| UNITED STATES |
| SECURITIES AND EXCHANGE COMMISSION |
| Washington, D.C. 20549 |
| |
| |
| FORM N-CSR |
| |
| CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT |
| INVESTMENT COMPANIES |
| |
| Investment Company Act file number 811-2496 |
| |
| DREYFUS MUNICIPAL MONEY MARKET FUND, INC. |
| (Exact name of Registrant as specified in charter) |
| |
| |
| c/o The Dreyfus Corporation |
| 200 Park Avenue |
| New York, New York 10166 |
| (Address of principal executive offices) (Zip code) |
| |
| Mark N. Jacobs, Esq. |
| 200 Park Avenue |
| New York, New York 10166 |
| (Name and address of agent for service) |
| |
| Registrant's telephone number, including area code: (212) 922-6000 |
| Date of fiscal year end: | | 5/31 |
| Date of reporting period: | | 11/30/04 |
FORM N-CSR
Item 1. Reports to Stockholders.
| Dreyfus |
| Municipal Money |
| Market Fund, Inc. |
SEMIANNUAL REPORT November 30, 2004
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The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.
Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value
| Contents |
| |
| | | THE FUND |
| |
|
| 2 | | Letter from the Chairman |
| 3 | | Discussion of Fund Performance |
| 6 | | Understanding Your Fund’s Expenses |
| 6 | | Comparing Your Fund’s Expenses |
| With Those of Other Funds |
| 7 | | Statement of Investments |
| 17 | | Statement of Assets and Liabilities |
| 18 | | Statement of Operations |
| 19 | | Statement of Changes in Net Assets |
| 20 | | Financial Highlights |
| 21 | | Notes to Financial Statements |
| FOR MORE INFORMATION |
|
| | | Back Cover |
| Dreyfus Municipal |
| Money Market Fund, Inc. |
LETTER FROM THE CHAIRMAN
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Municipal Money Market Fund, Inc., covering the six-month period from June 1, 2004, through November 30, 2004. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager, Colleen Meehan.
Although the U.S. economy recently has alternated between signs of weakness and strength, the Federal Reserve Board has raised short-term interest rates four times since June 2004.This shift in monetary policy represents the first increases in short-term rates in more than four years, and many analysts believe that additional increases may follow in 2005. As a result, tax-exempt money market yields have begun to rise from the historically low levels of the past few years.
At times such as these, when market conditions are in a period of transition, we believe it is especially important for investors to stay in close touch with their financial advisors.Your financial advisor can help you rebalance your portfolio in a way that is designed to respond to the challenges and opportunities of today’s changing investment environment.
Thank you for your continued confidence and support.
| Stephen E. Canter |
| Chairman and Chief Executive Officer |
| The Dreyfus Corporation |
| December 15, 2004 |
DISCUSSION OF FUND PERFORMANCE
| Colleen Meehan, Senior Portfolio Manager |
| |
| How did Dreyfus Municipal Money Market Fund, Inc. perform |
| during the period? |
For the six-month period ended November 30, 2004, the fund produced an annualized yield of 0.79% . Taking into account the effects of compounding, the fund produced an annualized effective yield of 0.80% .1
We attribute these results to gradually rising interest rates over the reporting period as the Federal Reserve Board (the “Fed”) began to move away from an aggressively accommodative monetary policy. In general, tax-exempt money market yields ended the reporting period at their highest levels in approximately two years.
What is the fund’s investment approach?
The fund seeks as high a level of current income exempt from federal income tax as is consistent with the preservation of capital and the maintenance of liquidity.
In pursuing this objective, we employ two primary strategies. First, we normally attempt to add value by investing substantially all of the fund’s net assets in high-quality, tax-exempt municipal money market instruments from issuers throughout the United States and its territories that provide income exempt from federal income tax. Second, we actively manage the fund’s average maturity in anticipation of what we believe are supply-and-demand changes in the short-term municipal marketplace and interest-rate cycles while anticipating liquidity needs.
For example, if we expect an increase in short-term supply, we may decrease the average maturity of the fund, which could enable us to take advantage of opportunities when short-term supply increases. Generally, yields tend to rise when there is an increase in new-issue supply competing for investor interest. New securities are generally issued with maturities in the one-year range, which in turn may lengthen the fund’s
DISCUSSION OF FUND PERFORMANCE (continued)
average maturity. If we anticipate limited new-issue supply, we may then look to extend the fund’s average maturity to maintain then-current yields for as long as we believe practical.At other times, we try to maintain an average maturity that reflects our view of short-term interest-rate trends and future supply-and-demand considerations.
What other factors influenced the fund’s performance?
When the reporting period began, evidence of stronger economic growth and potentially rising inflationary pressures had already arisen when new data showed unexpectedly strong job growth and energy prices rose sharply. Faced with these potential inflationary pressures, investors concluded that the Fed was likely to begin raising short-term interest rates sooner than they previously had expected. Indeed, between June and November, the Fed implemented four increases, which collectively represented the first rate hikes in approximately four years, doubling the overnight federal funds rate from 1% to 2%. In anticipation of the Fed’s rate increases, money market yields began to rise in the spring, especially at the longer end of the maturity spectrum.
In general, tax-exempt money markets also were influenced during the reporting period by their own supply-and-demand dynamics. Rising tax revenues enabled many states to end their most recent fiscal years with budget surpluses, leading to a reduction in the supply of new short-term municipal securities compared to the same period one year earlier. At the same time, demand for tax-exempt money market securities remained strong from individual and institutional investors seeking capital preservation.These factors put downward pressure on tax-exempt money market yields.
Although early in the reporting period we maintained the fund’s weighted average maturity in a range that was longer than industry averages, we soon allowed the fund’s weighted average maturity to move lower as it became apparent that the Fed was likely to begin raising short-term rates. This change was designed to give us greater
flexibility to capture higher yields as they became available.To achieve this position, we purchased securities with shorter maturities and increased the fund’s holdings of variable-rate demand notes on which yields are reset weekly.
Although the U.S. economy appeared to hit a “soft patch” in the summer and early fall, the Fed continued to raise short-term interest rates in an attempt to forestall an acceleration of inflation.Accordingly, we generally maintained the fund’s focus on variable-rate demand notes, shorter-maturity municipal notes and commercial paper through the end of the reporting period.
