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 811-03479
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FRANKLIN NEW YORK TAX-FREE INCOME FUND
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(Exact name of registrant as specified in charter)
ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
(Address of principal executive offices) (Zip code)
MURRAY L. SIMPSON, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
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Date of fiscal year end: 5/31
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Date of reporting period: 5/31/05
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ITEM 1. REPORTS TO STOCKHOLDERS.
ITEM 2. CODE OF ETHICS.
(a) The Registrant has adopted a code of ethics that applies to its principal
executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a copy
of its code of ethics that applies to its principal executive officers and
principal financial and accounting officer.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The Registrant has an audit committee financial expert serving on its
audit committee.
(2) The audit committee financial experts are Edith E. Holiday and Harris J.
Ashton and they are "independent" as defined under the relevant Securities and
Exchange Commission Rules and Releases.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees paid to the principal accountant for
professional services rendered by the principal accountant for
the audit of the registrant's annual financial statements or for
services that are normally provided by the principal accountant
in connection with statutory and regulatory filings or
engagements were $69,033 for the fiscal year ended May 31, 2005
and $61,986 for the fiscal year ended May 31, 2004.
(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance
and related services rendered by the principal accountant to the
registrant that are reasonably related to the performance of the
audit of the registrant's financial statements and are not
reported under paragraph (a) of Item 4.
The aggregate fees paid to the principal accountant for assurance
and related services rendered by the principal accountant to the
registrant's investment adviser and any entity controlling,
controlled by or under common control with the investment adviser
that provides ongoing services to the registrant that are
reasonably related to the performance of the audit of their
financial statements were $0 for the fiscal year ended May 31,
2005 and $52,158 for the fiscal year ended May 31, 2004. The
services for which these fees were paid included attestation
services.
(c) Tax Fees
There were no fees paid to the principal accountant for
professional services rendered by the principal accountant to the
registrant for tax compliance, tax advice and tax planning.
The aggregate fees paid to the principal accountant for
professional services rendered by the principal accountant to the
registrant's investment adviser and any entity controlling,
controlled by or under common control with the investment adviser
that provides ongoing services to the registrant for tax
compliance, tax advice and tax planning were $19,591 for the
fiscal year ended May 31, 2005 and $0 for the fiscal year ended
May 31, 2004. The services for which these fees were paid
included tax compliance and advise.
(d) All Other Fees
The aggregate fees paid to the principal accountant for products
and services rendered by the principal accountant to the
registrant not reported in paragraphs (a)-(c) of Item 4 were $0
for the fiscal year ended May 31, 2005 and $2,577 for the fiscal
year ended May 31, 2004. The services for which these fees were
paid included review of materials provided to the fund Board in
connection with the investment management contract renewal
process.
The aggregate fees paid to the principal accountant for products
and services rendered by the principal accountant to the
registrant's investment adviser and any entity controlling,
controlled by or under common control with the investment adviser
that provides ongoing services to the registrant not reported in
paragraphs (a)-(c) of Item 4 were $4,500 for the fiscal year
ended May 31, 2005 and $97,423 for the fiscal year ended May 31,
2004. The services for which these fees were paid included
review of materials provided to the fund Board in connection with
the investment management contract renewal process and the review
of the ICI transfer agent survey.
(e) (1) The registrant's audit committee is directly responsible
for approving the services to be provided by the auditors,
including:
(i) pre-approval of all audit and audit related services;
(ii) pre-approval of all non-audit related services to be
provided to the Fund by the auditors;
(iii)pre-approval of all non-audit related services to be
provided to the registrant by the auditors to the registrant's
investment adviser or to any entity that controls, is controlled
by or is under common control with the registrant's investment
adviser and that provides ongoing services to the registrant
where the non-audit services relate directly to the operations or
financial reporting of the registrant; and
(iv) establishment by the audit committee, if deemed
necessary or appropriate, as an alternative to committee
pre-approval of services to be provided by the auditors, as
required by paragraphs (ii) and (iii) above, of policies and
procedures to permit such services to be pre-approved by other
means, such as through establishment of guidelines or by action
of a designated member or members of the committee; provided the
policies and procedures are detailed as to the particular service
and the committee is informed of each service and such policies
and procedures do not include delegation of audit committee
responsibilities, as contemplated under the Securities Exchange
Act of 1934, to management; subject, in the case of (ii) through
(iv), to any waivers, exceptions or exemptions that may be
available under applicable law or rules.
(e) (2) None of the services provided to the registrant described
in paragraphs (b)-(d) of Item 4 were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees paid to the principal accountant
for services rendered by the principal accountant to the
registrant and the registrant's investment adviser and any entity
controlling, controlled by or under common control with the
investment adviser that provides ongoing services to the
registrant were $24,091 for the fiscal year ended May 31, 2005
and $152,158 for the fiscal year ended May 31, 2004.
(h) The registrant's audit committee of the board of trustees has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including
any sub-adviser whose role is primarily portfolio management and
is subcontracted with or overseen by another investment adviser),
and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. N/A
ITEM 6. SCHEDULE OF INVESTMENTS. N/A
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES. N/A
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT
COMPANIES. N/A
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS. N/A
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have
been no changes to the procedures by which shareholders may recommend nominees
to the Registrant's Board of Trustees that would require disclosure herein.
ITEM 11. CONTROLS AND PROCEDURES.
(A) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form
N-CSR, the Registrant had carried out an evaluation, under the supervision and
with the participation of the Registrant's management, including the
Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.
(B) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Shareholder Report on Form N-CSR.
ITEM 12. EXHIBITS.
(a) (1) Code of Ethics
(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer
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.
FRANKLIN NEW YORK TAX-FREE INCOME FUND
By /s/JIMMY D. GAMBILL
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Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date July 22, 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/JIMMY D. GAMBILL
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Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date July 22, 2005
By /s/GALEN G. VETTER
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Galen G. Vetter
Chief Financial Officer
Date July 22, 2005