YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. 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.
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus BASIC U.S. Government
Money Market Fund for the 12-month period ended February 28, 1999. For the
period, your fund produced an annualized yield of 4.96% and, after taking into
account the effect of compounding, an annualized effective yield of 5.08%.*
ECONOMIC REVIEW
The American economy in the period ended February 28, 1999 had several
persistent themes. These included weakness in the world economy, strength in the
U.S., pervasive disinflation and action by central banks to lower interest rates
in many parts of the world.
Weakness in the world economy started in Asia with economic and financial
stresses throughout most of that continent. While China was able to generate
economic expansion by government spending, economic declines occurred in most of
the rest of Asia. The most severe phase occurred when Asian currencies dropped
and short-term interest rates rose. Tentative signs of a bottoming of the crises
in Asia had emerged by the end of your fund's fiscal year. However, Latin
America had begun to weaken in the aftermath of Brazilian economic weakness.
Europe was full of optimism about the benefits of currency unification into
the Euro as of year-end 1998. The reality was that economic growth in Europe
began 1998 at a modest pace and showed signs of stagnation by year-end. Even so,
the new European central bank postponed any reduction in interest rates in early
1999, probably because of a desire to build anti-inflationary credibility.
The U.S. economy over the last year grew at an impressively high rate despite
the economic weakness overseas. A major reason for this was that the negative
effects of foreign economic weakness on the traditional industrial sector were
offset by positive effects elsewhere in the economy. Low inflation and low
interest rates stimulated the housing and consumer sectors, while the technology
sector continued to expand.
The Federal Reserve Board eased monetary policy three times beginning on
September 30, 1998, lowering the Federal Funds rate from 5.50% to 4.75%. This
was not because of any shortfall in U.S. economic growth. Rather, it was a
response to the financial stresses that started with the Russian default in the
summer of 1998 and culminated in the liquidity crisis of an overleveraged hedge
fund in the September/October period. Despite widespread fears, the U.S. economy
never did slow. Long-term interest rates declined into early October, when fears
of financial crisis, deflation and possible economic recession were at their
greatest. However, long-term rates then drifted higher as the financial stresses
eased and the feared economic slowdown did not materialize.
THE MARKET ENVIRONMENT/PORTFOLIO FOCUS
The economic forces described above drove down interest rates in late summer
and early fall. Later in the year, there was a modest increase in rates. One of
its effects was to change the yield curve back to a more normal pattern in which
longer term yields exceed those of shorter term instruments.
A flight to safety by global investors was the force that most affected the
U.S. money market. More recently, as the domestic economy continued to
demonstrate exceptional strength in spite of turmoil abroad, rates edged higher.
One factor affecting the U.S. interest rates has been the rise in interest rates
in Japan. This has brought about some repatriation of investment funds to that
country. In addition, the introduction of the Euro currency at the start of the
new year, which was initially well received, put some downward pressure on the
U.S. dollar and, conversely, upward pressure on yields.
Generally, the main influences now on short-term rates seem to be underlying
economic factors rather than the fear that gripped many investors last fall.
With the domestic economy continuing to expand without visible inflationary
pressures, the Federal Reserve appears to be in a wait-and-see mode, with no
immediate plans for major policy changes. As long as this scenario continues,
the money market should remain stable.
Therefore, in an attempt to maximize yields, we will continue to maintain an
average portfolio maturity longer than the industry average.
As always, we will maintain a close watch on market developments in case some
adjustments are required in our investment strategies.
Sincerely,
[Patricia A. Larkin signature]
Patricia A. Larkin
Senior Portfolio Manager
March 18, 1999
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly. There is no assurance that a money market fund will be able
to maintain a stable net asset value of $1.00 per share. Yield fluctuates.
