DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Ohio
Municipal Money Market Fund, Inc. For its annual reporting period ended
November 30, 1995, your Fund produced a yield of 3.49%. For investors in the
highest income tax bracket, this equates to a taxable equivalent yield of
6.25%.* Income dividends of approximately $.035 per share were paid during
the period. Reinvesting these dividends and calculating the effect of
compounding resulted in an effective yield of 3.55%.** These dividends were
exempt from Federal and State of Ohio personal income taxes, although some
income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
THE ECONOMY
Modest economic growth and low inflation have spurred a dramatic,
year-long rally in the bond market. Short-term rates have fallen as well. The
Federal Reserve Board's reduction of the Fed Funds rate last summer confirmed
what investors had already suspected: that inflation, at least for the
immediate future, was under control. Now questions abound regarding the
duration of the economic recovery and the likelihood of recession.
The economic recovery of the 1990s was productivity-driven. Corporations
implemented extraordinary cost control measures that, while dramatically
improving bottom line earnings, now contribute to the slow rate of employment
growth. Job creation is a significant factor that affects consumer spending
and a major component of economic activity. The pace of new job creation,
currently at its slowest since World War II, is worrisome. Indeed, wages and
salaries grew at under 3% over the past year, barely keeping pace with
inflation. Still, surveys indicate that consumers remain optimistic, despite
indications that their spending is being affected by the slow growth in
disposable income. Recent reports on retail sales confirm this reticence in
spending. A consumer-led weakening of the economy could lead to further
Federal Reserve easing of monetary policy.
It was concern about lagging economic growth that prompted the Federal
Reserve to ease the Federal Funds rate in July. The housing market and new
home construction had been helped earlier this year by low interest rates,
though both have exhibited signs of weakness recently. Another engine of
economic growth, business capital spending, has been solid. Exports represent
another bright area of the economy. Because of the new competitiveness of
American businesses abroad, the U.S. trade deficit continues to shrink.
Through September, the trade deficit with Japan narrowed for the sixth
consecutive month. Exports, while a relatively small component of overall
economic activity in this country, provide an important support for the job
market. If U.S. products lose competitiveness in world markets, foreign
orders may go elsewhere and jobs could be lost here.
MARKET ENVIRONMENT
In addition to the impact of action taken by the Federal Reserve Board,
technical factors (i.e., supply/demand) contributed to a significant
strengthening of market conditions in late June and early July. Demand
exceeded supply during this time, and short-term yields on municipal issues
dropped accordingly.
In the Fall, rates on short-term issues settled into a trading range.
However, a steady interchange of variable rate demand notes (VRDNs) between
corporate holders and municipal money market funds kept rates on these
securities attractive, which resulted in an inverted yield curve (where rates
on shorter maturities are higher than rates on longer issues) through most of
the season. We believe that this
situation will change dramatically in January as cashflows into municipal
money market funds increase demand for VRDNs and their rates drop.
THE PORTFOLIO
With the inverted yield curve, daily and weekly demand notes yielded
moderately more than both commercial paper and notes through most of the
period. But since this situation is expected to change, our investment
strategy involved an attempt to lengthen the maturity, where possible, and to
lock in rates that we felt would outperform variable rate notes early in
1996.
The commercial paper and one-year note markets provided the means for
extending maturity while attempting to maintain a competitive yield. However,
our success in achieving the desired average maturity was somewhat limited
due to a dearth of high quality issues from which to choose. As a result,
your Fund's current average maturity still leaves room to extend should a
change in market or supply conditions warrant.
Our primary tasks - to preserve principal, to invest in those issues that
meet our high quality standards, and to maintain a balance of income and
liquidity consistent with our conservative management philosophy - continue
to guide our portfolio decisions.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
December 15, 1995
New York, N.Y.
* Tax equivalent yield is based on the highest Federal (39.6%) and Ohio
(4.53%) income tax brackets.
**Effective yield is based upon dividends declared daily and reinvested
monthly.
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DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS NOVEMBER 30, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
_________ _________
<S> <C> <C>
OHIO-97.7%
City of Akron, Sewer Systems Revenue, Special Assessment Notes, VRDN
3.80% (LOC; Credit Suisse) (a,b)........................................ $ 700,000 $ 700,000
City of Cincinnati School District, TAN 5.80%, 12/29/95..................... 2,000,000 2,000,584
Cleveland-Cuyahoga County Port Authority, Revenue, VRDN
(Rock and Roll Hall of Fame Project) 3.80% (LOC; Credit Local de France) (a,b) 2,500,000 2,500,000
City of Cleveland School District, RAN 4.50%, 6/1/96 (Insured; AMBAC)....... 3,400,000 3,416,527
Greene County, BAN 4.25%, Series B, 7/18/96................................. 2,023,215 2,028,723
Hamilton County, Hospital Facilities Revenue, VRDN (Bethesda Hospital Inc.)
