EXHIBIT 23
To the Board of Trustees of
the Dreyfus/Laurel Tax-Free Municipal
Funds and the Securities and Exchange Commission:
We have examined management's assertion about The Dreyfus/Laurel
Tax-Free Municipal Funds (constituting the Dreyfus Premier
Limited Term Massachusetts Municipal Fund, Dreyfus Premier
Limited Term Municipal Fund, Dreyfus BASIC New York Municipal Money
Market Fund, Dreyfus BASIC California Municipal Money Market Fund,
and Dreyfus BASIC Massachusetts Municipal Money Market Fund)
(the "Funds") compliance with the requirements of subsections (b)
and (c) of Rule 17f-2 under the Investment Company Act of 1940 as of
August 31, 2000 included in the accompanying Management Statement
Regarding Compliance with Certain Provisions of the Investment
Company Act of 1940. Management is responsible for the Funds'
compliance with those requirements. Our responsibility is to
express an opinion on management's assertion about the Funds'
compliance based on our examination.
Our examination was made in accordance with standards established
by the American Institute of Certified Public Accountants and,
accordingly, included examining, on a test basis, evidence about
the Funds' compliance with those requirements and performing
such other procedures as we considered necessary in the circumstances.
Included among our procedures were the following tests performed as
of August 31, 2000 and for the period from May 31, 2000 (the date of
our last examination) through August 31, 2000, with respect to
security transactions, without prior notice to management:
* Count and inspection of all securities located in the Mellon
Trust - Global Trust Services ("Mellon Trust") vault at 120
Broadway, New York, New York as of August 31, 2000;
* Review of Mellon Trust's systems of reconciliation and control
including their reconciliations with The Federal Reserve Bank
of Boston, Depository Trust Company, Participant Trust Company
and other depositories/intermediaries, as well as their
reconciliation of these holdings with customers' positions.
Such review included analysis and testing of a sample of reconciling
items;
* Agreement of pending trade activity for the Funds as of
August 31, 2000 to their corresponding subsequent bank statements;
* Review of the investment accounts and supporting records of the
Funds, including tests of security transactions since our
last report, on a test basis.
We believe that our examination provides a reasonable basis for
our opinion. Our examination does not provide a legal determination
on the Funds' compliance with specified requirements.
In our opinion, management's assertion that The Dreyfus/Laurel
Tax-Free Municipal Funds were in compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 of the Investment Company Act
of 1940 as of August 31, 2000 with respect to securities
reflected in the investment accounts of the Funds is fairly
stated, in all material respects.
This report is intended solely for the information and use of
management of The Dreyfus/Laurel Tax-Free Municipal Funds and the
Securities and Exchange Commission and should not be used for any
other purpose.
/s/ KPMG LLP
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KPMG LLP
New York, New York
October 20, 2000
October 20, 2000
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of The Dreyfus/Laurel Funds
Tax-Free Municipal Funds (constituting the Dreyfus
Premier Limited Term Massachusetts Municipal Fund, Dreyfus Premier
Limited Term Municipal Fund, Dreyfus BASIC New York Municipal
Money Market Fund, Dreyfus BASIC California Municipal Money
Market Fund, and Dreyfus BASIC Massachusetts Municipal Money
Market Fund) (the "Funds"), are responsible for complying with
the requirements of subsections (b) and (c) of Rule 17f-2,
"Custody of Investments by Registered Management Investment Companies,"
of the Investment Company Act of 1940. We are also responsible for
establishing and maintaining effective internal controls over
compliance with those requirements. We have performed an
evaluation of the Funds' compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 as of August 31, 2000
and for the period from May 31, 2000 (date of your last examination)
through August 31, 2000.
Based on this evaluation, we assert that the Funds were in
compliance with the requirements of subsections (b) and (c)
of Rule 17f-2 of the Investment Company Act of 1940 as of
August 31, 2000 and for the period from May 31, 2000
(date of your last examination) through August 31, 2000,
with respect to securities reflected in the investment accounts
of the Funds.
The Dreyfus/Laurel Tax-Free Municipal Funds
/s/ Stephen E. Canter
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Stephen E. Canter
Chief Operating Officer
The Dreyfus Corporation
