<PAGE>
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NEW JERSEY
DAILY MUNICIPAL 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. 212-830-5200
================================================================================
Dear Shareholder:
We are pleased to present the annual report of New Jersey Daily Municipal Income
Fund, Inc. for the year ended October 31, 1999.
The Fund had net assets of $153,594,069 and 972 active shareholders as of
October 31, 1999.
Thank you for your support and we look forward to continuing to serve your cash
management needs.
Sincerely,
\s\Steven W. Duff
Steven W. Duff
President
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<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Tax Exempt Investments (22.74%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,395,739 Borough of Allendale, Bergen County, NJ BAN (b) 11/24/99 3.05% $ 1,395,892
1,800,000 Borough of Haddon Heights, NJ TAN (b) 04/28/00 3.54 1,803,433
995,000 Borough of Rumson, NJ BAN - Series 1999C (b) 05/31/00 3.16 996,676
1,900,000 Borough of Waldwick, Bergen County, NJ BAN (b) 06/01/00 3.24 1,901,345
1,823,095 Borough of Wanaque, Passaic County, NJ BAN (b) 02/25/00 2.96 1,823,653
2,895,000 City of Linden, NJ BAN - Series 1999 (b) 06/14/00 3.25 2,902,780
1,909,950 Elmwood Park, NJ BAN (b) 06/14/00 3.20 1,912,800
3,000,000 Essex County, NJ 03/31/00 3.11 3,004,196 MIG-1
3,000,000 Jersey City, NJ Refunding BAN 01/14/00 3.16 3,000,585 SP-1
2,868,350 Township of Aberdeen, Monmouth County, NJ BAN (b) 08/18/00 3.59 2,881,545
1,597,000 Township of Chester, NJ BAN (b) 10/20/00 3.69 1,604,435
2,095,000 Township of Cranbury, NJ (b) 03/10/00 3.00 2,096,444
1,590,000 Township of East Amwell, Hunterdon County, NJ BAN (b) 08/19/00 3.59 1,595,810
2,194,985 Township of Maplewood County, NJ BAN (b) 07/27/00 3.44 2,206,665
5,807,000 Township of Montclair County, NJ BAN (b) 03/10/00 2.95 5,807,990
----------- -----------
34,871,119 Total Other Tax Exempt Investments 34,934,249
----------- -----------
<CAPTION>
Other Variable Rate Demand Instruments (c) (66.85%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,900,000 Camden County, NJ Improvement Authority RB
(Parkview Redevelopment Housing Project) - Series 1996
LOC General Electric Capital Corporation 07/01/26 3.45% $ 4,900,000 A1
5,515,000 Clipper, NJ Housing and Mortgage
Finance Agency Home Buyer RB - Series 1996 10/01/21 3.47 5,515,000 MIG-1
7,995,000 Hudson County, NJ Improvement Authority
(Hudson County Lease Project)
Insured by FGIC 10/01/24 3.44 7,995,000 A1
2,500,000 New Jersey EDA 400 International Drive
(Rockerfeller Corporation) (b)
LOC Morgan Guaranty Trust Company 09/01/05 3.40 2,500,000
3,600,000 New Jersey EDA Dock Facility Refunding RB
(Bayonne/IMTT-Bayonne Project) - Series 1993C
LOC Bank One 12/01/27 3.50 3,600,000 VMIG-1
7,600,000 New Jersey EDA Dock Facility Refunding RB
(Bayonne/IMTT-Bayonne Project) - Series 1993B
LOC Bank One 12/01/27 3.50 7,600,000 VMIG-1
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 New Jersey EDA Dock Facility Refunding RB
(Bayonne/IMTT-Bayonne Project)
LOC Rabobank Nederland 12/01/27 3.45% $ 5,000,000 VMIG-1
1,670,000 New Jersey EDA Economic Growth Bonds - Series 1994A
LOC National Westminster Bank PLC 08/01/14 3.60 1,670,000 A1
2,820,000 New Jersey EDA IDRB (Kooltronic Incorporated Project) (b)
LOC First Union National Bank 12/01/08 3.45 2,820,000
100,000 New Jersey EDA Manufacturing Facility RB
(Commerce Center Project)
LOC PNC Bank, N.A. 08/01/17 3.40 100,000 A1
985,000 New Jersey EDA Refunding RB (Ninette Group, L.P. Project) (b)
LOC First Union National Bank 08/01/11 3.45 985,000
1,000,000 New Jersey EDA Refunding RB (Union County Genlyte Project)