3.70% (LOC; Rabobank Nederland) (a,b)................................... 2,000,000 2,000,000
Montgomery County, BAN 5%, 1/26/96.......................................... 2,000,000 2,002,367
Ohio Air Quality Development Authority, Revenue, Refunding:
Environmental Improvement (USX Project) 3.70%, 5/1/96 (LOC; Wachovia Bank) (b) 1,730,000 1,730,000
VRDN (Cincinnati Gas and Electric) 3.80%, Series A (LOC; ABN-Amro Bank) (a,b) 2,000,000 2,000,000
Ohio Public Facilities Commission, Refunding (Higher Education Capital Facilities)
5.20%, Series A, 5/1/96 (Insured; AMBAC)................................ 3,500,000 3,512,078
Ohio State University, General Receipts, VRDN 3.90%, Series B (a)........... 2,000,000 2,000,000
Piqua, IDR, VRDN (Berwick Steel Co. Project) 4.20% (LOC; Sanwa Bank) (a,b).. 2,000,000 2,000,000
Scioto County, Marine Terminal Facility Revenue, Refunding, VRDN
(Norfolk Southern Corp. Project) 3.65% (a).............................. 7,500,000 7,500,000
City of Sharonville, IDR, VRDN (Edgecomb Metals Co. Project)
3.95% (LOC; Banque Nationale de Paris) (a,b)............................ 1,150,000 1,150,000
Toledo-Lucas County Port Authority, Development Revenue, VRDN
(Frostbite Brands Inc. Project) 4.25% (LOC; Old Kent Bank and Trust) (a,b) 1,140,000 1,140,000
City of Twinsburg, IDR, VRDN (United Stationers Supply Co.)
4.05% (LOC; PNC Bank) (a,b)............................................. 4,000,000 4,000,000
University of Cincinnati, General Receipts, BAN 4.25%, 8/28/96.............. 1,000,000 1,001,779
Warren County, IDR, VRDN (Johnson and Hardin Enterprises)
4.10%, Series A (LOC; PNC Bank of Ohio) (a,b)........................... 1,700,000 1,700,000
U.S. RELATED-2.3%
Puerto Rico Industrial and Environmental Pollution Control Facility Authority
(Key Pharmaceuticals) 3.80%, 12/1/96 (LOC; Morgan Guarantee Trust Co.) (b) 1,000,000 $ 1,001,940
__________
TOTAL INVESTMENTS (cost $43,383,998)........................................ $43,383,998
===========
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DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation RAN Revenue Anticipation Notes
BAN Bond Anticipation Notes TAN Tax Anticipation Notes
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
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<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ------- ---------------- -------------------
<S> <C> <C>
VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 62.8%
Aaa/Aa (c) AAA/AA (c) 23.0
Not Rated (d) Not Rated (d) 14.2
____
100.0%
======
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 November 30, 1995, 43.3% of the
Fund's net assets are backed by letters of credit issued by domestic
banks and foreign banks, of which PNC Bank provided letters of credit to
13.06% of the Fund's net assets.
(c) Notes which are not MIG or SP rated are represented by bond ratings
of the issuers.
(d) Securities which, while not rated by Moody's and Standard & Poor's,
respectively, have been determined by the Fund's Board of Directors to be
of comparable quality to those rated securities in which the Fund may
invest.
(e) At November 30, 1995, the Fund had $17,490,000 (40.1% of net assets)
invested in securities whose payment of prinicipal and interest is
dependent upon revenues generated from industry.
See notes to financial statements.
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<CAPTION>
DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $43,383,998
Cash.................................................................... 903,875
Interest receivable..................................................... 394,014
Prepaid expenses........................................................ 5,892
_________
44,687,779
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 17,792
Payable for investment securities purchased............................. 1,001,940
Accrued expenses........................................................ 26,497 1,046,229
______ ________
NET ASSETS ................................................................ $43,641,550
===========
REPRESENTED BY:
Paid-in capital......................................................... $43,689,681
Accumulated net realized (loss) on investments.......................... (48,131)
_________
NET ASSETS at value applicable to 43,689,681 shares outstanding
(1 billion shares of $.001 par value Common Stock authorized)........... $43,641,550
===========
NET ASSET VALUE, offering and redemption price per share
($43,641,550 / 43,689,681 shares)....................................... $1.00
======
See notes to financial statements.
