<PAGE>
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FLORIDA
DAILY MUNICIPAL 600 FIFTH AVENUE, NEW YORK, N.Y. 10020
INCOME FUND 212/830-5200
================================================================================
Dear Shareholder:
We are pleased to present the annual report of Florida Daily Municipal Income
Fund for the year ended August 31, 2000.
The Fund had net assets of $87,814,730 and 1,183 active shareholders as of
August 31, 2000.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
\s\Steven W. Duff
Steven W. Duff
President
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS
AUGUST 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Tax Exempt Investments (17.67%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,500,000 Anthony Wayne, OH Local School District BAN (b) 12/21/00 4.29% $ 2,502,424
2,500,000 Dade County, FL School District of Miami RAN 11/15/00 3.71 2,501,131 MIG-1
2,500,000 David County, UT TRAN (b) 12/29/00 4.40 2,504,839
5,000,000 Huntington County Time Warrents
(Huntington County Community School) (b) 12/29/00 4.40 5,000,770
3,000,000 Weber County, UT TRAN (b) 12/29/00 4.35 3,003,835
----------- ------------
15,500,000 Total Tax Exempt Investments 15,512,999
----------- ------------
<CAPTION>
Variable Rate Demand Instruments (c) (58.57%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Alachua County, FL IDA (Florida Rock Industries, Inc.)
LOC NationsBank 11/01/22 4.40% $ 1,000,000 A1+
1,000,000 Burke County, GA PCRB (Georgia Power Company Plant) 09/01/26 4.30 1,000,000 VMIG-1 A
1,978,000 Duval & Escambia Counties, FL Clipper - Series 2000-3 03/27/05 4.53 1,978,000 VMIG-1
3,115,000 Escambia County, FL IDRB (Gelman Sciences, Inc. Project)
LOC National Bank of Detroit 07/01/04 4.35 3,115,000 A1+
1,140,000 Florida Development Finance Corporation
(Intrepid Powerboats, Inc.) (b)
LOC Suntrust Bank 06/01/23 4.40 1,140,000
2,000,000 Florida Housing Finance Agency (Buena Vista Project) - Series AA
Collateralized by Federal Home Loan Mortgage Corporation 11/01/07 4.10 2,000,000 A1+
1,000,000 Florida Housing Finance Agency (Heron Park Project) - Series V
LOC NationsBank 12/01/29 4.35 1,000,000 VMIG-1
1,345,000 Florida Housing Finance Agency MHRB
(Fairmount Oaks Project) - Series 1989E
LOC Comerica Bank 04/01/26 4.45 1,345,000 A1
1,000,000 Florida Housing Finance Agency (Tiffany Club Project)
LOC NationsBank 09/01/26 4.30 1,000,000 VMIG-1
2,400,000 Florida Housing Finance Agency (Town Colony #1) - Series 1983E
LOC Credit Suisse First Boston 12/01/05 4.30 2,400,000 A1+
2,225,000 Gainesville, FL IDRB (Heat - Pipe Technology, Inc. Project)
LOC Amsouth Bank 05/01/18 4.35 2,225,000 Aa3
1,200,000 Gulf Coast IDA Solid Waste Disposal
(Citgo Petroleum Corporation Project)
LOC NationsBank 05/01/25 4.45 1,200,000 VMIG-1
2,000,000 Gulf Coast Waste Disposal Authority (Bayer Corp) 05/01/27 4.45 2,000,000 P1 A1+
170,000 Gulf Breeze, FL RB - Series 1985B
Insured by FGIC 12/01/15 4.25 170,000 VMIG-1 A1+
720,000 Gulf Breeze, FL RB - Series 1985C
Insured by FGIC 12/01/15 4.25 720,000 VMIG-1 A1+
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 360,000 Hillsborough County, FL IDA (ADP Inc. Project) (b) 02/01/01 4.45% $ 360,000
1,000,000 Hillsborough county, FL IDA (Tampa Electric Company Project) 09/01/25 4.35 1,000,000 VMIG-1
1,800,000 Hillsborough County, FL (Citrus Park Community Development)
LOC Dresdner Bank 11/01/16 4.25 1,800,000 VMIG-1
2,100,000 Hillsborough County, FL (IMC Fertilizer Inc. Project)
LOC Rabobank Nederland 02/01/04 4.30 2,100,000 P1
2,000,000 Hillsborough County, FL IDA
(National Gypsum Company Apollo Project)
LOC Wachovia Bank & Trust, N.A. 04/01/30 4.35 2,000,000 A1+
