Report of Independent Auditors
To the Shareholders and
Board of Directors of
Dreyfus Municipal Income, Inc.
In planning and performing our audit of the financial statements
of Dreyfus Municipal
Income, Inc. for
the year ended September 30, 2000, we considered its internal
control, including control
activities for
safeguarding securities, to determine our auditing procedures for
the purpose of expressing
our opinion
on the financial statements and to comply with the requirements of
Form N-SAR, and not to
provide
assurance on internal control.
The management of Dreyfus Municipal Income, Inc. is responsible
for establishing and
maintaining
internal control. In fulfilling this responsibility, estimates
and judgments by management
are required
to assess the expected benefits and related costs of control.
Generally, internal controls
that are relevant
to an audit pertain to the entity's objective of preparing
financial statements for
external purposes that
are fairly presented in conformity with generally accepted
accounting principles. Those
internal
controls include the safeguarding of assets against unauthorized
acquisition, use, or
disposition.
Because of inherent limitations in internal control, misstatements
due to errors or fraud
may occur and
not be detected. Also, projections of any evaluation of internal
control to future periods
are subject to
the risk that internal control may become inadequate because of
changes in conditions, or
that the
degree of compliance with the policies or procedures may
deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in
internal control that
might be material weaknesses under standards established by the
American Institute of
Certified Public
Accountants. A material weakness is a condition in which the
design or operation of one or
more of the
specific internal control components does not reduce to a
relatively low level the risk
that errors or
fraud in amounts that would be material in relation to the
financial statements being
audited may occur
and not be detected within a timely period by employees in the
normal course of performing
their
assigned functions. However, we noted no matters involving
internal control, including
control
activities for safeguarding securities, and its operation that we
consider to be material
weaknesses as
defined above at September 30, 2000.
This report is intended solely for the information and use of the
Board of Directors and
management of
Dreyfus Municipal Income, Inc., and the Securities and Exchange
Commission and is not
intended to be
and should not be used by anyone other than these specified
parties.
ERNST & YOUNG LLP
November 6, 2000