<TABLE>
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS FEBRUARY 28, 1999
Annualized
Yield on
Date of Principal
U.S. Government Agencies--98.2% Purchase Amount Value
________ ______________ ______________
___________________________________________________________________
<S> <C> <C> <C>
Federal Farm Credit Banks, Consolidated Systemwide Discount Notes
3/8/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.31% $54,000,000 $ 53,945,715
3/12/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.50 5,000,000 4,992,040
7/15/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.90 12,000,000 11,786,480
8/3/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.56 5,000,000 4,998,083
Federal Farm Credit Banks, Consolidated Systemwide Medium Term Notes (a)
6/18/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.85 50,000,000 50,000,000
6/22/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.79 40,000,000 39,992,694
6/23/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.79 75,000,000 74,986,275
9/17/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.65 165,000,000 165,000,000
1/28/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.81 50,000,000 49,989,148
6/29/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.80 40,000,000 39,984,815
Federal Home Loan Banks, Discount Notes
3/10/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 35,000,000 34,999,965
3/23/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 10,000,000 9,999,536
4/7/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.59 25,000,000 24,997,973
6/10/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.62 25,000,000 24,989,554
6/11/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.62 40,000,000 39,991,295
7/6/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.45 10,000,000 9,998,156
7/13/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.56 2,000,000 1,999,561
7/15/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.50 30,060,000 30,057,149
2/11/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.97 13,350,000 13,337,655
2/22/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.97 75,000,000 74,964,249
Federal Home Loan Banks, Floating Rate Notes (a)
10/15/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.63 25,000,000 25,000,000
10/29/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.92 20,000,000 20,000,000
Federal Home Loan Banks, Notes
3/12/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 5,800,000 5,800,010
7/23/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.36 5,700,000 5,709,896
10/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.81 10,000,000 10,063,158
1/27/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.81 25,050,000 25,052,734
Federal Home Loan Mortgage Corp., Discount Notes
3/12/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 10,000,000 9,999,734
Federal National Mortgage Association, Discount Notes
3/16/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 10,000,000 9,999,527
5/10/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.91 20,000,000 19,814,500
8/4/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.49 10,000,000 9,774,235
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1999
Annualized
Yield on
Date of Principal
U.S. Government Agencies (continued) Purchase Amount Value
________ ______________ ______________
___________________________________________________________________
Federal National Mortgage Association, Discount Notes (continued)
8/9/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.59% $ 25,000,000 $ 24,989,868
8/20/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.45 8,000,000 7,802,393
2/10/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.90 50,000,000 49,968,010
Federal National Mortgage Association, Floating Rate Notes (a)
10/20/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.77 50,000,000 50,000,000
1/21/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.82 50,000,000 50,000,000
Federal National Mortgage Association, Notes
7/30/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.39 5,000,000 5,006,540
10/18/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.81 16,200,000 16,290,966
Student Loan Marketing Association, Floating Rate Notes (a)
10/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.67 40,000,000 40,000,000
Student Loan Marketing Association, Notes
6/30/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.52 15, 000,000 15,001,840
______________
TOTAL U.S. GOVERNMENT AGENCIES (cost $1,161,283,754) . . . . . . . . . . . $1,161,283,754
______________
Repurchase Agreements--.8%
___________________________________________________________________
SBC Warburg Dillon Read
dated 2/26/1999, due 3/1/1999 in the amount of $9,634,756
(fully collateralized by $9,948,000 U.S. Treasury Bills,
due 6/3/1999, value $9,828,555)
(cost $9,631,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.68% $ 9,631,000 $ 9,631,000
______________
TOTAL INVESTMENTS (cost $1,170,914,754). . . . . . . . . . . . . . 99.0% $1,170,914,754
________ ______________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . 1.0% $ 11,684,038
________ ______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . 100.00% $1,182,598,792
________ ______________
Notes to Statement of Investments:
___________________________________________________________________________________________________________________
(a) Variable interest rate--subject to periodic change.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1999
Cost Value
_______________ _______________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $1,170,914,754 $1,170,914,754
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 2,277,722
Interest receivable . . . . . . . . . . . . . . . . . . . 9,666,023
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 18,584
_______________
1,182,877,083
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 160,679
Accrued expenses and other liabilities . . . . . . . . . 117,612
_______________
278,291
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,182,598,792
_______________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $1,182,932,365
Accumulated undistributed investment income--net . . . . 294,741
Accumulated net realized gain (loss) on investments . . . (628,314)
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,182,598,792
_______________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . 1,182,932,365
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED FEBRUARY 28, 1999
<S> <C> <C>
INVESTMENT INCOME
INCOME Interest Income . . . . . . . . . . . . . . . . . $66,562,158
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . $ 6,142,031
Shareholder servicing costs--Note 2(c) . . . . . 1,091,133
Custodian fees . . . . . . . . . . . . . . . . . 98,129
Registration fees . . . . . . . . . . . . . . . . 66,660
Professional fees . . . . . . . . . . . . . . . . 48,791
Trustees' fees and expenses--Note 2(c) . . . . . 27,416
Prospectus and shareholders' reports . . . . . . 25,260
Miscellaneous . . . . . . . . . . . . . . . . . . 15,442
___________
Total Expenses . . . . . . . . . . . . 7,514,862
Less--reduction in management fee due to
undertaking--Note 2(a) . . . . . . . . . . . . (2,016,617)
___________
Net Expenses . . . . . . . . . . . . . 5,498,245
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,063,913
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . (11,328)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $61,052,585
____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
February 28, 1999 February 28, 1998
__________________ __________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61,063,913 $ 70,607,074
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . (11,328) (89,610)
__________________ __________________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 61,052,585 70,517,464
__________________ __________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . (60,955,715) (70,420,531)
__________________ __________________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . 1,024,399,996 1,279,726,698
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,885,133 66,574,075
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,208,430,626) (1,497,699,684)
__________________ __________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . (126,145,497) (151,398,911)
__________________ __________________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . (126,048,627) (151,301,978)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,308,647,419 1,459,949,397
__________________ __________________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,182,598,792 $1,308,647,419
__________________ __________________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . $ 294,741 $ 186,543
__________________ __________________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS BASIC U.S. GOVERNMENT 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.
