Dreyfus Pennsylvania
Municipal Money Market Fund
ANNUAL REPORT September 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
14 Notes to Financial Statements
17 Report of Independent Auditors
18 Important Tax Information
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Pennsylvania
Municipal Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Pennsylvania Municipal
Money Market Fund, covering the 12-month period from October 1, 1999 through
September 30, 2000. Inside, you'll find valuable information about how the fund
was managed during the reporting period, including a discussion with the fund's
portfolio manager, Scott Sprauer.
Yields on tax-exempt money market instruments rose in general over the past 12
months because of supply-and-demand influences that are unique to the tax-exempt
markets. However, yields of tax-exempt money market instruments did not rise as
much as their taxable counterparts. Amid signs that its previous rate hikes had
begun to slow the economy, the Federal Reserve Board refrained from raising
rates further at its meetings in June and August. Other factors such as higher
energy prices and a weak euro also served to slow economic growth.
In general, the overall investment environment that prevailed in the second half
of the 1990s had provided returns well above long-term averages, establishing
unrealistic expectations for some investors. In our opinion, as the risks of the
stock market have become more apparent due to recent volatility, the safety and
tax-free income potential of tax-exempt money market funds can make them an
attractive investment as part of a well-balanced portfolio.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our web site at www.dreyfus.com. Or,
to speak with a Dreyfus customer service representative, call us at
1-800-782-6620.
Thank you for investing in Dreyfus Pennsylvania Municipal Money Market Fund.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF FUND PERFORMANCE
Scott Sprauer, Portfolio Manager
How did Dreyfus Pennsylvania Municipal Money Market Fund perform during the
period?
For the 12-month period ended September 30, 2000, the fund produced an
annualized tax-exempt yield of 3.26% . Taking into account the effects of
compounding, the fund provided an annualized effective yield of 3.31%.(1) A
continuing decline in the volume of new short-term securities from Pennsylvania
issuers constrained the rise of tax-exempt money market yields relative to their
taxable counterparts during the reporting period.
What is the fund's investment approach?
The fund seeks high current federal and Pennsylvania state tax-exempt income
while looking to maintain a stable $1.00 share price. We are vigilant in our
efforts to preserve capital.
In pursuing the fund's investment approach, we employ two primary strategies.
First, we attempt to add value by constructing a diverse portfolio of high
quality, tax-exempt money market instruments from Pennsylvania tax-exempt
issuers. Second, we actively manage the fund's average maturity in anticipation
of what we believe are interest-rate trends and supply-and-demand changes in
Pennsylvania's short-term municipal marketplace.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the fund, which would enable us to purchase new securities
with then current higher yields. Yields tend to rise when there is an increase
in new-issue supply competing for investor interest. New securities are
generally issued with maturities in the one-year range, which will lengthen the
fund' s average maturity. If we anticipate limited new-issue supply, we may
extend the fund' s average maturity to maintain current yields for as long as
prac The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
tical. At other times, we try to maintain an average maturity that reflects our
view of short-term interest-rate trends and future supply-and-demand
considerations.
What other factors influenced the fund's performance?
The fund was positively influenced over the past year by rising interest rates.
When the reporting period began on October 1, 1999, the U.S. economy continued
to grow strongly, raising concerns that long-dormant inflationary pressures
might reemerge. In response, the Federal Reserve Board (the "Fed") raised
short-term interest rates at its November, February, March and May meetings, for
a total of 1.25 percentage points. However, tax-exempt yields later declined
modestly when the Fed did not change interest rates at subsequent meetings. The
Fed held monetary policy steady because of signs that its previous rate hikes
were having the desired effect of slowing the economy. Fewer housing starts,
moderating growth and little change in the core inflation rate may suggest that
the Fed's rate hikes could be at or near an end.
In this environment, we generally maintained a longer average maturity than our
peer group. When it appeared likely in the summer that yields might fall, we
increased our holdings of fixed-rate commercial paper and reduced our holdings
of variable rate demand notes (VRDNs), which feature floating rates that are
reset daily or weekly. This change was designed to lock in prevailing yields for
as long as practical.
What is the fund's current strategy?
In our view, yields may decline further if the current economic slowdown
continues. Accordingly, we have maintained the fund's average maturity at a
point that is longer than the average for our peer group. However, it is likely
that we will allow the fund's average maturity to decline naturally as holdings
mature over the next several months. In our opinion, this strategy should allow
us to make more funds available for new investments in the fourth quarter of
2000, when we
expect yields to rise temporarily in response to year-end pressures. If yields
should rise, we would consider re-extending the fund's average maturity in order
to lock in higher rates. Of course, markets, strategy and portfolio composition
can change at any time.
