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 811-3712
Dryefus Intermediate Municipal Bond 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: May 31, 2003
Date of reporting period: May 31, 2003
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
Dreyfus
Intermediate Municipal
Bond Fund, Inc.
ANNUAL REPORT May 31, 2003
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 Fund Performance
7 Statement of Investments
21 Statement of Assets and Liabilities
22 Statement of Operations
23 Statement of Changes in Net Assets
24 Financial Highlights
25 Notes to Financial Statements
29 Report of Independent Auditors
30 Important Tax Information
31 Board Members Information
33 Officers of the Fund
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Intermediate Municipal
Bond Fund, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This annual report for Dreyfus Intermediate Municipal Bond Fund, Inc. covers the
12-month period from June 1, 2002, through May 31, 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, Monica Wieboldt.
We have recently seen some signs of stability in the U.S. financial markets.
Perhaps most important, the war in Iraq wound down quickly, without disrupting
oil supplies or major incidents of terrorism. Many stock market indices have
posted encouraging gains since the start of 2003, although it is uncertain
whether such gains will continue. At the same time, an estimated $350 billion in
federal tax cuts were signed into law on May 28, and the evidence to date
suggests that any adverse impact on municipal bond yields should be minimal.
Indeed, rising state and local taxes may make municipal bonds more valuable for
investors seeking tax-exempt income.
Of course, problems and concerns remain. In the U.S. economy, unemployment has
risen to multiyear highs, and corporations remain reluctant to spend. Positive
factors appear to outweigh negative ones, however, and we believe that the U.S.
economy is on the path to recovery.
What are the implications for your investments? We believe that municipal bonds
may benefit as state and local tax rates rise, making tax-exempt yields more
attractive compared to taxable yields for many investors. At the same time,
because of ongoing fiscal pressures affecting many states and municipalities,
diversification remains important. As for stocks, we currently believe that
selectivity among individual companies can be a key factor in the equity
markets. However, no one can say for certain what direction the markets will
take over time. Your financial advisor can help you to ensure that your
portfolio reflects your investment needs, long-term 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
June 16, 2003
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus Intermediate Municipal Bond Fund, Inc. perform during the
reporting period?
For the 12-month period ended May 31, 2003, the fund achieved a total return of
8.09%. (1) The Lehman Brothers 7-Year Municipal Bond Index (the "Index"), the
fund' s benchmark, achieved a total return of 10.66% for the same period.(2) In
addition, the fund is reported in the Lipper Intermediate Municipal Debt Funds
category. Over the reporting period, the average total return for all funds
reported in this Lipper category was 8.86% .(3)
The fund's performance was primarily the result of declining interest rates in a
struggling economy and heightened demand for municipal bonds as investors sought
alternatives to a volatile stock market. The fund produced lower returns than
its benchmark, because it held more corporate-related issues than the Index and
because the Index does not reflect fees and other expenses. The fund's total
return was also lower than its Lipper category average, which we attribute
primarily to poor performance early in the reporting period among certain bonds
issued on behalf of corporations.
What is the fund's investment approach?
The fund seeks the maximum amount of current income exempt from federal income
tax as is consistent with the preservation of capital. To pursue this goal, the
fund normally invests substantially all of its assets in municipal bonds that
provide income exempt from federal personal income tax.
The fund will invest at least 80% of its assets in municipal bonds rated A or
higher, or the unrated equivalent as determined by Dreyfus. The dollar-weighted
average maturity of the fund's portfolio ranges between three and ten years.
The portfolio manager may buy and sell bonds based on credit quality, market
outlook and yield potential. In selecting municipal bonds for investment, the
portfolio manager may assess the current interest- The Fun
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
rate environment and the municipal bond's potential volatility in different rate
environments. The portfolio manager focuses on bonds with the potential to offer
attractive current income, typically looking for bonds that can provide
consistently attractive current yields or that are trading at competitive market
prices. A portion of the fund's assets may be allocated to "discount" bonds,
which are bonds that sell at a price below their face value, or to "premium"
bonds, which are bonds that sell at a price above their face value. The fund's
allocation to either discount bonds or to premium bonds will change along with
the portfolio manager's changing views of the current interest rate and market
environment. The portfolio manager also may look to select bonds that are most
likely to obtain attractive prices when sold.
What other factors influenced the fund's performance?
During the reporting period the fund was influenced both positively and
negatively by economic factors, including falling interest rates and
persistently weak levels of growth in the U.S. economy.
On the positive side, bond yields fell along with short-term interest rates as
the Federal Reserve Board (the "Fed") continued to maintain an accommodative
monetary policy designed to stimulate renewed growth. Because bond yields and
prices move in opposite directions, the fund benefited from price appreciation
among many of its holdings. This was particularly true in November 2002, when
the Fed reduced short-term interest rates by 50 basis points to just 1.25%. In
addition, the weak economy supported robust investor demand for investment
alternatives, such as municipal bonds, which helped keep yields low and prices
relatively high.
On the negative side, the weak economy created problems for a number of
corporations, and poor performance among tax-exempt bonds issued on behalf of
corporations detracted from the fund' s returns during the first half of the
reporting period. During the second half of the reporting period, we took
advantage of opportunities to reduce this exposure.
In addition, the faltering economy adversely affected the fiscal condition of
many states and municipalities. Throughout the country, state and local
governments have struggled to balance their budgets. Many have done so through a
combination of spending cutbacks and increased borrowing.
Some states, such as New York, have also raised taxes to help bridge their
budget gaps. The result of these fiscal difficulties has been a number of
credit-rating downgrades from the major credit-rating agencies.
In this deteriorating fiscal environment, we attempted to manage the fund
conservatively. We did so by diversifying the fund's assets across a greater
variety of issuers. We increased the fund's exposure to bonds from "specialty
states," such as New York and California, where relatively high state and local
taxes support greater investor demand. When we deemed it appropriate, we looked
to purchase bonds that were selling at a slight premium to their face values. In
our view, such bonds tend to provide competitive levels of income and have
historically held more of their value during market declines.
What is the fund's current strategy?
We continue to maintain what we believe to be a relatively conservative
investment posture for the fund. When purchasing new securities, we recently
have focused on bonds with weightings toward the longer end of the
intermediate-term maturity range, where we believe values and liquidity
characteristics currently are most attractive, while maintaining a core position
in high-income issues which may help to dampen volatility. Because of this
focus, the fund' s effective portfolio maturity ended the reporting period
slightly longer than where it began. In our view, these have been prudent
strategies in today's low interest-rate environment.
June 16, 2003
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. 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. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE LEHMAN BROTHERS 7-YEAR MUNICIPAL
BOND INDEX IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE
INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 7-YEAR TAX-EXEMPT BOND MARKET,
CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 6-8 YEARS. INDEX RETURNS DO NOT
REFLECT FEES AND EXPENSES ASSOCIATED WITH OPERATING A MUTUAL FUND.
