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: 811-3207
GENERAL 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: 11/30
Date of reporting period: 11/30/03
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
General Money
Market Fund, Inc.
ANNUAL REPORT November 30, 2003
YOU, YOUR ADVISOR AND
DREYFUS
A MELLON FINANCIAL COMPANY(SM)
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
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2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
12 Financial Highlights
15 Notes to Financial Statements
21 Report of Independent Auditors
22 Board Members Information
24 Officers of the Fund
FOR MORE INFORMATION
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Back Cover
The Fund
General Money Market Fund, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This annual report for General Money Market Fund, Inc. covers the 12-month
period from December 1, 2002, through November 30, 2003. 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, Bernard W. Kiernan.
Recent reports of marked improvement in the growth of U.S. Gross Domestic
Product suggest to us that the economy has started to turn the corner. Tax cuts
and low mortgage rates have put cash in consumers' pockets, and corporations
have begun to increase spending and investment. As a result, after several years
of falling interest rates, longer-term bond yields have begun to creep upward.
However, the Federal Reserve Board repeatedly has affirmed its commitment to low
short-term interest rates, and yields of money market instruments have remained
near historical lows.
Of course, we have seen upturns before, only to be disappointed when growth
proved unsustainable over the longer term. However, based on recent data, we are
cautiously optimistic about the current economic environment. As always, we urge
you to speak regularly with your financial advisor, who may be in the best
position to suggest the Dreyfus funds designed to meet your current needs,
future goals and attitudes toward risk.
Thank you for your continued confidence and support.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
December 15, 2003
DISCUSSION OF FUND PERFORMANCE
Bernard W. Kiernan, Jr., Portfolio Manager
How did General Money Market Fund, Inc. perform during the period?
During the 12-month period ended November 30, 2003, the fund produced yields of
0.56% for Class A shares, 0.33% for Class B shares and 0.32% for Class X shares.
Taking into account the effects of compounding, the fund produced effective
yields of 0.56% for Class A shares, 0.33% for Class B shares and 0.32% for Class
X shares for the same period.(1)
What is the fund's investment approach?
The fund seeks as high a level of current income as is consistent with the
preservation of capital. To pursue this goal, the fund invests in a diversified
portfolio of high-quality, short-term debt securities. These include securities
issued or guaranteed by the U.S. government or its agencies or
instrumentalities, certificates of deposit, short-term securities issued by
domestic or foreign banks, repurchase agreements, asset-backed securities,
domestic and dollar-denominated foreign commercial paper and dollar-denominated
obligations issued or guaranteed by foreign governments. Normally, the fund
invests at least 25% of its net assets in domestic or dollar-denominated foreign
bank obligations.
What other factors influenced the fund's performance?
Although the Federal Reserve Board (the "Fed") reduced short-term interest rates
by 50 basis points in early November 2002, just weeks before the start of the
reporting period, the economy remained persistently sluggish, growing at a
disappointing 1.4% annualized rate in the fourth quarter of 2002 as rising
geopolitical tensions, corporate scandals and a declining stock market continued
to take their toll.
During the opening months of 2003, hopes of a more sustainable economic rebound
faded when the impending war in Iraq caused businesses and consumers to postpone
spending. However, after it became clear in
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
late March that major combat would be over quickly, investors became more
optimistic, and money market yields rose at the longer end of the curve.
Nonetheless, U.S. GDP grew at a disappointing 1.4% annualized rate for the
second consecutive quarter during the reporting period.
The manufacturing sector began to show signs of sustainable improvement in May,
and consumer confidence rebounded. These encouraging signs were supported by
gains in the stock market, low inflation, moderating oil prices, rising
productivity and legislation enacting new tax cuts. However, the Fed maintained
its relatively cautious stance at its May meeting, saying economic risks were
"weighted toward weakness for the foreseeable future."
Economic indicators continued to improve in June, and the economy expanded at a
greater than expected 3.3% annualized rate during the second quarter.
Unfortunately, the unemployment rate climbed to 6.4%, its highest level in nine
years, and most investors expected the Fed to reduce interest rates further at
its meeting in late June. The Fed did not disappoint them, driving the federal
funds rate down another 25 basis points to 1%, a 45-year low.