October 16, 2000
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES FOR NON-PENNSYLVANIA
RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. AN INVESTMENT IN THE FUND IS NOT INSURED OR
GUARANTEED BY THE FDIC OR THE U.S. GOVERNMENT. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
The Fund
September 30, 2000
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
Principal
TAX EXEMPT INVESTMENTS--101.6% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
Allegheny County Hospital Development Authority, HR
(South Hills Health System) 4.30%, 4/1/2001
<S> <C> <C>
(LOC; PNC Bank of Ohio) 2,000,000 1,999,025
Allegheny County Industrial Development Authority
PCR, Refunding, VRDN (Duquesne)
5.50%, Series A (Insured; AMBAC and LOC;
The Bank of New York) 5,000,000 (a) 5,000,000
Berks County, Revenue, Prerefunded
7.25%, 11/15/2000
(Escrowed in; U.S. Government Securities) 1,000,000 1,023,433
Bucks County Industrial Development Authority, IDR
VRDN (Oxford Falls Project)
4.19% (LOC; Household Finance Corp.) 900,000 (a) 900,000
Butler County Industrial Development Authority
Industrial Revenue (Concordia Lutheran)
5%, Series C, 10/1/2001
(LOC; Asset Guaranty and Fleet Bank) 2,335,000 2,347,656
Chartiers Valley Industrial and Commercial Development
Authority, Revenues, Refunding, VRDN (Asbury Place)
5.50%, Series A (LOC; Lasalle National Bank) 2,000,000 (a) 2,000,000
Coatesville Authority, Sewer Revenue, Refunding
3.40%, 10/15/2000 (Insured; FGIC) 195,000 194,923
Dauphin County General Authority, Revenues, VRDN
Allied Health Pooled Financing Program
5.65%, Series B (Insured; FSA and LOC; Credit Suisse) 7,000,000 (a) 7,000,000
Delaware County Industrial Development Authority, IDR
CP (Philadelphia Electric Co.) 4.20%, 12/7/2000
(Insured; FGIC and Liquidity Facility; FGIC) 4,000,000 4,000,000
East Hampfield Industrial Development Authority
Revenues, VRDN (Menomite Home Project)
5.60% (LOC; Northern Trust Co.) 3,000,000 (a) 3,000,000
East Stroudsburg Area School District, Refunding
GO Notes 4%, Series AA, 11/15/2000 (Insured; FGIC) 1,180,000 1,179,638
Emmaus General Authority, Revenue, VRDN:
(East Stroudsburg) 5.65%, Series B-18
(LOC; Bayerische Landesbank) 1,300,000 (a) 1,300,000
(Northampton Area School District)
5.65%, Series D-18 (LOC; Kredietbank) 1,200,000 (a) 1,200,000
Erie County, Prerefunded 6.60%, Series A, 9/1/2001
(Escrowed in; U.S. Government Securities) 1,000,000 1,020,414
Glendale School District, Refunding, GO Notes
3.40%, 4/15/2001 (Insured; MBIA) 340,000 337,010
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
Hermitage Municipal Authority, Sewer Revenue
Refunding 3.75%, 2/1/2001(Insured; MBIA) 300,000 299,265
Indiana County Industrial Development Authority, PCR
VRDN (Conemaugh Project)
5.65%, Series A (LOC; Union Bank of Switzerland) 3,000,000 (a) 3,000,000
Lancaster County, Revenue, VRDN
5.60% (Insured; FGIC and Liquidity Facility; FGIC) 3,000,000 (a) 3,000,000
Lancaster County Hospital Authority, VRDN:
Health Center Revenue (Quarryville Presbyterian)
5.75% (LOC; Allfirst Bank) 2,000,000 (a) 2,000,000
Senior Living Facilities Revenue (Willow Valley Lakes)
5.60%, Series B (Insured; MBIA and LOC; PNC Bank) 2,050,000 (a) 2,050,000
Lehigh County Industrial Development Authority, VRDN:
Industrial and Commercial Development Revenue
(Radnor/Lehigh Corp. Project)
5.625% (LOC; Dresdner Bank) 7,795,000 (a) 7,795,000
PCR (Allegheny Electricity Cooperative Inc.)