(3) SOURCE: LIPPER INC. -- CATEGORY AVERAGE RETURNS REFLECT THE FEES AND
EXPENSES OF THE FUNDS COMPRISING THE AVERAGE.
The Fund
FUND PERFORMANCE
Lehman
Dreyfus Brothers
Intermediate 7-Year
Municipal Municipal
PERIOD Bond Bond
Fund, Inc. Index *
5/31/93 10,000 10,000
5/31/94 10,313 10,330
5/31/95 11,091 11,170
5/31/96 11,473 11,687
5/31/97 12,253 12,486
5/31/98 13,238 13,493
5/31/99 13,706 14,130
5/31/00 13,573 14,164
5/31/01 14,869 15,731
5/31/02 15,485 16,741
5/31/03 16,737 18,528
* Source: Lipper Inc.
Comparison of change in value of $10,000 investment in Dreyfus Intermediate
Municipal Bond Fund, Inc. and the Lehman Brothers 7-Year Municipal Bond Index
- --------------------------------------------------------------------------------
Average Annual Total Returns AS OF 5/31/03
1 Year 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------------------
FUND 8.09% 4.80% 5.29%
((+)) SOURCE: LIPPER INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. THE FUND'S PERFORMANCE
SHOWN IN THE GRAPH AND TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN DREYFUS INTERMEDIATE
MUNICIPAL BOND FUND, INC. ON 5/31/93 TO A $10,000 INVESTMENT MADE IN THE LEHMAN
BROTHERS 7-YEAR MUNICIPAL BOND INDEX (THE "INDEX") ON THAT DATE. ALL DIVIDENDS
AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
THE FUND INVESTS PRIMARILY IN MUNICIPAL SECURITIES AND MAINTAINS A PORTFOLIO
WITH A WEIGHTED AVERAGE MATURITY RANGING BETWEEN 3 AND 10 YEARS. THE FUND'S
PERFORMANCE SHOWN IN THE LINE GRAPH ABOVE TAKES INTO ACCOUNT FEES AND EXPENSES.
THE INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK
FOR THE INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 7-YEAR TAX-EXEMPT BOND
MARKET, CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 6-8 YEARS. THE INDEX
DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. THESE FACTORS CAN
CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
May 31, 2003
Principal
LONG-TERM MUNICIPAL INVESTMENTS--99.1% Amount ($) Value ($)
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ALABAMA--.8%
Bay Minette Industrial Development Board, IDR
(Coltec Industries, Inc) 6.50%, 2/15/2009 4,505,000 4,493,422
McIntosh Industrial Development Board, EIR
4.65%, 6/1/2008 3,550,000 3,862,364
ALASKA--4.8%
Alaska Housing Finance Corp.:
5.75%, 12/1/2009 (Insured; MBIA) 5,025,000 5,115,299
5.30%, 12/1/2012 (Insured; MBIA) 1,755,000 1,885,607
Alaska International Airports, Revenue:
5.50%, 10/1/2011 (Insured; AMBAC) 2,560,000 3,016,422
5.50%, 10/1/2012 (Insured; AMBAC) 1,620,000 1,920,024
Alaska Student Loan Corp., Student Loan Revenue:
5.60%, 7/1/2011 (Insured; AMBAC) 4,700,000 4,995,630
5.70%, 7/1/2013 (Insured; AMBAC) 5,990,000 6,334,245
6%, 7/1/2016 (Insured; AMBAC) 6,380,000 6,962,941
Anchorage:
5.875%, 12/1/2015 (Insured; FGIC) 2,365,000 2,803,069
5.875%, 12/1/2016 (Insured; FGIC) 1,500,000 1,777,845
Electric Utility Revenue:
6.50%, 12/1/2008 (Insured; MBIA) 2,755,000 3,360,218
6.50%, 12/1/2009 (Insured; MBIA) 2,910,000 3,608,545
5.875%, 2/1/2012 (Insured; FSA) 3,175,000 3,718,719
Northern Tobacco Securitization Corp.,
Tobacco Settlement Revenue 6%, 6/1/2013 4,745,000 4,718,618
ARIZONA--1.0%
Glendale Municipal Property Corp., Excise Tax Revenue
5%, 7/1/2017 (Insured; AMBAC) 2,160,000 2,407,039
Maricopa County Industrial Development Authority,
Hospital Systems Revenue (Baptist Hospital)
5.20%, 9/1/2005 (Insured; MBIA) 3,125,000 3,404,219
Mesa Industrial Development Authority, Revenue
(TRW Vehicle Safety Systems, Inc.)
7.25%, 10/15/2004 5,000,000 5,031,500
CALIFORNIA--7.6%
Beverly Hills Unified School District 4.50%, 8/1/2013 1,000,000 1,107,170
California (Veterans) 9.023%, 12/1/2013 5,000,000 (a,b) 5,750,000
California Department of Water Resources:
Power Supply Revenue 5.375%, 5/1/2017 10,000,000 11,363,000
Water Revenue:
(Central Valley Project):
5.25%, 12/1/2012 (Insured; FGIC) 13,345,000 15,793,541
5%, 12/1/2019 (Insured; FGIC) 4,000,000 4,384,880
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CALIFORNIA (CONTINUED)
California Educational Facilities Authority, Revenue
(Stanford University) 5.25%, 12/1/2013 2,000,000 2,393,880
California Pollution Control Financing Authority, PCR
(Southern California Edison Co.) 7%, 3/1/2005 7,500,000 7,635,975
California Statewide Community Development Authority,
MFHR 5.20%, 6/15/2009 3,000,000 3,282,870
Contra Costa Water District, Water Revenue
5%, 10/1/2019 (Insured; FSA) 4,825,000 5,290,178
Elsinore Valley Municipal Water District, COP
5.375%, 7/1/2016 (Insured; FGIC) 3,295,000 3,921,874
Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue
0%/7%, 1/1/2008 5,000,000 (c) 5,520,300
Los Angeles County Metropolitan Transportation Authority,
Sales Tax Revenue 5%, 7/1/2013 (Insured; FSA) 2,810,000 3,268,002
Sacramento Municipal Utilities District, Electric Revenue