In July, new signs of economic strength created a sudden shift in investor
sentiment amid concerns that rising inflation and a ballooning federal budget
deficit might lead to higher interest rates. As a result, prices of longer-term
bonds plunged, producing one of the most severe six-week declines in the history
of the bond market. Although heightened volatility roiled the longer-term bond
markets, money market yields remained relatively steady, anchored at the short
end of the curve by the 1% federal funds rate.
The economy continued to improve in the fall as it became clearer that business
investment and consumer spending were rebounding, even as inflation remained
well under control. Jobless claims dropped in September to their lowest level in
eight months, and sales at department stores rose as consumers spent their tax
refunds. It was later estimated that the economy grew at a robust 8.2%
annualized rate during the third quarter of 2003.
Economic indicators in October and November provided more evidence of an
improving economy, including an encouraging increase in the number of jobs in
the U.S. economy and a decrease in the unemployment rate to 6.0%. Orders for
durable goods rose more strongly in November, suggesting that business
investment was finally contributing in a meaningful way to the recovery, and
consumer confidence advanced to its highest level in more than a year. As a
result, yields of most U.S. Treasury securities and longer-dated money market
instruments began to rise. However, as was widely expected, the Fed held the
overnight federal funds rate steady at its December meeting just after the end
of the reporting period and reiterated its commitment to keeping borrowing rates
low for "a considerable period."
What is the fund's current strategy?
We generally have maintained the fund's weighted average maturity in a range we
consider longer than average. This strategy is designed to capture higher yields
at the longer end of the fund's maturity range. Of course, we are prepared to
adjust our strategies as economic and market conditions evolve.
December 15, 2003
(1) EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND REINVESTED
MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS FLUCTUATE.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR THE U.S.
GOVERNMENT. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT
$1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. YIELDS
PROVIDED FOR THE FUND'S CLASS B AND CLASS X SHARES REFLECT THE ABSORPTION OF
FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT
THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT
BEEN ABSORBED, THE FUND'S CLASS B AND CLASS X YIELDS WOULD HAVE BEEN LOWER.
The Fund
STATEMENT OF INVESTMENTS
STATEMENT OF INVESTMENTS
November 30, 2003
Principal
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--40.9% Amount ($) Value ($)
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BNP Paribas (Yankee)
1.20%, 5/19/2004 100,000,000 99,997,667
Barclays Bank PLC (Yankee)
1.04%, 12/23/2003 350,000,000 350,000,000
Chase Manhattan Bank USA (Yankee)
1.07%, 11/8/2004 233,000,000 (a) 233,000,000
Credit Agricole Indosuez S.A. (Yankee)
1.06%, 3/15/2004 150,000,000 (a) 149,993,499
Credit Lyonnais N.A. Inc. (Yankee)
1.06%, 10/14/2004 60,000,000 (a) 59,993,442
HBOS Treasury Services PLC (London)
1.04%--1.08%, 12/12/2003--1/16/2004 335,000,000 335,002,986
Landesbank Hessen-Thueringen Girozentrale (London)
1.04%, 1/5/2004 150,000,000 150,000,000
M&I Marshall & Ilsley Bank Milwaukee, WI (Yankee)
1.05%, 3/17/2004 200,000,000 (a) 199,988,212
Natexis Banques Populaires (Yankee)
1.05%--1.16%, 12/22/2003--5/4/2004 300,000,000 299,996,354
Norddeutsche Landesbank Girozentrale (Yankee)
1.20%, 8/27/2004 100,000,000 99,992,597
Nordea Bank Finland PLC (Yankee)
1.07%, 1/12/2004 100,000,000 (a) 99,999,420
Sanpaolo IMI SpA (London)
1.05%, 12/24/2003 200,000,000 200,000,000
Societe Generale (Yankee)
1.05%, 3/8/2004 250,000,000 (a) 249,990,058
UniCredito Italiano SpA (London)
1.08%, 12/12/2003 200,000,000 200,000,000
Westdeutsche Landesbank Girozentrale (Yankee)
1.05%, 1/12/2004 50,000,000 50,000,000
Wilmington Trust Co.
