DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
For its semi-annual reporting period ended May 31, 1996, the Dreyfus
Pennsylvania Intermediate Municipal Bond Fund produced a total return of
- -.O7%.* Income dividends exempt from Federal and State of Pennsylvania
personal income taxes of approximately $.293 per share** were paid which is
equivalent to an annualized tax-free distribution rate per share of 4.55%.***
THE ECONOMY
Recent economic reports show that the economy continues to recover from
its year-end 1995 pause. Spurred by a surge in consumer and business
spending, the annualized Gross Domestic Product grew at a moderate 2.3%
during the first quarter of this year. The Index of Leading Economic
Indicators, a major forecasting index, extended its string of increases for
the third consecutive month in April, the first such three-month advance
since late 1993. Despite a sharp jump in energy prices, inflation remained in
check. For the 12 months ended May, consumer prices rose 2.9%. Giving further
evidence of moderating prices, a survey released in May by the National
Business Council revealed greater difficulty for major industrial companies
to raise prices now than six months ago.
Despite the relatively benign level of inflation, the economy's expansion
has sparked concerns that the Federal Reserve Board could raise short-term
interest rates. In reaction to this possibility, long-term rates have risen
since the beginning of the year. So far, the Fed has refrained from
tightening monetary policy, apparently interpreting economic data to mean
that the economy remains on a path of moderate growth unaccompanied by a
surge in inflation. However, the strong May employment data has caused some
investors to fear that the Fed will not continue to remain inactive for long.
There is now a greater consensus view that the Fed will tighten credit
eventually in order to prevent unacceptable levels of inflation from coming
on the heels of economic growth.
Consumers, who account for over two-thirds of our country's Gross
Domestic Product (GDP), are vital contributors to economic growth. So far,
they have continued to spend, setting aside concerns about job security and
stagnating real wages in favor of current consumption. New-home sales, an
important component of consumer spending, continued to post gains throughout
the reporting period, and retail sales in general rose 6% over the year ended
April 30. Additional encouragement to consumers occurred when the Labor
Department recently reported a continuation of the declining trend in
first-time jobless claims.
On the corporate side of the economy, capacity utilization inched higher
and is now at 83.2%. While still well below the peak level (85.1%) for this
economic expansion which was reached over a year ago, further growth in this
indicator may result in shortages that could produce higher prices. Following
the GM strike-induced slowdown in March, industrial production has risen,
bringing the year-over-year gain to a solid 3.3% through May.
We remain alert to early signs of growing inflationary pressures that
might cause the Federal Reserve to raise interest rates. To date, prices are
still being kept under control. However, we are especially watchful regarding
the potential buildup in wage pressures given the rising trend in both
corporate output and capacity utilization.
MARKET ENVIRONMENT
At the present time, the supply of new Pennsylvania issuances is fairly
heavy. The Fund has taken advantage of this excess supply and has purchased
issues which are inexpensive when compared to the national municipal market.
When the supply of Pennsylvania paper becomes scarce, and demand from the
retail market is high, the Fund may look to sell into that increased demand
bonds that by then will be considered poorly structured, expensive
municipals; it may then purchase secondary market paper which is currently
undervalued.
Municipals are currently fairly expensive when compared to the taxable
fixed-income markets through five years, so the Fund has concentrated on
purchasing issues in the eight-to-twelve year range. Municipals currently
represent better value in this maturity range, especially when considering
the higher interest rate environment that we are experiencing.
THE PORTFOLIO
Since last writing to you in December, 1995, certain themes have
continued to guide all of our investment decisions. Specifically, throughout
the year we have chosen to focus on those issues bearing higher degrees of
credit quality and broader measures of liquidity while constantly analyzing
the risk/reward relationship of each individual municipal security. This
strategy emphasizes purchasing municipals whose value is understated, while
selling overvalued issues whose current price is high when compared to the
rest of the municipal market. As this strategy was implemented, the portfolio
became more defensive in the beginning of 1996 in an effort to preserve
shareholders' price and maintain a high level of tax-free income. As interest
rates rose, the Fund slowly extended maturities to lock in higher rates. This
was accomplished by selling shorter issues which were expensive and
purchasing discount bonds which are currently out of favor and are trading
substantially cheaper than the rest of the municipal market.