850,000 Indian River County, FL IDRB (Florida Convention Centers Project)
LOC Toronto-Dominion Bank 01/01/11 4.55 850,000 P1
2,300,000 Jacksonville, FL HFA (River Garden Project)
LOC First Union National Bank 02/01/18 4.25 2,300,000 A1
2,330,000 Koch Floating Rate Trust Variable - Series (b)
LOC AMBAC Indemnity 05/03/04 4.58 2,330,000
1,600,000 Marion County, FL IDA
(Hamilton Products, Incorporation Project) - Series 1995 (b)
LOC Comerica Bank 11/01/15 4.55 1,600,000
2,000,000 Miami-Dade County, FL IDA Professional Modification
LOC Bankers Trust Company 08/01/18 4.35 2,000,000 A1
2,200,000 Ocean Highway & Port Authority, FL RB - Series 1990
LOC ABN AMRO Bank N.A. 12/01/20 4.35 2,200,000 VMIG-1
850,000 Orange County, FL IDRB
(Florida Convention Centers Project) - Series A
LOC Toronto-Dominion Bank 01/01/11 4.45 850,000 P1
2,500,000 Palm Beach County, FL IDRB (Northern Gallery of Art Project)
LOC Northern Trust 05/01/25 4.15 2,500,000 A1+
1,000,000 Pinellas County, FL Industry Council IDRB
(Genca Corporation Project) (b)
LOC PNC Bank, N.A. 11/01/09 4.45 1,000,000
850,000 Polk County, FL IDRB (Florida Convention Center Project)
LOC Toronto-Dominion Bank 01/01/11 4.45 850,000 P1
2,300,000 Southwestern, IL Development Authority Solid (Shell Oil Company) 11/01/25 4.45 2,300,000 VMIG-1 A1+
900,000 St. Charles Parish, LA (Shell Oil Company Project) - Series A 10/01/22 4.45 900,000 VMIG-1 A1+
1,700,000 Stevenson, AL IDRB (Mead Corp Project) - Series A
LOC Bank of Austria 02/01/34 4.50 1,700,000 A1+
500,000 Tampa, FL Occupation License Tax Boards - Series 1996A
Insured by FGIC 10/01/18 4.25 500,000 VMIG-1 A1+
------------ ------------
51,433,000 Total Variable Rate Demand Instruments 51,433,000
------------ ------------
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Put Bonds (d) (5.12%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,500,000 Putnam County, FL Development Authority
(Seminole Electric) - Series 1984D
LOC National Rural Utilities Cooperative Finance Corp. 12/15/04 4.35% $ 1,500,000 VMIG-1 A1+
3,000,000 Putnam County, FL Development Authority
(Seminole Electric) - Series H-3
LOC National Rural Utilities Cooperative Finance Corp. 09/15/00 3.96 3,000,000 VMIG-1 A1+
------------ ------------
4,500,000 Total Put Bonds 4,500,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (17.86%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,500,000 Florida Finance Commission (State Revolving Loan Fund Project)
LOC First Union National Bank 02/20/01 4.30% $ 1,500,000 P1
1,630,000 Gainesville, FL Utilities - Series C 12/07/00 4.20 1,630,000 P1 A1+
1,000,000 Hospital Board of Lee County (Lee Memorial Hospital Project) 11/14/00 4.25 1,000,000 VMIG-1 A1+
3,200,000 Palm Beach County, FL HFA
Insured by MBIA Insurance Corp. 10/04/00 4.30 3,200,000 VMIG-1 A1+
2,150,000 Sarasota County, FL Public Hospital RB
(Sarasota Memorial Hospital)
LOC Suntrust Bank 09/06/00 4.10 2,150,000 VMIG-1 A1+
4,200,000 St. Lucie County, FL PCRB (Florida Power & Light) - Series 1994A 12/12/00 4.20 4,200,000 VMIG-1 A1+
2,000,000 Sunshine State Government Finance Commission RB - Series 1986
Insured by FGIC 09/06/00 4.20 2,000,000 A1
------------ ------------
15,680,000 Total Tax Exempt Commercial Paper 15,680,000
------------ ------------
Total Investments (99.22%) (Cost $87,125,999+) $ 87,125,999
Cash and Other Assets, Net of Liabilities (0.78%) 688,731
------------
Net Assets (100.00%) $ 87,814,730
============
Net Asset Value, offering and redemption price per share:
Class A Shares, 59,029,304 shares outstanding (Note 3) $ 1.00
============
Class B Shares, 28,785,672 shares outstanding (Note 3) $ 1.00
============
</TABLE>
+ Aggregate cost for federal income tax purpose is identical.