5%, 8/15/2018 (Insured; MBIA) 7,000,000 7,783,160
San Francisco City & County Public Utilities Commission,
Water Revenue 5%, 11/1/2015 (Insured; MBIA) 2,000,000 2,262,040
COLORADO--3.1%
Bowles Metropolitan District 4.25%, 12/1/2023
(LOC; U.S. Bank National Association) 4,860,000 5,007,841
Denver City & County, Airport Revenue
9.16%, 11/15/2005 6,000,000 (a,b) 7,010,760
El Paso County School District
(Number 11 Colorado Springs):
6.25%, 12/1/2009 1,000,000 1,225,800
6.50%, 12/1/2010 2,000,000 2,501,940
6.50%, 12/1/2011 2,040,000 2,577,071
Interlocken Metropolitan District:
Zero Coupon, 12/15/2007 2,835,000 2,502,936
Zero Coupon, 12/15/2008 2,835,000 2,398,098
Weld County School District,
(No. 006 Greeley) 5.25%, 12/1/2018 (Insured; FSA) 7,975,000 8,915,412
CONNECTICUT--1.3%
Connecticut, Revenue:
(Mashantucket Western Pequot Tribe):
6.50%, 9/1/2006 (Escrowed to Maturity) 2,475,000 (b) 2,870,728
6.50%, 9/1/2006 2,525,000 (b) 2,843,579
5.60%, 9/1/2009 1,000,000 (b) 1,104,830
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CONNECTICUT (CONTINUED)
Connecticut, Revenue (continued):
Special Tax Obligation
(Transportation Infrastructure)
5.25%, 12/1/2015 (Insured; AMBAC) 5,890,000 6,828,159
DISTRICT OF COLUMBIA--1.1%
District of Columbia 6%, 6/1/2012 (Insured; MBIA) 3,280,000 4,001,206
District of Columbia Tobacco Settlement Financing Corp.:
5.80%, 5/15/2013 2,755,000 2,668,961
5.875%, 5/15/2014 5,000,000 4,823,900
FLORIDA--3.4%
Capital Projects Finance Authority, Student Housing
Revenue (Capital Projects Loan Program)
5.50%, 10/1/2015 (Insured; MBIA) 4,060,000 4,710,899
Collier County, Gas Tax Revenue:
5.25%, 6/1/2015 (Insured; AMBAC) 3,285,000 3,837,636
5.25%, 6/1/2019 (Insured; AMBAC) 2,190,000 2,482,431
FSU Financial Assistance Inc., Educational & Athletic
Facilities Improvement Revenue:
5%, 10/1/2017 (Insured; AMBAC) 1,630,000 1,830,669
5%, 10/1/2018 (Insured; AMBAC) 1,705,000 1,899,285
5%, 10/1/2019 (Insured; AMBAC) 1,785,000 1,972,229
Florida Turnpike Authority, Turnpike Revenue
(Department of Transportation)
5.25%, 7/1/2011 (Insured; FSA) 5,000,000 5,841,400
Orlando Utilities Commission, Water & Electric Revenue
5%, 10/1/2014 5,455,000 6,240,629
Palm Beach County School Board, COP
5.375%, 8/1/2014 (Insured; AMBAC) 4,000,000 4,788,600
Polk County, Utility System Revenue
5.25%, 10/1/2018 (Insured; FGIC) 2,000,000 2,281,700
GEORGIA--1.5%
Athens Housing Authority, Student Housing LR
(Ugaref East Campus Housing):
5.25%, 12/1/2015 (Insured; AMBAC) 2,560,000 2,938,470
5.25%, 12/1/2016 (Insured; AMBAC) 2,700,000 3,075,678
Atlanta, Airport Facilities Revenue
6%, 1/1/2007 (Insured; AMBAC) 5,780,000 6,585,790
Municipal Electric Authority (Combustion Turbine Project)
5.25%, 11/1/2012 (Insured; MBIA) 2,735,000 3,209,167
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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HAWAII--.3%
Kuakini Health System, Special Purpose Revenue
5.50%, 7/1/2012 2,575,000 2,691,879
ILLINOIS--5.4%
Carol Stream, First Mortgage Revenue
(Windsor Park Manor) 6.50%, 12/1/2007 2,560,000 2,678,707
Chicago (Neighborhoods Alive 21 Program)
5.50%, 1/1/2014 (Insured; FGIC) 3,230,000 3,730,779
Chicago Board of Education
5.50%, 12/1/2014 (Insured; FSA) 4,385,000 5,112,471
Chicago Housing Authority, Revenue (Capital Program)
5.25%, 7/1/2010 2,420,000 2,707,835
Chicago Metropolitan Water Reclamation District
(Greater Chicago Capital Improvement)
5.50%, 12/1/2012 3,000,000 3,574,020
Chicago O'Hare International Airport,
Passenger Facility Charge Revenue
5.50%, 1/1/2008 (Insured; AMBAC) 5,000,000 5,593,400
Illinois:
5.50%, 8/1/2013 (Insured; MBIA) 5,000,000 6,003,350
5.375%, 12/1/2016 (Insured; FSA) 7,000,000 8,086,960
5.375%, 11/1/2017 (Insured; FGIC) 4,000,000 4,533,680
Illinois Development Finance Authority
PCR (Amerencips) 5.50%, 3/1/2014 5,000,000 5,260,400
Illinois Educational Facilities Authority, Revenue
(Illinois Institute of Technology) 6.60%, 12/1/2009 2,665,000 2,854,162
Illinois Health Facilities Authority, Revenue
(Evangelical Hospital) 6.75%, 4/15/2007 2,035,000 2,280,991
Illinois Student Assistance Commission,
Student Loan Revenue 5.55%, 9/1/2006 4,000,000 4,372,800
INDIANA--3.3%
Central High School Building Corp., First Mortgage
5.50%, 8/1/2009 (Insured; AMBAC) 3,960,000 4,581,641
Indiana Health Facility Financing Authority, HR
(Clarian Health Partners, Inc.):
5.50%, 2/15/2010 3,000,000 3,287,430
5.50%, 2/15/2011 5,000,000 5,444,100
Indianapolis Local Public Improvement Bond Bank:
6.40%, 2/1/2005 3,000,000 3,248,370
6.50%, 1/1/2011 (Insured; FSA) 6,415,000 7,950,174
North Montgomery Elementary School Building Corp.,
First Mortgage Revenue 6.50%, 7/1/2006 5,040,000 5,434,078
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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INDIANA (CONTINUED)
Plymouth, Multi-School Building Corp.
