Dreyfus California Tax Exempt
Money Market Fund
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
110 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
The Shareholder Services
Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus, which must precede or
accompany this report.
Printed in U.S.A. 357AR943
California
Tax Exempt
Money Market Fund
Annual Report
March 31, 1994
President's Letter
Dear Shareholder:
We are pleased to provide you with this annual report for the Dreyfus
California Tax Exempt Money Market Fund. For the period ended March 31,
1994, the yield provided by the Fund was 1.92%. After taking into account
the effect of compounding, the effective yield was 1.94%.* Income
dividends of approximately $.02 per share paid during the period were
exempt from Federal and State of California personal income taxes.**
At our last reporting, we were keeping a watchful eye on the status of
the U.S. economy, the direction of interest rates and any significant
variation in inflationary indicators. Early in the period, economic
numbers hinted that the nation's growth might be more anemic than
anticipated. With no strong threat of a rekindling of inflation, the tax
exempt market responded with strength, providing some of the lowest
historical yields in both the bond and money markets. In a somewhat
unusual turn of events, assets of tax-free money market funds increased
(at one point reaching an all-time high of over $116 billion) despite the
low yield environment.
In the first quarter of 1994, signs of economic strength began to emerge
along with the specter of a tighter Federal Reserve policy. On February
4, through a direct announcement by Chairman Alan Greenspan, the Federal
Reserve Board raised the Federal Funds target (for the first time in five
years) from 3% to 3.25%. Since then, there have been two additional
increases. The initial short-term market reaction was a rise in rates and
a leveling off of money fund assets. This was exacerbated to some degree
by the anticipation of new supply in the market place--including $3.2
billion State of California Revenue Anticipation Warrants in mid-
February. However, as investors responded to uncertainty in the long-term
bond and equity markets, the municipal money funds, once again,
experienced substantial cash inflows. As a result, tax exempt money
market assets have increased almost 4% since early February. During this
same period, state-specific funds gained over $1.5 billion in assets
representing an increase of just under 5%. This increased demand for
short-term tax exempt paper should produce lower yields for tax exempt
money market funds. However, given the new tax structure, on a taxable
equivalent basis, tax exempt yields continue to provide an attractive
alternative to taxable money market investments.
As we have mentioned in previous reports, technical factors (i.e.
supply/demand) frequently are the strongest influence on the direction of
short-term municipal rates. We expect that the month of April will be no
exception. Late in the month, tax exempt money market funds typically
experience an outflow of assets as investors redeem shares to meet tax
payment needs. As these redemptions occur, the decreased demand for short-
term securities places temporary upward pressure on yields. We have
structured your portfolio to attempt to capitalize on such periods of
weakness and will selectively commit to those issues which we believe
will enhance your Fund's return. Early in the third quarter, it is
expected that the State of California will once again come to market with
approximately $7 billion in short-term notes. This issuance should
provide additional opportunity to diversify while maintaining our
commitment to high-quality California issues. In addition, we will
continue to monitor closely any additional action taken by the Federal
Reserve Board and adjust the portfolio accordingly.
We have included a current Statement of Investments and recent financial
statements for your review and we look forward to serving your investment
needs in the future.
Very truly yours,
Richard J. Moynihan
President
April 15, 1994
New York, N.Y.
* Effective yield is based upon dividends declared daily and
reinvested monthly.
** Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders.
<TABLE>
<CAPTION>
Dreyfus California Tax Exempt Money Market Fund
Statement of Investments March 31, 1994
Principal
Tax Exempt Investments--100.0% Amount Value
---------- ------------
<S> <C> <C>
Anaheim Housing Authority, MFHR, VRDN:
Refunding (Villas at Anaheim Hill) 2% (LOC; National Bank of Canada) (a,b) $6,000,000 $6,000,000
(Sage Park Project) 2.30% (LOC; Bank of America) (a,b) 1,000,000 1,000,000
Bay Area Government Association, Lease Revenue, VRDN (Pooled Project)
1.80% (LOC; National Westminster Bank) (a,b) 3,630,000 3,630,000
State of California:
RAN 3.50%, 6/28/94 15,000,000 15,036,081
RAW:
3.50%, Series B, 7/26/94 15,000,000 15,032,980
3.75%, Series A, 12/21/94 10,000,000 10,038,612
California Health Facilities Authority, Revenue, VRDN (Kings View Project)
2.20%, Series 85A (LOC; Bank of Tokyo) (a,b) 4,400,000 4,400,000
California Health Facilities Financing Authority, Revenue, VRDN:
(Catholic Health Care) 2.05%, Series B (Insured; MBIA) (a) 7,600,000 7,600,000
(Pooled Loan Program) 2.20%, Series A (LOC; Sanwa Bank) (a,b) 6,900,000 6,900,000
(Pooled Program) 2.20% (LOC; Swiss Bank Corp.) (a,b) 1,200,000 1,200,000
California Pollution Control Financing Authority, RRR, VRDN:
(Delano Project) 3.05% (LOC; ABN-Amro Bank) (a,b) 4,300,000 4,300,000
(Honey Lake Power Project) 3% (LOC; Banque Nationale de Paris) (a,b) 2,200,000 2,200,000
Refunding (Ultrapower-Malaga):
3.10%, Series A (LOC; Bank of America) (a,b) 2,400,000 2,400,000
3.10%, Series B (LOC; Bank of America) (a,b) 2,600,000 2,600,000
California School Cash Reserve Program Authority, Notes:
2.85%, Series A, 6/21/94
(GIC; Bayerische Landersbank and LOC; Industrial Bank of Japan) (b) 9,775,000 9,775,000
3.40%, Series A, 7/5/94 15,000,000 15,018,935
California Statewide Communities Development Authority, Revenue Reserve Bonds
3.20%, Series A, 7/1/94 7,500,000 7,500,000
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue, VRDN
2.10% (LOC; Morgan Guaranty Trust) (a,b) 7,000,000 7,000,000
Indio Housing Authority, Multi-Family Revenue, VRDN (Smoketree Apartments Project)
2.15%, Series A (LOC; Bank of Tokyo) (a,b) 1,250,000 1,250,000
Irvine Ranch Water District, VRDN 2.80%, Series B (LOC; Sumitomo Bank) (a,b) 1,600,000 1,600,000
City of Livermore, TRAN 3%, 6/30/94 3,500,000 3,502,267
City of Loma Linda, VRDN:
HR (Loma Linda University Medical Center)
2.15%, Series C (LOC; Industrial Bank of Japan) (a,b) 6,065,000 6,065,000
MFHR (Loma Linda Springs Apartments Project) 3.10% (LOC; Tokai Bank) (a,b) 1,995,000 1,995,000
City of Los Angeles, MFHR, VRDN:
(Casden Project) 2%, Series K (LOC; Coast Savings and Loan) (a,b) 4,800,000 4,800,000
(Museum Terrace Apartments) 1.90%, Series H (LOC; Bank of America) (a,b) 7,800,000 7,800,000
Los Angeles Community Redevelopment Agency, MFHR, VRDN:
Refunding (Promenade Towers) 2.85% (LOC; Tokai Bank) (a,b) 5,400,000 5,400,000
(Rental Acamadey Apartments) 2.50%, Series A (LOC; Dai-Ichi Kangyo Bank) (a,b) 3,700,000 3,700,000
Los Angeles County, TRAN 3%, Series A, 6/30/94 10,000,000 10,018,053
Los Angeles County Housing Authority, MFHR, VRDN (Canyon Country Villas Project)
2.35%, Series H (LOC; Industrial Bank of Japan) (a,b) 8,500,000 8,500,000
Dreyfus California Tax Exempt Money Market Fund
Los Angeles County Industrial Development Authority, IDR, Refunding, VRDN
(Kransco Project) 2.70% (LOC; Harris Trust and Savings Bank) (a,b) 1,825,000 1,825,000
Los Angeles County Metropolitan Transportation Authority:
RAN 3.75%, Series A, 3/14/95 (LOC; Union Bank of Switzerland) (b) 6,000,000 6,024,824
Sales Tax Revenue, Refunding, VRDN (Prop C Second Series)