What is the fund’s current strategy?
As of November 30, demand for municipal securities with shorter maturities remained high as investors remained reluctant to purchase securities with one year maturities in a rising interest-rate environment. Strong demand, coupled with a reduced supply of newly issued securities, has helped keep tax-exempt yields relatively low at the shorter end of the money market maturity spectrum and generally higher yields at the longer end.To attempt to capture higher yields, we have begun to gradually increase the fund’s holdings of municipal notes with maturities in the six- to eight-month range, and the fund’s weighted average maturity ended the reporting period in a position that was in line with industry averages.
December 15, 2004
| 1 | | Annualized effective yield is based upon dividends declared daily and reinvested monthly. Past |
| | | performance is no guarantee of future results.Yields fluctuate. Income may be subject to state and |
| | | local taxes, and some income may be subject to the federal alternative minimum tax (AMT) for |
| | | certain investors.An investment in the fund is not insured or guaranteed by the FDIC or any |
| | | other government agency.Although the fund seeks to preserve the value of your investment at |
| | | $1.00 per share, it is possible to lose money by investing in the fund. |
U N D E R S TA N D I N G YO U R F U N D ’ S E X P E N S E S ( U n a u d i t e d )
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Municipal Money Market Fund, Inc. from June 1, 2004 to November 30, 2004. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
| Expenses and Value of a $1,000 Investment |
| assuming actual returns for the six months ended November 30, 2004 |
|
| |
| Expenses paid per $1,000 † | | $ 2.96 |
| Ending value (after expenses) | | $1,004.00 |
| COMPARING YOUR FUND’S EXPENSES |
| WITH THOSE OF OTHER FUNDS (Unaudited) |
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
| Expenses and Value of a $1,000 Investment |
| assuming a hypothetical 5% annualized return for the six months ended November 30, 2004 |
|
| |
| Expenses paid per $1,000 † | | $ 2.99 |
| Ending value (after expenses) | | $1,022.11 |
† Expenses are equal to the fund’s annualized expense ratio of .59%, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
| STATEMENT OF INVESTMENTS |
| November 30, 2004 (Unaudited) |
| | | Principal | | | | |
| Tax Exempt Investments—101.9% | | Amount ($) | | Value ($) |
| |
| |
|
| Alabama—.7% | | | | | | |
| Jefferson County, Sewer Revenue, Refunding, VRDN | | | | | | |
| 1.66% (Insured; XLCA and | | | | | | |
| Liquidity Facility; Regions Bank) | | 6,615,000 | | a | | 6,615,000 |
| Arizona—1.4% | | | | | | |
| Maricopa County Industrial Development Authority, MFHR | | | | |
| Refunding, VRDN (San Clemente Apartments Project) | | | | |
| 1.72% (Insured; FNMA and Liquidity Facility; FNMA) | | 10,000,000 | | a | | 10,000,000 |
| Salt River Project Agricultural Improvement and | | | | | | |
| Power District, Electric Systems | | | | | | |
| Revenue, Refunding 5%, 1/1/2005 | | 2,750,000 | | | | 2,759,008 |
| Arkansas—1.0% | | | | | | |
| Pulaski County Public Facilities Board, MFHR, VRDN | | | | | | |
| (Chapelridge Project) 1.77% (LOC; Regions Bank) | | 5,650,000 | | a | | 5,650,000 |
| West Memphis Public Facilities Board, MFHR, Refunding | | | | |
| VRDN (Meadows Apartments Project) | | | | | | |
| 1.72% (Insured; FHLMC) | | 3,550,000 | | a | | 3,550,000 |
| California—4.8% | | | | | | |
| State of California, GO Notes, CP 1.70%, 12/8/2004 | | | | | | |
| (LOC: Bank of America, Banque Paribas, Bayerische | | | | | | |
| Landesbank, DEPFA Bank PLC, Dexia Credit | | | | | | |
| Locale, Helaba Bank, JPMorgan Chase Bank, | | | | | | |
| Landesbank Baden-Wuerttemberg, State | | | | | | |
| Street Bank and Trust Co. and WestLB AG) | | 8,000,000 | | | | 8,000,000 |
| California Housing Finance Agency, Revenue, VRDN: | | | | | | |
| (Home Mortgage) 1.70% (Insured; AMBAC and | | | | | | |
| Liquidity Facility; Bank of Nova Scotia) | | 10,000,000 | | a | | 10,000,000 |
| (Multi Family Housing III) 1.79% (Liquidity Facility; | | | | | | |
| Landesbank Hessen-Thuringen Girozentrale) | | 8,335,000 | | a | | 8,335,000 |
| FHLMC Multifamily VRDN Certificates, Revenue, VRDN | | | | | | |
| 1.82% (Liquidity Facility; FHLMC and LOC; FHLMC) | | 17,897,555 | | a | | 17,897,555 |
| Colorado—4.6% | | | | | | |
| Colorado Educational and Cultural Facilities Authority | | | | | | |
| College and University Revenue, VRDN | | | | | | |
| (Fuller Project) 1.77% (LOC; Key Bank) | | 10,000,000 | | a | | 10,000,000 |
| City and County of Denver, Airport Revenue, VRDN: | | | | | | |
| 1.74% (Insured; CIFG and Liquidity | | | | | | |
