DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Massachusetts
Municipal Money Market Fund for its fiscal year ended January 31, 1997. Your
Fund produced an annualized yield of 2.82%, and after taking into account the
effect of compounding, the annualized effective yield was 2.86%.*
THE ECONOMY
In recent months, the U.S. economy appeared to be advancing more rapidly
than it had been previously, as incoming data reflected an accelerated pace.
December's strong gains in non-farm payrolls and the length of the workweek,
along with upward revisions of both for November, convinced many analysts
that fourth quarter Gross Domestic Product (GDP) growth would be strong - in
the 4% range. Their estimates were, in actuality, low, as the reported GDP
rate was a brisk 4.7%. While such strong economic growth has not yet produced
higher inflation, forthcoming data on wage and benefits growth, home sales,
and purchasing managers' outlays may rekindle inflation concerns. Some
Federal Reserve Board (the "Fed") officials have been voicing concern
already, although Fed Chairman Greenspan gave little sense of urgency in his
commentary to the Senate Budget Committee on January 21. Additionally, the
Fed Beige Book survey of national economic conditions contained few hints of
price pressures.
Given these indications, the Fed seems likely to rely on anti-inflation
rhetoric rather than action until evidence of price pressures becomes more
persuasive. Nonetheless, words of caution from Fed Chairman Alan Greenspan
during December, and January's robust economic data, have pushed up market
interest rates on six-month to one-year money market securities, as investors
begin to see the possibility of higher rates ahead.
MARKET/PORTFOLIO OVERVIEW
The economic picture is always an important component of our overall
portfolio strategy. However, market expectations can also affect the
short-term municipal market-as was the case in this most recent period. The
anticipation of Federal Reserve activity prior to the Presidential election
this past November left the market jittery, while the lack of Fed action in
the weeks following the election helped settle the market into a trading
range. However, various other influences which affect our market (most
specifically supply/demand) can lead us to adjust our strategy, and result in
a portfolio structure and/or average maturity which may not appear to
coincide exactly with interest rate moves, economic conditions, or forecasts.
For example, during this period, one might have expected that your Fund's
average maturity would be relatively short in expectation of higher rates.
However, we were comfortable extending the average maturity beyond 50 days,
and locking in attractive rates as 1996 drew to a close, due to the
expectation of limited availability of high quality municipal note issues in
early 1997. This strategy served us well when rates dropped significantly
(albeit temporarily) in January, and also leaves flexibility to extend
further should conditions warrant and opportunities arise. In the
Massachusetts market specifically, our effort to extend was, at times,
hampered by the lack of high quality Massachusetts-exempt issues. This
scarcity often necessitates paying a premium for Massachusetts notes.
In the coming months, we expect additional technical market situations to
occur such as increased redemptions due to tax payments during April and the
maturation of significant note issues in June. These anticipated market
events will likely cause us to adjust the Portfolio's composition to respond
to the supply and cash flow changes in an effort to maximize your Fund's
yield. As we endeavor to accomplish this, we will continue to commit to those
issues which meet our high quality investment guidelines and which provide
the appropriate level of liquidity for your Fund's needs. Additionally, we
will monitor those conditions which affect our marketplace and adjust our
investment policy where necessary in seeking to enhance your Fund's
performance.
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
The Dreyfus Corporation
February 17, 1997
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly. Yield fluctuates and past performance is no guarantee of
future results.
<TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS JANUARY 31, 1997
Principal
Tax-Exempt Investments-100.0% Amount Value
------- -------
<S> <C> <C>
Massachusetts-92.7%
Town of Attleboro, BAN 3.50%, 2/6/97........................................ $ 8,000,000 $ 8,000,106
Fitchburg Industrial Development Financing Authority, Industrial Revenue,
VRDN
(Nestal Machinery Project)
3.25% (LOC; Lasalle National Bank) (a,b).................................. 3,500,000 3,500,000
Town of Hingham, BAN 4%, 12/19/97........................................... 4,000,000 4,017,206
Commonwealth of Massachusetts:
Notes 4.25%, Series A, 6/10/97............................................ 6,000,000 6,008,165
VRDN 3.60%, Series B (LOC; National Westminster Bank) (a,b)............... 7,195,000 7,195,000
Massachusetts Bay Transportation Authority:
General Transportation System Revenue
3.625%, Series A, 3/1/97 (LOC; State Street Bank) (b)................... 4,000,000 4,000,000
Notes 4.75%, Series B, 9/5/97............................................. 5,000,000 5,022,754
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 G-1 (Insured; MBIA and SBPA; Credit Suisse) (a)........... 6,100,000 6,100,000
3.55%, Series D (Insured; MBIA and Liquidity; Credit Suisse) (a)........ 11,000,000 11,000,000
(Childrens Hospital) 3.45%, Series F (LOC; Sanwa Bank) (a,b).............. 2,285,000 2,285,000
(Wellesley College) 3.30%, Series B (Guaranteed by; Wellesley College) (a) 5,085,000 5,085,000
(Williams College) 3.35% (Guaranteed by; Williams College) (a)............ 5,000,000 5,000,000
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:
(Harbor Point) 3.45%, Series A (BPA; Republic National Bank of New York) (a) 5,100,000 5,100,000
(Multi-Family Housing Project) 3.45%, Series A (LOC; FNMA) (a,b)........ 3,800,000 3,800,000
Massachusetts Industrial Finance Agency:
Industrial Revenue:
(Ocean Spray Cranberries Inc. Project) 3.85%, 10/15/97.................. 3,500,000 3,500,000
VRDN:
(Cabot Newburyport Limited) 3.35% (LOC; Bank of Boston) (a,b)......... 1,500,000 1,500,000
(Cambridge Isotope Labs Inc.) 3.20% (LOC; Fleet Bank) (a,b)........... 3,880,000 3,880,000
(First Healthcare Corp.) 3.60%, Series B (LOC; Wachovia Bank and Trust) (a,b) 1,295,000 1,295,000
(Nutramax Products Inc.)
