMENTS
(cost $1,307,917,170) 103.0% 1,307,917,170
LIABILITIES, LESS CASH AND RECEIVABLES (3.0%) (38,220,872)
NET ASSETS 100.0% 1,269,696,298
(A) THE INTEREST RATE, WHICH WILL CHANGE PERIODICALLY, IS BASED ON THE BANK'S PRIME RATE.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 7
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
Cost Value
ASSETS ($):
Investments in securities--See Statement of
Investments 1,307,917,170 1,307,917,170
Cash 603,176
Interest receivable 9,429,673
Prepaid expenses and other assets 37,654
1,317,987,673
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 480,484
Due to Distributor 374,562
Payable for investment securities purchased 47,347,386
Accrued expenses 88,943
48,291,375
NET ASSETS ($) 1,269,696,298
COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,269,880,532
Accumulated net realized gain (loss) on investments (184,234)
NET ASSETS ($) 1,269,696,298
NET ASSET VALUE PER SHARE
Class A Class B
Net Assets ($) 610,511,208 659,185,090
Shares Outstanding 610,653,178 659,227,356
NET ASSET VALUE PER SHARE ($) 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
8
STATEMENT OF OPERATIONS
Year Ended November 30, 1999
INVESTMENT INCOME ($):
INTEREST INCOME 62,724,330
EXPENSES:
Management fee-Note 2(a) 6,149,979
Distribution fees--Note 2(b) 2,459,992
Shareholder servicing costs-Note 2(c) 2,206,675
Registration fees 145,472
Custodian fees 100,278
Professional fees 44,603
Directors' fees and expenses-Note 2(d) 34,016
Prospectus and shareholders' reports 32,053
Miscellaneous 12,420
TOTAL EXPENSES 11,185,488
Less--reduction in shareholder servicing costs due to
undertaking--Note 2(c) (226,715)
NET EXPENSES 10,958,773
INVESTMENT INCOME--NET 51,765,557
NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($): (17,123)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 51,748,434
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 9
STATEMENT OF CHANGES IN NET ASSETS
Year Ended November 30,
1999 1998
OPERATIONS ($):
Investment income--net 51,765,557 47,782,386
Net realized gain (loss) on investments (17,123) 822
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 51,748,434 47,783,208
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (24,572,923) (25,243,444)
Class B shares (27,192,634) (22,538,942)
TOTAL DIVIDENDS (51,765,557) (47,782,386)
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 4,892,448,521 4,880,850,136
Class B shares 1,874,341,394 1,928,335,745
Dividends reinvested:
Class A shares 24,329,688 24,694,104
Class B shares 26,105,216 21,778,602
Cost of shares redeemed:
Class A shares (4,846,137,806) (4,875,955,150)
Class B shares (1,887,236,183) (1,668,976,351)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 83,850,830 310,727,086
TOTAL INCREASE (DECREASE) IN NET ASSETS 83,833,707 310,727,908
NET ASSETS ($):
Beginning of Period 1,185,862,591 875,134,683
END OF PERIOD 1,269,696,298 1,185,862,591
SEE NOTES TO FINANCIAL STATEMENTS.
10
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been derived from the fund's
financial statements.
Ten Months Ended
Year Ended November 30, November 30, Year Ended January 31,
CLASS A SHARES 1999 1998 1997(a) 1997 1996 1995
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .043 .048 .040 .047 .052 .038
Distributions:
Dividends from investment income--net (.043) (.048) (.040) (.047) (.052) (.038)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
TOTAL RETURN (%) 4.42 4.88 4.84(b) 4.75 5.35 3.90
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .76 .77 .82(b) .82 .84 .83
Ratio of net investment income
to average net assets 4.35 4.77 4.78(b) 4.65 5.22 3.82
Net Assets, end of period ($ x 1,000) 610,511 539,878 510,289 519,861 530,054 513,345
(A) THE FUND CHANGED ITS FISCAL YEAR END FROM JANUARY 31 TO NOVEMBER 30.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 11
FINANCIAL HIGHLIGHTS (Continued)
Ten Months Ended
Year Ended November 30, November 30, Year Ended January 31,
CLASS B SHARES 1999 1998 1997(a) 1997 1996(b)
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .041 .046 .038 .045 .042
Distributions:
Dividends from
investment income--net (.041) (.046) (.038) (.045) (.042)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
TOTAL RETURN (%) 4.17 4.66 4.69(c) 4.58 5.04(c)
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.00 0.97 1.00(c) 1.00 1.00(c)
Ratio of net investment income
to average net assets 4.09 4.55 4.60(c) 4.48 5.01(c)
Decrease reflected in above
expense ratios due to
undertakings by the Manager .03 .05 .05(c) .08 .10(c)
Net Assets,
end of period ($ x 1,000) 659,185 645,984 364,845 90,175 58
(A) THE FUND CHANGED ITS FISCAL YEAR END FROM JANUARY 31 TO NOVEMBER 30.
