[C]
SECURITIES AND EXCHANGE COMMISSION ------------------------
WASHINGTON, D.C. 20549 OMB Approval
FORM N-17f-2 ------------------------
OMB Number 3235-0360
Certificate of Accounting of Securities and Similar Expires: July 31, 1994
Investments in the Custody of Estimated average burden
Management Investment Companies hours per response. 0.05
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number:
811-370
Date examination completed: June 30, 1998
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2. State identification Number: N/A
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify):
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3. Exact name of investment company as specified in registration statement:
The Dreyfus/Laurel Tax-Free Municipal Funds
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4. Address of principal executive office (number, street, city, state, zip code)
200 Park Avenue, 55th Floor, New York, NY10166
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EXHIBIT 23
To the Board of Directors 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
Muncipal Funds (constituting the Dreyfus Premier Limited Term California
Municipal Fund, Dreyfus Premier Limited Term New York Municipal Fund,
and Dreyfus Premier Limited Term Massachusetts Municipal Fund, Dreyfus
Premier Limited Term Municipal Fund, Dreyfus BASIC New York Municipal
Money Market Fund, and Dreyfus BASIC California Municipal Money Market
Fund and Dreyfus BASIC Massachusetts Municipal Money Market Fund) (the
"Funds")compliance with the requirements of subsection (b) and (c) of
Rule 17f-2 under the Investment Company Act of 1940 (the Act) as of
June 30, 1998 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 June 30, 1998 and for the period from May 31, 1998
(the date of our last examination) through June 30, 1998, with respect
to securities transactions, without prior notice to management:
1. 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 June 30, 1998;
2. 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;
3. Agreement of pending trade activity for the Funds as of
June 30, 1998 to their corresponding subsequent bank
statements;
4. 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 June 30
, 1998 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
September 24, 1998
September 24, 1998
Management Statement Regarding Compliance with Certain Provisions of
the Investment Company Act of 1940
We, as members of management of The Dreyfus/Laurel Tax-Free
Municipal Funds (constituting the Dreyfus Premier Limited Term
California Municipal Fund, Dreyfus Premier Limited Term New York
Municipal Fund, and Dreyfus Premier Limited Term Massachusetts
Municipal Fund, Dreyfus Premier Limited Term Municipal Fund,
Dreyfus BASIC New York Municipal Money Market Fund, and 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 the requirements. We have
performed an evaluation of the Funds' compliance with the requirements
of subsections(b) and (c) of Rule 17f-2 as of June 30, 1998 and for
the period from May 31, 1998 (date of last examination) through June
30, 1998
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 June 30, 1998 and for
the period from May 31, 1998 (date of last examiniation) through
June 30, 1998, with respect to securities reflected in the
investment accounts of the Funds.
Sincerely,
/s/ Stephen E. Canter
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Stephen E. Canter
Chief Operating Officer
The Dreyfus Corporation