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 greatly appreciate 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
June 14, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
**Some income may be subject to State and local taxes for non-Pennsylvania
residents and, for some investors, to the Federal Alternative Minimum Tax
(AMT).
*** Annualized distribution rate per share is based upon dividends per
share paid from net investment income during the period, divided by the net
asset value per share at the end of the period.
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<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MAY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-92.8% AMOUNT VALUE
_______ ______
<S> <C> <C>
PENNSYLVANIA-86.4%
Allegheny County Hospital Development Authority, Revenue, Refunding
(Magee Womens Hospital) 5.875%, 10/1/2002 (Insured; FGIC)............... $ 500,000 $ 525,120
Berks County, Refunding 5.60%, 11/15/2007 (Insured; FGIC)................... 545,000 551,360
Bucks County 6.05%, 3/1/2002................................................ 500,000 530,910
Cambria County, Refunding 5.875%, 8/15/2008 (Insured; FGIC)................. 850,000 876,902
Cambria Township Water Authority, Industrial User Revenue
6%, 12/1/2002 (LOC; Banque Paribas) (a)................................. 1,250,000 1,249,937
Clinton County Industrial Development Authority, PCR, Refunding
(International Paper Co. Project) 5.375%, 5/1/2004...................... 500,000 504,560
Dauphin County General Authority, Revenue:
6.25%, 6/1/2001......................................................... 650,000 686,140
6%, 12/1/2006 (LOC; The Sakura Bank Ltd., Prerefunded 6/1/2001) (a,b)... 785,000 820,074
5%, 6/1/2026 (Insured; AMBAC, Prerefunded 12/1/1998) (b)................ 500,000 507,975
Delaware County Authority:
Health Care Revenue, Refunding (Mercy Health Corp.-Southeastern)
6%, 11/15/2007........................................................ 1,000,000 972,570
HR (Crozer-Chester Medical Center) 4.75%, 12/15/2003 (Insured; MBIA).... 430,000 422,118
Delaware County Industrial Development Authority, Revenue, Refunding
(Martins Run Project) 5.60%, 12/15/2002................................. 750,000 722,580
Geisinger Authority, Health System Revenue 5.375%, 7/1/2000................. 850,000 862,546
Hampton Township School District
6.75%, 11/15/2021 (Insured; AMBAC, Prerefunded 11/15/2004) (b).......... 1,000,000 1,117,620
Harrisburg Authority, Water Revenue, Refunding 5.30%, 7/15/2004 (Insured; FGIC) 300,000 304,629
Jefferson County Hospital Authority, HR, Refunding
(Brookville Hospital) 7%, 8/1/2002 (Insured; FHA)....................... 1,000,000 1,050,940
Lackawanna County, Refunding 4.90%, 12/1/2006 (Insured; AMBAC).............. 500,000 485,580
Lancaster Higher Education Authority, College Revenue
(Franklin and Marshall College Project) 5%, 4/15/2002 (Insured; MBIA)... 350,000 352,370
Lebanon County Good Samaritan Hospital Authority, Revenue, Refunding
(Good Samaritan Hospital Project):
5.85%, 11/15/2007..................................................... 845,000 812,941
6%, 11/15/2009........................................................ 1,500,000 1,441,140
Lehigh County General Purpose Authority, Revenue (Saint Lukes Hospital
Bethlehem Project) 4.75%, 11/15/2000 (Insured; AMBAC)................... 345,000 346,159
Lycoming County Authority, HR, Refunding (Divine Providence Hospital)
5.25%, 11/15/2006 (Insured; Connie Lee)................................. 1,000,000 970,250
Northeastern Hospital and Education Authority, College Revenue
(Luzerne County Community College) 6.20%, 8/15/2005 (Insured; AMBAC).... 500,000 535,870
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ ______
PENNSYLVANIA (CONTINUED)
Pennsylvania, Refunding 5%, 5/1/2003........................................ $ 500,000 $ 500,995
Pennsylvania Convention Center Authority, Revenue, Refunding 6.25%, 9/1/2004 750,000 771,308
Pennsylvania Economic Development Financing Authority, RRR
(Northampton Generating Project) 6.40%, 1/1/2009........................ 500,000 484,995
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue,
Refunding
6.80%, 12/1/2000 (Insured; FGIC)........................................ 2,000,000 2,140,980
Pennsylvania Higher Educational Facilities Authority:
College and University Revenue (Delaware Valley College of Science and
Agriculture)
6.50%, 4/1/2008....................................................... 790,000 798,880
Health Services Revenue (University of Pennsylvania) 5.75%, 1/1/2006.... 500,000 511,805
Pennsylvania Housing Finance Agency, Single Family Mortgage:
5.95%, 10/1/2003........................................................ 365,000 373,665
