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SIGNATURE BERNADETTE N. FINN
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> The schedule contains summary financial information
extracted from the financial statements and supporting
schedules as of the end of the most current period and is
qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000876895
<NAME> North Carolina Daily Municipal Income Fund, Inc.
<S> <C>
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<PERIOD-END> AUG-31-1996
<PERIOD-TYPE> YEAR
<INVESTMENTS-AT-COST> 173171315
<INVESTMENTS-AT-VALUE> 173171315
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<INTEREST-INCOME> 6680720
<OTHER-INCOME> 0
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<REALIZED-GAINS-CURRENT> 3417
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<DISTRIBUTIONS-OF-INCOME> 5202678
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</TABLE>
McGLADREY & PULLEN, L.L.P.
Certified Public Accountants & Consultants
The Board of Directors and Shareholders
North Carolina Daily Municipal Income Fund, Inc.
In planning and performing our audit of the financial statements of North
Carolina Daily Municipal Income Fund, Inc for the year ended August 31, 1996 we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of North Carolina Daily Municipal Income Fund, Inc. is
responsible for establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use or disposition
and that transactions are executed in accordance with management's authorization
and recorded properly to permit preparation of financial statements in
confirmity with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors and
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
August 31, 1996
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
McGladrey & Pullen, LLP
New York, New York
September 26, 1996