1.06%, 12/15/2003 50,000,000 50,000,000
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $2,827,954,235) 2,827,954,235
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COMMERCIAL PAPER--12.3%
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Allied Irish Banks N.A. Inc.
1.05%, 1/5/2004--1/7/2004 100,000,000 99,896,000
General Electric Capital Corp.
1.12%--1.14%, 3/4/2004--4/9/2004 300,000,000 299,009,056
Principal
COMMERCIAL PAPER (CONTINUED) Amount ($) Value ($)
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General Electric Capital Services Inc.
1.14%, 3/2/2004 100,000,000 99,711,222
Morgan Stanley & Co. Inc.
1.11%, 12/9/2003 100,000,000 100,000,000
Norddeutsche Landesbank Luxembourg S.A.
1.05%, 1/6/2004 100,000,000 99,895,500
UBS Finance Delaware LLC
1.04%, 12/1/2003 150,000,000 150,000,000
TOTAL COMMERCIAL PAPER
(cost $848,511,778) 848,511,778
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CORPORATE NOTES--10.9%
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Merrill Lynch & Co. Inc.
1.08%, 4/16/2004 150,000,000 (a) 150,000,000
Paradigm Funding LLC
1.08%, 8/20/2004 200,000,000 (a,b) 200,000,000
Societe Generale
1.06%, 2/18/2004 100,000,000 (a) 99,997,212
Swedbank
1.07%, 10/1/2004 300,000,000 (a) 299,970,205
TOTAL CORPORATE NOTES
(cost $749,967,417) 749,967,417
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PROMISSORY NOTES--4.3%
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Goldman Sachs Group Inc.
1.21%--1.41%, 1/21/2004--4/14/2004
(cost $300,000,000) 300,000,000 (c) 300,000,000
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SHORT-TERM BANK NOTES--10.9%
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BNP Paribas
1.06%, 6/16/2004 250,000,000 (a) 249,972,734
Bank One N.A.
1.05%, 1/12/2004 100,000,000 (a) 99,999,424
National City Bank
1.06%, 1/20/2004--2/23/2004 250,000,000 (a) 250,000,807
Westdeutsche Landesbank Girozentrale
1.07%, 6/7/2004 150,000,000 (a) 149,984,392
TOTAL SHORT-TERM BANK NOTES
(cost $749,957,357) 749,957,357
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
U.S. GOVERNMENT AGENCIES--20.3% Amount ($) Value ($)
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Federal Home Loan Banks, Notes
1.06%, 7/14/2004 120,000,000 120,000,000
Federal Home Loan Mortgage Corp., Discount Notes
1.02%--1.14%, 12/15/2003--3/8/2004 455,938,000 455,331,080
Federal Home Loan Mortgage Corp., Notes
1.27%--1.50%, 9/17/2004--12/24/2004 630,000,000 630,000,000
Federal National Mortgage Association, Notes
1.50%, 12/3/2004 200,000,000 200,000,000
TOTAL U.S. GOVERNMENT AGENCIES
(cost $1,405,331,080) 1,405,331,080
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TIME DEPOSITS--3.2%
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Branch Banking & Trust Co. (Grand Cayman)
1.00%, 12/1/2003 22,000,000 22,000,000
Rabobank Nederland (Grand Cayman)
1.02%, 12/1/2003 200,000,000 200,000,000
TOTAL TIME DEPOSITS
(cost $222,000,000) 222,000,000
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TOTAL INVESTMENTS (cost $7,103,721,867) 102.8% 7,103,721,867
LIABILITIES, LESS CASH AND RECEIVABLES (2.8%) (191,981,646)
NET ASSETS 100.0% 6,911,740,221
(A) VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.
(B) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THIS SECURITY MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT NOVEMBER 30,
2003, THIS SECURITY AMOUNTED TO $200,000,000 OR 2.9% OF NET ASSETS.