6.20%, 4/1/2005......................................................... 410,000 416,810
6.20%, 10/1/2005........................................................ 420,000 427,274
5.75%, 4/1/2006......................................................... 400,000 399,816
6.10%, 4/1/2006......................................................... 455,000 463,031
5.75%, 10/1/2006........................................................ 415,000 414,801
6.10%, 10/1/2006........................................................ 465,000 473,514
Pennsylvania Industrial Development Authority, EDR
7%, 1/1/2006 (Insured; AMBAC)........................................... 1,795,000 2,012,554
Pennsylvania Turnpike Commission, Turnpike Revenue, Refunding:
5.35%, 12/1/2002 (Insured; FGIC)........................................ 255,000 261,821
5.45%, 12/1/2002........................................................ 500,000 514,030
Pennsylvania University, Refunding 5.55%, 8/15/2007......................... 1,000,000 1,012,060
Philadelphia:
5.70%, 11/15/2006 (Insured; FGIC)....................................... 1,000,000 1,034,120
Gas Works Revenue 4.60%, 8/1/2003 (Insured; MBIA)....................... 500,000 486,200
Water and Wastewater Revenue, Refunding:
5.50%, 6/15/2003 (Insured; FGIC)...................................... 1,000,000 1,031,430
5.50%, 6/15/2006...................................................... 250,000 241,397
Philadelphia Hospital and Higher Education Facilities Authority, Revenue:
(Community College) 5.90%, 5/1/2007 (Insured; MBIA)..................... 445,000 463,103
Refunding (Temple University Hospital) 6.50%, 11/15/2008................ 1,000,000 1,024,420
Philadelphia Industrial Development Authority, IDR, Refunding
(Ashland Oil, Inc. Project) 5.70%, 6/1/2005............................. 1,200,000 1,200,336
Philadelphia Municipal Authority, LR, Refunding:
6%, 7/15/2003........................................................... 500,000 500,820
5.40%, 11/15/2006 (Insured; FGIC)....................................... 500,000 504,000
Philadelphia School District 5.75%, 7/1/2007 (Insured; MBIA)................ 600,000 615,510
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ ______
PENNSYLVANIA (CONTINUED)
Schuylkill County Industrial Development Authority, RRR, Refunding
(Schuylkill Energy Resource, Inc.) 6.50%, 1/1/2010...................... $ 1,245,000 $ 1,226,736
Scranton-Lackawanna Health and Welfare Authority, Revenue, Refunding
(University of Scranton Project) 5.80%, 3/1/2000........................ 500,000 510,570
Southeastern Transportation Authority, Special Revenue
5.875%, 3/1/2009 (Insured; FGIC)........................................ 750,000 767,805
Wilkinsburg Joint Water Authority, Water Revenue
6.15%, 8/15/2006 (Insured; AMBAC, Prerefunded 8/15/2002) (b)............ 600,000 641,286
York County Hospital Authority, Revenue, Refunding
(Lutheran Social Services Health Center) 6.25%, 4/1/2011................ 1,000,000 970,770
U.S. RELATED-6.4%
Guam Government 5.625%, 9/1/2002............................................ 1,295,000 1,284,472
Puerto Rico Commonwealth Highway and Transportation Authority,
Highway Revenue, Refunding 5%, 7/1/2002................................. 225,000 223,942
Puerto Rico Electric Power Authority, Power Revenue:
5.90%, 7/1/2002......................................................... 250,000 260,865
6%, 7/1/2006............................................................ 225,000 234,313
Refunding 5.25%, 7/1/2007............................................... 700,000 676,571
Puerto Rico Housing Bank and Finance Agency, Single Family, Refunding
5%, 12/1/2002........................................................... 300,000 294,945
______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $42,531,831).................... $42,822,241
======
SHORT-TERM MUNICIPAL INVESTMENTS-7.2%
PENNSYLVANIA-3.5%
Allegheny County Hospital Development Authority, Revenue, VRDN
(Presbyterian Health Center) 3.75% (Insured; MBIA) (c).................. $ 500,000 $ 500,000
Bucks County Industrial Development Authority, VRDN (Oxford Falls) 3.75% (c) 800,000 800,000
Delaware County Industrial Development Authority, PCR, VRDN
(BP Oil, Inc. Project) 3.65% (c)........................................ 300,000 300,000
U.S. RELATED-3.7%
Puerto Rico Electric Power Authority, Power Revenue 3.41% (Insured; FSA) (d) 1,700,000 1,700,000
______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $3,300,000).................... $ 3,300,000
======
TOTAL INVESTMENTS-100.0%
(cost $45,831,831)...................................................... $46,122,241
======
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
EDR Economic Development Revenue LR Lease Revenue
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration Insurance Corporation