(B) FROM MARCH 31, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO JANUARY 31, 1996.
(C) ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
General Government Securities Money Market Fund (the "fund") is a separate
diversified series of General Government Securities Money Market Funds, Inc.
(the "Company") which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company, currently offering two series, including the fund. The
fund' s investment objective is to provide investors with as high a level of
current income as is consistent with the preservation of capital and the
maintenance of liquidity. The Dreyfus Corporation (the "Manager") serves as the
fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. , which is a wholly-owned subsidiary of Mellon Financial Corporation.
Effective October 25, 1999, the fund's name was changed from "General Government
Securities Money Market Fund, Inc." to "General Government Securities Money
Market Fund".
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund' s shares, which are sold to the public without a sales load. The fund is
authorized to issue 16 billion shares of $.001 par value Common Stock. The fund
currently offers two classes of shares: Class A (15 billion shares authorized)
and Class B (1 billion shares authorized). Class A shares and Class B shares are
identical except for the services offered to and the expenses borne by each
class and certain voting rights. Class A shares are subject to a Service Plan
adopted pursuant to Rule 12b-1 under the Act, Class B shares are subject to a
Distribution Plan adopted pursuant to Rule 12b-1 under the Act and, in addition,
Class B shares are charged directly for sub-accounting services provided by
Service Agents (a securities dealer, financial institution or other industry
professional) at an annual rate of .05% of the value of the average daily net
assets of Class B shares.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on pro rata basis.
The Fund 13
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
It is the fund's policy to maintain a continuous net asset value per share of
$1.00; the fund has adopted certain investment, portfolio valuation and dividend
and distribution policies to enable it to do so. There is no assurance, however,
that the fund will be able to maintain a stable net asset value per share of
$1.00.
The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued at amortized cost,
which has been determined by the fund's Board of Directors to represent the fair
value of the fund's investments.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.
Under the terms of the custody agreement, the fund received net earnings credits
of $6,975 based on available cash balances left on deposit. Income earned under
this arrangement is included in interest income.
The fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the fund' s Manager, subject to the seller's
agreement to repurchase and the fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the fund's custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest, the fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the fund maintains
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller.
14
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
from investment income-net on each business day. Such dividends are paid
monthly. Dividends from net realized capital gain are normally declared and paid
annually, but the fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, it is the policy of the fund not to distribute such
gain.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $189,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1999. If not
applied, $19,000 of the carryover expires in fiscal 2003, $63,000 expires in
fiscal 2004, $90,000 expires in fiscal 2005 and $17,000 expires in fiscal 2007.
At November 30, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 2--Management Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .50 of 1% of the value of the
fund' s average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses of the fund, exclusive of
taxes, brokerage, interest on borrowings and extraordinary expenses, exceed
1 1/2% of the value of the fund's average net assets, the fund may deduct
from payments to be made to the Manager, or the Manager will bear such excess
The Fund 15
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
expense. During the period ended November 30, 1999, there was no expense
reimbursement pursuant to the Agreement.