(C) THESE NOTES WERE ACQUIRED FOR INVESTMENT, AND NOT WITH THE INTENT TO
DISTRIBUTE OR SELL. SECURITIES RESTRICTED AS TO PUBLIC RESALE. THESE
SECURITIES WERE ACQUIRED FROM 2/25/2003 TO 10/16/2003 AT A COST OF
$300,000,000. AT NOVEMBER 30, 2003, THE AGGREGATE VALUE OF THESE
SECURITIES WAS $300,000,000 OR 4.3% OF NET ASSETS AND ARE VALUED AT
AMORTIZED COST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2003
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 7,103,721,867 7,103,721,86
Cash 664,698
Interest receivable 13,079,536
Prepaid expenses 263,065
7,117,729,166
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 5,333,998
Payable for investment securities purchased 200,000,000
Payable for shares of Common Stock redeemed 498,304
Accrued expenses 156,643
205,988,945
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NET ASSETS ($) 6,911,740,221
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 6,911,754,378
Accumulated net realized gain (loss) on investments (14,157)
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NET ASSETS ($) 6,911,740,221
NET ASSET VALUE PER SHARE
Class A Class B Class X
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Net Assets ($) 1,277,955,706 5,633,656,819 127,696
Shares Outstanding 1,277,994,320 5,633,632,357 127,701
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NET ASSET VALUE PER SHARE ($) 1.00 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended November 30, 2003
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INVESTMENT INCOME ($):
INTEREST INCOME 98,408,571
EXPENSES:
Management fee--Note 2(a) 36,893,858
Shareholder servicing costs--Note 2(c) 19,044,524
Distribution fees, service fees and prospectus--Note 2(b) 14,831,362
Custodian fees 280,704
Directors' fees and expenses--Note 2(d) 176,860
Registration fees 169,042
Professional fees 57,305
Prospectus and shareholders' reports 27,108
Miscellaneous 96,893
TOTAL EXPENSES 71,577,656
Less--reduction in shareholder servicing costs
due to undertaking--Note 2(c) (858,822)
NET EXPENSES 70,718,834
INVESTMENT INCOME-NET 27,689,737
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NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($) (10,418)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 27,679,319
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended November 30,
--------------------------------------
2003 2002
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OPERATIONS ($):
Investment income--net 27,689,737 84,953,550
Net realized gain (loss) on investments (10,418) 120,459
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 27,679,319 85,074,009
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A Shares (8,018,360) (21,557,165)
Class B Shares (19,670,906) (63,394,048)
Class X Shares (471) (2,337)
TOTAL DIVIDENDS (27,689,737) (84,953,550)
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CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A Shares 7,231,363,649 7,659,411,969
Class B Shares 14,956,398,812 14,614,130,063
Class X Shares 78,645 12,830
Dividends reinvested:
Class A Shares 7,901,889 21,033,870
Class B Shares 18,419,010 56,427,944
Class X Shares 246 1,383
Cost of shares redeemed:
Class A Shares (7,517,672,820) (7,503,864,979)
Class B Shares (14,800,138,189) (13,925,485,108)
Class X Shares (110,443) (146,242)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (103,759,201) 921,521,730
TOTAL INCREASE (DECREASE) IN NET ASSETS (103,769,619) 921,642,189
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NET ASSETS ($):
Beginning of Period 7,015,509,840 6,093,867,651
END OF PERIOD 6,911,740,221 7,015,509,840
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information reflects financial results for a
single fund share. 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.
