DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus
Massachusetts Municipal Money Market Fund. For its semi-annual reporting
period ended July 31, 1996, your Fund produced an annualized yield of 2.74%
per share. Income dividends of approximately $.014 per share were paid during
the period. Reinvesting these dividends and calculating the effect of
compounding results in an annualized effective yield of 2.77%.* These
dividends were exempt from Federal and Commonwealth of Massachusetts personal
income taxes, although some income may be subject to the Federal Alternative
Minimum Tax (AMT) for certain shareholders.
THE ECONOMY
The economic expansion which has now lasted more than six years continued
at a healthy clip in recent months with consumer spending, housing activity,
and job growth all showing solid gains. In the second quarter of 1996, the
U.S. economy grew at a 4.2% annual pace, its best performance in two years.
American consumers continued to buy new autos and houses at a robust rate,
with housing sales and starts growing 15.2% in the spring quarter, according
to the government's Gross Domestic Product (GDP) report. At the same time,
the unemployment rate dropped to 5.3% in June, its lowest level in years.
Vigorous economic growth inevitably brings investor concerns about
inflation: in other words, will the rising economy cause inflation to rise as
well? For much of July, the answer remained clouded. Federal Reserve Board
Chairman Alan Greenspan did not respond to inflationary fears with a clear
indication as to the direction of Fed policy in his July 18 testimony before
Congress. While hinting that the Fed would tighten short-term interest rates
in August if inflationary pressures warranted such action, Mr. Greenspan also
said that he expected the economy to slow of its own accord later this year.
By the end of July, a clearer picture emerged. According to government data
released at month's end, inflation in the second quarter of 1996 climbed just
2.1%, a very modest rise. Both short- and long-term rates responded with
enthusiasm.
MARKET ENVIRONMENT/PORTFOLIO
If one were to trace the trend in short-term municipal rates over this
most recent semi-annual period, the direction would mirror closely the
changes in supply and demand conditions. The six-month cycle would reflect:
low short-term yields in February due to strong money market fund cash flows
after the New Year; price weakness and higher rates in April as investors
tapped their money market funds to pay income taxes; market strength in late
June to early July as $9 billion in notes maturities left the market; and
price weakness and buying opportunities in late July due to inflationary
concerns and the added supply of summer financings. These technical
influences continue to be the overriding factor affecting municipal money
rates.
These conditions, coupled with action taken by the Federal Reserve Board,
provide the framework for our investment strategy-both on a day-to-day basis
and looking ahead over a one-year horizon. During the first few months of
1996, as a result of uncertainty surrounding potential tax reform, variable
rate demand notes (which currently represent a significant portion of your
Fund's investment portfolio) benefited from unusually high yields. While the
concerns were only temporary, they translated, for a time, into a more
attractive after-tax rate of return than was available to the Massachusetts
tax-exempt money market investor on taxable instruments with similar maturities.
During this period, the purchase of attractively yielding commercial paper in
the 60- to 90-day range also allowed us to capture returns similar to those on
one-year issues without a significant extension of average maturity-enabling
us to wait out a lower yield environment in anticipation of higher rates.
The opportunity to commit to longer Massachusetts-exempt note issues has
appeared in recent weeks and should continue to be available during the
remaining summer months as issuers return to the market with midyear
financings. We have participated in various Massachusetts note offerings
which resulted in an extension of your Fund's average maturity to the 60-day
range. We will look to take advantage of any additional buying opportunities
as we monitor potential Fed activity and any other significant changes in the
municipal money market. All new investments will continue to meet the high
credit quality standards which we require and to provide a significant level
of liquidity, commensurate with the needs of your Fund.