| Facility; Bayerische Landesbank) | | 5,000,000 | | a | | 5,000,000 |
| Refunding 1.80% (Insured; MBIA and | | | | | | |
| Liquidity Facility; Bank One) | | 10,000,000 | | a | | 10,000,000 |
S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)
| | | Principal | | | | |
| Tax Exempt Investments (continued) | | Amount ($) | | Value ($) |
| |
| |
|
| Colorado (continued) | | | | | | |
| Mountain Village Housing Authority, Housing Facilities | | | | | | |
| Revenue, VRDN (Village Court Apartments Project) | | | | | | |
| 1.82% (LOC; U.S. Bank NA) | | 7,585,000 | | a | | 7,585,000 |
| Southern Ute Indian Tribe of the Southern Ute Indian | | | | | | |
| Reservation, Industrial Revenue, VRDN 1.78% | | 10,000,000 | | a | | 10,000,000 |
| Connecticut—.9% | | | | | | |
| State of Connecticut, Special Tax Obligation Revenue | | | | | | |
| (Transportation Infrastructure) 3%, 7/1/2005 | | 4,000,000 | | | | 4,022,920 |
| City of West Haven, GO Notes, BAN 2%, 1/27/2005 | | 4,000,000 | | | | 4,000,554 |
| Delaware—1.2% | | | | | | |
| Delaware Economic Development Authority, MFHR, VRDN | | | | |
| (School House Project) 1.85% (LOC; HSBC Bank USA) | | 6,900,000 | | a | | 6,900,000 |
| Sussex County, IDR, VRDN | | | | | | |
| (Pats Inc. Project) 1.92% (LOC; M&T Bank) | | 4,235,000 | | a | | 4,235,000 |
| District of Columbia—4.8% | | | | | | |
| District of Columbia, Enterprise Zone Revenue, VRDN | | | | | | |
| (Trigen-PepCo Energy Services) | | | | | | |
| 1.77% (LOC; M&T Bank) | | 12,400,000 | | a | | 12,400,000 |
| Metropolitan Washington Airport Authority | | | | | | |
| Transportation Revenue, CP: | | | | | | |
| 1.70%, 12/6/2004 (Liquidity Facility; WestLB AG) | | 7,000,000 | | | | 7,000,000 |
| 1.95%, 12/14/2004 (Liquidity Facility; WestLB AG) | | 25,000,000 | | | | 25,000,000 |
| Florida—5.5% | | | | | | |
| Broward County Housing Finance Authority, VRDN: | | | | | | |
| MFHR (Cypress Grove Apartments) 1.73% | | | | | | |
| (LOC; Sun America Inc.) | | 13,230,000 | | a | | 13,230,000 |
| SFMR, Merlots Program 1.79% (Insured: FNMA and | | | | | | |
| GNMA and Liquidity Facility; Wachovia Bank) | | 1,900,000 | | a | | 1,900,000 |
| Jacksonville Electric Authority, Electric Revenue, CP: | | | | | | |
| 1.80%, 12/2/2004 (Liquidity Facility; WestLB AG) | | 7,200,000 | | | | 7,200,000 |
| 1.90%, 3/3/2005 (Liquidity Facility; Landesbank | | | | | | |
| Hessen-Thuringen Girozentrale) | | 10,000,000 | | | | 10,000,000 |
| Kissimmee Utility Authority, Electric Revenue, CP | | | | | | |
| 1.68%, 1/13/2005 (Liquidity Facility; | | | | | | |
| JPMorgan Chase Bank) | | 10,000,000 | | | | 10,000,000 |
| County of Palm Beach, Health Care Facilities | | | | | | |
| Revenue, VRDN (Morse Obligation Group) | | | | | | |
| 1.70% (LOC; Key Bank) | | 7,940,000 | | a | | 7,940,000 |
| | | Principal | | | | |
| Tax Exempt Investments (continued) | | Amount ($) | | Value ($) |
| |
| |
|
| Georgia—3.9% | | | | | | |
| Conyers Housing Authority, MFHR, VRDN | | | | | | |
| 1.75% (LOC; Amsouth Bank) | | 4,000,000 | | a | | 4,000,000 |
| De Kalb County Housing Authority, MFHR, VRDN | | | | | | |
| (Forest Columbia Apartments Project) | | | | | | |
| 1.82% (LOC; First Tennessee Bank) | | 8,500,000 | | a | | 8,500,000 |
| Gwinnett County Development Authority, IDR, VRDN | | | | | | |
| (Suzanna’s Kitchen Inc. Project) | | | | | | |
| 1.75% (LOC; Wachovia Bank) | | 6,400,000 | | a | | 6,400,000 |
| Savannah Economic Development Authority | | | | | | |
| Industrial Revenue, VRDN | | | | | | |
| (Home Depot Project) 1.74% | | 17,000,000 | | a | | 17,000,000 |
| Hawaii—.8% | | | | | | |
| Hawaii Pacific Health, Special Purpose Revenue, VRDN | | | | | | |
| (Department of Budget and Finance) 1.76% | | | | | | |
| (Insured; Radian Bank and Liquidity Facility; | | | | | | |
| Bank of Nova Scotia) | | 7,000,000 | | a | | 7,000,000 |
| Illinois—7.4% | | | | | | |
| City of Chicago, Sales Tax Revenue, VRDN | | | | | | |
| Merlots Program 1.74% (Insured; FGIC and | | | | | | |
| Liquidity Facility; Wachovia Bank) | | 10,000,000 | | a | | 10,000,000 |
| Illinois Health Facilities Authority | | | | | | |
| Health Care Facilities Revenues: | | | | | | |
| (Evanston Health Corp.): | | | | | | |
| 1.89%, 2/17/2005 | | 15,000,000 | | | | 15,000,000 |
| 1.85%, 3/10/2005 | | 10,000,000 | | | | 10,000,000 |
| 1.88%, 3/17/2005 | | 5,000,000 | | | | 5,000,000 |
| 1.60%, 3/31/2005 | | 9,000,000 | | | | 9,000,000 |
| VRDN (Helping Hand Rehabilitation Center) | | | | | | |
| 1.69% (LOC; Fifth Third Bank) | | 2,880,000 | | a | | 2,880,000 |
| Lake County, MFHR, VRDN | | | | | | |
| (Grand Oaks Apartments Project) | | | | | | |
| 1.73% (Insured; FNMA and Liquidity Facility; FNMA) | | 9,000,000 | | a | | 9,000,000 |
| Roaring Fork Municipal Products LLC, Revenue, VRDN | | | | | | |