(First Mortgage-Plymouth Community School)
5.50%, 7/1/2005 (Insured; MBIA) 3,000,000 3,265,260
Westfield High School Building Corp.,
First Mortgage Revenue
5.25%, 7/5/2013 (Insured; AMBAC) 1,500,000 1,684,740
IOWA--.4%
Council Bluffs, IDR (Cargill, Inc. Project) 7%, 3/1/2007 4,400,000 4,464,504
KENTUCKY--1.1%
Ashland, PCR (Ashland, Inc.) 5.70%, 11/1/2009 4,000,000 4,162,400
Carrolton and Henderson Public Energy Authority,
Gas Revenue (Kentucky Trust)
5%, 1/1/2006 (Insured; FSA) 3,500,000 3,817,485
Kenton County Airport Board, Airport Revenue
(Cincinnati/Northern Kentucky International)
5.75%, 3/1/2009 (Insured; MBIA) 3,710,000 4,050,875
MASSACHUSETTS--2.6%
Massachusetts:
8.30%, 12/1/2010 3,000,000 (a,b) 3,851,910
Consolidated Loan:
5.25%, 8/1/2012 2,000,000 2,320,560
5.50%, 11/1/2014 ((Insured; MBIA) 5,000,000 6,026,150
Massachusetts Housing Finance Agency
Housing Revenue:
6.30%, 7/1/2007 (Insured; AMBAC) 2,795,000 2,935,421
6.35%, 7/1/2008 (Insured; AMBAC) 3,005,000 3,145,995
6.40%, 7/1/2009 (Insured; AMBAC) 3,275,000 3,418,707
Massachusetts Water Pollution Abatement Trust
(Pool Program) 5%, 8/1/2016 3,000,000 3,348,990
Plymouth County, COP (Correctional Facilities Project)
5%, 4/1/2015 (Insured; AMBAC) 2,025,000 2,236,795
MICHIGAN--5.9%
Detroit Local Development Finance Authority
5.20%, 5/1/2010 5,745,000 6,159,100
Greater Detroit Resource Recovery Authority, Revenue:
6.25%, Series A, 12/13/2008 (Insured; AMBAC) 11,000,000 13,125,860
6.25%, Series B, 12/13/2008 (Insured; AMBAC) 7,755,000 9,253,731
Michigan Building Authority, Revenue
(State Police Communications System)
5.25%, 10/1/2013 1,945,000 2,297,220
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (CONTINUED)
Michigan Hospital Finance Authority, Revenue:
9.30%,11/15/2007 5,750,000 (a,b) 7,168,065
(Genesys Health System)
8.10%, 10/1/2013 (Prerefunded 10/1/2005) 7,000,000 (d) 8,241,940
(Sparrow Obligation Group):
5.25%, 11/15/2011 2,500,000 2,788,425
5.75%, 11/15/2016 3,250,000 3,614,812
Michigan Municipal Bond Authority, Revenue
(Drinking Water Revolving Fund)
5.25%, 10/1/2016 (Prerefunded; 10/1/2009) 2,370,000 (d) 2,773,564
Michigan Strategic Fund:
Exempt Facilities Revenue,
(Waste Management Inc. Project)
4.20%, 8/1/2004 3,000,000 3,055,200
SWDR (Genesee Power Station) 7.125%, 1/1/2006 3,000,000 2,966,820
MINNESOTA--.7%
Minnesota Public Facilities Authority,
Water Pollution Control Revenue 5%, 3/1/2013 6,755,000 7,481,500
MISSISSIPPI--1.5%
Mississippi Development Bank, Special Obligation
(Adams County HR Project)
5.75%, 7/1/2010 (Insured; FSA) 3,445,000 3,906,561
Mississippi Higher Education Assistance Corp.
Student Loan Revenue:
5.30%, 9/1/2008 2,390,000 2,592,983
5.45%, 3/1/2010 2,600,000 2,838,030
Walnut Grove Correctional Authority, COP:
5.25%, 11/1/2005 (Insured; AMBAC) 1,670,000 1,827,063
5.50%, 11/1/2006 (Insured; AMBAC) 1,760,000 1,988,818
5.50%, 11/1/2007 (Insured; AMBAC) 1,855,000 2,130,653
MISSOURI--2.1%
Joplin Industrial Development Authority, Revenue
(Catholic Health Initiatives):
5.50%, 12/1/2009 3,185,000 3,568,219
5.625%, 12/1/2010 3,340,000 3,710,105
Missouri Environmental Improvement & Energy
Research Authority,
Water Pollution Control Revenue
5.50%, 1/1/2011 3,135,000 3,682,904
Missouri Health & Educational
Facilities Authority, Revenue
(SSM Heath Care) 5%, 6/1/2007 2,940,000 3,240,115
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (CONTINUED)
Saint Louis, Airport Revenue
(Airport Development Program)
5.625%, 7/1/2015 (Insured; MBIA) 2,500,000 2,885,525
Saint Louis Industrial Development Authority, Revenue
(Saint Louis Convention) 7%, 12/15/2015 4,590,000 4,645,447
MONTANA--.3%
Forsyth, PCR:
(Pacificorp Project) 4.125%, 6/3/2013 2,500,000 2,507,525
(Portland General) 5.20%, 5/1/2009 1,000,000 1,026,060
NEVADA--.7%
Clark County, Passenger Facility Charge Revenue
(Las Vegas McCarran International Airport)
5.95%, 7/1/2005 (Insured; AMBAC) 6,365,000 6,976,104
NEW JERSEY--4.5%
New Jersey Building Authority, Building Revenue
5.25%, 12/15/2015 5,000,000 5,763,700
New Jersey Economic Development Authority, Revenue:
8.65%, 6/15/2008 5,000,000 (a,b) 6,602,250
School Facilities
(Construction 2001) 5.25%, 6/15/2010 30,000 34,807
Waste Paper Recycling
(Marcal Paper Mills, Inc.):
5.75%, 2/1/2004 (Insured; MBIA) 630,000 628,463
8.50%, 2/1/2010 (Insured; MBIA) 2,250,000 2,394,225
New Jersey Educational Facilities Authority, Revenue
(Rider University):
5%, 7/1/2010 1,880,000 2,101,201
5%, 7/1/2011 1,970,000 2,200,746
New Jersey Health Care Facilities
Financing Authority, Revenue
(South Jersey Hospital) 6%, 7/1/2012 3,425,000 3,896,246
New Jersey Transportation Trust Fund Authority
(Transportation System):
5.50%, 12/15/2013 (Insured: AMBAC) 10,000,000 12,039,100
6%, 6/15/2016 (Prerefunded 6/15/2010) 4,400,000 (d) 5,363,248
New Jersey Turnpike Authority, Revenue
5.625%, 1/1/2015 (Insured; MBIA) 5,000,000 5,749,950
NEW MEXICO--1.2%
Las Cruces, Joint Utility Improvement Revenue
5.50%, 7/1/2016 (Insured; MBIA) 7,000,000 7,963,690
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO (CONTINUED)
New Mexico Educational Assistance Foundation,
Student Loan Revenue
6.70%, 3/1/2006 4,415,000 4,575,264
NEW YORK--7.3%
City University of New York, COP (John Jay College)
5.75%, 8/15/2004 5,970,000 6,286,709
New York City:
6.25%, 8/1/2009 2,000,000 2,272,800
6.375%, 8/15/2009 9,750,000 10,773,360
New York City Transitional Finance Authority, Revenue
(Future Tax Secured):
5.375%, 2/1/2015 3,000,000 3,459,420
5.25%, 8/1/2016 (Insured; AMBAC) 3,000,000 3,414,930