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 greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
August 15, 1996
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS JULY 31, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS-100% AMOUNT VALUE
_______ _______
<S> <C> <C>
MASSACHUSETTS-99.5%
Town of Attleboro, BAN 3.50%, 2/6/97........................................ $ 8,000,000 $ 8,003,999
Boston Water and Sewer Commission, Revenue, VRDN (General Series)
3.25%, Series A (LOC; State Street Bank) (a,b).......................... 2,220,000 2,220,000
Town of Brookline, Revenue 4.25%, 1/15/97................................... 535,000 536,723
Town of Chicopee, BAN 4.25%, 8/1/96......................................... 9,000,000 9,000,000
Fitchburg Industrial Development Financing Authority, Industrial Revenue, VRDN
(Nestal Machinery Project)
3.70% (LOC; Lasalle National Bank) (a,b)................................ 3,500,000 3,500,000
Town of Framingham, Revenue 6.90%, 8/15/96.................................. 680,000 680,863
Commonwealth of Massachusetts:
GO Notes 5.125%, Series D, 11/1/96 (Insured; FGIC)...................... 7,860,000 7,886,400
Notes 4.25%, Series A, 6/10/97.......................................... 6,000,000 6,019,812
Revenue 5.70%, Series A, 8/1/96......................................... 1,000,000 1,000,000
VRDN 3.50%, Series B (LOC; National Westminster Bank) (a,b)............. 2,895,000 2,895,000
Massachusetts Bay Transportation Authority, General Transportation System Revenue
3.05%, Series 1984-A, 9/1/96 (LOC; State Street Bank) (b)............... 8,000,000 7,998,617
Massachusetts Educational Loan Authority, Education Loan Revenue, VRDN (Issue E)
3.35%, Series A (LOC; Bayerische Landesbank) (a,b)...................... 5,000,000 5,000,000
Massachusetts Health and Education Facilities Authority, Revenue, VRDN:
(Capital Asset Program):
3.25%, Series A (LOC; First National Bank of Chicago) (a,b)........... 1,700,000 1,700,000
3.35%, Series G-1 (Insured; MBIA and SBPA; Credit Suisse) (a)......... 6,100,000 6,100,000
3.45%, Series E (LOC; First Chicago Corp.) (a,b)...................... 4,960,000 4,960,000
(Childrens Hospital) 3.45%, Series F (LOC; Sanwa Bank) (a,b)............ 2,285,000 2,285,000
(Wellesley College) 3.25%, Series B (Guaranteed by; Wellesley College) (a) 5,085,000 5,085,000
Massachusetts Housing Finance Agency:
Housing Revenue 3.70%, Series 50, 6/2/97 (LOC; Bayerische Landesbank) (b) 3,700,000 3,700,000
Refunding, VRDN:
(Habor Point) 3.40%, Series A (BPA; Republic National Bank of New York) (a) 5,100,000 5,100,000
(Multi-Family Housing Project) 3.40%, Series A (LOC; FNMA) (a,b)...... 3,900,000 3,900,000
Massachusetts Industrial Finance Agency:
Industrial Revenue:
(Ocean Spray Cranberries Inc. Project) 3.95%, 10/15/96................ 3,500,000 3,500,000
VRDN:
(Cabot Newburyport Ltd.) 3.55% (LOC; Bank of Boston) (a,b)........ 1,600,000 1,600,000
(Cambridge Isotope Labs Inc.) 3.20% (LOC; Fleet Bank) (a,b)....... 3,880,000 3,880,000
(First Healthcare Corp.) 3.65%, Series B (LOC; Wachovia Bank and Trust) (a,b) 1,295,000 1,295,000
(Nutramax Products Inc.)
3.60%, Series B (LOC; State Street Bank and Trust) (a,b)........ 1,500,000 1,500,000
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
MASSACHUSETTS (CONTINUED)
Massachusetts Industrial Finance Agency (continued):
Mortgage Revenue, VRDN (Chestnut House Apartments)
3.35% (LOC; Sumitomo Bank) (a,b)...................................... $ 1,110,000 $ 1,110,000
PCR:
CP, Refunding (New England Power Co. Project):
3.60%, 9/27/96 (Corp. Guaranty; New England Power Co.)............ 4,000,000 4,000,000
3.65%, 10/16/96 (Corp. Guaranty; New England Power Co.)........... 3,000,000 3,000,000
VRDN (Holyoke Water Power Co.)