| 1.82% (Liquidity Facility; The Bank of New York | | | | | | |
| and LOC: FHLMC, FNMA and GNMA) | | 3,440,000 | | a | | 3,440,000 |
| University of Illinois, University Revenue, VRDN | | | | | | |
| Merlots Program 1.74% (Insured; MBIA and Liquidity | | | | |
| Facility; Wachovia Bank) | | 3,500,000 | | a | | 3,500,000 |
S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)
| | | Principal | | | | |
| Tax Exempt Investments (continued) | | Amount ($) | | Value ($) |
| |
| |
|
| Indiana—2.4% | | | | | | |
| Indiana Health Facility Financing Authority | | | | | | |
| Health Care Facilities Revenue, VRDN | | | | | | |
| (Clark Memorial Hospital Project) | | | | | | |
| 1.78% (LOC; Bank One) | | 9,310,000 | | a | | 9,310,000 |
| Indiana Housing Finance Authority, SFMR | | | | | | |
| 1.25%, 1/6/2005 | | 4,165,000 | | | | 4,165,000 |
| Indianapolis Local Public Improvement Bond Bank | | | | | | |
| Revenue 2%, 1/6/2005 | | 6,050,000 | | | | 6,053,970 |
| City of Shelbyville, EDR, VRDN | | | | | | |
| (K-T Corp. Project) 1.82% (LOC; PNC Bank) | | 2,655,000 | | a | | 2,655,000 |
| Iowa—2.0% | | | | | | |
| State of Iowa, Revenue, TRAN 3%, 6/30/2005 | | 10,000,000 | | | | 10,067,194 |
| Iowa Finance Authority, SFMR 1.37%, 2/3/2005 | | | | | | |
| (Liquidity Facility; DEPFA Bank PLC) | | 8,500,000 | | | | 8,500,000 |
| Kansas—.6% | | | | | | |
| Kansas Development Finance Authority, MFHR | | | | | | |
| Refunding, VRDN (Chesapeake Apartments | | | | | | |
| Project) 1.69% (LOC; FHLB) | | 5,500,000 | | a | | 5,500,000 |
| Kentucky—5.9% | | | | | | |
| Kenton County Airport Board, Special Facilities | | | | | | |
| Revenue, VRDN (Airis Cincinnati LLC) | | | | | | |
| 1.75% (LOC; Deutsche Bank) | | 38,000,000 | | a | | 38,000,000 |
| Kentucky Asset Liability Commission, General Fund | | | | | | |
| Revenue, TRAN 3%, 6/29/2005 | | 10,000,000 | | | | 10,060,545 |
| City of Somerset, Industrial Building Revenue, VRDN | | | | | | |
| (Wonderfuel LLC Project) | | | | | | |
| 1.82% (LOC; Bank of America) | | 6,320,000 | | a | | 6,320,000 |
| Louisiana—.5% | | | | | | |
| Ouachita Parish Industrial Development Board | | | | | | |
| IDR, VRDN (Garret Manufacturing LLC Project) | | | | | | |
| 1.87% (LOC; Regions Bank) | | 4,495,000 | | a | | 4,495,000 |
| Maryland—1.2% | | | | | | |
| County of Baltimore, Revenue, Refunding, VRDN | | | | | | |
| (Shade Tree Trace) 1.75% (LOC; M&T Bank) | | 5,920,000 | | a | | 5,920,000 |
| Maryland Community Development Administration | | | | | | |
| Department of Housing and Community Development | | | | |
| Revenue, Residential Program 1.25%, 12/21/2004 | | 3,725,000 | | | | 3,725,000 |
| Maryland Economic Development Corporation | | | | | | |
| Revenue, VRDN (Todd/Allan Printing Facility) | | | | | | |
| 1.92% (LOC; M&T Bank) | | 1,795,000 | | a | | 1,795,000 |
| |
| |
| 10 | | | | | | |
| | | Principal | | | | |
| Tax Exempt Investments (continued) | | Amount ($) | | Value ($) |
| |
| |
|
| Massachusetts—2.8% | | | | | | |
| Town of Edgartown, GO Notes, BAN 2%, 1/19/2005 | | 10,318,078 | | | | 10,328,307 |
| Gill-Montague Regional School District, GO Notes | | | | | | |
| BAN 3%, 7/29/2005 | | 5,000,000 | | | | 5,040,636 |
| City of Leominster, GO Notes | | | | | | |
| BAN 2.75%, 5/12/2005 | | 6,000,000 | | | | 6,024,434 |
| City of New Bedford, GO Notes | | | | | | |
| BAN 2%, 2/25/2005 | | 4,000,000 | | | | 4,002,115 |
| Michigan—2.0% | | | | | | |
| Birmingham Economic Development Corporation, LOR | | | | | | |
| VRDN (Brown St. Association Project) | | | | | | |
| 1.92% (LOC; ABN-AMRO) | | 1,700,000 | | a | | 1,700,000 |
| Detroit Downtown Development Authority, LR, Refunding | | | | |
| VRDN (Millender Center Project) | | | | | | |
| 1.85% (LOC; HSBC Bank USA) | | 7,000,000 | | a | | 7,000,000 |
| State of Michigan, GO Notes 3.50%, 9/30/2005 | | 10,000,000 | | | | 10,122,463 |
| Minnesota—.4% | | | | | | |
| Minnesota Housing Finance Agency | | | | | | |
| Revenue, Residential Program 1.25%, 5/18/2005 | | 3,745,000 | | | | 3,745,000 |
| Mississippi—1.8% | | | | | | |
| Mississippi Business Finance Corporation, College and | | | | | | |
| University Revenue, VRDN (Belhaven College Project) | | | | | | |
| 1.75% (LOC; First Tennessee Bank) | | 9,180,000 | | a | | 9,180,000 |
| University Educational Building Corporation, College | | | | | | |
| and University Revenue, VRDN (Campus | | | | | | |
| Improvements Project) 1.72% (Insured; MBIA | | | | | | |
| and Liquidity Facility; Amsouth Bank) | | 7,600,000 | | a | | 7,600,000 |
| Nebraska—2.9% | | | | | | |
| Nebhelp Incorporated, College and University Revenue | | | | | | |
| VRDN, Multiple Mode Student Loan 1.74% (Insured; | | | | | | |
| MBIA and Liquidity Facility; Lloyds TSB Bank PLC) | | 26,480,000 | | a | | 26,480,000 |