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
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================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company of the bank whose letter of
credit guarantees the issue or the insurance company who insures the issue.
All letters of credit and insurance are irrevocable and direct pay covering
both principal and interest. Certain issuers have either a line of credit,
a liquidity facility, a standby purchase agreement or some other financing
mechanism to ensure the remarketing of the securities. This is not a
guarantee and does not serve to insure or collateralize the issue.
(b) Securities that are not rated which the Fund's Board of Trustees has
determined to be of comparable quality to those rated securities in which
the Fund invests.
(c) Securities payable on demand at par including accrued interest (usually
with seven days notice) and if indicated, unconditionally secured as to
principal and interest by a bank letter of credit. The interest rates are
adjustable and are based on bank prime rates or other interest rate
adjustment indices. The rate shown is the rate in effect at the date of
this statement.
(d) The maturity date indicated is the next put date.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note MHRB = Multi-Family Housing Revenue Bond
FGIC = Financial Guaranteed Insurance Company PCRB = Pollution Control Revenue Bond
HFA = Housing Finance Authority RAN = Revenue Anticipation Note
IDA = Industrial Development Authority RB = Revenue Bond
IDRB = Industrial Development Revenue Bond TRAN = Tax and Revenue Anticipation Note
LOC = Letter of Credit
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 2000
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest....................................................................$ 3,391,231
-----------------
Expenses: (Note 2)
Investment management fee................................................... 346,921
Administration fee.......................................................... 182,134
Shareholder servicing fee (Class A)......................................... 143,947
Custodian fee............................................................... 12,372
Shareholder servicing and related shareholder expenses+..................... 79,410
Legal, compliance and filing fees........................................... 34,260
Audit and accounting........................................................ 99,995
Trustees' fees.............................................................. 6,098
Amortization of organization expenses....................................... 564
Other....................................................................... 3,161
-----------------
Total expenses............................................................ 908,862
Less: Expenses paid indirectly (Note 2)...................................( 73)
Less: Fees waived (Note 2)................................................( 256,841)
-----------------
Net expenses.............................................................. 651,948
-----------------
Net investment income.......................................................... 2,739,283
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments........................................( 246)
-----------------
Increase in net assets from operations.........................................$ 2,739,037
=================
</TABLE>
+ Includes class specific transfer agency expenses of $53,378 and $14,576 for
Class A and Class B shares, respectively.
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED AUGUST 31, 2000 AND 1999
================================================================================
<TABLE>
<CAPTION>
2000 1999
------------------ -------------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
<S> <C> <C>
Net investment income.......................................... $ 2,739,283 $ 2,435,216
Net realized gain (loss) on investments........................ ( 246) -0-
------------------ -------------------
Increase in net assets from operations............................ 2,739,037 2,435,216
Dividends to shareholders from:
Net investment income:
Class A........................................................ ( 1,762,192)* ( 1,620,048)*
Class B........................................................ ( 977,091)* ( 815,168)*
Net realized gain on investments:
Class A........................................................ ( -- ) ( 1,463)
Class B........................................................ ( -- ) ( 303)
Transactions in shares of beneficial interest (Note 3):
Class A........................................................ 10,166,342 ( 70,890,088)
Class B........................................................ 4,337,706 ( 601,324)
------------------ -------------------
Total increase (decrease).................................. 14,503,802 ( 71,493,178)
Net assets:
Beginning of year.............................................. 73,310,928 144,804,106
------------------ -------------------
End of year.................................................... $ 87,814,730 $ 73,310,928
================== ===================
</TABLE>
* Designated as exempt-interest dividends for federal income tax purposes.
