Dreyfus
Massachusetts
Municipal Money
Market Fund
ANNUAL REPORT January 31, 2000
(reg.tm)
<PAGE>
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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
<PAGE>
Contents
THE FUND
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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
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Back Cover
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The Fund
Dreyfus Massachusetts Municipal
Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Massachusetts Municipal
Money Market Fund, covering the 12-month period from February 1, 1999 through
January 31, 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.
When the reporting period began, it became apparent that international and
domestic economies were growing faster than analysts expected, giving rise to
concerns that long-dormant inflationary pressures might re-emerge. Consumers
continued to spend heavily, unemployment levels reached new lows and the stock
market continued to climb. Due to the fact that unsustainable economic growth
may trigger unwanted inflationary pressures, the Federal Reserve Board raised
key short-term interest rates three times between June 30 and the end of the
reporting period in an attempt to forestall an acceleration of inflation. A
fourth rate hike was announced just a few days after the reporting period ended.
These influences contributed to higher yields for tax-exempt money market
securities.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Massachusetts Municipal Money Market Fund
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
February 15, 2000
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Scott Sprauer, Portfolio Manager
How did Dreyfus Massachusetts Municipal Money Market Fund perform during the
period?
For the 12-month period ended January 31, 2000, the fund achieved a tax-exempt
yield of 2.61% . Taking into account the effects of compounding, the fund
achieved an effective yield of 2.64% .(1)
What is the fund's investment approach?
The fund' s objective is to seek a high level of federal and state of
Massachusetts tax-exempt income while maintaining a stable $1.00 share price. We
are especially vigilant in our efforts to preserve capital.
In pursuing this objective, 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 Massachusetts issuers. Second, we actively manage
the fund' s average maturity in anticipation of interest-rate trends and
supply-and-demand changes in Massachusetts' 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 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, and tend to lengthen the fund's weighted
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 practical. 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?
Soon after the reporting period began, it became apparent that economic growth
was greater than most investors had anticipated. The Fun
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Evidence emerged that economies in Japan and Southeast Asia had begun to
recover, and the growth of the U.S. economy was robust. In the United States,
consumer confidence was at a 30-year high and employment was strong, with hourly
wages rising.
This positive economic news raised concerns among fixed-income investors that
inflationary pressures might re-emerge. In response, the Federal Reserve Board
increased short-term interest rates three times during the summer and fall of
1999. An additional rate hike occurred just after the reporting period ended,
for a total increase of 100 basis points from February 1, 1999, the start of the
reporting period, through February 15, 2000, the date of this report.
Although these interest-rate increases caused short-term tax-exempt yields to
rise throughout the reporting period, tax-exempt money market yields did not
rise as much as comparable taxable yields during much of the year, primarily
because many states and municipalities enjoyed higher tax revenues during this
period of economic prosperity. As a result, many municipalities had less need to
borrow to satisfy their short-term obligations. Subsequently, when
municipalities issued more short-term tax-exempt securities, rates rose more
substantially.
What is the fund's current strategy?
We have continued to manage the fund' s average maturity according to our
supply-and-demand expectations. Accordingly, we modestly extended the fund's
average maturity last summer to maintain competitive yields during a time of
little new issuance. We later allowed the fund's average maturity to decline
naturally as existing holdings matured, enabling us to capture higher yields
during the fourth quarter of 1999, when issuance increased. We again modestly
extended the average maturity at year-end to take advantage of market weakness
in advance of potential Y2K concerns, which ultimately proved unfounded. We
ended the reporting period with a weighted average maturity that was slightly
longer than neutral. This position was designed to maintain competitive yields
through February, typically a low-issuance month.
<PAGE>
Our security selection strategy continued to focus on very high quality, liquid
money market instruments from an array of Massachusetts issuers. Some of the
instruments used included tax-exempt commercial paper, which offered high levels
of liquidity, strong credit characteristics and competitive yields for much of
the year. After the Federal Reserve Board raised interest rates in November,
however, we used the proceeds from maturing commercial paper to increase our
holdings of municipal notes and Variable Rate Demand Notes (VRDNs), high credit
quality securities that afforded the fund a high degree of liquidity in advance
of buying opportunities at year-end. Of course, portfolio composition will
change over time.