| New Hampshire—2.4% | | | | | | |
| New Hampshire Business Finance Authority, IDR, VRDN | | | | | | |
| (Keeney Manufacturing Co. Project) | | | | | | |
| 1.74% (LOC; Bank of America ) | | 4,500,000 | | a | | 4,500,000 |
| New Hampshire Health and Education Facilities Authority | | | | |
| Health Care Facilities Revenue, VRDN: | | | | | | |
| (Catholic Medical Center) 1.70% | | | | | | |
| (LOC; Citizens Bank of Massachusetts) | | 9,815,000 | | a | | 9,815,000 |
| (South New Hampshire Medical Center) 1.78% | | | | | | |
| (Insured; Radian Bank and LOC; Bank of America) | | 8,000,000 | | a | | 8,000,000 |
S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)
| | | Principal | | | | |
| Tax Exempt Investments (continued) | | Amount ($) | | Value ($) |
| |
| |
|
| New York—3.1% | | | | | | |
| Metropolitan Transportation Authority | | | | | | |
| Transportation Revenue, CP | | | | | | |
| 1.88%, 4/11/2005 (LOC; ABN-AMRO) | | 5,000,000 | | | | 5,000,000 |
| New York State Environmental Authority | | | | | | |
| GO Notes, CP 1.83%, 1/27/2005 | | | | | | |
| (LOC: Bayerische Landesbank and Helaba Bank) | | 5,000,000 | | | | 5,000,000 |
| New York State Thruway Authority | | | | | | |
| Highway Tolls Revenue 2%, 4/1/2005 | | 5,000,000 | | | | 5,007,767 |
| Port Authority of New York and New Jersey | | | | | | |
| Special Obligation Revenue, VRDN | | | | | | |
| (Versatile Structure Obligation) | | | | | | |
| 1.66% (Liquidity Facility; Landesbank Hessen- | | | | | | |
| Hessen-Thuringen Girozentrale) | | 5,000,000 | | a | | 5,000,000 |
| Rockland County, GO Notes, TAN 2%, 3/24/2005 | | 9,000,000 | | | | 9,014,098 |
| Ohio—1.8% | | | | | | |
| Lake County, Hospital Facilities Revenue, VRDN | | | | | | |
| (Lake Hospital Systems Inc.) 1.76% (Insured; | | | | | | |
| Radian Bank and Liquidity Facility; Bank of America) | | 12,000,000 | | a | | 12,000,000 |
| Lorain County, Independent Living Facilities Revenue | | | | | | |
| VRDN (Elyria United Methodist Project) | | | | | | |
| 1.69% (LOC; Bank One) | | 4,625,000 | | a | | 4,625,000 |
| Oregon—.6% | | | | | | |
| Oregon Facilities Authority, MFHR, VRDN | | | | | | |
| (Vintage at Bend Apartments) 1.72% | | | | | | |
| (Insured; FNMA Liquidity Facility; FNMA) | | 5,500,000 | | a | | 5,500,000 |
| Pennsylvania—12.0% | | | | | | |
| Dauphin County General Authority, Revenue | | | | | | |
| VRDN 1.75% (Insured; FSA and Liquidity Facility: | | | | | | |
| Bank of Nova Scotia and KBC Bank N.V.) | | 17,000,000 | | a | | 17,000,000 |
| Franklin County Industrial Development Authority | | | | | | |
| Industrial Revenue, VRDN (Menno Haven Project) | | | | | | |
| 1.72% (Insured; Radian Bank and Liquidity | | | | | | |
| Facility; Bank of America) | | 15,670,000 | | a | | 15,670,000 |
| Lancaster County Hospital Authority, Senior | | | | | | |
| Living Facilities Revenue, VRDN: | | | | | | |
| (Luthercare Project) | | | | | | |
| 1.75% (LOC; M&T Bank) | | 17,565,000 | | a | | 17,565,000 |
| (QuarryVille Presbyterian) | | | | | | |
| 1.70% (LOC; M&T Bank) | | 7,485,000 | | a | | 7,485,000 |
| (Willow Valley Retirement Project) 1.78% | | | | | | |
| (Insured; Radian Bank and Liquidity | | | | | | |
| Facility; Bank of America) | | 10,000,000 | | a | | 10,000,000 |
| |
| 12 | | | | | | |
| | | Principal | | | | |
| Tax Exempt Investments (continued) | | Amount ($) | | Value ($) |
| |
| |
|
| Pennsylvania (continued) | | | | | | |
| Montgomery County Higher Education and Health | | | | | | |
| Authority, Revenue, VRDN | | | | | | |
| (Pennsylvania Higher Education and Health Loan): | | | | | | |
| 1.73% (LOC; M&T Bank) | | 8,775,000 | | a | | 8,775,000 |
| 1.75% (LOC; M&T Bank) | | 11,680,000 | | a | | 11,680,000 |
| State of Pennsylvania, GO Notes, VRDN | | | | | | |
| Merlots Program 1.74% (Insured; MBIA and | | | | | | |
| Liquidity Facility; Wachovia Bank) | | 3,370,000 | | a | | 3,370,000 |
| Pennsylvania Higher Educational Facilities Authority | | | | | | |
| College and University Revenue, Refunding, VRDN | | | | | | |
| (Carnegie Mellon University) 1.67% | | | | | | |
| (Liquidity Facility; JPMorgan Chase Bank) | | 12,480,000 | | a | | 12,480,000 |
| Scranton-Lackawanna Health and Welfare Authority | | | | | | |
| Revenue, Refunding (Mercy Health System) | | | | | | |
| 5.25%, 1/1/2005 (Insured; MBIA) | | 1,435,000 | | | | 1,439,147 |
| Susquehanna County Industrial Development Authority | | | | | | |
| Industrial Revenue, VRDN (Pennfield Corp. Project) | | | | | | |
| 1.88% (LOC; Fulton Bank) | | 4,925,000 | | a | | 4,925,000 |
| Tennessee—.2% | | | | | | |
| Blount County Public Building Authority, Revenue, VRDN | | | | | | |
| (Local Government Public Improvement) 1.69% | | | | | | |