2.20%, Series A (Insured; MBIA and SBPA; Industrial Bank of Japan) (a) 5,000,000 5,000,000
Los Angeles County School and Community College Districts, COP, TRAN
3.25%, Series A, 6/30/94 10,000,000 10,009,569
City of Oceanside, MFMR, VRDN (Riverview Springs Apartments)
2.40%, Series A (LOC; Bank of Tokyo) (a,b) 3,400,000 3,400,000
Orange County, Apartment Development Revenue, VRDN:
(Randor/Aragon Corp. Project) 2.45% (LOC; Bank of Nova Scotia) (a,b) 2,000,000 2,000,000
(Vista Verde Apartments Project) 3.50% (LOC; Wells Fargo Bank) (a,b) 1,000,000 1,000,000
(Wlco LF-Issue C-Series 3) 3% (LOC; Tokai Bank) (a,b) 1,000,000 1,000,000
Pasadena Community Development Commission, COP, VRDN:
(Kings Plaza Shopping) 2.25% (LOC; Tokai Bank) (a,b) 1,170,000 1,170,000
(Lake Washington Shopping) 2.25% (LOC; Tokai Bank) (a,b) 1,245,000 1,245,000
City of Placentia, TRAN 3%, 6/30/94 3,600,000 3,602,154
Pomona Redevelopment Agency Industrial Development Authority, IDR, VRDN
(Pioneer Electronics Technology Project) 2.70% (LOC; Tokai Bank) (a,b) 1,000,000 1,000,000
City of Riverside, MFHR (Crest Apartments Project)
2.90%, Series A (LOC; Tokai Bank) (a,b) 3,200,000 3,200,000
Riverside County, COP, VRDN (Riverside County Public Facility)
2.25%, Series A (LOC; Sanwa Bank) (a,b) 1,600,000 1,600,000
Riverside County Industrial Development Authority, IDR, VRDN
(Advanced Business Forms Inc. Project) 2.45% (LOC; Bank of Toyko) (a,b) 2,200,000 2,200,000
Sacramento County Housing Authority, MFHR, VRDN:
Refunding (Grouse Run Apartments) 2.15% (LOC; Bank of America) (a,b) 4,100,000 4,100,000
(Stone Creek Apartments Project)
2.35% (LOC; First Interstate Bank of California) (a,b) 2,400,000 2,400,000
San Bernardino County:
MFHR, VRDN (Woodview Apartments Project) 2.10% (LOC; Bank of America) (a,b) 5,500,000 5,500,000
TRAN 3.25%, 7/29/94 10,100,000 10,131,206
San Diego Housing Authority, MFHR, VRDN (Market Street Square Project)
2.45%, Series G (LOC; Mitsubishi Bank) (a,b) 1,000,000 1,000,000
City of San Jose, MFMR, VRDN (Somerset Park):
1.85%, Series A (Insured; FGIC) (a) 7,600,000 7,600,000
2%, Series A (LOC; Bank of America) (a,b) 1,200,000 1,200,000
San Jose Unified School District, Santa Clara County, TRAN 3.40%, 8/11/94 10,000,000 10,012,221
City of Santa Clara, Electric Revenue, VRDN
2.25%, Series C (LOC; National Westminster Bank) (a,b) 4,000,000 4,000,000
City of Santa Cruz, TRAN 3%, 6/30/94 4,100,000 4,102,656
Simi Valley, MFHR, Refunding, VRDN (Creekside Village)
2.10%, Series A (LOC; Bank of America) (a,b) 5,000,000 5,000,000
Suisan Housing Authority, MFMR, VRDN (Village Green Apartments)
2.05% (LOC; Federal Home Loan Bank) (a,b) 9,600,000 9,600,000
Dreyfus California Tax Exempt Money Market Fund
Union City, MFHR, Refunding, VRDN (Sierra Green Apartments Project)
2.15%, Series A (LOC; Sumitomo Bank) (a,b) 4,500,000 4,500,000
Upland, Apartment Development Revenue, VRDN (Mountain Springs)
3%, Series A (LOC; Tokai Bank) (a,b) 6,500,000 6,500,000
Upland Community Redevelopment Agency, MFHR, VRDN (Pebble Grove)
2.35%, Series C (LOC; Sanwa Bank) (a,b) 1,900,000 1,900,000
City of Vacaville, MFMR, VRDN (Quail Run Apartments)
2.30% (LOC; Federal Home Loan Bank) (a,b) 2,500,000 2,500,000
City of Vallejo, TRAN 3.50%, 9/1/94 6,000,000 6,016,399
--------------
TOTAL INVESTMENTS (cost $306,600,957) $306,600,957
==============
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <C> <C>
COP Certificate of Participation MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Corporation MFMR Multi-Family Mortgage Revenue
GIC Guaranteed Investment Contract RAN Revenue Anticipation Notes
GO General Obligation RAW Revenue Anticipation Warrants
HR Hospital Revenue RRR Resources Recovery Revenue