(b) Under the Service Plan with respect to Class A shares (the "Plan"), adopted
pursuant to Rule 12b-1 under the Act, Class A shares directly bear the costs of
preparing, printing and distributing prospectuses and statements of additional
information and implementing and of operating the Plan. In addition, Class A
shares reimburse (a) the Distributor for payments made for distributing their
shares and servicing shareholder accounts ("Servicing") and (b) the Manager,
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, and their
affiliates (collectively "Dreyfus") for payments made for Servicing, at an
aggregate annual rate of up to .20 of 1% of the value of the fund's average
daily net assets of Class A. Both the Distributor and Dreyfus may pay Service
Agents a fee in respect of Class A Shares owned by shareholders with whom the
Service Agent has a Servicing relationship or for whom the Service Agent is the
dealer or holder of record. The schedule of such fees and the basis upon which
such fees will be paid shall be determined from time to time by the fund's Board
of Directors. If a holder of Class A shares ceases to be a client of a Service
Agent, but continues to hold Class A shares, Dreyfus will be permitted to act as
a Service Agent in respect of such fund shareholders and receive payments under
the Service Plan for Servicing. The fees payable for Servicing are payable
without regard to actual expenses incurred. During the period ended November 30,
1999, Class A shares were charged $1,131,021 pursuant to the Plan.
Under the Distribution Plan with respect to Class B shares (" Class B
Distribution Plan" ), adopted pursuant to Rule 12b-1 under the Act, Class B
shares directly bear the costs of preparing, printing and distributing
prospectuses and statements of additional information and of implementing and
operating the Class B Distribution Plan. In addition, Class B shares reimburse
the Distributor for payments made to third parties for distributing Class B
shares at an aggregate annual rate of up to .20 of 1% of the value of the
average daily net assets of Class B. During the period ended November 30, 1999,
Class B shares were charged $1,328,971 pursuant to the Class B Distribution
Plan.
16
(c) Under the fund's Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), Class A shares reimburse Dreyfus Service
Corporation an amount not to exceed an annual rate of .25 of 1% of the value of
the fund's average daily net assets of Class A for certain allocated expenses of
providing personal services and/or maintaining shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. During the period ended November 30, 1999, Class A
shares were charged $122,119 pursuant to the Class A Shareholder Services Plan.
Under the fund's Shareholder Services Plan with respect to Class B ("Class B
Shareholder Services Plan"), Class B shares pay the Distributor for the
provision of certain services to the holders of Class B shares a fee at an
annual rate of .25 of 1% of the value of the average daily net assets of Class
B. The services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding Class B shares and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents.
The Manager had undertaken from December 1, 1998 through November 30, 1999 that
if the aggregate expenses of Class B shares of the fund, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceeded 1% of the
value of the average daily net assets of Class B, the Manager will reimburse the
expenses of the fund under the Class B Shareholder Services Plan to the extent
of any excess expense and up to the full fee payable under the Class B
Shareholder Services Plan. During the period ended November 30, 1999, Class B
shares were charged $1,993,456 pursuant to the Class B Shareholder Services
Plan, of which $226,715 was reimbursed by the Manager.
The Fund 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement, for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended November 30, 1999, the fund was charged $60,221, pursuant to the transfer
agency agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
18
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
General Government Securities Money Market Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of General Government Securities Money Market Fund
(one of the Series constituting General Government Securities Money Market
Funds, Inc.) as of November 30, 1999, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended and financial highlights for each of the
years indicated therein. These financial statements and financial highlights are
the responsibility of the fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of November 30, 1999 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
General Government Securities Money Market Fund at November 30, 1999, and the
results of its operations for the year then ended, the changes in net assets for
each of the two years in the period then ended and the financial highlights for
each of the indicated years, in conformity with generally accepted accounting
principles.
[ERNST & YOUNG LLP SINGATURE LOGO]
New York, New York
January 6, 2000
The Fund 19
IMPORTANT TAX INFORMATION (Unaudited)
For State individual income tax purposes, the fund hereby designates 66.65% of
the ordinary income dividends paid during its fiscal year ended November 30,
1999 as attributable to interest income from direct obligations of the United
States. Such dividends are currently exempt from taxation for individual income
tax purposes in most states, including New York, California and the District of
Columbia.
20
For More Information
General Government Securities Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call
1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information
can be viewed online or
downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 975AR9911