| (Insured; AMBAC and Liquidity Facility; Regions Bank) | | 2,280,000 | | a | | 2,280,000 |
| Texas—15.1% | | | | | | |
| City of Austin, Water and Wastewater Systems Revenue | | | | | | |
| VRDN, Merlots Program 1.74% (Insured; FSA and | | | | | | |
| Liquidity Facility; Wachovia Bank) | | 6,415,000 | | a | | 6,415,000 |
| Dallas Area Rapid Transit Authority, Transportation Revenue | | | | |
| CP 1.85%, 1/24/2005 (Liquidity Facility: Bayerische | | | | | | |
| Landesbank, Landesbank Baden-Wuerttemberg, State | | | | | | |
| Street Bank and Trust Co. and WestLB AG) | | 7,500,000 | | | | 7,500,000 |
| Dallas-Fort Worth International Airport Facilities | | | | | | |
| Improvement Corporation, Airport Revenue | | | | | | |
| VRDN, Merlots Program 1.79%, (Insured; FSA | | | | | | |
| and Liquidity Facility; Wachovia Bank) | | 3,530,000 | | a | | 3,530,000 |
| Greater Texas Student Loan Corporation | | | | | | |
| Student Loan Revenue, VRDN 1.72% | | | | | | |
| (LOC; State Street Bank and Trust Co.) | | 10,000,000 | | a | | 10,000,000 |
| Harris County Health Facilities Development Corporation | | | | | | |
| Health Care Facilities Revenue, VRDN | | | | | | |
| (St. Luke Episcopal Hospital) 1.68% (Liquidity | | | | | | |
| Facility: Bank of America, Bayerische Landesbank, | | | | | | |
| JPMorgan Chase Bank and Northern Trust Co.) | | 11,000,000 | | a | | 11,000,000 |
S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)
| | | Principal | | | | |
| Tax Exempt Investments (continued) | | Amount ($) | | Value ($) |
| |
| |
|
| Texas (continued) | | | | | | |
| Harris County Industrial Development Corporation | | | | | | |
| SWDR, VRDN (Deer Park Refining) 1.79% | | 8,000,000 | | a | | 8,000,000 |
| Port of Port Arthur Navigation District, Environmental | | | | | | |
| Facilities Revenue, Refunding, VRDN | | | | | | |
| (Motiva Enterprises Project) 1.82% | | 5,000,000 | | a | | 5,000,000 |
| Revenue Bond Certificate Series Trust, Revenue, VRDN: | | | | | | |
| (Dewitt) 1.95% (GIC; AIG Funding Inc.) | | 8,265,000 | | a | | 8,265,000 |
| (Heather Lane Apartments) | | | | | | |
| 1.95% (GIC; AIG Funding Inc.) | | 10,600,000 | | a | | 10,600,000 |
| (Landings) 1.95% (GIC; AIG Funding Inc.) | | 8,475,000 | | a | | 8,475,000 |
| City of San Antonio: | | | | | | |
| Water and Sewer Revenue, CP 1.90%, 1/13/2005 | | | | | | |
| (Liquidity Facility; Bank of America) | | 14,000,000 | | | | 14,000,000 |
| Water Revenue, VRDN, Merlots Program 1.74% | | | | | | |
| (Liquidity Facility; Wachovia Bank) | | 6,000,000 | | a | | 6,000,000 |
| State of Texas, Revenue, TRAN 3%, 8/31/2005 | | 10,000,000 | | | | 10,103,740 |
| Texas Department of Housing and Commerce | | | | | | |
| SFHR, CP 1.86%, 12/16/2004 | | | | | | |
| (LOC; Bayerische Landesbank) | | 15,000,000 | | | | 15,000,000 |
| Texas Department of Housing and Community Affairs | | | | | | |
| SFMR 1.95%, 8/3/2005 (GIC; CDC Funding Corp.) | | 5,000,000 | | | | 5,000,000 |
| University of Texas System Board of Regents | | | | | | |
| Education Revenue, CP 1.40%, 12/6/2004 | | 10,000,000 | | | | 10,000,000 |
| Utah—1.0% | | | | | | |
| County of Weber, Revenue, TRAN 2.50%, 12/30/2004 | | 9,500,000 | | | | 9,507,846 |
| Virginia—1.6% | | | | | | |
| Richmond Industrial Development Authority, Revenue | | | | | | |
| VRDN (Cogentrix of Richmond Project): | | | | | | |
| 1.71%, Series A (LOC; BNP Paribas) | | 5,000,000 | | a | | 5,000,000 |
| 1.71%, Series B (LOC; BNP Paribas) | | 9,500,000 | | a | | 9,500,000 |
| | | Principal | | | | |
| Tax Exempt Investments (continued) | | Amount ($) | | Value ($) |
| |
| |
|
| Washington—1.7% | | | | | | |
| Pierce County Economic Development Corporation | | | | | | |
| Industrial Revenue, VRDN (Seatac Packaging Project) | | | | | | |
| 1.85% (LOC; HSBC Bank USA) | | 5,300,000 | | a | | 5,300,000 |
| State of Washington, GO Notes, VRDN, Merlots Program | | | | | | |
| 1.74% (Insured; MBIA and LOC; Wachovia Bank) | | 3,965,000 | | a | | 3,965,000 |
| Washington Housing Finance Commission, MFHR, VRDN | | | | | | |
| (Holly Village Senior Living) 1.72% | | | | | | |
| (Insured; FNMA and Liquidity Facility; FNMA) | | 6,600,000 | | a | | 6,600,000 |
| Wyoming—2.9% | | | | | | |
| Campbell County, IDR | | | | | | |
| (Two Elk Power Generation Station Project) | | | | | | |
| 2.40%, 12/2/2004 (LOC; Bayerische Landesbank) | | 27,200,000 | | | | 27,200,000 |
| |
| |
| |
|
| |
| Total Investments (cost $939,822,299) | | 101.9% | | | | 939,822,299 |
| Liabilities, Less Cash and Receivables | | (1.9%) | | (17,281,860) |
| Net Assets | | 100.0% | | | | 922,540,439 |
S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)
| Summary of Abbreviations | | | | |
| |
| AMBAC | | American Municipal Bond | | GO | | General Obligation |
| | | Assurance Corporation | | IDR | | Industrial Development Revenue |