IDR Industrial Development Revenue SBPA Standby Bond Purchase Agreement
LOC Letter of Credit TRAN Tax and Revenue Anticipation Notes
MBIA Municipal Bond Insurance Association VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
- - ---------- --------- -------------------- ----------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1 SP1+/SP1, A1+/A1 93.1%
F2 VMIG2/MIG2, P2 SP2, A2 5.3
AAA/AA (d) Aaa/Aa (d) AAA/AA (d) 1.6
-------
100.0%
=======
</TABLE>
Notes to Statement of Investments:
(a) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(b) Secured by letters of credit. At March 31, 1994, 49.0% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks and brokerage firms.
(c) Fitch currently provides creditworthiness information for a limited
amount of investments.
(d) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
See notes to financial statements.
<TABLE>
<CAPTION>
Dreyfus California Tax Exempt Money Market Fund
Statement of Assets and Liabilities March 31, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value--Note 1(a) $306,600,957
Cash 10,202,634
Interest receivable 3,009,467
Prepaid expenses 25,444
--------------
319,838,502
LIABILITIES:
Due to The Dreyfus Corporation $133,692
Accrued expenses 78,005 211,697
--------- --------------
NET ASSETS $319,626,805
==============
REPRESENTED BY:
Paid-in capital $319,816,351
Accumulated net realized (loss) on investments (189,546)
--------------
NET ASSETS at value applicable to 319,816,351 shares outstanding
(unlimited number of $.01 par value shares of
Beneficial Interest authorized) $319,626,805
==============
NET ASSET VALUE, offering and redemption price per share
($319,626,805/319,816,351 shares) $1.00
======
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations year ended March 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
Interest Income $7,863,230
Expenses:
Management fee--Note 2(a) $1,527,915
Shareholder servicing costs--Note 2(b) 334,376
Professional fees 48,055
Custodian fees 33,009
Trustees' fees and expenses--Note 2(c) 20,882
Prospectus and shareholders' reports 14,005
Registration fees 11,119
Miscellaneous 11,108
------------
Total Expenses 2,000,469
------------
INVESTMENT INCOME--NET 5,862,761
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b) (50,573)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $5,812,188
============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
Dreyfus California Tax Exempt Money Market Fund
Statement of Changes in Net Assets
Year Ended March 31,
-------------------------
1993 1994
------------ ---------------
<S> <C> <C>
OPERATIONS:
Investment income--net $7,431,958 $5,862,761
Net realized gain (loss) on investments 97,072 (50,573)
--------------- ---------------
Net Increase In Net Assets Resulting From Operations 7,529,030 5,812,188
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net (7,431,958) (5,862,761)
--------------- ---------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 691,530,266 682,605,559
Dividends reinvested 5,915,945 4,434,981
Cost of shares redeemed (703,454,185) (683,706,786)
--------------- ---------------
Increase (Decrease) In Net Assets From
Beneficial Interest Transactions (6,007,974) 3,333,754
--------------- ---------------
Total Increase (Decrease) In Net Assets (5,910,902) 3,283,181
NET ASSETS:
Beginning of year 322,254,526 316,343,624
---------------- --------------
End of year $316,343,624 $319,626,805
================ ==============
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Dreyfus California Tax Exempt Money Market Fund
Financial Highlights
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to
average net assets and other supplemental data for each year indicated.