Year Ended November 30,
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CLASS A SHARES 2003 2002 2001 2000 1999
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PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .006 .014 .041 .056 .044
Distributions:
Dividends from
investment income--net (.006) (.014) (.041) (.056) (.044)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) .56 1.43 4.21 5.77 4.53
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .77 .77 .79 .78 .78
Ratio of net investment income
to average net assets .57 1.42 4.03 5.64 4.44
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Net Assets, end of period
($ x 1,000) 1,277,956 1,556,365 1,379,758 982,685 863,981
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended November 30,
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CLASS B SHARES 2003 2002 2001 2000 1999
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PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .003 .012 .039 .054 .042
Dividends from
investment income--net (.003) (.012) (.039) (.054) (.042)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) .33 1.20 3.98 5.53 4.32
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.00 1.00 1.00 1.00 1.00
Ratio of net investment income
to average net assets .33 1.19 3.81 5.41 4.24
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation .01 .01 .03 .02 .03
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Net Assets, end of period
($ x 1,000) 5,633,657 5,458,986 4,713,819 3,338,285 3,056,844
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended November 30,
---------------------------------------------------------------------------
CLASS X SHARES 2003 2002 2001 2000 1999(a)
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PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .003 .012 .039 .054 .021
Distributions:
Dividends from investment income--net (.003) (.012) (.039) (.054) (.021)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) .32 1.16 3.94 5.49 4.33(b)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.02 1.05 1.05 1.05 1.05(b)
Ratio of net investment income
to average net assets .34 1.20 4.03 5.43 4.01(b)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation .10 .14 .13 .06 .25(b)
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Net Assets, end of period ( $x 1,000) 128 159 291 478 554
(A) FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
General 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 provide
investors with as high a level of current income as is consistent with the
preservation of capital. The Dreyfus Corporation (the "Manager") serves as the
fund's investment adviser. The Manager is a wholly-owned subsidiary of Mellon
Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of
the Manager, is the distributor of the fund's shares. The fund is authorized to
issue 25.5 billion shares of $.001 par value Common Stock. The fund currently
offers three classes of shares: Class A (15 billion shares authorized), Class B
(10 billion shares authorized) and Class X (500 million shares authorized).
Class A, Class B and Class X shares are identical except for the services
offered to and the expenses borne by each class and certain voting rights. Class
A shares are subject to a Service Plan adopted pursuant to Rule 12b-1 under the
Act, Class B and Class X shares are subject to a Distribution Plan adopted
pursuant to Rule 12b-1 under the Act and Class A, Class B and Class X shares are
subject to a Shareholder Services Plan. In addition, Class B shares are charged
directly for sub-accounting services provided by Service Agents (a securities
dealer, financial institution or other industry professional) at an annual rate
of .05% of the value of the average daily net assets of Class B shares. During
the period ended November 30, 2003, sub-accounting service fees amounted to
$2,984,636 for Class B shares and are included in shareholder servicing cost.
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
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
(A) PORTFOLIO VALUATION: Investments in securities are valued at amortized cost,
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.
(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 discount and premium on investments, is earned from
the settlement date and recognized on the accrual basis. Cost of investments
represents amortized cost. Under the terms of the custody agreement, the fund
receives net earnings credits based on available cash balances left on deposit.
The fund may enter into repurchase agreements with financial institutions deemed
to be creditworthy by the Manager, subject to the seller's agreement to
repurchase and the fund's agreement to resell such securities at a mutually
agreed upon price. Securities purchased subject to repurchase agreements are
deposited with the fund's custodian and, pursuant to the terms of the repurchase
agreement, must have an aggregate market value greater than or equal to the
repurchase price plus accrued interest at all times. If the value of the
underlying securities falls below the value of the repurchase price plus accrued
interest, the fund will require the seller to deposit additional collateral by
the next business day. If the request for additional collateral is not met, or
the seller defaults on its repurchase obligation, the fund maintains the right
to sell the underlying securities at market value and may claim any resulting
loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the fund to declare dividends
from investment income-net on each business day; 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, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all federal income and excise taxes.
At November 30, 2003, the components of accumulated earnings on a tax basis were
substantially the same as for financial reporting purposes.
The accumulated capital loss carryover of $14,157 is available to be applied
against future net securities profits, if any, realized subsequent to November
30, 2003. If not applied, $3,739 of the carryover expires in fiscal 2008 and
$10,418 expires in fiscal 2011.
The tax character of distributions paid to shareholders during the fiscal years
ended November 30, 2003 and November 30, 2002, respectively, were all ordinary
income.
At November 30, 2003, 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 ("Agreement") with the Manager, the
management fee is computed at the annual rate of .50 of 1% of the value of the
fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses of the fund, exclusive of
taxes, brokerage fees, interest on borrowings and extraordinary expenses, exceed
1 1/2% of the value of the fund's average net assets, the fund may deduct from
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
payments to be made to the Manager, or the Manager will bear, such excess
expense. During the period ended November 30, 2003, there was no expense
reimbursement pursuant to the Agreement.