| BAN | | Bond Anticipation Notes | | LOC | | Letter of Credit |
| CP | | Commercial Paper | | LOR | | Limited Obligation Revenue |
| EDR | | Economic Development Revenue | | LR | | Lease Revenue |
| FGIC | | Financial Guaranteed Insurance | | MBIA | | Municipal Bond Investors |
| | | Company | | | | Assurance Insurance |
| FHLB | | Federal Home Loan Bank | | | | Corporation |
| FHLMC | | Federal Home Loan Mortgage | | MFHR | | Multi-Family Housing Revenue |
| | | Corporation | | SFHR | | Single Family Housing Revenue |
| FNMA | | Federal National Mortgage | | SFMR | | Single Family Mortgage Revenue |
| | | Association | | SWDR | | Solid Waste Disposal Revenue |
| FSA | | Financial Security Assurance | | TAN | | Tax Anticipation Notes |
| GIC | | Guaranteed Investment Contract | | TRAN | | Tax and Revenue Anticipation Notes |
| GNMA | | Government National Mortgage | | VRDN | | Variable Rate Demand Notes |
| | | Association | | XLCA | | XL Capital Assurance |
| Summary of Combined Ratings (Unaudited) | | |
| |
| Fitch | | or Moody’s or | | Standard & Poor’s | | Value (%) † |
| |
| |
| |
|
| F1+, F1 | | VMIG1, MIG1, P1 | | SP1+, SP1, A1+, A1 | | 88.2 |
| AAA, AA, A b | | Aaa, Aaa, A b | | AAA, AA, A b | | 6.3 |
| Not Rated c | | Not Rated c | | Not Rated c | | 5.5 |
| | | | | | | | | 100.0 |
| |
| † | | Based on total investments. | | | | |
| a | | Securities payable on demand.Variable interest rate—subject to periodic change. | | |
| b | | Notes which are not F, MIG and SP rated are represented by bond ratings of the issuers. |
| c | | Securities which, while not rated by Fitch, Moody’s and 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 notes to financial statements. | | | | |
| STATEMENT OF ASSETS AND LIABILITIES |
| November 30, 2004 (Unaudited) |
| | | Cost | | Value |
| |
| |
|
| Assets ($): | | | | |
| Investments in securities—See Statement of Investments | | 939,822,299 | | 939,822,299 |
| Interest receivable | | | | 2,942,866 |
| Prepaid expenses and other assets | | | | 23,393 |
| | | | | 942,788,558 |
| |
| |
|
| Liabilities ($): | | | | |
| Due to The Dreyfus Corporation and affiliates—Note 2(b) | | | | 402,199 |
| Cash overdraft due to Custodian | | | | 15,719,171 |
| Payable for investment securities purchased | | | | 4,028,587 |
| Payable for shares of Common Stock redeemed | | | | 18,260 |
| Accrued expenses | | | | 79,902 |
| | | | | 20,248,119 |
| |
| |
|
| Net Assets ($) | | | | 922,540,439 |
| |
| |
|
| Composition of Net Assets ($): | | | | |
| Paid-in capital | | | | 922,540,439 |
| |
| |
|
| Net Assets ($) | | | | 922,540,439 |
| |
| |
|
| Shares Outstanding | | | | |
| (5 billion shares of $.001 par value Common Stock authorized) | | 924,237,907 |
| Net Asset Value, offering and redemption price per share ($) | | 1.00 |
See notes to financial statements.
|
| STATEMENT OF OPERATIONS |
| Six Months Ended November 30, 2004 (Unaudited) |
| Investment Income ($): | | |
| Interest Income | | 6,296,267 |
| Expenses: | | |
| Management fee—Note 2(a) | | 2,293,618 |
| Shareholder servicing costs—Note 2(b) | | 237,505 |
| Custodian fees | | 41,973 |
| Directors’ fees and expenses—Note 2(c) | | 34,308 |
| Professional fees | | 28,359 |
| Registration fees | | 19,392 |
| Prospectus and shareholders’ reports | | 14,177 |
| Miscellaneous | | 14,905 |
| Total Expenses | | 2,684,237 |
| Investment Income—Net, representing net increase | | |
| in net assets resulting from operations | | 3,612,030 |
| | See notes to financial statements.
|
STATEMENT OF CHANGES IN NET ASSETS
| | | Six Months Ended | | |
| | | November 30, 2004 | | Year Ended |
| | | (Unaudited) | | May 31, 2004 |
| |
| |
|
| Operations ($): | | | | |
| Investment Income—Net, representing | | | | |
| net increase in net assets resulting | | | | |
| from operations | | 3,612,030 | | 4,628,471 |
| |
| |
|
| Dividends to Shareholders from ($): | | | | |
| Investment income—net | | (3,612,030) | | (4,628,471) |
| Net realized gain on investments | | — | | (79,830) |
| Total Dividends | | (3,612,030) | | (4,708,301) |
| |
| |
|
| Capital Stock Transactions ($1.00 per share): | | |
| Net proceeds from shares sold | | 652,520,387 | | 1,813,024,799 |
| Dividends reinvested | | 1,780,031 | | 1,910,657 |
| Cost of shares redeemed | | (713,722,159) | | (1,737,656,960) |
| Increase (Decrease) in Net Assets | | | | |
| from Capital Stock Transactions | | (59,421,741) | | 77,278,496 |
| Total Increase (Decrease) in Net Assets | | (59,421,741) | | 77,198,666 |
| |
| |
|
| Net Assets ($): | | | | |
| Beginning of Period | | 981,962,180 | | 904,763,514 |
| End of Period | | 922,540,439 | | 981,962,180 |
See notes to financial statements.
|
The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.