LOC Bank of America 10/15/09 3.50 1,000,000 P1
2,000,000 New Jersey EDA School RB (Peddie School) 02/01/19 3.40 2,000,000 A1
900,000 New Jersey EDA School RB (Peddie School) 02/01/26 3.40 900,000 A1
1,000,000 New Jersey EDA Sewage Facility RB (b)
LOC PNC Bank, N.A. 07/01/01 3.60 1,000,000
4,900,000 New Jersey EDA (Stolthaven Project) - Series A
LOC Citibank N.A. 01/15/18 3.50 4,900,000 P1 A1+
2,500,000 New Jersey EDA Thermal Energy Facility RB
LOC Bank One 12/01/09 3.55 2,500,000 VMIG-1
3,700,000 New Jersey EDA (United Water Project) - Series 1996A
Insured by AMBAC Indemnity Corp. 11/01/26 3.45 3,700,000 VMIG-1 A1+
1,000,000 New Jersey Health Care Facility Financing Authority
(Atlantic City Medical Center)
LOC PNC Bank, N.A. 07/01/28 3.30 1,000,000 MIG-1
2,950,000 New Jersey State EDA (Campus 130 Association) (b)
LOC The Bank of New York 12/01/11 3.70 2,950,000
5,600,000 New Jersey State EDA El Dorado Termina
(Dow Chemical Company) - Series - A 05/01/01 3.45 5,600,000 P1
1,791,500 New Jersey State EDA RB (Hartz & Rex Associates) (b)
LOC Citibank N.A. 01/01/12 3.67 1,791,500
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 8,500,000 New Jersey State Transportation Trust Fund
Insured by FSA 06/15/16 3.47% $ 8,500,000 A1+
3,000,000 Port Authority of New York & New Jersey
Versatile Structured Obligation RB 05/01/19 3.50 3,000,000 VMIG-1 A1+
1,100,000 Port Authority of New York & New Jersey
Versatile Structured Obligation RB 04/01/24 3.60 1,100,000 VMIG-1 A1+
6,150,000 Port Authority of New York & New Jersey
Versatile Structured Obligation RB 08/01/24 3.45 6,150,000 VMIG-1 A1+
4,700,000 Port Authority of New York & New Jersey
Versatile Structured Obligation RB - Series 3 06/01/20 3.45 4,700,000 VMIG-1 A1+
300,000 Port Authority of New York & New Jersey
Versatile Structured Obligation RB - Series 6 12/01/17 3.60 300,000 VMIG-1 A1+
1,000,000 Somerset, NJ Industrial Pollution Control Authority
(Minnesota Mining Co.) 08/01/22 3.10 1,000,000 A1+
3,200,000 Union County, NJ Floating Rate Trust - Series 1998
Insured by AMBAC Indemnity Corp. 06/01/20 3.80 3,200,000 VMIG-1
4,700,000 Union County, NJ PCFA
(Exxon Corporation Project) - Series 1994 07/01/33 3.15 4,700,000 P1 A1+
------------ ------------
102,676,500 Total Other Variable Rate Demand Instruments 102,676,500
------------ ------------
<CAPTION>
Put Bond (d) (1.63%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,500,000 Puerto Rico Industrial Medical & Environmental PCFA RB
(Reynolds Metals Corporation)
LOC ABN AMRO Bank N.V. 09/01/00 3.50% $ 2,500,000 VMIG-1 A1+
------------ ------------
2,500,000 Total Put Bond 2,500,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (8.99%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 6,800,000 New Jersey EDA Exempt Facilities RB (Logan - 1992 Project)
LOC Union Bank of Switzerland 01/19/00 3.60% $ 6,800,000 VMIG-1 A1+
5,000,000 New Jersey State TRAN - Series 2000 12/02/99 3.60 5,000,000 P1 A1+
2,000,000 Puerto Rico Government Development Bank 11/17/99 3.35 2,000,000 A1+
------------ ------------
13,800,000 Total Tax Exempt Commercial Paper 13,800,000
------------ ------------
Total Investments (100.21%) (Cost $153,910,749+) 153,910,749
Liabilities in Excess of Cash and Other Assets (-0.21%) ( 316,680)
------------
Net Assets (100.00%) $153,594,069
============
Net Asset Value, offering and redemption price per share:
Class A Shares, 146,839,694 shares outstanding (Note 3) $ 1.00
============
Class B Shares, 6,770,416 shares outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company of the bank whose letter of
credit guarantees the issue or the insurance company who insures the issue.