4.45%, Series A (LOC; Rabobank Nederland) 800,000 (a) 800,000
Montgomery County, Prerefunded
6%, Series A, 10/15/2000
(Escrowed in; U.S. Government Securities) 1,500,000 1,501,039
Montgomery County Industrial Development Authority
Industrial Revenue, VRDN (Laneko Engineering)
5.55%, Series A (LOC; First Union National Bank) 6,605,000 (a) 6,605,000
Northeastern Hospital Authority, HR, CP
4.30%, Series B, 10/16/2000
(Insured; MBIA and LOC; PNC Bank) 575,000 575,000
State of Pennsylvania:
CP 4.25%, Series A, 11/16/2000
(LOC; Bayerische Landesbank) 5,900,000 5,900,000
GO Notes 5%, 11/15/2000 (Insured; AMBAC) 1,000,000 1,001,251
Pennsylvania Higher Education Assistance Agency
Student Loan Revenue:
Refunding 6.80%, Series A, 12/1/2000 (Insured; FGIC) 4,505,000 4,522,324
VRDN 5.75%, Series B
(LOC; Student Loan Marketing Association) 2,400,000 (a) 2,400,000
Pennsylvania Higher Educational Facilities Authority
College and University Revenue:
(CICU Financing Program--Saint Francis College)
3.80%, Series B-7, 11/1/2000
(LOC; Allied Irish Banks) 4,300,000 4,300,000
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Higher Educational Facilities Authority
College and University Revenue (continued):
(Mount Aloysius College) 3.80%, Series C-3, 11/1/2000
(LOC; Allied Irish Banks) 1,300,000 1,300,000
(University of the Arts)
3.80%, 3/15/2001 (LOC; Asset Guaranty) 275,000 273,278
Pennsylvania Industrial Development Authority, EDR
Prerefunded, Pooled Loan Program
6.80%, Series A, 1/1/2001
(Escrowed in; U.S. Government Securitites) 1,000,000 1,006,365
Pennsylvania Turnpike Common Oil Franchise, Tax Revenue
Refunding 3.85%, Series A, 12/1/2000 (Insured; AMBAC) 1,000,000 998,772
Philadelphia, TRAN 5%, Series A, 6/29/2001 2,000,000 2,009,111
Philadelphia Gas Works, Revenue:
CP 4.30%, Series C, 10/16/2000
(LOC; Morgan Guaranty Trust Co.) 3,200,000 3,200,000
Prerefunded 7.70%, Series 13, 6/15/2001
(Escrowed in; U.S. Government Securities) 2,110,000 2,196,638
Robinson Township, Refunding, GO Notes
5%, 11/1/2000 (Insured; AMBAC) 135,000 135,082
Union County Higher Educational Facility Financing Authority
College and University Revenue, Refunding
(Bucknell University) 5.80%, 4/1/2001 (Insured; MBIA) 1,000,000 1,007,510
Venango Industrial Development Authority, RRR, CP
(Scrubgrass Power Corp. Project)
4.50%, 10/25/2000 (LOC; National Westminster Bank) 4,000,000 4,000,000
York Suburban School District, GO Notes
3.55%, 2/15/2001 (Insured; FGIC) 200,000 199,024
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $94,562,339) 101.6% 94,576,758
LIABILITIES, LESS CASH AND RECEIVABLES (1.6%) (1,519,011)
NET ASSETS 100.0% 93,057,747
</TABLE>
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
CP Commercial Paper
EDR Economic Development Revenue
FGIC Financial Guaranty Insurance
Company
FSA Financial Security Assurance
HR Hospital Revenue
GO General Obligation
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Investors
Assurance Insurance
Corporation
PCR Pollution Control Revenue
RRR Resources Recovery Revenue
TRAN Tax and Revenue Anticipation
Notes
VRDN Variable Rate Demand Notes
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1 SP1+/SP1, A1+/A1 66.1
AAA/AA (b) Aaa/Aa (b) AAA/AA (b) 26.1
Not Rated (c) Not Rated (c) Not Rated (c) 7.8
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.