New York State Dormitory Authority, Revenues:
(Department of Health):
5.50%, 7/1/2010 2,000,000 2,185,880
5.625%, 7/1/2011 3,240,000 3,529,300
(Personal Income Tax) 5.375%, 3/15/2017 5,500,000 6,311,525
New York State Local Government Assistance Corporation:
5.25%, 4/1/2016 3,425,000 4,003,551
5.25%, 4/1/2016 (Insured; FSA) 2,200,000 2,601,500
New York State Power Authority, Revenue
5.25%, 11/15/2016 5,025,000 5,730,007
New York State Thruway Authority, Service Contract
Revenue (Local Highway & Bridge):
6%, 4/1/2011 2,040,000 2,361,524
5.50%, 4/1/2012 3,950,000 4,670,954
5.50%, 4/1/2013 5,000,000 5,849,450
New York State Urban Development Corp.:
Correctional Facilities Revenue 5.25%, 1/1/2010 4,520,000 4,955,005
Personal Income Tax 5.25%, 3/15/2011 1,565,000 1,806,918
Triborough Bridge and Tunnel Authority, Revenue
6.75%, 1/1/2009 5,100,000 6,103,680
NORTH CAROLINA--3.0%
North Carolina Eastern Municipal Power Agency,
Power System Revenue:
5.50%, 1/1/2012 3,000,000 3,315,000
5.125%, 1/1/2014 3,000,000 3,182,970
North Carolina Municipal Power Agency,
Electric Revenue (Number 1 Catawba):
5.50%, 1/1/2010 (Insured; ACA) 10,000,000 11,314,600
5.25%, 1/1/2017 (Insured; FSA) 10,000,000 11,331,700
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA (CONTINUED)
Raleigh Durham Airport Authority, Airport Revenue
5.25%, 11/1/2012 (Insured; FGIC) 2,365,000 2,739,569
OHIO--2.3%
Cleveland, Airport Systems Revenue
5.25%, 1/1/2014 (Insured; FSA) 3,000,000 3,377,160
Cuyahoga County, HR:
(Cleveland Clinic Health System) 6%, 1/1/2017 4,000,000 4,514,880
(Metrohealth System)
5.25%, 2/15/2010 (Insured; MBIA) 5,160,000 5,948,551
Franklin County, HR (Holy Cross Health Systems)
5.20%, 6/1/2005 (Insured; MBIA) 2,930,000 3,104,306
Knox County, Hospital Facilities Revenue
(Knox Community Hospital Asset Guaranty)
5%, 6/1/2012 1,500,000 1,656,735
Lorain, HR (Catholic Healthcare)
5.25%, 10/1/2009 5,000,000 5,603,800
OKLAHOMA--1.3%
Norman Regional Hospital Authority, HR
5.625%, 9/1/2016 (Insured; MBIA) 4,510,000 5,029,146
Oklahoma Development Finance Authority, LR
(Oklahoma State System Higher Education):
4%, 6/1/2007 1,020,000 1,093,012
4%, 6/1/2008 1,060,000 1,137,179
Washington County Medical Authority, Revenue
(Jane Phillips Medical Center)
5.50%, 11/1/2010 (Insured; Connie Lee) 6,175,000 6,707,100
OREGON--1.6%
Oregon Department of Administrative Services
5%, 91//2009 (Insured; FSA) 5,000,000 5,742,650
Washington County Unified Sewer Agency,
Sewer Revenue 5.75%, 10/1/2012 (Insured; FGIC) 5,670,000 6,895,117
Washington and Clackamas Counties
(School District No. 23) 5.25%, 6/1/2015 3,285,000 3,881,622
PENNSYLVANIA--5.7%
Allegheny County Industrial Development Authority,
PCR 4.05%, 9/1/2011 (Insured; AMBAC) 4,000,000 4,264,160
Beaver County Insustrial Development Authority, PCR
(Ohio Edison Co. Project) 4.65%, 6/1/2004 10,000,000 10,170,700
Delaware County Industrial Development Authority, PCR
(Peco Energy Co.) 5.20%, 10/1/2004 4,000,000 4,155,200
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
Delaware Valley Regional Finance Authority,
Local Government Revenue 5.75%, 7/1/2017 6,830,000 8,309,788
Erie County Hospital Authority, Revenue
(Hamot Health Foundation)
5.375%, 5/15/2010 (Insured; AMBAC) 2,340,000 2,597,540
Pennsylvania 5.25%, 2/1/2018 5,000,000 5,595,600
Pennsylvania Higher Educational Facilities Authority,
Health Services Revenue (University of Pennsylvania):
5.60%, Series A, 1/1/2010 4,750,000 5,064,022
5.60%, Series B, 1/1/2010 4,350,000 4,642,059
5.70%, 1/1/2011 5,250,000 5,584,372
(UPMC Health System) 6.25%, 1/15/2015 3,660,000 4,149,891
Sayre Health Care Facilities Authority, Revenue
(Guthrie Health):
6%, 12/1/2012 2,000,000 2,278,780
6.25%, 12/1/2016 3,000,000 3,368,850
RHODE ISLAND--1.5%
Rhode Island Health and Educational Building Corp.:
Health Facilities Revenue (San Antoine)
5.50%, 11/15/2009 3,320,000 3,782,244
Hospital Financing Revenue
(Lifespan Obligation Group):
5.75%, 5/15/2007 (Insured; MBIA) 4,805,000 5,447,236
5.75%, 5/15/2008 (Insured; MBIA) 5,560,000 6,333,174
SOUTH CAROLINA--1.8%
Anderson County, IDR (Federal Paper Board)
4.75%, 8/1/2010 4,520,000 4,785,143
Charleston County, Hospital Facilities Improvement
Revenue (Medical Society Health)
5.50%, 10/1/2005 (Insured; MBIA) 7,945,000 8,396,753
Oconee County, PCR (Engelhard Corp. Project)
5.375%, 5/1/2006 1,500,000 1,630,290
Piedmont Municipal Power Agency, Electric Revenue
6.25%, 1/1/2004
(Insured; FGIC, Escrowed To Maturity) 585,000 602,948
York County, PCR (Bowater, Inc.)
7.625%, 3/1/2006 2,900,000 3,011,012
TENNESSEE--1.2%
Johnson City Health and Educational Facility Board, HR
(Medical Center Hospital Improvement)
5.125%, 7/1/2011 (Insured; MBIA) 6,720,000 7,589,098
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (CONTINUED)
Metropolitan Government Nashville & Davidson County
Industrial Development Board, Exempt Facilities Revenue
(Waste Management Inc.Project)
4.10%, 8/1/2004 1,000,000 1,017,250
Tennessee Housing Development Agency
(Homeownership Program):
5.20%, 7/1/2010 1,815,000 1,989,603
5.30% 7/1/2011 2,140,000 2,326,865
TEXAS--6.8%
Austin Convention Enterprises, Inc., Revenue
(Convention Center Hotel) 6.375%, 1/1/2016 3,945,000 4,124,182
Austin Independent School District
5.60% 8/1/2009 2,025,000 2,272,495
Bexar County, Revenue (Venue)
5.75%, 8/15/2013 (Insured; MBIA) 5,000,000 5,863,900
Cypress Fairbanks Independent School District
(Schoolhouse) 6.75%, 2/15/2012
(Prerefunded 2/15/2010) 1,700,000 (d) 2,129,862
Ennis IDC, Revenue (Cargill, Inc.)