FSA Financial Security Assurance PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ----------------- -------------------
<S> <C> <C> <C>
AAA Aaa AAA 42.7%
AA Aa AA 13.9
A A A 14.5
BBB Baa BBB 22.8
F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 3.5
Not Rated (f) Not Rated (f) Not Rated (f) 2.6
____
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest date.
(c) 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.
(d) Inverse floater security - the interest rate is subject to change
periodically.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's or 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 independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $45,831,831)-see statement...................................... $46,122,241
Interest receivable..................................................... 779,543
Receivable for shares of Beneficial Interest subscribed................. 83,500
Prepaid expenses........................................................ 29,423
Due from The Dreyfus Corporation and subsidiaries....................... 1,330
______
47,016,037
LIABILITIES:
Payable for investment securities purchased............................. $3,311,238
Payable for shares of Beneficial Interest redeemed...................... 112,780
Accrued expenses and other liabilities.................................. 100,807 3,524,825
_____ ______
NET ASSETS ................................................................ $43,491,212
======
REPRESENTED BY:
Paid-in capital......................................................... $43,328,858
Accumulated net realized (loss) on investments.......................... (128,056)
Accumulated net unrealized appreciation on investments-Note 3........... 290,410
______
NET ASSETS at value applicable to 3,393,289 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest authorized) $43,491,212
======
NET ASSET VALUE, offering and redemption price per share
($43,491,212 / 3,393,289 shares)........................................ $12.82
======
See independent accountants' review report and notes to financial statements.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 1,134,876
EXPENSES:
Management fee-Note 2(a).............................................. $ 128,906
Shareholder servicing costs-Note 2(b)................................. 44,309
Auditing fees......................................................... 21,726
Trustees' fees and expenses-Note 2(c)................................. 12,827
Legal fees............................................................ 10,527
Registration fees..................................................... 3,560
Prospectus and shareholders' reports.................................. 2,897
Custodian fees........................................................ 2,686
Miscellaneous......................................................... 12,077
_____
TOTAL EXPENSES.................................................... 239,515
Less-reduction in management fee due to undertaking-Note 2(a)......... 67,640
_____
NET EXPENSES...................................................... 171,875
_____
INVESTMENT INCOME-NET............................................. 963,001
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 10,715
Net unrealized (depreciation) on investments............................ (1,050,750)
_____
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (1,040,035)
_____
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (77,034)
======
See independent accountants' review report and notes to financial statements.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1996 NOVEMBER 30,
(UNAUDITED) 1995
_________ _______
OPERATIONS:
Investment income-net.............................................. $ 963,001 $ 1,517,768
Net realized gain (loss) on investments............................ 10,715 (31,441)
Net unrealized appreciation (depreciation) on investments for the period (1,050,750) 2,912,463
______ ______
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. (77,034) 4,398,790
______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.............................................. (963,001) (1,517,768)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold...................................... 12,648,114 29,535,143
Dividends reinvested............................................... 689,943 1,114,040
Cost of shares redeemed............................................ (8,886,215) (16,049,793)
______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS..... 4,451,842 14,599,390
______ ______
TOTAL INCREASE IN NET ASSETS................................. 3,411,807 17,480,412
NET ASSETS:
Beginning of period................................................ 40,079,405 22,598,993