(B) Under the Service Plan with respect to Class A shares (the "Plan"), adopted
pursuant to Rule 12b-1 under the Act, Class A shares bear directly the cost of
preparing, printing and distributing prospectuses and statements of additional
information and implementing and operating the Plan, such aggregate amount not
to exceed in any fiscal year of the fund, the greater of $100,000 or .005 of 1%
of the average daily net assets of Class A. In addition, Class A shares pay the
Distributor for distributing their shares, servicing shareholder accounts
("Servicing") and advertising and marketing relating to Class A shares at an
aggregate annual rate of .20 of 1% of the value of the average daily net assets
of Class A. The Distributor may pay one or more Service Agents a fee in respect
of Class A shares owned by shareholders with whom the Service Agent has a
Servicing relationship or for whom the Service Agent is the dealer or holder of
record. The schedule of such fees and the basis upon which such fees will be
paid shall be determined from time to time by the Distributor. If a holder of
Class A shares ceases to be a client of a Service Agent, but continues to hold
Class A shares, the Distributor will be permitted to act as a Service Agent in
respect of such fund shareholders and receive payments under the Plan for
Servicing. The fees payable for Servicing are payable without regard to actual
expenses incurred. During the period ended November 30, 2003, Class A shares
were charged $2,832,522 pursuant to the Plan.
Under the Distribution Plan with respect to Class B shares ("Class B
Distribution Plan") adopted pursuant to Rule 12b-1 under the Act, Class B shares
bear directly the costs of preparing, printing and distributing prospectuses and
statements of additional information and of implementing and operating the Class
B Distribution Plan, such aggregate amount not to exceed in any fiscal year of
the fund the greater of $100,000 or .005 of 1% of the average daily net assets
of Class B. In addition, Class B shares reimburse the Distributor for payments
made to third parties for distributing Class B shares at an annual rate not to
exceed .20 of 1% of the value of the average daily net assets of Class B. During
the period ended November 30, 2003, Class B shares were charged $11,998,488
pursuant to the Class B Distribution Plan.
Under the Distribution Plan with respect to Class X ("Class X Distribution
Plan") adopted pursuant to Rule 12b-1 under the Act, Class X shares pay the
Distributor for distributing Class X shares at an annual rate of .25 of 1% of
the value of the average daily net assets of Class X. During the period ended
November 30, 2003, Class X shares were charged $352 pursuant to the Class X
Distribution Plan.
(C) Under the Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), Class A shares reimburse the Distributor an amount
not to exceed an annual rate of .25 of 1% of the value of the average daily net
assets of Class A 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 Class A shares and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended November 30, 2003, Class A shares were charged $468,713
pursuant to the Class A Shareholder Services Plan.
Under the Shareholder Services Plan with respect to Class B and Class X
("Shareholder Services Plan"), Class B and Class X shares pay the Distributor at
an annual rate of .25 of 1% of the value of the average daily net assets of
Class B and Class X for servicing shareholder accounts. The services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding Class B and Class X shares and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Manager had undertaken from December 1, 2002 through November 30, 2003, to
reduce the expenses of Class B shares to the extent that, if the aggregate
expenses of Class B shares, exclusive of taxes, brokerage fees, interest on
borrowings and extraordinary expenses, exceed an annual rate of 1.01%. The
Manager had undertaken from December 1, 2002 through June 30, 2003, from July 1,
2003 through July 7, 2003 and from July 8, 2003 through November 30, 2003, to
reduce the expenses of Class X shares to the extent that, if the aggregate
expenses of Class X shares, exclusive of taxes, brokerage fees, interest on
borrowings and extraordinary expenses, exceed an annual rate of 1.05%, .90% and
1.05% , respectively, of the value of the average daily net assets of Class X
shares. In addition, the Manager may, at times, limit certain money market fund
expenses in an effort to enhance yields of a fund, or a particular class of a
fund, as applicable, because of low interest rates. Effective July 14, 2003,
the Manager limited fund expenses on the fund (Class B and Class X) to maintain
a minimum yield of 15 basis points. Such expense limitations are voluntary,
temporary and may be revised or terminated at anytime. During the period ended
November 30, 2003, Class B and Class X shares were charged $14,923,182 and $351
respectively, pursuant to the Shareholder Services Plan of which $858,685 and
$137, respectively, were reimbursed by the Manager.