3.25%, Series A (LOC; Canadian Imperial Bank of Commerce) (a,b)... 2,940,000 2,940,000
Revenue, VRDN:
(Berkshire Project) 3.30% (LOC; National Westminster Bank) (a,b)...... 2,000,000 2,000,000
(Edgewood Retirement Community) 3.50%, Series C (LOC; Dresdner Bank) (a,b) 5,000,000 5,000,000
(Goddard House) 3.85% (LOC; Fleet Bank) (a,b)......................... 1,625,000 1,625,000
(Groton School Project) 3.30% (LOC; State Street Bank) (a,b).......... 4,800,000 4,800,000
(Newbury College) 3.80% (LOC; Baybank) (a,b).......................... 4,000,000 4,000,000
Refunding (Showa Womens Institute) 3.50% (LOC; Bank of America) (a,b). 3,500,000 3,500,000
RRR, VRDN (Ogden Haverhill Project):
3.20%, Series A (LOC; Union Bank of Switzerland) (a,b)................ 3,920,000 3,920,000
3.35%, Series B (LOC; Union Bank of Switzerland) (a,b)................ 5,500,000 5,500,000
Massachusetts Municipal Wholesale Electric Company, Power Supply Systems Revenue,
VRDN 3.35%, Series C (LOC; Canadian Imperial Bank of Commerce) (a,b).... 8,365,000 8,365,000
Massachusetts Water Resource Authority, CP:
3.60%, 9/13/96 (LOC; Morgan Guaranty Trust Co.) (b)..................... 3,500,000 3,500,000
3.25%, 9/20/96 (LOC; Morgan Guaranty Trust Co.) (b)..................... 5,000,000 5,000,000
3.60%, 10/16/96 (LOC; Morgan Guaranty Trust Co.) (b).................... 4,000,000 4,000,000
Town of New Bedford, BAN:
4.50%, 10/11/96 (Repurchase Agreement; Fleet Bank)...................... 4,100,000 4,106,238
4.50%, 6/30/97 (Repurchase Agreement; Fleet Bank)....................... 4,000,000 4,019,281
Town of North Adams, BAN 4.50%, 7/1/97...................................... 2,346,000 2,356,733
Town of North Andover, BAN 3.78%, 1/23/97................................... 1,000,000 999,006
Town of Springfield, BAN:
4.25%, 8/30/96 (Purchase Agreement; Fleet Bank)......................... 3,500,000 3,502,051
4.60%, 7/11/97 (Purchase Agreement; Fleet Bank)......................... 5,000,000 5,022,634
U.S. RELATED-.5%
Commonwealth of Puerto Rico, Government Development Bank, CP
3.50%, 9/18/96.......................................................... 1,000,000 1,000,000
___________
TOTAL INVESTMENTS (cost $182,608,133)....................................... $182,612,357
=============
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DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
BAN Bond Anticipation Notes LOC Letter of Credit
BPA Bond Purchase Agreement MBIA Municipal Bond Investors Assurance
CP Commercial Paper Insurance Corporation
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FNMA Federal National Mortgage Association RRR Resources Recovery Revenue
GO General Obligation SBPA Standby Bond Purchase Agreement
VRDN Variable Rate Demand Notes
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
____- __________________ _________________ _____________________
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 71.9%
F2 VMIG2/MIG2, P2 SP2, A2 2.2
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 5.7
Not Rated (f) Not Rated (f) Not Rated (f) 20.2
_______
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 July 31, 1996, 53.8% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks and government agencies.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) P1 and A1 are the highest ratings assigned tax exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
See independent accountants' review report and notes to financial statements.
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DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $182,608,133)-see statement..................................... $182,612,357
Cash.................................................................... 2,761,639
Interest receivable..................................................... 1,188,367
Prepaid expenses........................................................ 15,842
_____________
186,578,205
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 47,750
Accrued expenses........................................................ 59,004 106,754
____________ ____________
NET ASSETS ................................................................ $186,471,451
=============
REPRESENTED BY:
Paid-in capital......................................................... $186,505,566
Accumulated net realized (loss) on investments.......................... (38,339)
Accumulated gross unrealized appreciation on investments................ 4,224
_____________
NET ASSETS at value applicable to 186,505,566 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)............................................................. $186,471,451
=============
NET ASSET VALUE, offering and redemption price per share
($186,471,451 / 186,505,566 shares)..................................... $1.00
=======
STATEMENT OF OPERATIONS SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 2,879,069
EXPENSES:
Management fee-Note 2(a).............................................. $431,297
Shareholder servicing costs-Note 2(b)................................. 54,203
Professional fees..................................................... 36,615
Registration fees..................................................... 17,870
Custodian fees........................................................ 9,048
Prospectus and shareholders' reports.................................. 5,119
Trustees' fees and expenses-Note 2(c)................................. 4,096
Miscellaneous......................................................... 6,102
_________
TOTAL EXPENSES.................................................. 564,350
Less-reduction in management fee due to
undertaking-Note 2(a)............................................. 52,746
_________
NET EXPENSES.................................................... 511,604
___________
INVESTMENT INCOME-NET........................................... 2,367,465
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 1(b)............................ $ (6,909)
Net unrealized appreciation on investments.............................. 4,224
_________
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (2,685)
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 2,364,780
===============
See independent accountants' review report and notes to financial statements.
