Independent Accountant's Report
To the Board of Directors
Dreyfus GNMA Fund, Inc.
We have examined management's assertion about Dreyfus Asset
Allocation Fund, Inc.'s (the "Company") compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 ("the Act") as of July 31, 1998,
with respect to securities and similar investments reflected in the
investment account of the Company, included in the accompanying
Management Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940. Management
is responsible for the Company's compliance with those
requirements. Our responsibility is to express an opinion on
management's assertion about the Company's 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 Company's 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 July 31, 1998, and with respect to
agreement of security and similar investments purchases and sales,
for the period from April 30, 1998 (the date of last examination)
through July 31, 1998;
Count and inspection of all securities and similar investments
located in the vault of Mellon Bank in New York, without prior
notice to management;
Confirmation of all securities and similar investments held by
institutions in book entry form (i.e., the Federal Reserve Bank
of Boston, the Depository Trust Company and the Participant
Trust Company);
Reconciliation of confirmation results as to all such securities
and investments to the books and records of the Company and
Mellon Bank;
Confirmation of all repurchase agreements, if any, with
brokers/banks and agreement of underlying collateral with
Mellon Bank's records;
Agreement of investment purchases and sales or maturities since
our last examination from the books and records of the Company
to broker confirmations.
We believe that our examination provides a reasonable basis for our
opinion. Our examination does not provide a legal determination
on the Company's compliance with specified requirements.
In our opinion, management's assertion that Dreyfus Asset
Allocation Fund, Inc. was in compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of July 31, 1998 with respect to securities and
similar investments reflected in the investment account of the
Company is fairly stated, in all material respects.
This report is intended solely for the information and use of
management of Dreyfus GNMA Fund, Inc. and the
Securities and Exchange Commission and should not be used for
any other purpose.
ERNST & YOUNG LLP
New York, New York
August 26, 1998
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-17f-2
Certificate of Accounting or Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 [17 CRF 270.17f-2]
1. Investment Company Act File Date examination
Number: completed:
811-4215 08/26/98
2. State Identification Number:
AL AK AZ AR CA CO
CT DE DC FL GA HI
ID IL IN IA KS KY
LA ME MD MA MI MN
MS MO MI NE NV NH
NJ NM NY NC ND OH
OK OR PA RI SC SD
TN TX UT VT VA WA
WV WI WY PUERTO
RICO
Other
Specify:
3. Exact name of investment company as specified in
registration statement:
4. Address of principal executive office: (number, street, city,
state, zip code) 200 Park Avenue, 55th Floor , New York,
NY 10166
INSTRUCTIONS
The Form must be completed by investment companies
that have custody of securities or similar investments
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who,
in compliance with Rule 17f-2 under the Act and
applicable state law, examine securities and similar
investments in the custody of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange
Commission and appropriate state securities administrators
when filing the certificate of accounting required by Rule
17f-2 under the Act and applicable state law. File the
original and one copy with the Securities and Exchange
Commissions's principal office in Washington D.C., one
copy with the regional office for the region in which the
investment company's principal business operations are
conducted, and one copy with the appropriate state
administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT
PUBLIC ACCOUNTANT