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, 2003, the fund was charged $428,423 pursuant to the transfer
agency agreement.
(D) 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.
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors General Money Market Fund, Inc.
We have audited the accompanying statement of assets and liabilities of General
Money Market Fund, Inc., including the statement of investments, as of November
30, 2003, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and financial highlights for each of the years indicated therein. These
financial statements and financial highlights are the responsibility of the
fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of November 30, 2003 by correspondence with
the custodian and others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
General Money Market Fund, Inc. at November 30, 2003, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the indicated years, in conformity with accounting principles generally accepted
in the United States.
[ERNST & YOUNG LLP SIGNATURE LOGO]
New York, New York
January 9, 2004
The Fund
BOARD MEMBERS INFORMATION (Unaudited)
Joseph S. DiMartino (60)
Chairman of the Board (1995)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* The Muscular Dystrophy Association, Director
* Levcor International, Inc., an apparel fabric processor, Director
* Century Business Services, Inc., a provider of outsourcing functions for small
and medium size companies, Director
* The Newark Group, a provider of a national market of paper recovery
facilities, paperboard mills and paperboard converting plants, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 191
--------------
Clifford L. Alexander, Jr. (70)
Board Member (1981)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* President of Alexander & Associates, Inc., a management consulting firm
(January 1981-present)
* Chairman of the Board of Moody's Corporation (October 2000-October 2003)
* Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet
Corporation (October 1999-September 2000)
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Wyeth (formerly, American Home Products Corporation), a global leader in
pharmaceuticals, consumer healthcare products and animal health products,
Director
* Mutual of America Life Insurance Company, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 70
--------------
Peggy C. Davis (60)
Board Member (1990)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Shad Professor of Law, New York University School of Law (1983-present)
* She writes and teaches in the fields of evidence, constitutional theory,
family law, social sciences and the law, legal process and professional
methodology and training
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 26
Ernest Kafka (71)
Board Member (1981)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Physician engaged in private practice specializing in the psychoanalysis of
adults and adolescents (1962-present)
* Instructor, The New York Psychoanalytic Institute (1981-present)
* Associate Clinical Professor of Psychiatry at Cornell Medical School
(1987-2002)
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 26
--------------
Nathan Leventhal (60)
Board Member (1989)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Chairman of the Avery-Fisher Artist Program (November 1997-present)
* President of Lincoln Center for the Performing Arts, Inc. (March 1984-December
2000)
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Movado Group, Inc., Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 26
--------------
ONCE ELECTED ALL BOARD MEMBERS SERVE FOR AN INDEFINITE TERM. ADDITIONAL
INFORMATION ABOUT THE BOARD MEMBERS, INCLUDING THEIR ADDRESS IS AVAILABLE IN THE
FUND'S STATEMENT OF ADDITIONAL INFORMATION WHICH CAN BE OBTAINED FROM DREYFUS
FREE OF CHARGE BY CALLING THIS TOLL FREE NUMBER: 1-800-554-4611.
SAUL B. KLAMAN, EMERITUS BOARD MEMBER
The Fund
OFFICERS OF THE FUND (Unaudited)
STEPHEN E. CANTER, PRESIDENT SINCE MARCH 2000.
Chairman of the Board, Chief Executive Officer and Chief Operating Officer
of the Manager, and an officer of 95 investment companies (comprised of 186
portfolios) managed by the Manager. Mr. Canter also is a Board member and, where
applicable, an Executive Committee Member of the other investment management
subsidiaries of Mellon Financial Corporation, each of which is an affiliate of
the Manager. He is 58 years old and has been an employee of the Manager since
May 1995.
STEPHEN R. BYERS, EXECUTIVE VICE PRESIDENT SINCE NOVEMBER 2002.