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DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1996
1996 (UNAUDITED)
____________ _________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 5,080,095 $ 2,367,465
Net realized (loss) on investments.................................. (902) (6,909)
Net unrealized appreciation on investments for the period........... __ 4,224
____________ _________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 5,079,193 2,364,780
____________ _________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................... (5,080,095) (2,367,465)
____________ _________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold....................................... 345,313,968 237,139,288
Dividends reinvested................................................ 3,227,676 1,550,003
Cost of shares redeemed............................................. (344,297,587) (207,269,783)
____________ _________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS...... 4,244,057 31,419,508
____________ _________
TOTAL INCREASE IN NET ASSETS.................................. 4,243,155 31,416,823
NET ASSETS:
Beginning of period................................................. 150,811,473 155,054,628
____________ _________
End of period....................................................... $ 155,054,628 $ 186,471,451
============== ==============
See independent accountants' review report and notes to financial statements.
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DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED JANUARY 31, JULY 31, 1996
_______________________________________________________________
PER SHARE DATA: 1992(1) 1993 1994 1995 1996 (UNAUDITED)
______ ______ ______ ______ ______ __________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ _______
INVESTMENT OPERATIONS;
Investment income-net.............. .040 .028 .021 .027 .033 .014
______ ______ ______ ______ ______ _______
DISTRIBUTIONS;
Dividends from investment income-net.. (.040) (.028) (.021) (.027) (.033) (.014)
______ ______ ______ ______ ______ _______
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======== ======= =========
TOTAL INVESTMENT RETURN................... 4.41%(2) 2.81% 2.12% 2.70% 3.34% 2.75%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - .19% .28% .28% .46% .59%(2)
Ratio of net investment income to average
net assets.......................... 4.20%(2) 2.74% 2.09% 2.73% 3.28% 2.74%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. 1.04%(2) .66% .53% .46% .19% .06%(2)
Net Assets, end of period (000's Omitted) $57,520 $72,383 $87,864 $150,811 $155,055 $186,471
(1) From March 1, 1991 (commencement of operations) to January 31, 1992.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Massachusetts Municipal Money Market Fund (the "Fund") is
registered under the Investment Company Act of 1940 ("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 Massachusetts income taxes as is consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services,
Inc. acts as the distributor of the Fund's shares, which are sold to the
public without a sales charge.
On October 11, 1995, the Fund's Board of Trustees approved the Fund
entering into an Agreement and Plan of Reorganization (the "Agreement") with
The Dreyfus/Laurel Tax-Free Municipal Funds (the "Company"), on behalf of The
Dreyfus/Laurel Massachusetts Tax-Free Money Fund, a series of the Company
(the "Dreyfus/Laurel Fund"). The Agreement provided for a transfer of the
portion of the Dreyfus/Laurel Fund's assets represented by its Investor
Shares, subject to certain liabilities, to the Fund in exchange solely for
shares of the Fund and the distribution of such shares to the relevant
Dreyfus/Laurel Fund shareholders. The Dreyfus/Laurel Fund's shareholders
approved the proposal on April 16, 1996, and the transfer was subsequently
consummated on May 8, 1996.
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.
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 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.
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
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
The Fund has an unused capital loss carryover of approximately $31,500
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to January 31, 1996. If not
applied, $30,500 of the carryover expires in fiscal 2003 and $1,000 expires
in fiscal 2004.
At July 31, 1996, 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 value
of the Fund's average daily 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. The Manager has
undertaken from February 1, 1996 through May 8, 1997 to reduce the management
fee paid by, and reimburse such excess expenses of the Fund, to the extent
that the Fund's aggregate annual expenses (exclusive of certain expenses as
described above) exceed an annual rate of .60 of 1% of the value of the
Fund's average daily net assets. The reduction in management fee, pursuant to
the undertakings, amounted to $52,746 during the six months ended July 31,
1996.
(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 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 six months ended July 31, 1996, the Fund was charged an aggregate
of $20,393 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. Such
compensation amounted to $22,054 during the six months ended July 31, 1996.
(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.
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Massachusetts Municipal Money Market Fund, including the statement of
investments, as of July 31, 1996, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended July 31, 1996. These financial statements and financial highlights are
the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
January 31, 1996 and financial highlights for each of the five years in the
period ended January 31, 1996 and in our report dated March 7, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young signature logo]
New York, New York
September 6, 1996
[Dreyfus lion "d" logo]
DREYFUS MASSACHUSETTS 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
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 639SA967
[Dreyfus logo]
Massachusetts
Municipal
Money Market Fund
Semi-Annual
Report
July 31, 1996
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