000 B000000 08/31/1999
000 C000000 0000876895
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 NORTH CAROLINA DAILY MUNICIPAL INCOME FUND, INC.
001 B000000 811-6344
001 C000000 2128305200
002 A000000 600 FIFTH AVENUE
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10020
002 D020000 2302
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 REICH & TANG ASSET MANAGEMENT L.P.
008 B000001 A
008 C000001 801-47230
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10020
008 D040001 2302
011 A000001 REICH & TANG DISTRIBUTORS, INC.
011 B000001 8-43429
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10020
011 C040001 2302
012 A000001 REICH & TANG SERVICES, INC.
012 B000001 84-2007
012 C010001 NEW YORK
012 C020001 NY
012 C030001 10020
012 C040001 2302
013 A000001 PRICEWATERHOUSE COOPERS LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
015 A000001 INVESTORS FIDUCIARY TRUST COMPANY
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64105
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 22
019 C000000 REICHTANGI
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 GOLDMAN, SACHS & CO.
022 B000001 13-5108880
022 C000001 172176
022 D000001 102350
022 A000002 SALOMON SMITH BARNEY INC.
022 B000002 13-1912900
022 C000002 111627
022 D000002 67751
022 A000003 MERRILL LYNCH, PIERCE, FENNER & SMITH, INCOR.
022 B000003 13-5674085
022 C000003 67060
022 D000003 49085
022 A000004 MORGAN (J.P.) SECURITIES INC.
022 B000004 13-3224016
022 C000004 21600
022 D000004 21600
022 A000005 FIRST UNION NATIONAL BANK OF NORTH CAROLINA
022 B000005 56-0900030
022 C000005 21969
022 D000005 12640
022 A000006 MORGAN STANLEY & CO. INCORPORATED
022 B000006 13-2655998
022 C000006 24930
022 D000006 5005
022 A000007 LEHMAN BROTHERS INC.
022 B000007 13-2518466
022 C000007 17980
022 D000007 6100
022 A000008 BT-ALEX BROWN, INC.
022 B000008 13-3311934
022 C000008 13600
022 D000008 5800
022 A000009 PRUDENTIAL SECURITIES INCORPORATED
022 B000009 22-2347336
022 C000009 7000
022 D000009 5000
022 A000010 PNC SECURITIES CORP.
022 B000010 25-1471636
022 C000010 10000
022 D000010 0
023 C000000 502049
023 D000000 286226
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 57228
028 A020000 216
028 A030000 0
028 A040000 67958
028 B010000 78502
028 B020000 250
028 B030000 0
028 B040000 87161
028 C010000 46128
028 C020000 284
028 C030000 0
028 C040000 42813
028 D010000 57952
028 D020000 256
028 D030000 0
028 D040000 62332
028 E010000 35311
028 E020000 256
028 E030000 0
028 E040000 44833
028 F010000 53391
028 F020000 368
028 F030000 0
028 F040000 39793
028 G010000 328512
028 G020000 1630
028 G030000 0
028 G040000 344890
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 638
044 000000 439
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.400
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 5000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 99.6
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.4
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 24
063 B000000 0.0
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 0
071 B000000 0
071 C000000 0
071 D000000 0
072 A000000 12
072 B000000 8238
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 1021
072 G000000 536
072 H000000 0
072 I000000 129
072 J000000 42
072 K000000 6
072 L000000 9
072 M000000 6
072 N000000 23
072 O000000 0
072 P000000 0
072 Q000000 38
072 R000000 20
072 S000000 34
072 T000000 638
072 U000000 0
072 V000000 0
072 W000000 18
072 X000000 2520
072 Y000000 257
072 Z000000 5975
072AA000000 0
072BB000000 0
072CC010000 0
072CC020000 0
072DD010000 5975
072DD020000 0
072EE000000 0
073 A010000 0.0235
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 136
074 B000000 0
074 C000000 250468
074 D000000 0
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 1560
074 M000000 0
074 N000000 252164
074 O000000 0
074 P000000 162
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 416
074 S000000 0
074 T000000 251586
074 U010000 251587
074 U020000 0
074 V010000 1.00
074 V020000 0.00
074 W000000 0.9999
074 X000000 2939
074 Y000000 0
075 A000000 255128
075 B000000 0
076 000000 0.00
077 A000000 Y
077 B000000 N
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 Y
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 VIGILANT INSURANCE COMPANY
080 C000000 900
081 A000000 Y
081 B000000 22
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE BERNADETTE N. FINN
TITLE SECRETARY
PricewaterhouseCoopers LLP
To the Board of Directors
North Carolina Daily Municipal Income Fund, Inc.
In planning and performing our audit of the financial statements and
financial highlights of North Carolina Daily Municipal Income Fund, Inc. for the
year ended August 31, 1999, we considered its internal control, including
control activities for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial
statements and financial highlights and to comply with the requirements of Form
N-SAR, not to provide assurance on internal control.
The management of North Carolina Daily Municipal Income Fund, Inc. is
responsible for establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of controls. Generally, controls
that are relevant to an audit pertain to the entity's objective of preparing
financial statements and financial highlights for external purposes that are
fairly presented in conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control, error or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control 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 internal control would not necessarily disclose
all matters in internal control 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 one or
more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements and financial highlights
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 internal control and its operation, including controls over
safeguarding securities, that we consider to be material weaknesses as defined
above as of August 31, 1999.
This report is intended solely for the information and use of
management, the Board of Directors of North Carolina Daily Municipal Income
Fund, Inc., and the Securities and Exchange Commission.
PricewaterhouseCoopers LLP
New York, New York
September 30, 1999
NORTH CAROLINA DAILY MUNICIPAL INCOME FUND
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 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 certainty, 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 Directors
and its Audit Committee, engaged PwC as its independent auditors.
<PAGE>
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street
Washington, DC 20549
We were previously the independent accountants for North Carolina Daily
Municipal Income Fund, Inc. We have read their notification of change in
independent accountants made in Item 77K of Form N-SAR.
We agree with the statements in the filing.
McGladrey & Pullen, LLP
New York, New York
October 26, 1999
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<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>
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> AUG-31-1999
<PERIOD-TYPE> 12-MOS
<INVESTMENTS-AT-COST> 250467938
<INVESTMENTS-AT-VALUE> 250467938
<RECEIVABLES> 1560274
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 135879
<TOTAL-ASSETS> 252164091
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 578192
<TOTAL-LIABILITIES> 578192
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 251587030
<SHARES-COMMON-STOCK> 251587030
<SHARES-COMMON-PRIOR> 230673881
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1130)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 251585899
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8237732
<OTHER-INCOME> 0
<EXPENSES-NET> 2262824
<NET-INVESTMENT-INCOME> 5974908
<REALIZED-GAINS-CURRENT> 173
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 5975081
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5974908
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 729645489
<NUMBER-OF-SHARES-REDEEMED> 711765600
<SHARES-REINVESTED> 3033259
<NET-CHANGE-IN-ASSETS> 20913321
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1303)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1020511
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2519512
<AVERAGE-NET-ASSETS> 255127766
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.02
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .89
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