6.15%, 11/1/2003 2,450,000 2,496,942
Gulf Coast Waste Disposal Authority:
Revenue (Bayport Area System)
5%, 10/1/2014 (Insured; AMBAC) 2,065,000 2,349,598
SWDR (Quaker Oats Co. Project) 5.70%, 5/1/2006 3,210,000 3,520,985
Harris County (Permanent Improvement)
5.25%, 10/1/2016 3,435,000 3,902,744
Harris County Health Facilities Development Corp., HR:
(Memorial Hermann Hospital System)
5.50%, 6/1/2012 (Insured; FSA) 8,295,000 9,636,882
(Memorial Hospital System)
6%, 6/1/2008 (Insured; MBIA) 3,000,000 3,483,990
Matagorda County, Navigation District No. 1, PCR
(Central Power & Light) 4%, 11/1/2003 5,000,000 5,023,450
Port Corpus Christi Authority, Nueces County
General Revenue (Union Pacific)
5.125%, 4/1/2009 2,250,000 2,358,855
Rio Grande Consolidated Independent School District,
Public Facilities LR 6.40%, 7/15/2003 1,090,000 1,097,194
South Texas Higher Education Authority,
Student Loan Revenue 5.30%, 12/1/2003 2,245,000 2,286,734
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Tarrant County Health Facilities Development Corp.,
Health Systems Revenue:
(Harris Methodist Health Systems) 6%, 9/1/2010 7,725,000 9,305,535
(Health Resources Systems)
5.75%, 2/15/2014 (Insured; MBIA) 5,000,000 5,960,200
Texas State College, Student Loan:
6%, 8/1/2005 2,130,000 2,328,282
6%, 8/1/2006 2,500,000 2,818,275
UTAH--1.4%
Carbon County, SWDR
(Sunnyside Cogeneration-A) 6.375%, 8/15/2011 8,450,000 8,022,430
Jordanelle Special Service District
(Special Assessment Improvement District)
8%, 10/1/2011 6,045,000 6,455,153
VIRGINIA--2.4%
Arlington County Industrial Development Authority, RRR
(Ogden Martin System of Alexandria/Arlington Inc.
Project) 5.375%, 1/1/2012 (Insured; FSA) 2,530,000 2,769,768
Big Stone Gap Redevelopment and Housing Authority,
Correctional Facility LR
(Wallens Ridge Development Project) 6%, 9/1/2007 4,000,000 4,496,240
Greater Richmond Convention Center Authority,
Hotel Tax Revenue (Convention Center
Expansion Project) 6%, 6/15/2011 2,000,000 2,350,060
Southeastern Public Service Authority, Revenue
5%, 7/1/2015 (Insured; AMBAC) 9,700,000 11,201,366
Virginia Housing Development Authority,
Commonwealth Mortgage:
5.45%, 1/1/2012 2,205,000 2,404,773
5.70%, 7/1/2015 (Insured; MBIA) 1,510,000 1,587,674
WASHINGTON--5.7%
Energy Northwest:
Electric Revenue (Project No. 1)
5.50%, 7/1/2017 (Insured; MBIA) 8,000,000 9,152,160
Revenue (Wind Project):
4.55%, 7/1/2006 1,600,000 1,691,424
5.60%, 7/1/2015 2,530,000 2,730,098
King County School District No. 401
(Highline Public Schools)
5.50%, 12/1/2014 (Insured; FGIC) 6,500,000 7,620,860
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (CONTINUED)
Seattle Municipal Light & Power, Revenue:
5.25%, 3/1/2010 (Insured; FSA) 50,000 57,617
9.21%, 3/1/2010 6,500,000 (a,b) 8,480,420
Washington:
5.75%, 10/1/2012 20,000 24,107
5.75%, 10/1/2012 2,305,000 2,756,480
COP (Convention & Trade Center)
5.125%, 7/1/2013 5,000,000 5,622,400
Washington Health Care Facilities Authority, Revenue
(Sisters of Providence)
5.40%, 10/1/2010 (Insured; AMBAC) 3,000,000 3,210,270
Washington, Public Power Supply Systems Revenue
(Nuclear Project Number 1):
7.25%, 7/1/2006 (Insured; FSA) 6,000,000 7,019,100
6%, 7/1/2007 (Insured; AMBAC) 9,720,000 11,049,599
WISCONSIN--1.3%
Wisconsin Health and Educational Facilities Authority,
Revenue:
(Aurora Health Care, Inc.):
5%, 8/15/2009 (Insured; MBIA) 4,335,000 4,790,435
5%, 8/15/2010 (Insured; MBIA) 3,955,000 4,315,696
(Aurora Medical Group, Inc.)
6%, 11/15/2011 (Insured; FSA) 3,500,000 4,189,290
U. S. RELATED--1.2%
Childrens Trust Fund, Tobacco Settlement Revenue:
5.75%, 7/1/2010 2,500,000 3,018,275
5.75%, 7/1/2012 (Prerefunded; 7/1/2010) 5,000,000 (d) 6,036,550
5.75%, 7/1/2013 (Prerefunded; 7/1/2010) 3,300,000 (d) 3,984,123
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $960,947,692) 1,038,051,319
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENTS--.7%
- --------------------------------------------------------------------------------
NEW YORK--.7%
New York City, VRDN 1.30% (Insured; MBIA) 7,600,000 (e) 7,600,000
(cost $7,600,000)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $968,547,692) 99.8% 1,045,651,319
CASH AND RECEIVABLES (NET) .2% 2,100,790
NET ASSETS 100.0% 1,047,752,109
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
ACA American Capital Access IDR Industrial Development Revenue
AMBAC American Municipal Bond Assurance LOC Letter of Credit
Corporation
LR Lease Revenue
COP Certificate of Participation
MBIA Municipal Bond Investors Assurance
EIR Environment Improvement Revenue
Insurance Corporation
FGIC Financial Guaranty Insurance
Company MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage PCR Pollution Control Revenue
Association
RRR Resources Recovery Revenue
FSA Financial Security Assurance
SWDR Solid Waste Disposal Revenue
HR Hospital Revenue
VRDN Variable Rate Demand Notes
IDC Industrial Development Corporation
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 59.1
AA Aa AA 16.8
A A A 12.6
BBB Baa BBB 5.9
BB Ba BB 1.0
F1 MIG1/P1 SP1/A1 .7
Not Rated (f) Not Rated (f) Not Rated (f) 3.9
100.0
(A) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION
NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT MAY 31, 2003, THESE SECURITIES
AMOUNTED TO $45,682,542 OR 4.4% OF NET ASSETS.
