EXHIBIT 23
To the Board of Directors of
the Dreyfus/Laurel Funds, Inc.
and the Securities and Exchange Commission:
We have examined management's assertion about The Dreyfus/Laurel
Funds, Inc. (constituting the Dreyfus BASIC S&P 500 Stock Index Fund,
Dreyfus Bond Market Index Fund, Dreyfus Disciplined Intermediate Bond
Fund, Dreyfus Disciplined Smallcap Stock Fund, Dreyfus Disciplined Stock
Fund, Dreyfus Institutional Government Money Market Fund, Dreyfus
Institutional Prime Money Market Fund, Dreyfus Institutional U.S. Treasury
Money Market Fund, Dreyfus Money Market Reserves, Dreyfus Municipal
Reserves, Dreyfus U.S. Treasury Reserves, Dreyfus Premier Balanced Fund,
Dreyfus Premier Large Company Stock Fund, Dreyfus Premier Limited Term
Income Fund, Dreyfus Premier Midcap Stock Fund, Dreyfus Premier Small Cap
Value Fund, Dreyfus Premier Small Company Stock Fund and Dreyfus
Premier Tax Managed Growth Fund, and Dreyfus Tax Smart Growth 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
Funds, Inc. 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 Funds, Inc. and the
Securities and Exchange Commission and should not be used
for any other purpose.
/s/ KPMG LLP
-------------------------
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, Inc.
(constituting the Dreyfus BASIC S&P 500 Stock Index Fund, Dreyfus
Bond Market Index Fund, Dreyfus Disciplined Intermediate Bond
Fund, Dreyfus Disciplined Smallcap Stock Fund, Dreyfus Disciplined
Stock Fund, Dreyfus Institutional Government Money Market
Fund, Dreyfus Institutional Prime Money Market Fund, Dreyfus
Institutional U.S. Treasury Money Market Fund, Dreyfus Money Market
Reserves, Dreyfus Municipal Reserves, Dreyfus U.S. Treasury Reserves,
Dreyfus Premier Balanced Fund, Dreyfus Premier Large Company Stock Fund,
Dreyfus Premier Limited Term Income Fund, Dreyfus Premier Midcap
Stock Fund, Dreyfus Premier Small Cap Value Fund, Dreyfus Premier
Small Company Stock Fund, Dreyfus Premier Tax Managed Growth Fund
and Dreyfus Tax Smart Growth 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 Funds, Inc.
/s/ Stephen E. Canter
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Stephen E. Canter
Chief Operating Officer
The Dreyfus Corporation