All letters of credit and insurance are irrevocable and direct pay covering
both principal and interest. Certain issuers have either a line of credit,
a liquidity facility, a standby purchase agreement or some other financing
mechanism to ensure the remarketing of the securities. This is not a
guarantee and does not serve to insure or collateralize the issue.
(b) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to the rated securities in which the
Fund invests.
(c) Securities are payable on demand at par including accrued interest (usually
with seven days notice) and where applicable are unconditionally secured as
to principal and interest by a bank letter of credit. The interest rates
are adjustable and are based on bank prime rates or other interest rate
adjustment indices. The rate shown is the rate in effect at the date of
this statement.
(d) The maturity date indicated is the next put date.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note LOC = Letter of Credit
EDA = Economic Development Authority PCFA = Pollution Control Finance Authority
FGIC = Financial Guaranty Insurance Company RB = Revenue Bond
FSA = Financial Security Assurance Company TAN = Tax Anticipation Note
IDRB = Industrial Development Revenue Bond TRAN = Tax and Revenue Anticipation Note
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest................................................................................ $ 5,111,139
-------------
Expenses: (Note 2)
Investment management fee............................................................... 488,550
Administration fee...................................................................... 341,985
Shareholder servicing fee (Class A)..................................................... 318,894
Custodian fee........................................................................... 12,835
Shareholder servicing and related shareholder expenses.................................. 94,284
Legal, compliance and filing fees....................................................... 59,350
Audit and accounting.................................................................... 66,837
Directors' fees......................................................................... 6,296
Other................................................................................... 12,098
-------------
Total expenses........................................................................ 1,401,129
Expenses paid indirectly.............................................................. ( 268)
-------------
Net expenses.......................................................................... 1,400,861
-------------
Net investment income...................................................................... 3,710,278
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments.................................................... -0-
-------------
Increase in net assets from operations..................................................... $ 3,710,278
=============
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED OCTOBER 31, 1999 AND 1998
================================================================================
<TABLE>
<CAPTION>
1999 1998
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
<S> <C> <C>
Net investment income......................................... $ 3,710,278 $ 6,284,747
Net realized gain (loss) on investments....................... -0- -0-
-------------- --------------
Increase in net assets from operations........................ 3,710,278 6,284,747
Dividends to shareholders from net investment income:
Class A................................................... ( 3,625,805)* ( 6,234,603)*
Class B................................................... ( 84,473)* ( 50,144)*
Capital share transactions (Note 3):
Class A................................................... ( 19,410,440) ( 51,294,518)
Class B................................................... 4,492,237 1,962,624
-------------- --------------
Total increase (decrease)................................. ( 14,918,203) ( 49,331,894)
Net assets:
Beginning of year............................................. 168,512,272 217,844,166
-------------- --------------
End of year................................................... $ 153,594,069 $ 168,512,272
============== ==============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Summary of Accounting Policies.