(C) ZERO COUPON UNTIL A SPECIFIED DATE, AT WHICH TIME THE STATED COUPON RATE
BECOMES EFFECTIVE UNTIL MATURITY.
(D) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(E) SECURITIES PAYABLE ON DEMAND. THE INTEREST RATE, WHICH IS SUBJECT TO
CHANGE, IS BASED UPON BANK PRIME RATES OR AN INDEX OF MARKET INTEREST RATES.
(F) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S,
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2003
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 968,547,692 1,045,651,31
Cash 275,006
Interest receivable 16,890,246
Receivable for investment securities sold 2,557,135
Receivable for shares of Common Stock subscribed 12,621
Prepaid expenses 31,069
1,065,417,396
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 634,903
Payable for investment securities purchased 16,392,194
Payable for shares of Common Stock redeemed 414,813
Accrued expenses 223,377
17,665,287
- --------------------------------------------------------------------------------
NET ASSETS ($) 1,047,752,109
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 995,249,457
Accumulated undistributed investment income--net 112,012
Accumulated net realized gain (loss) on investments (24,712,987)
Accumulated net unrealized appreciation
(depreciation) on investments 77,103,627
- --------------------------------------------------------------------------------
NET ASSETS ($) 1,047,752,109
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(300 million shares of $.001 par value Common Stock authorized) 75,340,469
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 13.91
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended May 31, 2003
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 52,373,954
EXPENSES:
Management fee--Note 3(a) 6,321,777
Shareholder servicing costs--Note 3(b) 1,117,328
Custodian fees 81,836
Professional fees 64,914
Directors' fees and expenses--Note 3(c) 51,963
Registration fees 32,812
Prospectus and shareholders' reports 29,198
Loan commitment fees--Note 2 14,616
Miscellaneous 54,523
TOTAL EXPENSES 7,768,967
INVESTMENT INCOME--NET 44,604,987
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 3,053,294
Net unrealized appreciation (depreciation) on investments 34,146,641
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 37,199,935
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 81,804,922
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended May 31,
-------------------------------------
2003 2002
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 44,604,987 50,603,892
Net realized gain (loss) on investments 3,053,294 (17,881,348)
Net unrealized appreciation (depreciation)
on investments 34,146,641 10,377,603
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 81,804,922 43,100,147
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (44,357,527) (50,517,843)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 195,712,715 162,985,033
Dividends reinvested 32,502,166 36,870,080
Cost of shares redeemed (275,909,166) (200,213,439)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (47,694,285) (358,326)
TOTAL INCREASE (DECREASE) IN NET ASSETS (10,246,890) (7,776,022)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 1,057,998,999 1,065,775,021
END OF PERIOD 1,047,752,109 1,057,998,999
Undistributed investment income--net 112,012 --
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 14,420,826 12,089,883
Shares issued for dividends reinvested 2,386,133 2,730,586
Shares redeemed (20,302,480) (14,845,163)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (3,495,521) (24,694)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
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.
Year Ended May 31,
-------------------------------------------------------------------------
2003 2002(a) 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 13.42 13.51 12.94 13.83 14.14
Investment Operations:
Investment income--net .57(b) .64(b) .65 .66 .67
Net realized and unrealized
gain (loss) on investments .49 (.09) .57 (.79) (.18)
Total from Investment Operations 1.06 .55 1.22 (.13) .49
Distributions:
Dividends from
investment income--net (.57) (.64) (.65) (.67) (.67)
Dividends from net realized
gain on investments -- -- -- (.09) (.13)
Total Distributions (.57) (.64) (.65) (.76) (.80)
Net asset value, end of period 13.91 13.42 13.51 12.94 13.83
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 8.09 4.14 9.54 (.97) 3.53
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets .74 .74 .74 .75 .75
Ratio of net investment income
to average net assets 4.23 4.74 4.82 4.97 4.75
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation -- -- .00(c) .02 .02
Portfolio Turnover Rate 41.30 27.32 24.32 20.86 20.37
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 1,047,752 1,057,999 1,065,775 1,066,938 1,265,267
(A) AS REQUIRED, EFFECTIVE JUNE 1, 2001, THE FUND HAS ADOPTED THE PROVISIONS OF
THE AICPA AUDIT AND ACCOUNTING GUIDE FOR INVESTMENT COMPANIES AND BEGAN
AMORTIZING DISCOUNT OR PERMIUM ON A SCIENTIFIC BASIS FOR DEBT SECURITIES ON A
DAILY BASIS. THE EFFECT OF THIS CHANGE FOR THE PERIOD ENDED MAY 31, 2002 WAS TO
INCREASE NET INVESTMENT INCOME PER SHARE AND DECREASE NET REALIZED AND
UNREALIZED GAIN (LOSS) ON INVESTMENTS PER SHARE BY LESS THAN $.01 AND INCREASE
THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS BY .01%. PER SHARE DATA
AND RATIOS/SUPPLEMENTAL DATA FOR PERIODS PRIOR TO JUNE 1, 2001 HAVE NOT BEEN
RESTATED TO REFLECT THIS CHANGE IN PRESENTATION.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Intermediate Municipal Bond Fund, Inc. (the "fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a non-diversified
open-end management investment company. The fund's investment objective is to
provide the maximum amount of current income exempt from federal income tax 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, which are sold to the public without a sales charge.
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 each business day
by an independent pricing service (the "Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service are
valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions.
(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 invest The Fun
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund received net earnings credits of $16,297 during the period
ended May 31, 2003 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
(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 May 31, 2003, the components of accumulated earnings on a tax basis were as
follows: accumulated capital losses $24,036,368 and unrealized appreciation
$77,272,246. In addition, the fund had $676,620 of capital losses realized after
October 31, 2002, which were deferred for tax purposes to the first day of the
following fiscal year.
The accumulated capital loss carryover is available to be applied against future
net securities profits, if any, realized subsequent to May 31, 2003. If not
applied, $6,326,266 of the carryover expires in fiscal 2008, $1,704,560 expires
in fiscal 2009 and $16,005,542 expires in fiscal 2011.
The tax character of distributions paid to shareholders during the fiscal
periods ended May 31, 2003 and May 31, 2002, were as follows: tax exempt income
$44,357,527 and $50,517,843, respectively.
During the period ended May 31, 2003, as a result of permanent book to tax
differences, the fund decreased accumulated undistributed investment income-net
by $135,448, increased accumulated net realized gain (loss) on investments by
$21,841 and increased paid-in capital by $113,607. Net assets were not affected
by this reclassification.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund based on prevailing market rates
in effect at the time of borrowings. During the period ended May 31, 2003, the
fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .60 of 1% of the value of the
fund' s average daily net assets and is payable monthly.