| Six Months Ended | | | | | | | | | | |
| November 30, 2004 | | | | | | Year Ended May 31, | | |
| |
| |
| |
| |
|
| | | (Unaudited) | | 2004 | | 2003 | | 2002 | | 2001 | | 2000 |
| |
| |
| |
| |
| |
| |
|
| Per Share Data ($): | | | | | | | | | | | | |
| Net asset value, | | | | | | | | | | | | |
| beginning of period | | 1.00 | | 1.00 | | 1.00 | | 1.00 | | 1.00 | | 1.00 |
| Investment Operations: | | | | | | | | | | | | |
| Investment income—net | | .004 | | .005 | | .008 | | .015 | | .034 | | .030 |
| Distributions: | | | | | | | | | | | | |
| Dividends from | | | | | | | | | | | | |
| investment income—net | | (.004) | | (.005) | | (.008) | | (.015) | | (.034) | | (.030) |
| Distributions from | | | | | | | | | | | | |
| net realized gains | | — | | (0.00)a | | — | | — | | — | | — |
| Total Distributions | | (.004) | | (.005) | | (.008) | | (.015) | | (.034) | | (.030) |
| Net asset value, end of period | | 1.00 | | 1.00 | | 1.00 | | 1.00 | | 1.00 | | 1.00 |
| |
| |
| |
| |
| |
| |
|
| Total Return (%) | | .80b | | .49 | | .84 | | 1.51 | | 3.46 | | 3.05 |
| |
| |
| |
| |
| |
| |
|
| Ratios/Supplemental Data (%): | | | | | | | | | | |
| Ratio of total expenses | | | | | | | | | | | | |
| to average net assets | | .59b | | .59 | | .59 | | .58 | | .59 | | .62 |
| Ratio of net investment income | | | | | | | | | | |
| to average net assets | | .79b | | .49 | | .83 | | 1.50 | | 3.39 | | 3.00 |
| |
| |
| |
| |
| |
| |
|
| Net Assets, end of period | | | | | | | | | | | | |
| ($ x 1,000) | | 922,540 | | 981,962 | | 904,764 | | 1,025,306 | | 920,718 | | 829,854 |
| |
| a Amount represents less than $.001 per share. | | | | | | | | | | |
| b Annualized. | | | | | | | | | | | | |
| See notes to financial statements. | | | | | | | | | | | | |
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
Dreyfus Municipal Money Market Fund, Inc. (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 maximize current income exempt from federal income tax to the extent consistent with the preservation of capital and the maintenance of liquidity. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, 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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.
(a) Portfolio valuation: Investments in securities are valued at amortized cost in accordance with Rule 2a-7 of the Act, which has been determined by the fund’s Board of Directors to represent the fair value of the fund’s investments.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Interest income, adjusted for accretion of discount and amortization premium on investments, is earned from settlement date and recognized on the accrual basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Cost of investments represents amortized cost.
The fund has an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits, if any, as an expense offset in the Statement of Operations.
(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.
(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 Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.
At November 30, 2004, the components of accumulated earnings on a tax basis were substantially the same as for financial reporting purposes.
The tax character of distributions paid to shareholders during the fiscal year ended May 31, 2004 was as follows: tax exempt income $4,628,471 and long-term capital gains $79,830.The tax character of current year distributions will be determined at the end of the current fiscal year.
At November 30, 2004, 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.
(b) Under the Shareholder Services Plan, the fund reimburses the Distributor 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 November 30, 2004, the fund was charged $137,186 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 November 30, 2004, the fund was charged $68,937 pursuant to the transfer agency agreement.
The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $371,624, shareholder services plan fees $6,638 and transfer agency per account fees $23,937.
(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 3—Legal Matters:
Two class actions have been filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC and the directors of all or substantially all of the Dreyfus funds, on behalf of a purported class and derivatively on behalf of said funds, alleging violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, and the common law. The complaints alleged, among other things, (i) that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend Dreyfus funds over other funds, (ii) that such payments were not disclosed to investors, (iii) that economies of scale and soft-dollar benefits were not passed on to investors and (iv) that 12b-1 fees charged to certain funds that were closed to new investors were also improper. The complaints sought compensatory and punitive damages, rescission of the advisory contracts and an accounting and restitution of any unlawful fees, as well as an award of attorneys’ fees and litigation expenses. On April 22, 2004, the actions were consolidated under the caption In re Dreyfus Mutual Funds Fee Litigation, and a consolidated amended complaint was filed on September 13, 2004.While adding new parties and claims under state and federal law, the allegations in the consolidated amended complaint essentially track the allegations in the prior complaints pertaining to 12b-1 fees, directed brokerage, soft dollars and revenue sharing. Dreyfus and the funds believe the allegations to be totally without merit and intend to defend the action vigorously.
Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Dreyfus funds believe that any of the pending actions will have a material adverse effect on the Dreyfus funds or Dreyfus’ ability to perform its contracts with the Dreyfus funds.
| For More | | Information |
| |
|
| |
| Dreyfus | | Transfer Agent & |
| Municipal Money | | Dividend Disbursing Agent |
| Market Fund, Inc. | | Dreyfus Transfer, Inc. |
| 200 Park Avenue | | 200 Park Avenue |
| New York, NY 10166 | | New York, NY 10166 |
| Manager | | Distributor |
| The Dreyfus Corporation | | Dreyfus Service Corporation |
| 200 Park Avenue | | 200 Park Avenue |
| New York, NY 10166 | | New York, NY 10166 |
| Custodian | | |
| The Bank of New York | | |
| One Wall Street | | |
| New York, NY 10286 | | |
| |
|
| |
| |
| Telephone 1-800-645-6561 | | |
| Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 |
| E-mail Send your request to info@dreyfus.com |
| Internet Information can be viewed online or downloaded at: http://www.dreyfus.com |
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Information regarding how the fund voted proxies relating to portfolio securities for the 12-month period ended June 30, 2004, is available on the SEC’s website at http://www.sec.gov and without charge, upon request, by calling 1-800-645-6561.
© 2005 Dreyfus Service Corporation
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.
Not applicable. [CLOSED-END FUNDS ONLY]
Item 9. Submission of Matters to a Vote of Security Holders.
The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor West, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.
Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.
Item 10. Controls and Procedures.
(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 11. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
| By: | | /s/ Stephen E. Canter |
| | | Stephen E. Canter |
| | | President |
| |
| Date: | | February 2, 2005 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | | /s/ Stephen E. Canter |
| | | Stephen E. Canter |
| | | Chief Executive Officer |
| |
| Date: | | February 2, 2005 |
| |
| By: | | /s/ James Windels |
| James Windels |
| | | Chief Financial Officer |
| |
| Date: | | February 2, 2005 |
EXHIBIT INDEX
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)