______ ______
End of period...................................................... $43,491,212 $40,079,405
====== ======
SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................ 969,017 2,327,964
Shares issued for dividends reinvested............................. 53,010 87,444
Shares redeemed.................................................... (682,510) (1,271,087)
______ ______
NET INCREASE IN SHARES OUTSTANDING............................... 339,517 1,144,321
====== ======
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND 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>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED NOVEMBER 30,
MAY 31, 1996 ------------------------
(UNAUDITED) 1995 1994(1)
---------- ---- ------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period..................... $13.12 $11.84 $12.50
___ ___ ___
INVESTMENT OPERATIONS:
Investment income-net.................................... .29 .63 .61
Net realized and unrealized gain (loss) on investments... (.30) 1.28 (.66)
___ ___ ___
TOTAL FROM INVESTMENT OPERATIONS....................... (.01) 1.91 (.05)
___ ___ ___
DISTRIBUTIONS;
Dividends from investment income-net..................... (.29) (.63) (.61)
___ ___ ___
Net asset value, end of period........................... $12.82 $13.12 $11.84
=== === ===
TOTAL INVESTMENT RETURN...................................... (.14%)(2) 16.47% (.60%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. .80%(2) .48% --
Ratio of net investment income to average net assets..... 4.47%(2) 4.93% 5.19%(2)
Decrease reflected in above expense ratios due to
undertakings by the Manager............................ .31%(2) .62% 1.39%(2)
Portfolio Turnover Rate.................................. 29.23%(3) 5.07% 20.13%(3)
Net Assets, end of period (000's Omitted)................ $43,491 $40,079 $22,599
- ---------------------------
(1) From December 16, 1993 (commencement of operations) to November 30, 1994.
(2) Annualized.
(3) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Pennsylvania Intermediate Municipal Bond 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 Pennsylvania income taxes as is consistent with the
preservation of capital. 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. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(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, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
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, 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.
The Fund has an unused capital loss carryover of approximately $138,800
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1995. If not
applied, $1,400 of the carryover expires in fiscal 2002 and $137,400 expires
in fiscal 2003.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 .60 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. The Manager has
undertaken from December 1, 1995 through November 30, 1996, 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 certain
expenses as described above) exceed an annual rate of .80 of 1% of the value
of the Fund's average daily net assets. The reduction in management fee,
pursuant to the undertaking, amounted to $67,640 for the six months ended May
31, 1996.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(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 shareholders 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 six months ended May 31, 1996, the Fund was charged an aggregate
of $21,781 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 $14,495 for the six months ended May 31, 1996.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended May 31, 1996
amounted to $16,491,142 and $11,873,585, respectively.
At May 31, 1996, accumulated net unrealized appreciation on investments
was $290,410, consisting of $557,164 gross unrealized appreciation and
$266,754 gross unrealized depreciation.
At May 31, 1996, 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).
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Pennsylvania Intermediate Municipal Bond Fund, including the
statement of investments, as of May 31, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended May 31, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
November 30, 1995 and financial highlights for each of the two years in the
period ended November 30, 1995 and in our report dated January 3, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
July 3, 1996
[Dreyfus lion "d" logo]
DREYFUS PENNSYLVANIA INTERMEDIATE
MUNICIPAL BOND 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.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 105SA965
[Dreyfus logo]
Pennsylvania
Intermediate
Municipal
Bond Fund
Semi-Annual
Report
May 31, 1996
