[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]
- -----------------------------------------------------------------------------
1. Investment Company Act File Number:
811-527
Date examination completed: October 31, 1998
- -----------------------------------------------------------------------------
2. State identification Number: N/A
--------------------------------------------------------------------------
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 MT 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:
The Dreyfus/Laurel Funds, Inc.
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
4. Address of principal executive office (number, street, city, state, zip code)
200 Park Avenue, 55th Floor, New York, NY10166
- ----------------------------------------------------------------------------
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 Disciplined Smallcap Stock Fund, Dreyfus
Tax-Smart Growth Fund, Dreyfus Premier Small Cap Value Fund, Dreyfus
Premier Tax Managed Growth Fund, Dreyfus Bond Market Index Fund,
Dreyfus Money Market Reserves, Dreyfus Institutional U.S. Treasury
Money Market Fund, Dreyfus Institutional Government Money Market Fund,
Dreyfus Premier Small Company Stock Fund, Dreyfus BASIC S&P 500 Stock
Index Fund, Dreyfus Premier Limited Term Income Fund, Dreyfus Disciplined
Midcap Stock Fund, Dreyfus Disciplined Stock Fund, Dreyfus Premier
Balanced Fund, Dreyfus Large Company Stock Fund, Dreyfus Institutional
Prime Money Market Fund, Dreyfus Municipal Reserves, Dreyfus U.S.
Treasury Reserves, and Dreyfus Disciplined Intermediate Bond 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
October 31, 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 October 31, 1998 and for the period
from June 30, 1998 (the date of our last examination) through October 31,
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 October 31, 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
October 31, 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 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 October 31, 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
managementof 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
December 17, 1998
December 17, 1998
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 Disciplined Smallcap Stock Fund, Dreyfus
Tax-Smart Growth Fund, Dreyfus Premier Small Cap Value Fund, Dreyfus
Premier Tax Managed Growth Fund, Dreyfus Bond Market Index Fund,
Dreyfus Money Market Reserves, Dreyfus Institutional U.S. Treasury
Money Market Fund, Dreyfus Institutional Government Money Market Fund,
Dreyfus Premier Small Company Stock Fund, Dreyfus BASIC S&P 500 Stock
Index Fund, Dreyfus Premier Limited Term Income Fund, Dreyfus
Disiciplined Midcap Stock Fund, Dreyfus Disciplined Stock Fund, Dreyfus
Premier Balanced Fund, Dreyfus Large Company Stock Fund, Dreyfus
Institutional Prime Money Market Fund, Dreyfus Municipal Reserves,
Dreyfus U.S. Treasury Reserves, and Dreyfus Disciplined Intermediate
Bond 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
October 31, 1998 and for the period fromJune 30, 1998 (date of
last examination) through October 31, 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 October 31, 1998 and for
the period from June 30, 1998 (date of last examiniation) through
October 31, 1998, with respect to securities reflected in the
investment accounts of the Funds.
Sincerely,
/s/ Stephen E. Canter
- ------------------
Stephen E. Canter
Chief Operating Officer
The Dreyfus Corporation