This information has been derived from information provided in the Fund's
financial statements.
Year Ended March 31,
--------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
--------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $.9996 $.9996 $.9994 $.9993 $.9996
--------------------------------------------------
Investment Operations:
Investment income--net .0551 .0492 .0352 .0235 .0192
Net realized and unrealized gain (loss)
on investments -- (.0002) (.0001) .0003 (.0002)
--------------------------------------------------
Total from Investment Operations .0551 .0490 .0351 .0238 .0190
--------------------------------------------------
Distributions;
Dividends from investment income--net (.0551) (.0492) (.0352) (.0235) (.0192)
--------------------------------------------------
Net asset value, end of year $.9996 $.9994 $.9993 $.9996 $.9994
==================================================
TOTAL INVESTMENT RETURN 5.65% 5.04% 3.58% 2.38% 1.94%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .60% .61% .66% .65% .65%
Ratio of net investment income
to average net assets 5.50% 4.93% 3.53% 2.34% 1.92%
Net Assets, end of year (000's Omitted) $407,438 $351,643 $322,255 $316,344 $319,627
</TABLE>
See notes to financial statements.
Dreyfus California Tax Exempt Money Market Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation ("Distributor") acts as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. The
Distributor is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager").
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.
(a) Portfolio valuation: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees 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. Interest income,
adjusted for amortization of premiums and, when appropriate, discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Realized gain and loss from securities transactions are recorded
on the identified cost basis.
The Fund follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state
and certain of its public bodies and municipalities may affect the
ability of issuers within the state to pay interest on, or repay
principal of, municipal obligations held by the Fund.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. 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. 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, which can distribute tax
exempt dividends, by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and net realized
capital gain sufficient to relieve it from all, or substantially all,
Federal income taxes.
The Fund has an unused capital loss carryover of approximately $139,000
available for Federal income tax purposes to be applied against future
net securities profits, if any, realized subsequent to March 31, 1994.
The carryover does not include net realized securities losses from
November 1, 1993 through March 31, 1994 which are treated, for Federal
income tax purposes, as arising in fiscal 1995. If not applied, $2,000 of
the carryover expires in fiscal 1996, $44,000 expires in fiscal 1998,
$7,000 expires in fiscal 1999, $65,000 expires in fiscal 2000 and $21,000
expires in fiscal 2002.
At March 31, 1994, 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
average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, interest on
borrowings, brokerage commission and extraordinary expenses, exceed 1
1/2% of the average value of the Fund's net assets for any full fiscal
year. There was no expense reimbursement for the year ended March 31,
1994.
(b) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor an amount not to exceed an annual rate of .25
of 1% of the value of the Fund's average daily net assets for servicing
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
year ended March 31, 1994, the Fund was charged an aggregate of $120,793
pursuant to the Shareholder Services Plan.
(c) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each
trustee who is not an "affiliated person" receives an annual fee of
$2,500 and an attendance fee of $250 per meeting.
(d) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory
approvals and approvals of the stockholders of the Manager and of Mellon.
The merger is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
Dreyfus California Tax Exempt Money Market Fund
Report of Ernst & Young, Independent Auditors
Shareholders and Board of Trustees
Dreyfus California Tax Exempt Money Market Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus California Tax Exempt Money Market Fund, including the statement
of investments, as of March 31, 1994, 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. Our procedures included
confirmation of securities owned as of March 31, 1994 by correspondence
with the custodian. 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 Dreyfus California Tax Exempt Money Market Fund at March 31,
1994, the results of its operations for the year then ended, the changes
in its 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.
Picture goes here
New York, New York
May 3, 1994
Dreyfus California Tax Exempt Money Market Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income--net during the fiscal year ended
March 31, 1994 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are California residents, California
personal income taxes).