3.55%, Series B (LOC; State Street Bank and Trust) (a,b)............ 1,500,000 1,500,000
Mortgage Revenue, VRDN (Chestnut House Apartments)
3.40% (LOC; Sumitomo Bank) (a,b)........................................ 1,110,000 1,110,000
PCR, CP, Refunding (New England Power Co. Project):
3.50%, 2/12/97 (Corp. Guaranty; New England Power Co.).................. 4,000,000 4,000,000
3.50%, 2/18/97 (Corp. Guaranty; New England Power Co.).................. 3,000,000 3,000,000
Revenue, VRDN:
(Edgewood Retirement Community) 3.50%, Series C (LOC; Dresdner Bank) (a,b) 5,000,000 5,000,000
(Goodard House) 3.30% (LOC; Fleet Bank) (a,b)........................... 1,625,000 1,625,000
(Groton School Project) 3.25% (LOC; State Street Bank and Trust) (a,b).. 4,800,000 4,800,000
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1997
Principal
Tax-Exempt Investments (continued) Amount Value
------- -------
Massachusetts (continued)
Massachusetts Industrial Finance Agency (continued):
Revenue, VRDN (continued):
(Heritage at Dartmouth) 3.35% (LOC; Bank of Boston) (a,b)............... $ 1,825,000 $ 1,825,000
(Newbury College) 3.35% (LOC; Baybank) (a,b)............................ 4,000,000 4,000,000
Refunding (Showa Womens Institute) 3.65% (LOC; Bank of America) (a,b)... 11,090,000 11,090,000
RRR, VRDN (Ogden Haverhill Project)
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:
3.45%, 2/12/97 (LOC; Morgan Guaranty Trust Co.) (b)....................... 5,900,000 5,900,000
3.45%, 2/21/97 (LOC; Morgan Guaranty Trust Co.) (b)....................... 5,000,000 5,000,000
Town of New Bedford, BAN:
4.25%, 10/10/97 (Repurchase Agreement; Fleet Bank)........................ 2,700,000 2,706,237
4.50%, 6/30/97 (Repurchase Agreement; Fleet Bank)......................... 4,000,000 4,008,627
Town of North Adams, BAN (Lot A) 4.50%, 7/1/97.............................. 2,346,000 2,350,821
Town of Springfield, BAN:
4.10%, 11/21/97 (Purchase Agreement; Fleet Bank).......................... 2,500,000 2,507,731
4.60%, 7/11/97 (Purchase Agreement; Fleet Bank)........................... 5,000,000 5,010,527
U.S. Related-7.3%
Commonwealth of Puerto Rico:
Government Development Bank:
CP:
3.45%, 3/14/97........................................................ 3,000,000 3,000,000
3.40%, 3/19/97........................................................ 4,000,000 4,000,000
VRDN 3.20% (LOC; Credit Suisse) (a,b)................................... 3,750,000 3,750,000
TRAN 4%, Series A, 7/30/97................................................ 3,000,000 3,007,031
-------
TOTAL INVESTMENTS (cost $188,044,205)...................................... $188,044,205
=======
</TABLE>
<TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
Summary of Abbreviations
<S> <C> <C> <C>
BAN Bond Anticipation Notes PCR Pollution Control Revenue
BPA Bond Purchase Agreement RRR Resources Recovery Revenue
CP Commercial Paper SBPA Standby Bond Purchase Agreement
FNMA Federal National Mortgage Association TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
<TABLE>
Summary of Combined Ratings (Unaudited)
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
- -------- -------- ------------------ --------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 75.3%
F2 VMIG2/MIG2, P2 SP2, A2 8.8
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 2.8
Not Rated (f) Not Rated (f) Not Rated (f) 13.1
----
100.0%
====
</TABLE>
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 January 31, 1997, 49.8% 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 and Standard &
Poor's have been determined by the Fund's Manager to be of comparable
quality to those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1997
Cost Value
------- -------
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $188,044,205 $188,044,205
Cash....................................... 2,599,895
Interest receivable........................ 1,450,076
Prepaid expenses and other assets.......... 15,381
-------
192,109,557
-------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 66,686
Accrued expenses........................... 46,922
-------
113,608
-------
NET ASSETS.................................................................. $191,995,949
=======
REPRESENTED BY: Paid-in capital............................ $192,027,688
Accumulated net realized gain (loss) on investments (31,739)
-------
NET ASSETS.................................................................. $191,995,949
=======
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST
AUTHORIZED) ........................................... 192,027,688
NET ASSET VALUE, offering and redemption price per share.................... $1.00
===
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS YEAR ENDED JANUARY 31, 1997
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $6,042,052
EXPENSES: Management fee-Note 2(a)................... $ 883,683
Shareholder servicing costs-Note 2(b)...... 156,301
Professional fees.......................... 56,976
Registration fees.......................... 30,030
Custodian fees............................. 19,140
Trustees' fees and expenses-Note 2(c)...... 8,656
Prospectus and shareholders' reports....... 4,917
Miscellaneous.............................. 10,042
------
Total Expenses....................... 1,169,745
Less-reduction in management fee due to
undertaking-Note 2(a).................. (119,605)
------
Net Expenses......................... 1,050,140
------
INVESTMENT INCOME-NET....................................................... 4,991,912