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
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FLORIDA DAILY MUNICIPAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Summary of Accounting Policies.
Florida Daily Municipal Income Fund, a Massachusetts Business Trust, is a
no-load, non-diversified, open-end management investment company registered
under the Investment Company Act of 1940. The Fund is a short-term, tax exempt
money market fund. The Fund has two classes of stock authorized, Class A and
Class B. The Class A shares are subject to a service fee pursuant to the
Distribution and Service Plan. The Class B shares are not subject to a service
fee. Additionally, the Fund may allocate among its classes certain expenses, to
the extent allowable to specific classes, including transfer agent fees,
government registration fees, certain printing and postage costs, and
administrative and legal expenses. Class Specific expenses of the Fund were
limited to distribution fees and transfer agent expenses. In all other respects
the Class A and Class B shares represent the same interest in the income and
assets of the Fund. Its financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America for
investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument. The
maturity of variable rate demand instruments is deemed to be the longer of
the period required before the Fund is entitled to receive payment of the
principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Use of Estimates -
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that effect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
e) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management L.P. (Manager) at the annual rate of .40%
of the Fund's average daily net assets.
Pursuant to an Administrative Services Contract the Fund pays to the Manager an
annual fee of .21% of the Fund's average daily net assets.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates
(Continued).
Pursuant to a Distribution Plan adopted under Securities and Exchange Commission
Rule 12b-1, the Fund and Reich & Tang Distributors, Inc. (the Distributor) have
entered into a Distribution Agreement and a Shareholder Servicing Agreement,
only with respect to Class A shares of the Fund. For its services under the
Shareholder Servicing Agreement, the Distributor receives from the Fund a fee
equal to .25% of the Fund's average daily net assets with respect only to the
Class A shares. There were no additional expenses borne by the Fund pursuant to
the Distribution Plan.
During the year ended August 31, 2000 the Manager voluntarily waived investment
management fees and administration fees of $83,380 and $173,461, respectively.
Fees are paid to Trustees who are unaffiliated with the Manager on the basis of
$1,000 per annum plus $250 per meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $25,221 paid to Reich & Tang
Services, Inc., an affiliate of the Manager, as shareholder servicing agent for
the Fund.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are expense offsets of $73.
3. Transactions in Shares of Beneficial Interest.
At August 31, 2000, an unlimited number of shares of beneficial interest ($.01
par value) were authorized and capital paid in amounted to $87,814,976.
Transactions, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Class A Year Ended Year Ended
August 31, 2000 August 31, 1999
--------------- ---------------
<S> <C> <C>
Sold............................................ 224,792,774 155,272,178
Issued on reinvestment of dividends............. 1,706,099 1,502,955
Redeemed........................................ ( 216,332,531) ( 227,665,221)
---------------- ----------------
Net increase (decrease)......................... 10,166,342 ( 70,890,088)
================ ================
<CAPTION>
Class B Year Ended Year Ended
August 31, 2000 August 31, 1999
--------------- ---------------
<S> <C> <C>
Sold............................................ 206,097,083 193,141,234
Issued on reinvestment of dividends............. 931,113 776,131
Redeemed........................................ ( 202,690,490) ( 194,518,689)
---------------- ----------------
Net increase (decrease)......................... 4,337,706 ( 601,324)
================ ================
</TABLE>
4. Sales of Securities.
Accumulated undistributed realized losses at August 31, 2000 amounted to $246.