(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 shareholders accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquires regarding the fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended May 31, 2003, the fund was charged $623,928 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 provid
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ing personnel and facilities to perform transfer agency services for the fund.
During the period ended May 31, 2003, the fund was charged $355,981 pursuant to
the transfer agency agreement.
(C) Through January 27th, 2003, each director who is not an "affiliated person"
as defined in the Act received from the fund an annual fee of $4,500 and an
attendance fee of $500 per meeting. Each such director also serves as a board
member of other Funds within the Dreyfus complex (collectively, the "Fund
Group" ). After January 27th, 2003, Board compensation was changed from a "Fund
by Fund" basis to a "Fund Group" basis, such that each such director now
receives an annual fee of $30,000 and an attendance fee of $4,000 for each
in-person meeting and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group in proportion to each fund's relative net
assets. The Chairman of the Board receives an additional 25% of such
compensation. Subject to the fund's Emeritus Program Guidelines, Emeritus Board
members, if any, receive 50% of the annual retainer fee and per meeting fee paid
at the time the Board member achieves emeritus status.
(D) A .10% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. During the period ended May
31, 2003, redemption fees charged and retained by the fund amounted to $70,606.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended May 31, 2003, amounted to
$423,548,400 and $465,927,209, respectively.
At May 31, 2003, the cost of investments for federal income tax purposes was
$968,379,073; accordingly, accumulated net unrealized appreciation on
investments was $77,272,246, consisting of $77,919,648 gross unrealized
appreciation and $647,402 gross unrealized depreciation.
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus Intermediate Municipal Bond Fund,
Inc.
We have audited the accompanying statement of assets and liabilities of Dreyfus
Intermediate Municipal Bond Fund, Inc., including the statement of investments,
as of May 31, 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. Our procedures included confirmation of securities
owned as of May 31, 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 the
Dreyfus Intermediate Municipal Bond Fund, Inc. at May 31, 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
New York, New York
July 9, 2003
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with federal tax law, the fund hereby designates all the dividends
paid from investment income-net during its fiscal year ended May 31, 2003 as
"exempt-iterest dividends" (not generally subject to regular federal income tax)
..
As required by federal tax law rules, shareholders will receive notification of
their portion of the fund' s taxable ordinary dividends (if any) and capital
gains distributions (if any) paid for the 2003 calendar year on Form 1099 DIV
which will be mailed by January 31, 2004.
BOARD MEMBERS INFORMATION (Unaudited)
Joseph S. DiMartino (59)
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
--------------
David W. Burke (67)
Board Member (1994)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* John F. Kennedy Library Foundation, Director
* U.S.S. Constitution Museum, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 87
--------------
Samuel Chase (71)
Board Member (1983)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 15
--------------
Gordon J. Davis (61)
Board Member (1995)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Partner in the law firm of LeBoeuf, Lamb, Greene & MacRae LLP
* Presidient, Lincoln Center for the Performing Arts, Inc. (2001)
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Consolidated Edison, Inc., a utility company, Director
* Phoenix Companies, Inc., a life insurance company, Director
* Board Member/Trustee for several not-for-profit groups
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 26
The Fund
BOARD MEMBERS INFORMATION (Unaudited) (CONTINUED)
Joni Evans (61)
Board Member (1983)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Senior Vice President of the William Morris Agency
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 15
--------------
Arnold S. Hiatt (76)
Board Member (1983)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Chairman of The Stride Rite Charitable Foundation
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Isabella Stewart Gardner Museum, Trustee
* John Merck Fund, a charitable trust, Trustee
* Business for Social Responsibility, Chairman
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 15
--------------
Burton N. Wallack (52)
Board Member (1991)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* President and co-owner of Wallack Management Company, a real estate management
company
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 15
--------------
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.
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 190
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 57 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 190 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 49 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 206 portfolios) managed by
the Manager. He is 57 years old and has been an employee of the Manager since
June 1977.
JOHN B. HAMMALIAN, SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 37 investment
companies (comprised of 46 portfolios) managed by the Manager. He is 39 years
old and has been an employee of the Manager since February 1991.
STEVEN F. NEWMAN, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel and Assistant Secretary of the Manager, and an
officer of 96 investment companies (comprised of 206 portfolios) managed by the
Manager. He is 53 years old and has been an employee of the Manager since July
1980.
MICHAEL A. ROSENBERG, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 93 investment
companies (comprised of 199 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 206 portfolios) managed by the Manager. He is
44 years old and has been an employee of the Manager since April 1985.
The Fund
OFFICERS OF THE FUND (Unaudited) (CONTINUED)
GREGORY S. GRUBER, ASSISTANT TREASURER SINCE MARCH 2000.
Senior Accounting Manager - Municipal Bond Funds of the Manager, and an
officer of 29 investment companies (comprised of 58 portfolios) managed by the
Manager. He is 44 years old and has been an employee of the Manager since August
1981.
KENNETH J. SANDGREN, ASSISTANT TREASURER SINCE NOVEMBER 2001.
Mutual Funds Tax Director of the Manager, and an officer of 96 investment
companies (comprised of 206 portfolios) managed by the Manager. He is 48 years
old and has been an employee of the Manager since June 1993.
WILLIAM GERMENIS, ANTI-MONEY LAUNDERING COMPLIANCE OFFICER SINCE OCTOBER 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 201 portfolios) managed by the Manager. He is 32 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
NOTES
For More Information
Dreyfus Intermediate
Muncipal Bond 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, NY 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) 2003 Dreyfus Service Corporation 947AR0503
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. [RESERVED]
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) Based on an evaluation of the Disclosure Controls and Procedures (as
defined in Rule 30a-2(c) under the Investment Company Act of 1940, the
"Disclosure Controls") as of a date within 90 days prior to the filing date
(the "Filing Date") of this Form N-CSR (the "Report"), the Disclosure
Controls are effectively designed to ensure that information required to be
disclosed by the Registrant in the Report is recorded, processed, summarized
and reported by the Filing Date, including ensuring that information required
to be disclosed in the Report is accumulated and communicated to the
Registrant's management, including the Registrant's principal executive
officer and principal financial officer, as appropriate to allow timely
decisions regarding required disclosure.
(b) There were no significant changes in the Registrant's internal controls
or in other factors that could significantly affect these controls subsequent
to the date of their evaluation, and there were no corrective actions with
regard to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
(a) Not applicable.
(b)(1) Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2 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.
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
By: /s/Stephen E. Canter
---------------------
Stephen E. Canter
President
Date: July 30, 2003
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: July 30, 2003
By: /S/ JAMES WINDELS
James Windels
Chief Financial Officer
Date: July 30, 2003
EXHIBIT INDEX
(b)(1) Certifications of principal executive officer and
principal financial officer as required by Rule 30a-2 under the
Investment Company Act of 1940.
(b)(2) Certification of principal executive officer and
principal financial officer as required by Section 906 of the
Sarbanes-Oxley Act of 2002.