February 15, 2000
(1) 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-MASSACHUSETTS 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 ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE
VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY
INVESTING IN THE FUND.
The Fund
<PAGE>
STATEMENT OF INVESTMENTS
January 31, 2000
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
Principal
TAX EXEMPT INVESTMENTS--99.0% Amount ($) Value ($)
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<S> > <C> <C>
Town of Amesbury, GO Notes 4.25%, 3/15/2000 1,000,000 1,000,333
Town of Attleboro, BAN 4.25%, 8/3/2000 5,903,000 5,911,689
City of Boston Water and Sewer Commission, Revenue, VRDN
3.05%, Series A (LOC; State Street Bank and Trust Co.) 2,650,000 (a) 2,650,000
Town of Canton Housing Authority, Multi-Family Housing
Mortgage Revenue, Refunding, VRDN
(Canton Arboretum Apartments) 3.40% (LOC; FNMA) 6,000,000 (a) 6,000,000
Town of Foxborough, BAN 3.50%, 6/21/2000 4,495,000 4,500,535
Town of Framingham, BAN 4.25%, 3/9/2000 2,500,000 2,500,878
Town of Hanover, BAN 4.25%, 5/30/2000 1,000,000 1,001,059
Town of Mansfield, BAN 4.25%, 4/26/2000 4,000,000 4,003,190
Town of Masconomet Regional School District, BAN
3.50%, 6/2/2000 1,122,000 1,122,093
Massachusetts Bay Transportation Authority:
CP:
3.75%, Series A, 2/18/2000
(LOC; State Street Bank and Trust Co.) 4,000,000 4,000,000
(Massachusetts Bridge) 3.80%, 3/13/2000
(LOC; State Street Bank and Trust Co.) 1,000,000 1,000,000
Revenue, Massachusetts General Transportation System,
4.50%, Series C, 3/1/2000 2,000,000 2,002,039
Massachusetts Development Finance Agency, VRDN,
Revenue:
(Dean College) 3.15% (LOC; Fleet Bank) 2,500,000 (a) 2,500,000
(Elderhostel Inc.) 3.10% (LOC; Royal Bank of Scotland) 5,000,000 (a) 5,000,000
Massachusetts Health and Education Facilities Authority:
Revenue:
Refunding (Baystate Medical Center)
4.375%, Series D, 7/1/2000 (Insured; FGIC) 2,000,000 2,006,611
(University of Massachusetts) 4%, Series A, 7/1/2000
(Insured; AMBAC) 1,225,000 1,227,215
VRDN:
(Becker College) 3.25% Series A
(LOC; Fleet National Bank) 1,000,000 (a) 1,000,000
(Boston University) 4.75% Series H
(LOC; Landesbank Hessen) 9,000,000 (a) 9,000,000
(Capital Asset Program):
3.15%, Series A (LOC; Bank One Corp.) 8,250,000 (a) 8,250,000
3.55%, Series C (Insured; MBIA and Liquidity;
State Street Bank and Trust Co.) 8,000,000 (a) 8,000,000
3.55%, Series E (LOC; Bank One Corp.) 6,100,000 (a) 6,100,000
<PAGE>
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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Massachusetts Health and Education Facilities Authority, VRDN
(continued):
(Capital Asset Program) (continued):
3.60%, Series D (Insured; MBIA and Liquidity Facility;
State Street Bank and Trust Co.) 7,000,000 (a) 7,000,000
(Hallmark Health Systems) 3.10%, Series B
(Insured; FSA and Liquidity; Fleet Bank) 5,800,000 (a) 5,800,000
(Harvard University) 2.95%, Series L (Guaranteed by;
Harvard University) 10,000,000 (a) 10,000,000
(Partners Healthcare Systems)
3.05%, Series P-1 (Insured; FSA and Liquidity:
Bayerische Landesbank and Morgan
Guaranty Trust Co.) 8,400,000 (a) 8,400,000
(Wellesley College) 3.45%, Series G
(LOC; Wellesley College) 1,100,000 (a) 1,100,000
Massachusetts Housing Finance Agency, Multi-Family, VRDN,
Refunding (Harbor Point) 3.20%, Series A
(LOC; GNMA and Republic National Bank) 5,000,000 (a) 5,000,000
Massachusetts Industrial Finance Agency:
CP, PCR, Refunding (New England Power Company Project)
3.75%, Series B, 2/29/2000 (LOC; New England Power Co.) 2,000,000 2,000,000
Industrial Revenue, VRDN,
(Cambridge Isotope Labs Inc.) 3.35% (LOC; Fleet Bank) 3,485,000 (a) 3,485,000
PCR (Holyoke Water Power Co. Project), VRDN,
3.15% (LOC; Toronto-Dominion Bank) 3,800,000 (a) 3,800,000
Revenue, VRDN:
(Governor Dummer Academy) 3.10%
(LOC; State Street Bank and Trust Co.) 800,000 (a) 800,000
(Heritage at Dartmouth) 3.20% (LOC; Fleet National Bank) 1,825,000 (a) 1,825,000
(Milton Academy) 3.25%
(Insured; MBIA and Liquidity; Fleet Bank) 1,500,000 (a) 1,500,000
(Newbury College) 3.25% (LOC; Fleet National Bank) 5,585,000 (a) 5,585,000
Refunding (Showa Womens Institute)
3.60% (LOC; The Bank of New York) 3,900,000 (a) 3,900,000
Massachusetts Water Resource Authority:
Multi-Modal, VRDN:
3.05%, Series B (Insured; AMBAC and Liquidity;|
Bank of Nova Scotia) 11,100,000 (a) 11,100,000
Refunding, 3.05%, Series D
(Insured; FGIC and Liquidity; FGIC) 10,000,000 (a) 10,000,000
Prerefunding 6%, Series A 4/1/2000 4,500,000 4,515,464
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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Natick, BAN 4.50%, 8/4/2000 3,174,000 3,181,046
Northhampton, BAN 4%, 6/29/2000 4,000,000 4,007,539
Town of Pittsfield, BAN:
4%, 7/12/2000 4,500,000 4,501,920
4.20%, 7/12/2000 6,000,000 6,005,119
Town of Taunton, GO Notes 4.25%, 5/1/2000 2,090,000 2,095,517
Town of Tisbury, BAN 4.25%, 6/15/2000 2,820,500 2,823,527
Town of Waltham, BAN 4.25%, 4/28/2000 4,290,000 4,293,622
Town of Wayland, BAN 4.50%, 12/22/2000 4,670,000 4,692,310
Town of Westfield, BAN 4.25%, 4/20/2000 2,500,000 2,502,379
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TOTAL INVESTMENTS (cost $198,689,085) 99.0% 198,689,085
CASH AND RECEIVABLES (NET) 1.0% 2,059,202
NET ASSETS 100.0% 200,748,287
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond GO General Obligation
Assurance Corporation GNMA Government National Mortgage
BAN Bond Anticipation Notes Association
CP Commercial Paper LOC Letter of Credit
FGIC Financial Guaranty Insurance MBIA Municipal Bond Investors Assurance
Company Insurance Corporation
FNMA Federal National Mortgage PCR Pollution Control Revenue
Association VRDN Variable Rate Demand Notes
FSA Financial Security Assurance
</TABLE>
Summary of Combined Ratings (Unaudited)
<TABLE>
<CAPTION>
Fitch or Moody's or Standard & Poor's Value (%)
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<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 65.8
AAA/AA (b) Aaa/Aa (b) AAA/AA (b) 9.3
Not Rated (c) Not Rated (c) Not Rated (c) 24.9
100.0
A SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGES.
B NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF
THE ISSUERS.
C SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
January 31, 2000
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 198,689,085 198,689,085
Cash 959,248
Interest receivable 1,224,799
Prepaid expenses and other assets 10,636
200,883,768
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 82,205
Accrued expenses 53,276
135,481
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NET ASSETS ($) 200,748,287
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 200,783,178
Accumulated net realized gain (loss) on investments (34,891)
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NET ASSETS ($) 200,748,287
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of
Beneficial Interest authorized) 200,798,074
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
Year Ended January 31, 2000
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INVESTMENT INCOME ($):
INTEREST INCOME 6,103,266
EXPENSES:
Management fee--Note 2(a) 943,227
Shareholder servicing costs--Note 2(b) 140,460
Professional fees 44,841
Custodian fees 22,357
Registration fees 16,283
Prospectus and shareholders' reports 13,373
Trustees' fees and expenses--Note 2(c) 7,224
Miscellaneous 7,742
TOTAL EXPENSES 1,195,507
INVESTMENT INCOME--NET 4,907,759
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NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($): (29)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,907,730
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Year Ended January 31,
----------------------------
2000 1999
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OPERATIONS ($):
Investment income--net 4,907,759 5,417,443
Net realized gain (loss) on investments (29) (398)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,907,730 5,417,045
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (4,907,759) (5,417,443)
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BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 407,399,301 427,639,049
Dividends reinvested 3,040,795 3,305,496
Cost of shares redeemed (414,975,495) (405,323,494)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (4,535,399) 25,621,051
TOTAL INCREASE (DECREASE) IN NET ASSETS (4,535,428) 25,620,653
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NET ASSETS ($):
Beginning of period 205,283,715 179,663,062
END OF PERIOD 200,748,287 205,283,715
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
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.
<TABLE>
<CAPTION>
Year Ended January 31,
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2000 1999 1998 1997 1996
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<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .026 .028 .030 .028 .033
Distributions:
Dividends from investment income--net (.026) (.028) (.030) (.028) (.033)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) 2.64 2.79 3.01 2.86 3.34
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .63 .64 .63 .60 .46
Ratio of net investment income
to average net assets 2.60 2.75 2.97 2.82 3.28
Decrease reflected in above expense ratios
due to undertakings by
The Dreyfus Corporation -- -- .01 .06 .19
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Net Assets, end of period ($ x 1,000) 200,748 205,284 179,663 191,996 155,055
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
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, 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 Massachusetts 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. Premier Mutual Fund Services, Inc. is the
distributor of the fund's shares, which are sold to the public without a sales
charge.
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
<PAGE>
earnings credits of $7,783 during the period ended January 31, 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, 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 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 $34,900 available
for Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to January 31, 2000. If not applied,
$30,500 of the carryover expires in fiscal 2003, $1,000 expires in fiscal 2004,
$300 expires in fiscal 2005, $2,700 expires in fiscal 2006 and $400 expires in
fiscal 2007.
At January 31, 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).
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 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, 2000, the fund was charged $84,354 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 service for the fund. During the period
ended January 31, 2000, the fund was charged $34,833 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.
NOTE 3--Subsequent Event:
At a meeting of the fund's Board of Trustees held on January 19, 2000, the Board
approved the termination of the fund' s Distribution Agreement with Premier
Mutual Fund Services Inc., and approved a new Distribution Agreement with
Dreyfus Service Corporation. The new Distribution Agreement with Dreyfus Service
Corporation is slated for effectiveness on March 16, 2000.
<PAGE>
REPORT OF 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, 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 the financial highlights. Our procedures included
confirmation of securities owned as of January 31, 2000 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, 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.
New York, New York
March 3, 2000
The Fund
<PAGE>
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, 2000 as
"exempt-interest dividends" (not subject to regular Federal and, for individuals
who are Massachusetts residents, Massachusetts personal income taxes).
<PAGE>
NOTES
<PAGE>
For More Information
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
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 639AR001
<PAGE>