Fiscal Year Ended February,
____________________________________________________________
PER SHARE DATA: 1999 1998 1997 1996 1995
______ ______ ______ ______ ______
<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 . . . . . . . . . . . . . .049 .052 .051 .058 .046
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.049) (.052) (.051) (.058) (.046)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $1.00 $1.00 $1.00 $1.00 $1.00
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . 5.06% 5.33% 5.20% 5.94% 4.67%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . .45% .45% .45% .31% .17%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . 4.97% 5.22% 5.09% 5.79% 5.05%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . .16% .17% .20% .36% .44%
Net Assets, end of period (000's Omitted) . . . $1,182,599 $1,308,647 $1,459,949 $1,366,056 $1,041,722
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC U.S. Government Money Market Fund (the "Fund") is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
diversified open-end management investment company. The Fund' s investment
objective is to provide investors with as high a level of current income 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. 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. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.
Under the terms of the custody agreement, the Fund receives net earnings credits
based on available cash balances left on deposit.
The Fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the Fund' s Manager, subject to the seller's
agreement to repurchase and the Fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the Fund's custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest, the Fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the Fund maintains
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(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.
On March 1, 1999, the Fund declared a cash dividend of approximately $.0002
per share from undistributed investment income-net which includes investment
income-net for Saturday February 27, 1999 and Sunday February 28, 1999.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $618,500
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to February 28, 1999. The
carryover does not include net realized securities losses from November 1, 1998
through February 28, 1999 which are treated, for Federal income tax purposes, as
arising in fiscal 2000. If not applied, $200 of the carryover expires in fiscal
2003, $523,000 expires in fiscal 2005, $43,300 expires in fiscal 2006 and
$52,000 expires in fiscal 2007.
At February 28, 1999, 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 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, until such
time as it gives shareholders at least 90 days' notice to the contrary, to
reduce the management fee paid by the Fund, to the extent that the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed an annual rate of .45 of 1% of the value of the
Fund' s average daily net assets. The reduction in management fee, pursuant to
the undertaking, amounted to $2,016,617 during the period ended February 28,
1999.
(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
February 28, 1999, the Fund was charged $767,174 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. During the period
ended February 28, 1999, the Fund was charged $155,173 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 $1,500 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus BASIC U.S. Government Money Market Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus BASIC U.S. Government Money Market Fund, including the statement of
investments, as of February 28, 1999, 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 February 28, 1999 by correspondence with the custodian
and brokers. 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 BASIC U.S. Government Money Market Fund at February 28, 1999, 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.
New York, New York
March 30, 1999
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
For state individual income tax purposes, the Fund hereby designates 62.06% of
the ordinary income dividends paid during its fiscal year ended February 28,
1999 as attributable to interest income from direct obligations of the United
States. Such dividends are currently exempt from taxation for individual income
tax purposes in most states, including New York, California and the District of
Columbia.
[This page intentionally left blank.]
[reg.tm logo]
(reg.tm)
DREYFUS BASIC U.S. GOVERNMENT
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. 124AR992
BASIC
U.S. Government
Money Market Fund
Annual Report
February 28, 1999