New Jersey Daily Municipal Income Fund, Inc. is a no-load, non-diversified,
open-end management investment company registered under the Investment Company
Act of 1940. The Fund is a short term, tax exempt money market fund. The Fund
has two classes of stock authorized, Class A and Class B. The Class A shares are
subject to a service fee pursuant to the Distribution and Service Plan. The
Class B shares are not subject to a service fee. Additionally, the Fund may
allocate among its classes certain expenses, to the extent allowable to specific
classes, including transfer agent fees, government registration fees, certain
printing and postage costs, and administrative and legal expenses. Class
specific expenses of the Fund were limited to distribution fees and transfer
agent expenses. In all other respects the Class A and Class B shares represent
the same interest in the income and assets of the Fund. Distribution for Class B
shares commenced on February 9, 1996 and all Fund shares outstanding before
February 9, 1996 were designated as Class A shares. The Fund's financial
statements are prepared in accordance with generally accepted accounting
principles for investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument. The
maturity of variable rate demand instruments is deemed to be the longer of
the period required before the Fund is entitled to receive payment of the
principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Use of Estimates -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that effect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results
could differ from those estimates.
e) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management L.P. (Manager), at the annual rate of .30%
of the Fund's average daily net assets.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .21% of the Fund's average daily net assets.
- --------------------------------------------------------------------------------
<PAGE>
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================================================================================
2. Investment Management Fees and Other Transactions with Affiliates.
(Continued)
Pursuant to a Distribution Plan adopted under Securities and Exchange Commission
Rule 12b-1, the Fund and Reich & Tang Distributors, Inc. (the Distributor) have
entered into a Distribution Agreement and a Shareholder Servicing Agreement,
only with respect to Class A shares of the Fund. For its services under the
Shareholder Servicing Agreement, the Distributor receives from the Fund with
respect only to the Class A shares, a fee equal to .20% of the Fund's average
daily net assets. There were no additional expenses borne by the Fund pursuant
to the Distribution Plan.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$1,000 per annum plus $250 per meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $81,691 paid to Reich & Tang
Services L.P., an affiliate of the Manager as servicing agent for the Fund.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are expense offsets of $268.
3. Capital Stock.
At October 31, 1999, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $153,609,840. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Year
Class A Ended Ended
------- October 31, 1999 October 31, 1998
---------------- ----------------
<S> <C> <C>
Sold................................... 321,866,064 533,736,089
Issued on reinvestment of dividends.... 3,630,791 6,214,721
Redeemed............................... ( 344,907,295) ( 591,245,328)
------------- -------------
Net increase (decrease)................ ( 19,410,440) ( 51,294,518)
============= =============
<CAPTION>
Year Year
Class B Ended Ended
------- October 31, 1999 October 31, 1998
<S> <C> <C>
Sold................................... 11,742,870 6,061,246
Issued on reinvestment of dividends.... 82,170 50,891
Redeemed............................... ( 7,332,803) ( 4,149,513)
------------- -------------
Net increase (decrease)................ 4,492,237 1,962,624
============= =============
</TABLE>
4. Sales of Securities.
Accumulated undistributed net realized losses at October 31, 1999 amounted to
$15,771. This amount represents tax basis capital losses which may be carried
forward to offset future capital gains. Such losses expire October 31, 2002
through October 31, 2004.
5. Concentration of Credit Risk.
The Fund invests primarily in obligations of political subdivisions of the State
of New Jersey and, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 35% of these investments are
further secured, as to principal and interest, by letters of credit issued by
financial institutions. The Fund maintains a policy of monitoring its exposure
by reviewing the credit worthiness of the issuers, as well as that of the
financial institutions issuing the letters of credit, and by limiting the amount
of holdings with letters of credit from one financial institution.
- --------------------------------------------------------------------------------
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights.