Chief Investment Officer, Vice Chairman and a Director of the Manager, and
an officer of 95 investment companies (comprised of 186 portfolios) managed by
the Manager. Mr. Byers also is an officer, director or an Executive Committee
Member of certain other investment management subsidiaries of Mellon Financial
Corporation, each of which is an affiliate of the Manager. He is 50 years old
and has been an employee of the Manager since January 2000. Prior to joining the
Manager, he served as an Executive Vice President-Capital Markets, Chief
Financial Officer and Treasurer at Gruntal & Co., L.L.C.
MARK N. JACOBS, VICE PRESIDENT SINCE MARCH 2000.
Executive Vice President, Secretary and General Counsel of the Manager, and
an officer of 96 investment companies (comprised of 202 portfolios) managed by
the Manager. He is 57 years old and has been an employee of the Manager since
June 1977.
STEVEN F. NEWMAN, SECRETARY SINCE MARCH 2000.
Associate General Counsel and Assistant Secretary of the Manager, and an
officer of 96 investment companies (comprised of 202 portfolios) managed by the
Manager. He is 54 years old and has been an employee of the Manager since July
1980.
JANETTE E. FARRAGHER, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 15 investment
companies (comprised of 26 portfolios) managed by the Manager. She is 41 years
old and has been an employee of the Manager since February 1984.
MICHAEL A. ROSENBERG, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 93 investment
companies (comprised of 195 portfolios) managed by the Manager. He is 43 years
old and has been an employee of the Manager since October 1991.
JAMES WINDELS, TREASURER SINCE NOVEMBER 2001.
Director - Mutual Fund Accounting of the Manager, and an officer of 96
investment companies (comprised of 202 portfolios) managed by the Manager. He is
45 years old and has been an employee of the Manager since April 1985.
ROBERT ROBOL, ASSISTANT TREASURER SINCE AUGUST 2003.
Senior Accounting Manager - Money Market Funds of the Manager, and an
officer of 37 investment companies (comprised of 79 portfolios) managed by the
Manager. He is 39 years old and has been an employee of the Manager since
October 1988.
KENNETH J. SANDGREN, ASSISTANT TREASURER SINCE NOVEMBER 2001.
Mutual Funds Tax Director of the Manager, and an officer of 96 investment
companies (comprised of 202 portfolios) managed by the Manager. He is 49 years
old and has been an employee of the Manager since June 1993.
WILLIAM GERMENIS, ANTI-MONEY LAUNDERING COMPLIANCE OFFICER SINCE SEPTEMBER 2002
Vice President and Anti-Money Laundering Compliance Officer of the
Distributor, and the Anti-Money Laundering Compliance Officer of 91 investment
companies (comprised of 197 portfolios) managed by the Manager. He is 33 years
old and has been an employee of the Distributor since October 1998. Prior to
joining the Distributor, he was a Vice President of Compliance Data Center, Inc
The Fund
For More Information
General Money
Market Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, New York 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to info@dreyfus.com
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2004 Dreyfus Service Corporation 196AR1103
ITEM 2. CODE OF ETHICS.
The Registrant has adopted a code of ethics that applies to the
Registrant's principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant's Board has determined that Joseph S. DiMartino, a member
of the Audit Committee of the Board, is an audit committee financial expert as
defined by the Securities and Exchange Commission (the "SEC"). Mr. DiMartino is
"independent" as defined by the SEC for purposes of audit committee financial
expert determinations.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. 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 Registrant's most recently ended fiscal
half-year that has materially affected, or is reasonably likely to materially
affect, the Registrant's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a)(1) Code of ethics referred to in Item 2.
(a)(2) Certifications of principal executive and principal financial officers as
required by Rule 30a-2(a) under the Investment Company Act of 1940.
(b) Certification of principal executive and principal financial officers as
required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
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.
GENERAL MONEY MARKET FUND, INC.
By: /S/ STEPHEN E. CANTER
----------------------
Stephen E. Canter
President
Date: January 23, 2004
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: January 23, 2004
By: /S/ JAMES WINDELS
-----------------------
James Windels
Chief Financial Officer
Date: January 23, 2004
EXHIBIT INDEX
(a)(1) Code of ethics referred to in Item 2.
(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)