NET REALIZED GAIN (LOSS) ON INVESTMENTS-Note 1(b)........................... (309)
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,991,603
======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
January 31, 1997 January 31, 1996
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 4,991,912 $ 5,080,095
Net realized gain (loss) on investments................................ (309) (902)
-------- --------
Net Increase (Decrease) in Net Assets Resulting from Operations...... 4,991,603 5,079,193
-------- --------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................. (4,991,912) (5,080,095)
-------- --------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.......................................... 323,425,448 345,313,968
Proceeds from acquisition of Dreyfus/Laurel Massachusetts Tax-Free Money Fund,
Investors Shares-Note 1.............................................. 73,123,414 ---
Dividends reinvested................................................... 3,277,952 3,227,676
Cost of shares redeemed................................................ (362,885,184) (344,297,587)
-------- --------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 36,941,630 4,244,057
-------- --------
Total Increase (Decrease) in Net Assets............................ 36,941,321 4,243,155
NET ASSETS:
Beginning of Period.................................................... 155,054,628 150,811,473
-------- --------
End of Period.......................................................... $ 191,995,949 $ 155,054,628
======== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
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.
<TABLE>
Year Ended January 31,
----------------------------------------------------
PER SHARE DATA: 1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<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........................ .028 .033 .027 .021 .028
---- ---- ---- ---- ----
Distributions:
Dividends from investment income-net......... (.028) (.033) (.027) (.021) (.028)
---- ---- ---- ---- ----
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 2.86% 3.34% 2.70% 2.12% 2.81%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .60% .46% .28% .28% .19%
Ratio of net investment income
to average net assets...................... 2.82% 3.28% 2.73% 2.09% 2.74%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .06% .19% .46% .53% .66%
Net Assets, end of period (000's Omitted).... $191,996 $155,055 $150,811 $87,864 $72,383
</TABLE>
See notes to financial statements.
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
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. is 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 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 and Plan of Reorganization 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 a
non-taxable exchange solely for shares of the Fund and the distribution of
such shares to the relevant holders of Investor Shares of the Dreyfus/Laurel
Fund. The Dreyfus/Laurel Fund's shareholders approved the proposal on April
16, 1996, and the merger was consummated as of the close of business on May
8, 1996, at which time the Fund issued 73,123,414 shares, at a net asset
value per share of $1.00, to the holders of Investor Shares of The
Dreyfus/Laurel Fund representing total net assets of $73,123,414.
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 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 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 MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $31,700
available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
January 31, 1997. If not applied, $30,500 of the carryover expires in fiscal
2003, $1,000 expires in fiscal 2004, and $200 expires in fiscal 2005.
At January 31, 1997, 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 Manager
has undertaken from February 1, 1996 through May 8, 1997 to reduce the
management fee paid by, or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate annual expenses (exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses) 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 undertaking, amounted to
$119,605 during the period ended January 31, 1997.
(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 period ended January 31, 1997, the Fund was charged an aggregate
of $84,083 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 $53,802 during the period ended January 31, 1997.
(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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus Massachusetts Municipal Money Market Fund, including the statement of
investments, as of January 31, 1997 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 and financial highlights. Our procedures included
confirmation of securities owned as of January 31, 1997 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 Massachusetts Municipal Money Market Fund at January 31,
1997, 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 LLP signature logo]
New York, New York
March 7, 1997
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET 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
January 31, 1997 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are Massachusetts residents, Massachusetts
personal income taxes).
Dreyfus lion "d" logo]
Registration Mark
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. 639AR971
Registration Mark
[Dreyfus logo]
Massachusetts
Municipal Money
Market Fund
Annual Report
January 31, 1997