Such amount represents tax basis capital losses which may be carried forward to
offset future capital gains.
5. Concentration of Credit Risk.
The Fund invests primarily in obligations of political subdivisions of the State
of Florida and, accordingly, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 61% of these investments are
further secured, as to principal and interest, by credit enhancements such as
letters of credit, municipal bond insurance and guarantees issued by financial
institutions. The Fund maintains a policy of monitoring its exposure by
reviewing the credit worthiness of the issuers, as well as that of the financial
institutions issuing the credit enhancements, and by limiting the amount of
holdings with credit enhancements from one financial institution.
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<PAGE>
--------------------------------------------------------------------------------
FLORIDA DAILY MUNICIPAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
5. Financial Highlights.
<TABLE>
<CAPTION>
Year Ended August 31,
------------------------------------------------------------
Class A 2000 1999 1998 1997 1996
------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income....................... 0.031 0.025 0.029 0.030 0.031
Less distributions:
Dividends from net investment income........ ( 0.031) ( 0.025) ( 0.029) ( 0.030) ( 0.031)
------- ------- ------- ------- -------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................... 3.09% 2.50% 2.92% 3.08% 3.09%
Ratios/Supplemental Data
Net assets, end of year (000).................. $ 59,029 $ 48,863 $ 119,754 $ 96,683 $ 36,758
Ratios to average net assets:
Expenses (Net of waivers and reimbursements)... 0.85% 0.78% 0.75% 0.57% 0.56%
Net investment income.......................... 3.06% 2.51% 2.86% 3.03% 3.05%
Expenses paid indirectly....................... -- -- -- -- 0.06%
Management and administration fees waived and
expense reimbursed.......................... 0.30% 0.29% 0.27% 0.51% 0.67%
<CAPTION>
Year Ended August 31,
------------------------------------------------------------
Class B 2000 1999 1998 1997 1996
------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income....................... 0.033 0.028 0.032 0.033 0.033
Less distributions:
Dividends from net investment income........ ( 0.033) ( 0.028) ( 0.032) ( 0.033) ( 0.033)
------- ------- ------- ------- -------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................... 3.39% 2.80% 3.22% 3.34% 3.35%
Ratios/Supplemental Data
Net assets, end of year (000).................. $ 28,786 $ 24,448 $ 25,050 $ 11,782 $ 9,611
Ratios to average net assets:
Expenses (Net of waivers and reimbursements)... 0.56% 0.50% 0.46% 0.30% 0.31%
Net investment income.......................... 3.35% 2.78% 3.16% 3.27% 3.34%
Expenses paid indirectly....................... -- -- -- -- 0.06%
Management and administration fees waived and
expense reimbursed.......................... 0.30% 0.29% 0.27% 0.51% 0.67%
</TABLE>
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<PAGE>
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FLORIDA DAILY MUNICIPAL INCOME FUND
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Board of Trustees and Shareholders of
Florida Daily Municipal Income Fund
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Florida Daily Municipal Income Fund (the "Fund") at August 31, 2000, the results
of its operations for the year then ended and the changes in its net assets and
the financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States of
America which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at August 31, 2000 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above. The financial highlights for each of the three years in the
period ended August 31, 1998 were audited by other independent accountants whose
report dated September 25, 1998 expressed an unqualified opinion on those
financial statements.
PricewaterhouseCoopers LLP
New York, New York
September 29, 2000
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
-----------------------------------------------------
This report is submitted for the general
information of the shareholders of the Fund. It is
not authorized for distribution to prospective
investors in the Fund unless preceded or
accompanied by an effective prospectus, which
includes information regarding the Fund's
objectives and policies, experience of its
management, marketability of shares, and other
information.
-----------------------------------------------------
Florida Daily Municipal Income Fund
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management L.P.
600 Fifth Avenue
New York, New York 10020
Custodian
State Street Kansas City
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent & Dividend
Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, NY 10020
FL800A
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
FLORIDA
DAILY
MUNICIPAL
INCOME
FUND
Annual Report
August 31, 2000
--------------------------------------------------------------------------------
<PAGE>