<TABLE>
<CAPTION>
Year Ended
Class A October 31,
- -------- -------------------------------------------------------------
1999 1998 1997 1996 1995
--------- --------- --------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income............................. 0.023 0.026 0.027 0.027 0.030
Less distributions:
Dividends from net investment income.............. ( 0.023 ) ( 0.026 ) ( 0.027 ) ( 0.027 ) ( 0.030 )
-------- -------- -------- -------- --------
Net asset value, end of year....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return....................................... 2.30% 2.65% 2.70% 2.69% 3.08%
Ratios/Supplemental Data
Net assets, end of year (000)...................... $ 146,824 $166,234 $ 217,529 $ 151,421 $ 130,128
Ratios to average net assets:
Expenses.......................................... 0.86%+ 0.84%+ 0.86%+ 0.78%+ 0.72%
Net investment income............................. 2.27% 2.60% 2.66% 2.65% 3.02%
Management, administration & shareholder
servicing fee waived ........................... -- -- -- 0.06% 0.18%
<CAPTION>
Year Ended
Class B October 31, February 9, 1996
------- --------------------------------------- (Commencement of offering) to
1999 1998 1997 October 31, 1996
--------- --------- --------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- ---------
Income from investment operations:
Net investment income............................. 0.025 0.028 0.029 0.020
Less distributions:
Dividends from net investment income.............. ( 0.025 ) ( 0.028 ) ( 0.029 ) ( 0.020 )
-------- -------- -------- --------
Net asset value, end of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= =========
Total Return....................................... 2.51% 2.86% 2.91% 2.77%*
Ratios/Supplemental Data
Net assets, end of period (000).................... $ 6,770 $ 2,278 $ 315 $ 366
Ratios to average net assets:
Expenses.......................................... 0.67%+ 0.63%+ 0.65%+ 0.61%*+
Net investment income............................. 2.48% 2.76% 2.88% 2.72%*
* Annualized
+ Includes expense offsets.
</TABLE>
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<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Board of Directors and Shareholders of
New Jersey Daily Municipal Income Fund, Inc.
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
New Jersey Daily Municipal Income Fund, Inc. (the "Fund") at October 31, 1999,
and the results of its operations, the changes in its net assets and the
financial highlights for the year then ended, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these financial statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at October 31, 1999 by
correspondence with the custodian, provides a reasonable basis for the opinion
expressed above. The financial statements for the year ended October 31, 1998,
including the financial highlights for each of the four years in the period then
ended were audited by other independent accountants whose report dated December
4, 1998 expressed an unqualified opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
December 3, 1999
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
CHANGE IN INDEPENDENT ACCOUNTANTS
================================================================================
On August 13, 1999, McGladrey & Pullen, LLP (McGladrey) resigned as independent
auditors of the Fund pursuant to an agreement by PricewaterhouseCoopers LLP
(PwC) to acquire McGladrey's investment company practice. The McGladrey partners
and professionals serving the Fund at the time of the acquisition have joined
PwC.
The reports of McGladrey on the financial statements of the Fund during the past
two fiscal years contained no adverse opinion or a disclaimer of opinion, and
were not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audits for the two most recent fiscal years and through
August 13, 1999, there were no disagreements with McGladrey on any matter of
accounting principle or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of
McGladrey would have caused it to make reference to the subject matter of
disagreement in connection with its report.
Effective August 13, 1999, the Fund, with the approval of its Board of Trustees
and its Audit Committee, engaged PwC as its independent auditors.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
NEW JERSEY
DAILY
MUNICIPAL
INCOME
FUND, INC.
Annual Report
October 31, 1999
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
- -------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not authorized
for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective
prospectus, which includes information regarding the
Fund's objectives and policies, experience of its
management, marketability of shares, and other
information.
- -------------------------------------------------------
New Jersey Daily Municipal Income Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management L.P.
600 Fifth Avenue
New York, New York 10020
Custodian
Investors Fiduciary Trust Company
801 Pennsylvania
Kansas City, Missouri 64105-1716
Transfer Agent & Dividend
Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
- --------------------------------------------------------------------------------
<PAGE>