(B) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF THE ISSUERS.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 94,562,339 94,576,758
Cash 85,204
Interest receivable 823,802
Prepaid expenses and other assets 3,444
95,489,208
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 42,089
Payable for investment securities purchased 2,351,223
Accrued expenses and other liabilities 38,149
2,431,461
--------------------------------------------------------------------------------
NET ASSETS ($) 93,057,747
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 93,070,855
Accumulated net realized gain (loss) on investments (27,527)
Accumulated gross unrealized appreciation of investments 14,419
--------------------------------------------------------------------------------
NET ASSETS ($) 93,057,747
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
93,070,855
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended September 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 3,890,140
EXPENSES:
Management fee--Note 2(a) 496,121
Shareholder servicing costs--Note 2(b) 85,521
Professional fees 37,447
Prospectus and shareholders' reports 15,083
Custodian fees 11,202
Registration fees 9,042
Trustees' fees and expenses--Note 2(c) 8,006
Miscellaneous 6,066
TOTAL EXPENSES 668,488
INVESTMENT INCOME--NET 3,221,652
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($):
Net realized gain (loss) on investments 1,076
Net unrealized appreciation (depreciation) on investments 14,419
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 15,495
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,237,147
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended September 30,
---------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 3,221,652 2,845,447
Net realized gain (loss) on investments 1,076 --
Net unrealized appreciation (depreciation)
on investments 14,419 --
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 3,237,147 2,845,447
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (3,221,652) (2,845,447)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 114,866,459 137,389,922
Dividends reinvested 3,045,004 2,686,228
Cost of shares redeemed (128,167,083) (163,576,192)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (10,255,620) (23,500,042)
TOTAL INCREASE (DECREASE) IN NET ASSETS (10,240,125) (23,500,042)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 103,297,872 126,797,914
END OF PERIOD 93,057,747 103,297,872
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Year Ended September 30,
--------------------------------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .033 .026 .030 .030 .030
Distributions:
Dividends from investment income--net (.033) (.026) (.030) (.030) (.030)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 3.32 2.60 3.05 3.03 3.04
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .67 .65 .65 .66 .68
Ratio of net investment income
to average net assets 3.25 2.57 3.01 2.99 3.00
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- -- -- -- .01
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 93,058 103,298 126,798 131,051 151,918
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Pennsylvania Municipal Money Market Fund (the "fund") is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
non-diversified open-end management investment company. The fund's investment
objective is to provide investors with as high a level of current income exempt
from Federal and Pennsylvania state income taxes as is consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation (the "Manager") serves as the fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary
of Mellon Financial Corporation. Effective March 22, 2000, Dreyfus Service
Corporation (" DSC" ), a wholly-owned subsidiary of the Manager, became the
distributor of the fund's shares, which are sold to the public without a sales
charge. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was the
distributor.
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 per share of
$1.00.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities 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 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. Cost of investments represents amortized cost. Under the
terms of the custody agreement, the fund received net earnings credits of $7,981
during the period ended September 30, 2000 based on available cash balances left
on deposit. Income earned under this arrangement is included in interest income.
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 of 1986, as amended (the
" 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 Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $28,000 available
for Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to September 30, 2000. If not applied,
$2,700 of the carryover expires in fiscal 2003, $17,800 expires in fiscal 2004,
$2,500 expires in fiscal 2006 and $5,000 expires in fiscal 2007.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At September 30, 2000, 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 with the Manager, the management fee is
computed at the annual rate of .50 of 1% of the value of the fund's average
daily net assets and is payable monthly.
(b) Under the Shareholder Services Plan, the fund reimburses DSC an amount not
to exceed an annual rate of .25 of 1% of the value of the fund's average daily
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 period
ended September 30, 2000, the fund was charged $34,656 pursuant to the
Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended September 30, 2000, the fund was charged $31,896 pursuant to the transfer
agency agreement.
(c) Each trustee 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.
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Pennsylvania Municipal Money Market Fund
We have audited the accompanying statement of assets and liabilities of Dreyfus
Pennsylvania Municipal Money Market Fund, including the statement of
investments, as of September 30, 2000, 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 auditing standards generally accepted
in the United States. 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 and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2000 by correspondence with
the custodian and brokers. 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 Pennsylvania Municipal Money Market Fund at September 30, 2000, 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 accounting principles
generally accepted in the United States.
/s/Ernst & Young
New York, New York
November 3, 2000
The 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 September 30, 2000
as "exempt-interest dividends" (not subject to regular Federal and, for
individuals who are Pennsylvania residents, Pennsylvania personal income taxes)
NOTES
For More Information
Dreyfus Pennsylvania Municipal Money
Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 104AR009