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<CAPTION>
DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $2,055,683
EXPENSES:
Management fee-Note 2(a).............................................. $ 256,547
Shareholder servicing costs-Note 2(b)................................. 66,388
Auditing fees......................................................... 13,069
Legal fees............................................................ 12,838
Directors' fees and expenses-Note 2(c)................................ 8,210
Prospectus and shareholders' reports.................................. 4,789
Custodian fees........................................................ 3,313
Registration fees..................................................... 2,925
Miscellaneous......................................................... 15,623
_______
TOTAL EXPENSES.................................................. 383,702
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 124,498
_______
NET EXPENSES.................................................... 259,204
_________
INVESTMENT INCOME-NET....................................................... 1,796,479
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (47)
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,796,432
==========
See notes to financial statements.
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<CAPTION>
DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30,
-----------------------------
1994 1995
_______ _______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 1,699,227 $ 1,796,479
Net realized (loss) on investments...................................... (48,084) (47)
_____________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 1,651,143 1,796,432
_____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (1,699,227) (1,796,479)
_____________ ____________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................... 274,495,559 131,376,569
Dividends reinvested................................................. 1,498,252 1,597,594
Cost of shares redeemed................................................. (276,775,461) (152,385,902)
_____________ ____________
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.............. (781,650) (19,411,739)
_____________ ____________
TOTAL (DECREASE) IN NET ASSETS.................................... (829,734) (19,411,786)
NET ASSETS:
Beginning of year....................................................... 63,883,070 63,053,336
_____________ ____________
End of year...................................................... $ 63,053,336 $ 43,641,550
============== ============
See notes to financial statements.
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DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED NOVEMBER 30,
_________________________________________________________________
PER SHARE DATA: 1991(1) 1992 1993 1994 1995
________ ________ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 1.00 $ 1.00 $ 1.00 $1.00 $ 1.00
________ ________ _______ _______ _______
INVESTMENT OPERATIONS:
Investment income-net........................ .0334 .0326 .0244 .0264 .0349
Net realized and unrealized (loss) on investments -- -- -- (.0008) (.0003)
________ ________ _______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS........... .0334 .0326 .0244 .0256 .0346
________ ________ _______ _______ _______
DISTRIBUTIONS;
Dividends from investment income-net......... (.0334) (.0326) (.0244) (.0264) (.0349)
________ ________ _______ _______ _______
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======== =========
TOTAL INVESTMENT RETURN.......................... 4.50%(2) 3.31% 2.47% 2.67% 3.55%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... -- .09% .20% .28% .51%
Ratio of net investment income to average net assets 4.43%(2) 3.27% 2.44% 2.65% 3.50%
Decrease reflected in the above expense ratios due to
undertakings by the Manager................ 1.31%(2) .76% .56% .48% .24%
Net Assets, end of year (000's Omitted)...... $27,562 $62,550 $63,883 $63,053 $43,642
(1) From March 1, 1991 (commencement of operations) to November 30, 1991.
(2) Annualized.
See notes to financial statements.
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DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Premier Mutual
Fund Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
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. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors 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 original issue 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, if any, 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 applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $48,100
available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
November 30, 1995. If not applied, $48,000 of the carryover expires in fiscal
2002 and $100 expires in fiscal 2003.
At November 30, 1995, 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, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, the Manager had
undertaken from December 1, 1994 through November 30, 1995, to reduce the
management fee paid by the Fund, to the extent that the Fund's aggregate
expenses (exclusive of certain expenses as described above) exceeded
specified annual percentages of the Fund's average daily net assets. The
reduction in the management fee, pursuant to the undertakings, amounted to
$124,498 for the year ended November 30, 1995.
Effective December 1, 1995, Dreyfus Transfer, Inc., a wholly-owned
subsidiary of The Dreyfus Corporation, serves as the Fund's Transfer and
Dividend Disbursing Agent.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average net assets for certain allocated expenses of providing personal
services and/or maintaining 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 November 30, 1995, the Fund was charged an aggregate of
$36,245 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000. The Chairman of the Board
receives an additional 25% of such compensation.
DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS OHIO MUNICIPAL MONEY MARKET FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Ohio Municipal Money Market Fund, Inc., including the statement of
investments, as of November 30, 1995, 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 November 30, 1995 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 Ohio Municipal Money Market Fund, Inc. at November 30,
1995, 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.
[Ernst & Young signature logo]
New York, New York
December 28, 1995
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
November 30, 1995 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are Ohio residents, Ohio personal income
taxes).
[Dreyfus Lion "d" logo]
DREYFUS OHIO MUNICIPAL
MONEY MARKET FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 637AR9511
[Dreyfus logo]
Ohio
Municipal
Money Market
Fund, Inc.
Annual Report
November 30, 1995
